Conifex Provides an Operational Update

Core Viewpoint - Conifex Timber Inc. will temporarily curtail operations at its Mackenzie sawmill for four weeks starting December 15, 2025, due to ongoing weakness in North American lumber markets [1][2]. Industry Summary - The North American lumber market is experiencing significant challenges, with benchmark Western SPF prices declining sharply due to factors such as a slowdown in residential construction, reduced repair-and-remodel activity, high interest rates, and increased countervailing and anti-dumping duties on Canadian softwood lumber exported to the U.S. [2] - These duties and tariffs have compressed cash margins across the sector, leading to operating losses for many producers [2]. Company Summary - Conifex plans to reduce production by approximately 13 million board feet to minimize operating losses during this challenging period [3]. - Despite current market difficulties, Conifex remains optimistic about the medium to long-term fundamentals for SPF lumber, citing structural housing undersupply in the U.S., aging housing stock, and improving affordability conditions as factors that may support demand recovery starting in the second half of 2026 [4]. - The company acknowledges recent federal government measures aimed at supporting softwood lumber producers and has applied for assistance under the Large Enterprise Tariff Loan Program and the BDC Loan Guarantee Program [5]. - Conifex's power generation operations and competitive log cost structure continue to provide essential support during this period [6]. - The company emphasizes its commitment to the Mackenzie region and its workforce, while expressing confidence in securing sawlogs to maintain operational capacity once market conditions improve [7].