VANCOUVER, British Columbia – Conifex Timber Inc.  reported a net loss of $4.5 million, which included the benefit of a $3.0 million insurance settlement for the loss of the Osilinka Logging Camp destroyed in a fire. In comparison, the company experienced a net loss of $8.1 million for the year-earlier quarter.

Conifex noted that its lumber production in the first quarter of 2024 totaled approximately 44.5 million board feet, representing operating rates of approximately 74% of annualized capacity.  Lumber production in the first quarter of 2023 was 41.2 million board feet or approximately 69% of annualized capacity, primarily due to a one-week production curtailment combined with lower throughput.

Shipments of Conifex-produced lumber totaled 44.5 million board feet in the first quarter of 2024, representing an increase of 14% from the 39.1 million board feet shipped in the previous quarter and an increase of 10% from the 40.6 million board feet of lumber shipped in the first quarter of 2023. Shipments of Conifex-produced lumber in the first quarter of 2024 were greater than those in the referenced previous quarters as a result of more operational days due to no scheduled market related curtailments.

Conifex also reported on its bioenergy operations. The company noted that its Mackenzie biomass power plant sold 56.0 GWh of electricity under its EPA with BC Hydro in the first quarter of 2024 representing approximately 102% of targeted operating rates. In comparison, Conifex’s power plant sold 43.5 and 34.6 GWh of electricity in the fourth quarter and first quarter of 2023, respectively. Electricity production contributed revenues of $8.2 million in the first quarter of 2024, $7.7 million in the previous quarter and $4.5 million in the first quarter of 2023.

Looking ahead, Conifex said it expects “lumber prices to soften relative to the first quarter of 2024, before returning to a modestly higher range for the remainder of the year. We expect our lumber production and shipments in the remaining quarters of 2024 to be modestly higher than in the first quarter, subject to the impact of any market related re-configuration of operating schedules.”

Conifex and its subsidiaries' primary business includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber finishing and distribution. Conifex's lumber products are sold in the United States, Canadian and Japan.