Conifex Timber Inc. · TSX:CFF
Conifex Timber — Q3 2021 Earnings Presentation
15 slides from Conifex Timber's earnings presentation, Nov 9, 2021
Slide 1: Corporate Presentation 3rd Quarter 2021
CORPORATE PRESENTATION 3rd Quarter, 2021 November 9th, 2021
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, 2021, we reported: o Unrestricted cash balances of $23.4 million o An ABL facility with $10 million of undrawn availability primarily supported by
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. • The largest body of water in
Slide 8: Mackenzie Timber Supply Area
MACKENZIE TIMBER SUPPLY AREA 8 • A Timber Supply Review is underway, and a revised AAC determination is expected early in 2022. • We anticipate the new AAC will be set at a level that continues to support sawlog harvest levels that exceed local consumption. • We also anticipate sawlog quality will i
Slide 9: Competitiveness Considerations
COMPETITIVENESS CONSIDERATIONS 9 • Under the Ministry of Forests and Range Act, the Minister of Forests, Lands, Natural Resources Operations and Rural Development is obligated to manage, protect, and conserve the forest and range resources of the government having regard to the immediate and long-te
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 Q3 202
Slide 12: Selected Financial Position Information
SELECTED FINANCIAL POSITION INFORMATION 12 Selected Financial Position Information In millions of dollars, unless otherwise noted Q3 2021 Q4 2020 Q3 2020 Cash 23.4 11.2 6.4 Cash - Restricted 6.6 3.6 3.7 Operating Working Capital(1) 35.5 14.7 14.9 Liquidity 33.4 21.2 6.4 Net Current Assets 60.9 25.0
Slide 13: Substantial Issuer Bid
SUBSTANTIAL ISSUER BID 13 • Our Board of Directors approved the commencement of a substantial issuer bid for our common shares on November 8, 2021. • Highlights of the substantial issuer bid: o Offer to purchase up to 4,000,000 common shares from shareholders for cancellation o Purchase price of $2.
Slide 14: High Performance Computing – Trial 2021
HIGH PERFORMANCE COMPUTING – TRIAL 2021 14 • Conifex has been exploring ways to augment our core forest products business through new and complementary revenue streams. • Our key objective is to diversify our sources of revenue and thereby enhance societal benefits and economic stability, as well as
Slide 15: Conifex Leadership Team
CONIFEX LEADERSHIP TEAM 15 Ken Shields, Chairman Winny Tang, CFO Andrew McLellan, VP/GM Kristen Stinson, VP/GM & CEO Northern Operations Corporate Services For further Information, please contact: Investor Relations Communications & Public Affairs Winny Tang Kristen Stinson Chief Financial Officer V