Core Viewpoint - Shares are currently undervalued, presenting an attractive opportunity for long-term investors [1] Group 1 - The market has seen a significant decline in share prices, leading to a perception of value among investors [1] - Long-term investment strategies may benefit from the current market conditions, as the potential for recovery exists [1]

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].

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].

Trade Policy - Canada will tighten rules on steel imports [1] - Canada will offer more financial help for lumber producers [1] Industry Impact - Aims to stem losses in steel and lumber industries [1] - Industries are targeted by US tariffs [1]

Core Insights - MDWerks, Inc. reported a significant revenue increase of 85% sequentially from $421,000 in Q2 2025 to $780,000 in Q3 2025, primarily driven by Whiskey-as-a-Service (WaaS) revenue at Two Trees Beverage Company and increased product revenue at RF Specialties, LLC [2][3] - The company is focused on long-term sustainable growth and profitability, with positive year-over-year revenue comparisons when excluding non-recurring service revenue from the previous year [3] Two Trees Beverage Company - Two Trees' revenue increased by 92% sequentially from $250,000 in Q2 2025 to $480,000 in Q3 2025, attributed to new customer contracts for white-label aging services [4] - The company anticipates continued growth as it builds and deploys Spirits Rapid Aging Systems (SRAS) for new customers, including a major U.S. distillery, which is expected to enhance recurring revenue [5][6] - Two Trees is actively pursuing additional SRAS deployments with major U.S. distilleries and exploring international markets, highlighting the efficiency and sustainability of its proprietary aging technology [6] - A new larger SRAS unit is set to increase production capacity fivefold, expected to be operational by December 2025, further expanding white-label aging services [7] - Two Trees has received multiple industry awards, including a Gold Medal at the 2025 New York World Spirits Competition, enhancing its brand recognition [8] RF Specialties, LLC - RF Specialties' revenue increased by 75% sequentially from $171,000 in Q2 2025 to $300,000 in Q3 2025, driven by the installation of a Molecular Sawdust Drying System for a leading lumber company [11] - The company expects follow-on orders as the customer expands the system's throughput, indicating potential for growth in the lumber market [12] - RF Specialties anticipates a smoother revenue stream as initial systems lead to additional orders, reflecting the scalability of its technology [13] Technology and Innovation - MDWerks positions itself as a technology company, leveraging patented molecular targeting technology to enhance traditional processes and promote sustainability [14] - The company aims to explore new applications of its technology across various industries, indicating a commitment to innovation and growth [14] Future Outlook - MDWerks is optimistic about its growth trajectory in 2026, with a strong foundation being built for future opportunities [15]

Core Insights - Conifex Timber Inc. reported a net loss of $16.6 million or $0.41 per share for Q3 2025, worsening from a net loss of $8.3 million or $0.20 per share in Q2 2025 and a net loss of $3.8 million or $0.09 per share in Q3 2024 [1][6][10] Financial Performance - EBITDA for Q3 2025 was negative $16.6 million, compared to negative $3.2 million in Q2 2025 and negative $3.9 million in Q3 2024 [1][10] - Total sales for Q3 2025 were $38.2 million, a decrease of 4% from Q2 2025 but an increase of 38% from Q3 2024 [3][10] - Cost of goods sold increased by 19% from Q2 2025 but decreased by 36% from Q3 2024 [11] Production and Shipments - Lumber production in Q3 2025 was approximately 38.5 million board feet, a 9% increase from Q2 2025 and a 22% increase from Q3 2024 [4][8] - Shipments of Conifex-produced lumber totaled 40.1 million board feet in Q3 2025, up 3% from Q2 2025 and up 37% from Q3 2024 [9] Bioenergy Operations - The power plant sold 47.6 GWh of electricity in Q3 2025, representing approximately 88% of targeted operating rates, an increase from 29.6 GWh in Q2 2025 and 25.9 GWh in Q3 2024 [15][16] Duty and Tariff Impacts - The company expensed countervailing and anti-dumping duty deposits of $15.3 million in Q3 2025, significantly higher than $2.0 million in Q2 2025 and $0.2 million in Q3 2024 [14] - Cumulative duties paid by the company since April 2017 amount to US$44.1 million, impacting future cash flows [28] Financial Position and Liquidity - Overall debt increased to $82.6 million as of September 30, 2025, compared to $81.6 million at June 30, 2025 [26] - Available liquidity decreased to $1.7 million from $3.0 million at June 30, 2025, primarily due to higher softwood lumber duty rates [27] Outlook - North American lumber markets are expected to face continued demand and price volatility throughout the remainder of 2025, with significant challenges from duty deposit rate increases and additional tariffs [36]

Malaysian Media, Lumber Tycoon Tiong Hiew King Dies At 91 https://t.co/MXIgmeF3cA ...

Core Insights - Northborne Partners acted as the financial advisor for Tumac Lumber Company in the sale of its subsidiary, Disdero Lumber Company, to BlueLinx Holdings [1][3]. Company Overview - Disdero Lumber Company, founded in 1953 and headquartered in Clackamas, Oregon, is a leading value-added wholesale distributor of premium specialty forest products and building materials, primarily for custom single-family homes and high-end multi-family residential projects [2][5]. - Disdero offers a curated product portfolio sourced from top-tier domestic and international suppliers, ensuring exceptional quality and reliability for lumber yards and professional dealers [2][5]. Transaction Details - Ryan Kline, CEO of Disdero, expressed that BlueLinx is an ideal partner, emphasizing that their scale and resources will accelerate Disdero's growth while maintaining the company's core values [3]. - Paul Jevnick, Managing Director at Northborne, highlighted the successful positioning of Disdero despite challenging market conditions in the lumber industry [3]. - Brad McMurchie, Chairman of Tumac, acknowledged Northborne's expertise in the lumber and building materials marketplace, which was crucial for achieving a successful transaction outcome [3]. BlueLinx Holdings Overview - BlueLinx Holdings Inc. is a prominent U.S. wholesale distributor of residential and commercial building products, offering a wide range of branded and private-label SKUs across various product categories [6]. - The company has a strong market position with broad geographic coverage across fifty states, servicing a diverse customer base that includes national home centers, pro dealers, and industrial manufacturers [6].

