Overview

* Conifex Q2 net loss C$8.3 mln, reversing Q1 net income of C$0.6 mln

* Sales fall to C$33.9 mln from C$44.6 mln as lumber production impacted by reduced log availability

* EBITDA negative C$3.2 mln in Q2, compared to C$4.9 mln in Q1

Outlook

* Conifex expects continued volatility in North American lumber markets in 2025

* Company anticipates sustaining two-shift operations through 2025

* Duty deposit rate increases pose significant challenges

* Conifex exploring financing options to improve liquidity

Result Drivers

* LOG AVAILABILITY - Reduced log availability led to a 24% decrease in lumber production compared to the previous quarter, operating at 59% of annualized capacity

* LUMBER PRICES - Lower mill net realizations on lower lumber market prices, particularly on wider dimension products, and a lower exchange rate on US dollar sales reduced revenue

* MAINTENANCE SHUTDOWN - Bioenergy production fell due to a six-week annual maintenance shutdown, reducing electricity revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS -C$0.18

Q2 Net -C$8.30

Income mln

Q2 Basic -C$0.2

EPS

Q2 -C$3.20

EBITDA mln

Q2 -C$4.50

Operatin mln

g Income

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)