Conifex Timber Inc. · TSX:CFF
Conifex Timber — Q3 2022 Earnings Presentation
16 slides from Conifex Timber's earnings presentation, Nov 8, 2022
Slide 1: Corporate Presentation 3rd Quarter, 2022
CORPORATE PRESENTATION 3rd Quarter, 2022 November 8, 2022
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION 2 Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation may constitute "forward-looking information" or "forward-looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the act
Slide 3: Operations and Finance in Brief
OPERATIONS AND FINANCE IN BRIEF 3 • A public forestry company operating a sawmill complex and biomass power plant in Mackenzie, BC. • As at September 30, 2022, we reported: o Unrestricted cash balances of $21 million o An ABL facility with $15 million of undrawn availability primarily supported by i
Slide 4: Power Generation
POWER GENERATION 4 • Capacity is in excess of 230 gigawatt hours (GWh) of electricity per year, of which 200 GWh is sold under a fixed price contract to BC Hydro and 30 GWh is for internal consumption. • Electricity purchase agreement (EPA) and a related load displacement agreement (LDA) have been e
Slide 5: Lumber Manufacturing
LUMBER MANUFACTURING 5 • Operate a two-line sawmill complex equipped to handle large- and small-diameter logs with approximately 240 million board feet of lumber capacity on a two-shift annual basis. • Our main products are spruce, pine, fir (SPF) dimension lumber ranging in size from 2x4 to 2x10 in
Slide 6: Fibre, Residuals and People
FIBRE, RESIDUALS AND PEOPLE 6 • Our fibre sourcing includes access to a forest licence in the Mackenzie Timber Supply Area (TSA) with an allowable annual cut (AAC) of 632,500 cubic metres, and a 50% interest in a forest licence with an AAC of 300,000 cubic metres. • Fibre is the single largest input
Slide 7: Mackenzie Timber Supply Area
MACKENZIE TIMBER SUPPLY AREA 7 • Fourth largest TSA in the province, sparsely populated, situated in northeast BC, covering 6.4 million hectares. • The major tenure holders in the TSA are Canfor, BC Timber Sales, Conifex, and a company 50% owned by Conifex and Dunkley. Earlier in 2022, Canfor announ
Slide 8: Mackenzie Timber Supply Area
MACKENZIE TIMBER SUPPLY AREA 8 • A Timber Supply Review is underway, and the Chief Forester expects to release a new AAC determination late in 2022. Mackenzie Area • We anticipate that the new AAC determination will continue to support sawlog harvest levels that greatly exceed local sawlog consumpti
Slide 9: Mackenzie Timber Supply Area: Sawlog Supply and Demand
MACKENZIE TIMBER SUPPLY AREA 9 In July 2022, the BC Ministry of Forests (MOF) released its Public Discussion Paper (PDP) which provides up-to-date information about fibre availability and quality in the Mackenzie TSA. The PDP base case harvest projections are not AAC recommendations. Mackenzie TSA 3
Slide 10: Alignment with Stakeholder Objectives
ALIGNMENT WITH STAKEHOLDER OBJECTIVES 10 • The federal government has prioritized climate action and Indigenous peoples reconciliation. The province of BC has similar priorities. Conifex is doing its part to help governments achieve their objectives. • Since our inception as a public company, we hav
Slide 11: Responsible ESG Practices
RESPONSIBLE ESG PRACTICES 11 ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) CONSIDERATIONS https://www.conifex.com/main/sustainability/
Slide 12: Select Operating and Financial Information
SELECT OPERATING AND FINANCIAL INFORMATION 12 Continuing operations for the comparative periods primarily comprise operating results from our Mackenzie sawmill and power plant, and corporate costs. Selected Operating and Financial Information(1) In millions of dollars, unless otherwise noted Q3 2022
Slide 13: Selected Financial Position Information
SELECTED FINANCIAL POSITION INFORMATION 13 Selected Financial Position Information In millions of dollars, unless otherwise noted Q3 2022 Q4 2021 Q3 2021 Cash and Cash Equivalents 21.0 6.4 23.4 Cash - Restricted 7.5 6.5 6.6 Operating Working Capital(1) 39.2 39.1 35.5 Liquidity 36.0 16.4 33.4 Net Cur
Slide 14: High Performance Computing
HIGH PERFORMANCE COMPUTING 14 • Since 2021, we have been examining the feasibility of developing a business hosting data center or other high- performance computing (HPC) customers. • We completed a 3 megawatt trial at the end of September 2022 and gained valuable experience hosting HPC operations u
Slide 15: Outlook for Q4 2022 and 2023
OUTLOOK FOR Q4 2022 AND 2023 15 • Outlook for Fourth Quarter 2022 o Lumber shipments are anticipated to match sawmill production on improved rail car availability. o We anticipate fourth quarter results to be comparable to the results achieved in the third quarter with lumber prices holding steady a
Slide 16: Conifex Leadership Team
CONIFEX LEADERSHIP TEAM 16 Ken Shields, Chairman Winny Tang, CFO Andrew McLellan, VP/GM Trevor Pruden, VP & CEO Northern Operations Strategic Planning & Corporate Services For further Information, please contact: Investor Relations Winny Tang Chief Financial Officer (604) 216 –2949