Financial Data and Key Metrics Changes - The company reported an EBITDA of negative $28 million for Q3 2025, a decrease from negative EBITDA of $21 million in Q2 2025, primarily due to lower pulp pricing and demand [3][9] - The consolidated net loss for Q3 was $81 million, or $1.21 per share, compared to a net loss of $86 million, or $1.29 per share, in Q2 [9] - Cash consumption increased to $48 million in Q3 from $35 million in Q2, driven by lower EBITDA [10] Business Segment Data and Key Metrics Changes - The pulp segment had a negative EBITDA of $13 million, while the solid wood segment reported a negative EBITDA of $9 million [3][23] - Pulp sales volumes increased by 26,000 tons to 453,000 tons, while pulp production remained flat at 459,000 tons [5][20] - Lumber production decreased by about 4% to 150 million board feet, and lumber sales volumes decreased by about 9% to 110 million board feet [6][23] Market Data and Key Metrics Changes - Average published prices for MBSK and MBHK pulp decreased across all markets compared to Q2, with the MBSK net price in China at $690 per ton, down $44, and the European average at $1,497 per ton, down $56 [4][5] - Lumber pricing in the U.S. remained stable, with the benchmark price for Western SPF No. 2 Stud averaging $477 per 1,000 board feet, a modest increase from $472 [6] - Electricity sales totaled 204 gigawatt hours, a 6% decrease from Q2, while pricing increased to about $106 per megawatt hour [7][8] Company Strategy and Development Direction - The company is focused on its "One Goal 100" program, targeting $100 million in cost savings and operational efficiencies by the end of 2026, with an expected $30 million in savings by the end of 2025 [9][12] - The company aims to transform its pulp mills into biorefineries, enhancing resilience during commodity downturns [30][31] - The mass timber business is expected to grow, with a backlog of projects valued at about $80 million and increasing interest in sustainable construction [27][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted significant industry headwinds due to trade uncertainty, impacting demand for both paper and lumber [11][29] - The company expects modest NBSK price improvements late in Q4 2025 and into Q1 2026, driven by curtailments and market dynamics [20][29] - Management remains optimistic about the long-term value of its products and the potential for market recovery as economic conditions improve [29][30] Other Important Information - The company plans to reduce capital expenditures in 2026, focusing on maintenance and essential projects [28][45] - The company is actively engaging in discussions with banks regarding liquidity and financing options [41][56] Q&A Session Summary Question: Potential asset sales to expedite deleveraging - Management is considering asset sales but acknowledges that current market conditions are not ideal for divestitures [32] Question: Industry supply-demand balance and capacity adjustments - Management indicated that closures of pulp mills may be necessary to right-size the industry, especially in Canada and Finland [33] Question: Substitution issues in the pulp market - Substitution has been ongoing, with a recent increase attributed to a significant price differential between hardwood and softwood pulp [35][38] Question: Liquidity-enhancing actions - Management is exploring various liquidity-enhancing actions, including discussions with banks and potential asset divestitures [41][43] Question: Industry supply pressures from sawmill closures - Management noted that the situation regarding chip access is already tight, and closures of sawmills could further impact pulp mills [54]

Core Insights - Interfor Corporation reported a net loss of $215.8 million in Q3 2025, a significant decline from net earnings of $11.1 million in Q2 2025 and a net loss of $105.7 million in Q3 2024 [1][2][21] - The adjusted EBITDA loss was $183.8 million on sales of $689.3 million, compared to an adjusted EBITDA of $17.2 million on sales of $780.5 million in Q2 2025 [2][8] - The company is facing ongoing challenges in the lumber market, leading to production curtailments and a decrease in average selling prices [2][3][4] Financial Performance - Total sales for Q3 2025 were $689.3 million, down from $692.7 million in Q3 2024 and $780.5 million in Q2 2025 [8][21] - Lumber production decreased to 912 million board feet, down from 935 million board feet in Q2 2025 [2][8] - The average selling price of lumber fell to $618 per thousand board feet, a decrease of $66 from Q2 2025 [2][8] Production and Market Conditions - Interfor announced plans to reduce lumber production by approximately 250 million board feet, or 26%, in Q4 2025 due to weak market conditions [2][3] - The company recorded a $147.4 million net duties expense related to U.S. tariffs, significantly impacting earnings [2][4][6] - The North American lumber market is expected to remain volatile due to economic adjustments, tariffs, and geopolitical uncertainties [3][4] Capital and Liquidity - Net debt increased to $893.3 million, representing 41.6% of invested capital, up from $798.0 million in Q2 2025 [2][9][11] - The company completed a bought deal offering generating gross proceeds of $143.8 million, which was used to pay down existing debt [10][12] - Interfor has available liquidity of $247.9 million based on its credit facilities [9][16] Strategic Outlook - The company maintains a diversified portfolio to mitigate risks and maximize returns, with approximately 60% of its lumber produced and sold in the U.S. [4][5][6] - Canadian lumber is expected to remain a key supply source for the U.S. market despite production constraints [5][6] - Interfor's capital expenditures for 2025 are projected to be between $90 million and $95 million, with a focus on strategic investments [6][17]