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Conifex Reports 3rd Quarter Loss of Nearly $3 Million

By Submitted Article

Friday, November 12, 2010 04:12 PM

Prince George, B.C. - Conifex Timber Inc .is reporting a net loss of $2.9 million for the third quarter of 2010 compared to a net loss of $1 million for the third quarter of 2009.
 
The net loss for the nine months ended September 30, 2010 was $6.9 million compared to a net loss of $8.1 million for the same period in 2009.
 
The company blames the loss on the low operating rate of 20%. Conifex currently has initiatives underway that are expected to lift operating rates to approximately 55% of full two-shift capacity and increase annual production by about 270 million board feet by the end of the first quarter of 2011.
 
On November 1, 2010, the Company started manufacturing operations at one of its two recently acquired mills at Mackenzie on a one-shift basis. On a one-shift basis, the "Site II" mill can produce approximately 110 million board feet of lumber each year.
 
At the Fort St. James mill, the completion of a major capital expenditure program by the end of the year makes feasible the addition of a second shift in early 2011. The second shift can add approximately 160 million board feet of production and is expected to bring Conifex’s total annual production to 420 million board feet.

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Comments

Keep them running the taxpayers have lots of money!!! Raise the HST to pay for these mills running!!!!
Some economists argue that we will have many more jobs in our province because the costs to major industrial businesses will go down. This should mean more investments from existing business and potentially more businesses coming to do business here. Sounds good but I think we are a province of 'show me the money'. Unfortunately, the HST referendum will happen next year - but the true positive results may be a few years away.

I am not about giving breaks to big businesses, but if it means they are more competitive which allows them to create more good paying jobs/less layoffs.........I must admit I am all for it.
Right on "LoveTheNorth".
It's got to be about looking at the bigger picture than focusing on a singular item as Mr Vander Zalm & Mr Dehlaney would have you do.
The more jobs big business can create, the more the economy pumps,the more people eat in restaurants, the more waitresses we'll see etc, etc, etc. It's all about the "trickle down effect".

Has our government failed in delivering that message to the people? Yes, big time.
But things are about to change.
There are many of us in this Province that are not about to let the NDP get their hooks into this & steal back Government control. Not a chance!!!!

Hang in there Carole James, we need you!


if there losing money why are they going to add more shifts? these forestry companies sometimes dont tell the truth,on one hand there losing money at the same time there buying more and more mills.so whats the truth?
I truly hope for all the people and communities involved that they can turn it around. We need companies willing to take a gamble on this industry and area.
PGGURU - I have no intimate knowledge of the company. However, their fixed operating costs maybe the reason they lost money. If their variable costs/revenues are incrementally profitable, then this strategy makes total sense.
PGGURU - I have no intimate knowledge of the company. However, their fixed operating costs maybe the reason they lost money. If their variable costs/revenues are incrementally profitable, then this strategy makes total sense.
PGGURU - I have no intimate knowledge of the company. However, their fixed operating costs maybe the reason they lost money. If their variable costs/revenues are incrementally profitable, then this strategy makes total sense.
Sorry for the multiple posts. My PC has a mind of its own.
"More investment" by existing businesses is generally aimed at eliminating jobs, not creating them.

Conifex is a new player on the lumber market, and it will take time for it to build a customer base, and also get its mills refurbished and able to be run at capacity when market prices will support that capacity again.

It'll be those market prices, not the HST, that'll determine the future course of events.

As to that tax's effect on business, one of the "arts of government" is to make it seem as if you're getting something back, while you're really only being prepped to pay a lot more.
They're paying Pat Bell too much money to persue sales in China. Just my perception of the 'big picture'.
I wonder if Frank Everette can speak chinese, He was in china a week ago. Maybe he is trying to sign china up to join his union. No wonder china runs circles around us.
Supertech - Our politicians are underpaid when you look at what is required of them compared to private industry.

I can not disagree more about the statement. The success of any business is reliant on its customer base and if you have only one customer your business is at serious, serious risk. We have learned this all too well by relying on the US housing market.