Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Investor Presentation (December 2024)
16 slides from Greenfirst Forest Products's investor presentation, Dec 4, 2024
Slide 1: Strategic Capital Expenditure Presentation
Strategic Capital Expenditure Presentation December 4, 2024
Slide 2: Legal Disclaimer
Legal Disclaimer 2 This Presentation is being provided to you by GreenFirst Forest Products Inc. (“GreenFirst” or the “Company”) for informational purposes only. Cautionary Note Regarding Forward-Looking Information This Presentation includes information, statements, beliefs and opinions which are f
Slide 3: GreenFirst is a Compelling Investment Opportunity
GreenFirst is a Compelling Investment Opportunity 3 Sole Public Eastern North American Pure Play Lumber Company ⚫ Prudent spinouts and divestments have allowed GreenFirst (“GFP”) to focus on building core Ontario lumber business, supported by ample fibre supply to support forecasted growth Strong Lu
Slide 4: Recent Highlights Position GreenFirst to Succeed
Recent Highlights Position GreenFirst to Succeed 4 Q4 2022 ▪ Sale of an interest in 203,000 acres of private forest land for ~C$49 mm Q1 2023 ▪ Sale of non-core La Sarre and Béarn sawmills in Quebec for ~C$94mm, repositioning the company to focus solely on Ontario Q4 2023 / Q3 2024 ▪ Appointment of
Slide 5: Lumber Market Fundamentals Are Improving
Lumber Market Fundamentals Are Improving 5 In billions of board feet (Bbf.) North America Housing Starts (Bbf.) North America Residential Improvements (Bbf.) Housing Demand will continue to increase lumber demand, the primary commodity utilized 47.6 46.5 44.7 43.6 42.9 42.3 42.3 40.6 41.2 40.0 39.8
Slide 6: Strong Lumber Price Momentum
Strong Lumber Price Momentum 6 $874 Western Spruce-Pine-Fir (US$ / Mbf) $787 $687 $664 $588 $553 $480 $401 $396 $349 $421 $389 $277 $359 $305 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E Lumber prices are steadily improving, a trend which is expected to c
Slide 7: GreenFirst's Strategic Investment Plan
GreenFirst’s Strategic Investment Plan 7 Invest ~C$50 mm over the next 18 months to generate ~C$18 mm in STRATEGIC additional EBITDA(1) as part of an effort to become the largest wood INVESTMENT PLAN producer in Ontario and a top quartile North American lumber Phase I producer Phase 1 PROPOSED INVES
Slide 8: Investment Plan at the Mill Level
Investment Plan at the Mill Level 8 HEARST SAWMILL KAPUSKASING SAWMILL +23,000 Mfbm +6,000 Mfbm In annual production In annual production + ~C$3 mm + ~C$4 mm In annual EBITDA In annual EBITDA Planned Upgrades Planned Upgrades ~C$2.5 mm on new planer mill ~C$6.5 mm on new batch kiln ~C$2.5 mm on Keno
Slide 9: Improving Production and Cost Curve
Improving Production and Cost Curve 9 GreenFirst Costs (C$ / Mfbm) and Production (Mmfbm) Processing Costs Total Production ~27% increase in Production since 2022 (1) 387 412 415 490 2022 2023 Q3 2024 YTD Future - Phase I ~9% Improvement in cost per Mfbm Capital program to drive ~15% further improve
Slide 10: GreenFirst Positioned to Capitalize on Climbing Lumber Prices
GreenFirst Positioned to Capitalize on Climbing Lumber Prices 10 Current and Future Breakeven vs. Historical Benchmarking Prices Break Even 2024E Price (C$ / Mfbm) Break Even Future Price (C$ / Mfbm) C$ / Mfbm GreenFirst’s breakeven price compared to today is expected to improve by ~C$60 – 70 / Mfbm
Slide 11: Driving Production, Cutting Costs, and Increasing EBITDA
Driving Production, Cutting Costs, and Increasing EBITDA 11 In C$ mm Incremental Cost Savings from Capital Improvement Program Cost Savings on Increased Volume Cost Savings on 2024E Volume $21 $16 $4 $2 $14 $17 Low Estimate High Estimate Each C$10 / Mfbm increase in lumber price(1) will drive ~C$5 m
Slide 12: Benchmarking GreenFirst's Plan to Select Peer Projects
Benchmarking GreenFirst’s Plan to Select Peer Projects 12 In C$ / Mfbm ~$1,600 ~$1,300 ~$1,200 ~$900 $658 Proposed Expansion U.S. South Greenfield U.S. South Greenfield U.S. South Modernization U.S. South Modernization GreenFirst Project 1 Project 2 Project 3 Project 4 Alternatives to GreenFirst’s p
Slide 13: GreenFirst's Financial Position is Strong
GreenFirst’s Financial Position is Strong 13 C$20 mm C$44 mm C$112 mm C$316 mm C$8.16 Cash(1) Liquidity(1)(2) Duties on Deposit(3) Book Value of Assets(1)(4) Book Value per Share(1)(4) Note: Figures are from GreenFirst’s latest financial disclosure (as at 28-Sep-24) and rounded to nearest million. 1
Slide 14: Committed to Sustainability
Committed to Sustainability 14 GreenFirst is dedicated to maintaining high standards of sustainability across our business practices ▪ Wood stores carbon and is the only renewable major building material Green ▪ Lumber building materials require less energy to produce and transport than Advantages o
Slide 15: Vision Mission
Strategic Plan 15 Vision Grow GreenFirst’s business in the lumber sector and become the largest wood producer in Ontario Mission Become one of the top quartile lumber producers in North America by prioritizing continuous improvement, strategic capital investment, and pursuing mergers and acquisition
Slide 16: Thank You
PRODUITS FORESTIERS GREENFIRST FOREST PRODUCTS [& GREENFIRST
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