Conifex Timber Inc. · TSX:CFF
Conifex Timber — Q1 2022 Earnings Presentation
15 slides from Conifex Timber's earnings presentation, May 10, 2022
Slide 1: Corporate Presentation 1st Quarter, 2022
CORPORATE PRESENTATION 1st Quarter, 2022 May 10, 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 March 31, 2022, we reported: o Unrestricted cash balances of $14.8 million o An ABL facility with $8.5 million of undrawn availability primarily supported by in
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 fiber 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. Canfor has recently announced
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. • We anticipate that the new AAC determination will continue to support sawlog harvest levels that greatly exceed local sawlog consumption. • Most of t
Slide 9: Alignment with Stakeholder Objectives
ALIGNMENT WITH STAKEHOLDER OBJECTIVES 9 • 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 have
Slide 10: Responsible ESG Practices
RESPONSIBLE ESG PRACTICES 10 ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) CONSIDERATIONS https://www.conifex.com/main/sustainability/
Slide 11: Select Operating and Financial Information
SELECT OPERATING AND FINANCIAL INFORMATION 11 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 Q1 202
Slide 12: Selected Financial Position Information
SELECTED FINANCIAL POSITION INFORMATION 12 Selected Financial Position Information In millions of dollars, unless otherwise noted Q1 2022 Q4 2021 Q1 2021 Cash 14.8 6.4 6.4 Cash - Restricted 6.6 6.5 5.6 Operating Working Capital(1) 54.3 39.1 23.1 Liquidity 23.3 16.4 16.4 Net Current Assets 64.6 47.4
Slide 13: High Performance Computing
HIGH PERFORMANCE COMPUTING 13 • Our location in a relatively cool climate, availability of affordable and surplus renewal power from BC Hydro and Power Authority and our knowledgeable and engaged power generation work force are ideally suited to develop a business hosting data center or other high-p
Slide 14: Outlook for 2022
OUTLOOK FOR 2022 14 • Outlook for Power Generation o We anticipate power production will be maintained at targeted rates. • Outlook for Lumber o We anticipate an active summer logging program and increased sawlog availability will support higher production and shipments. o Production operating rate
Slide 15: Conifex Leadership Team
CONIFEX LEADERSHIP TEAM 15 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