Conifex Reports 3rd Quarter Loss of Nearly $3 Million
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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