Core Viewpoint - Base Carbon Inc. has acquired additional expansion options for its India Afforestation, Reforestation, and Revegetation Project, enhancing its capacity to generate carbon credits and align capital commitments with operational timing [1][3][4]. Expansion Options - The company has secured two contractual options to expand the India ARR Project at no additional cost, allowing for the planting of 20 million additional trees and the purchase of associated carbon credits under similar economic terms as the initial project [3][4]. - These options can be exercised over the full 20-year duration of the current project life, further strengthening the company's existing rights related to project expansions initiated by its partner, Value Network Ventures Pte. Ltd. [3][4]. Project Development - The India ARR Project focuses on afforestation and reforestation of degraded rural farmlands in Uttar Pradesh, with 6.5 million trees planted by the end of 2024 [4][5]. - The project has been submitted to the carbon credit registry Verra for validation, with the first issuance of carbon credits expected in the first half of 2026 [4][5]. Financial Commitments - As of now, approximately US$6.7 million of the US$13.6 million committed to the initial project has been deployed, with US$6.0 million considered maintenance capital [5]. - About US$4.0 million of the maintenance capital is anticipated to be funded through initial sales of carbon credits generated by the project [5]. Community Engagement - The project is designed to meet the needs of local farming communities, involving high levels of stakeholder engagement and feedback [6]. - It includes the planting of over 16 different species of trees, providing food security and income-generating opportunities for local families [6]. Investor Town Hall - The company will host an investor town hall on September 30, 2025, to provide a business update and respond to investor questions [2][7][8].

Financial Data and Key Metrics Changes - The company generated adjusted EBITDA of $45 million in Q2 2025, a 35% increase compared to the prior year quarter, driven by improved results in the Pacific Northwest Timber and Real Estate segments [6][11] - Pro forma net income was $10 million or $0.06 per share, with total sales of $107 million and operating income of $15 million [10][11] - Cash available for distribution (CAD) for the first half of the year was $47 million, up from $38 million in the prior year period [11] Business Line Data and Key Metrics Changes - Southern Timber segment adjusted EBITDA was $28 million, down 16% from the prior year due to a 5% decrease in harvest volumes and a 14% decline in weighted average net stumpage realizations [14][15] - Pacific Northwest Timber segment adjusted EBITDA increased 17% to $7 million, despite a 15% decline in harvest volumes, due to lower costs and higher log prices [19][20] - Real Estate segment adjusted EBITDA was $19 million, significantly above expectations, driven by strong demand and accelerated transaction timing [23][26] Market Data and Key Metrics Changes - Average sawlog stumpage pricing in the Southern Timber segment decreased by 9% to $27 per ton, while pulpwood pricing fell 25% to approximately $13 per ton [15] - In the Pacific Northwest, average delivered domestic sawlog pricing increased 6% to $96 per ton, with pulpwood pricing up 4% to $32 per ton [19][20] - The company anticipates improved market conditions for pulpwood due to increased mill operating rates and reduced salvage volume [18] Company Strategy and Development Direction - The company plans to use at least 50% of the sale proceeds from the New Zealand transaction to reduce leverage and return capital to shareholders through share repurchases and a special dividend [5] - The company remains focused on opportunistic capital allocation, including share buybacks and potential reinvestment into synergistic acquisitions [5][51] - The company is optimistic about the long-term growth potential in its land-based solutions business, particularly in solar and carbon capture projects [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for improved timber market conditions in the second half of 2025, driven by reduced salvage operations and increased lumber production in the U.S. [30][32] - The company expects a stronger contribution from the Real Estate segment in the second half of the year, with significant closing activity anticipated [26][28] - Management highlighted the importance of adapting to climate change and improving resilience against potential hurricane impacts on timber assets [60] Other Important Information - The company completed the sale of its New Zealand joint venture interest for $710 million, exceeding its original target of $1 billion in asset dispositions [4] - The company’s credit rating was upgraded from BBB- to BBB following the New Zealand transaction [13] Q&A Session Summary Question: Are you seeing increasing tension in timber prices due to upcoming Canadian duties? - Management noted improved pricing during the quarter, with steady conditions expected as the market anticipates the impact of duties [42][44] Question: What is the company's growth strategy post-transformation? - Management emphasized a nimble and opportunistic approach to capital allocation, focusing on share buybacks and maintaining a leverage target below 3x net debt to EBITDA [50][53] Question: How does the upcoming hurricane season affect timber assets? - Management indicated that while predictions suggest an above-average hurricane season, they have adapted their practices to reduce vulnerability to storm damage [58][60] Question: What is the outlook for real estate demand? - Management reported strong demand across various real estate categories, with significant transactions expected in the second half of the year [62] Question: What impact does the One Big Beautiful Bill have on solar projects? - Management remains optimistic about solar development activity, with ongoing negotiations for new projects despite uncertainties from the legislation [68][70]

