Mercer Suspends Operations at Its Peace River Mill Till Mid-October

Group 1: Company Operations - Mercer International Inc. (MERC) has suspended operations at its Peace River mill for repairs due to a mechanical failure of the digester [1] - The company anticipates a decrease in hardwood pulp (NBHK) production by approximately 45,000 tons until operations resume, with repairs expected to be completed by mid-October 2024 [2] - The Peace River mill, operational since 1990, produces both softwood (NBSK) and hardwood pulp, and supplies surplus electricity to the Alberta market [3] Group 2: Forest Management and Resources - Peace River holds long-term forest management agreements in Alberta, allowing for the annual harvest of about 2.9 million cubic meters of hardwood and 375,000 cubic meters of softwood, with current utilization at about 44% of its hardwood allowance [4] Group 3: Financial Performance - In Q2 2024, Mercer reported an adjusted loss of $0.50 per share, an improvement from an adjusted loss of$1.48 in the same quarter the previous year, with total revenues declining by 6% year over year to $499 million [5] - The decline in revenues was attributed to lower pulp and lumber sales volumes, although this was partially offset by higher pulp sales realizations and revenues from manufactured products [5] Group 4: Stock Performance - Mercer's share price has decreased by 22.3% over the past year, contrasting with a 29.9% growth in the industry [6]