Business
EACOM Timber Corporation announces its second quarter results and the proposed reconstruction of its Timmins mill
MONTREAL and VANCOUVER, Aug. 17, 2012 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR) (...
About this update from Etruscus Resources Corp.
[{"type":"text","content":"\n\n\n\n\n\nMONTREAL and VANCOUVER, Aug. 17, 2012 /CNW Telbec/ - EACOM Timber\n Corporation (TSXV: ETR) (\"EACOM\", or the \"Company\") is pleased to\n announce its second quarter results for the three-month period ended\n June 30, 2012.\n\n\nHIGHLIGHTS\n\n\nEACOM recorded a positive EBITDA of $2.9 million for the second quarter \n\n\nEACOM generated positive cash flows from operations of $3.2 million\n during the quarter\n\n\nUpgrades underway at Nairn Centre and Elk Lake\n\n\nCommencement of reconstruction of the Timmins mill\n\n\nA significant improvement in housing activity had a positive impact on\n lumber consumption during the quarter, contributing to a stronger\n pricing environment and higher mill realizations for the Company. As a\n result, the Company recorded a positive EBITDA of $2,862,000 for the\n second quarter ended June 30, 2012, against a negative EBITDA of\n $5,309,000 in the previous quarter and a negative EBITDA of $9,892,000\n in the corresponding quarter of 2011.\n\n\nThe Company has determined to commence reconstruction of the Timmins\n mill which had been destroyed by fire earlier this year. During the\n second quarter, the Company initiated capital improvements targeted at\n increasing the production capacity at two of its mills, Nairn Centre\n and Elk Lake. Improvements at Nairn Centre are well underway and should\n be completed in the third quarter. Construction at Elk Lake has just\n started and completion is scheduled in the early part of the fourth\n quarter following a three-week shutdown of the mill. Once completed,\n these upgrades are expected to partially offset the capacity lost at\n Timmins and mitigate some of the damages incurred as a result of the\n fire. A significant portion of these investments will be reimbursed\n under the business interruption insurance claim. To date, the Company\n has received $17,000,000 of insurance proceeds, of which $10,000,000\n for damage or destruction of assets and $7,000,000 related to business\n interruption.\n\n\n'The Company intends to continue its focused capital investments with a\n view to increase capacity and recovery, and reduce manufacturing costs.\n This should contribute to improve our competitiveness in the global\n forestry sector, and provide a more stable and sustainable employment\n environment for our employees in the communities where ...