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]. Company Summary - The curtailment is a response to declining benchmark Western SPF prices, which have fallen sharply due to a slowdown in residential construction, soft repair-and-remodel activity, high interest rates, and increased countervailing and anti-dumping duties on Canadian softwood lumber exported to the U.S. [2] - The planned reduction in production is expected to decrease output by approximately 13 million board feet [3]. - Despite current market challenges, the company believes in positive long-term fundamentals for SPF lumber, citing structural housing undersupply in the U.S., aging housing stock, and improving affordability conditions as factors that will 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 difficult period [6]. - The company remains committed to the Mackenzie region and its workforce, and it is optimistic about securing sawlogs to maintain operational capacity once market conditions improve [7]. Industry Summary - The curtailments across the industry have led to North American lumber production reaching its lowest level in a decade, which is anticipated to help rebalance inventories and support a return to sustainable pricing [4].