Core Insights - The Beijing Green Exchange hosted the 2025 Participant Conference, attracting over 200 representatives from various sectors in the voluntary carbon market [1] - The Chairman of the Green Exchange, Wang Naixiang, emphasized the company's development history and the construction of two major platforms: voluntary greenhouse gas emission reduction trading and national green technology trading, while promoting a diversified service approach to support national carbon peak and carbon neutrality goals [1] - The Bank of China Postal Savings Bank's Beijing branch highlighted its innovative practices in green finance, showcasing a comprehensive support strategy for the national "dual carbon" strategy through five dimensions: organizational structure optimization, establishment of specialized institutions, policy support innovation, key project investment, and green finance innovation [1] Development and Future Directions - Zhang Ruoyan, General Manager of the Green Exchange, presented the exchange's achievements and future directions, while various experts discussed the potential and development paths of the voluntary carbon market, global climate governance trends, CCUS technology innovations, and the application prospects of RWA technology in carbon credit [2] - Roundtable discussions focused on the opportunities and challenges in the voluntary carbon market, sharing experiences and suggestions for innovative development in carbon market participation [2] - Another roundtable explored the role of green finance in supporting green industry development and future directions, sharing practical experiences and innovative measures [2] Carbon Neutrality Initiatives - The conference utilized a digital platform co-developed with Smart Exhibition for carbon accounting, quantifying the carbon emissions and reductions of the event, with plans for carbon neutrality achieved through the cancellation of carbon credits post-event [3]

Core Viewpoint - Base Carbon Inc. reported its first-quarter 2025 financial results, highlighting a focus on free cash flow generation, project de-risking, and portfolio growth opportunities while reducing shares outstanding by over 4% since year-end 2024 [2][4]. Financial Highlights - Realized cash settled gains on investments in carbon credit projects amounted to $790,000 for Q1 2025, with total operating expenses of $1,800,000, resulting in an operating loss of $1,010,000 [3]. - The company recognized unrealized gains of $1,580,000 on investments in carbon credit projects, compared to a loss of $18,881,000 in the same period last year [3]. - Comprehensive income for the period was $518,000, a significant improvement from a loss of $19,838,000 in Q1 2024 [3]. - Total assets increased to $112,279,000, with total liabilities at $8,924,000 and total shareholders' equity at $103,354,000 [3]. Operational Highlights - The company achieved net cash proceeds of $800,000 from carbon credit sales related to the Vietnam water purifier project, marking the fourth consecutive quarter of revenue from carbon credit sales [4][6]. - Significant progress was made in the biochar initiatives, with a focus on key development opportunities [4]. - The company repurchased over 0.7 million shares during Q1 2025 and an additional 3.75 million shares post-quarter, reducing total shares outstanding to 104.75 million [4]. Project Performance - The Vietnam household devices project generated $789,621 in net cash proceeds and recognized an unrealized gain of $1,388,701 during Q1 2025 [6][7]. - The Rwanda cookstoves project also saw an unrealized gain of $191,700, reflecting positive reassessment of carbon credit issuance timing [8]. - The India Afforestation, Reforestation, and Revegetation (ARR) project is expected to issue its first carbon credits in the second half of 2025, with project registration anticipated soon [10]. Market Position and Strategy - The company is actively pursuing Requests for Proposals (RFPs) for ARR projects, indicating a growing demand for high-quality carbon removal solutions [11]. - Management remains confident in the strength and resilience of its assets and the disciplined execution of its projects [5]. Upcoming Events - An investor update call is scheduled for May 27, 2025, to discuss Q1 financial results and provide a commercial update [12][13].