Conifex Timber has a big upside if lumber prices continue to rebound

By Michael McCullough
BC Business Magazine
July 30, 2024
Category: Finance & Economics
Region: Canada, Canada West

One subsector that may be coming off a bottom right now is the lumber industry. And if you’re looking for deep value, why not swing for the fences with a dirt-cheap, left-for-dead issue like Conifex Timber? High interest rates have served to choke off home building and thus demand for forest products since the industry’s last peak in 2021. Shrinking timber supply and high log costs have been an added burden for operators in B.C. like Conifex, which operates a sawmill and biomass power plant in Mackenzie. But while still in the red, the company’s financial picture is brightening. Revenue in the first quarter rose to $40.7 million while the net loss decreased to $4.5 million. Lumber volumes and prices and electrical output all increased. …Raymond James analyst Daryl Swetlishoff recently raised his targets on a number of forest companies—including Conifex.

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