The following is a summary of the GreenFirst Forest Products Inc. (ICLTF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• GreenFirst reported a net loss of $14.5 million in Q2.

• Adjusted EBITDA for Q2 was negative $12.1 million.

• Net lumber sales decreased to $66 million from $69 million in Q1 due to lower volumes and pricing.

• Paper segment net sales increased to $28 million from $24 million in Q1, driven by higher volumes.

Business Progress:

• Announced the spin-out of Kap Corporation to focus on core lumber production.

• Received a $24 million financing agreement from the Province of Ontario for Kap Corporation.

• Implemented cost reductions and efficiency improvements in production.

• Announced a buy-out group annuity transferring $26.5 million of pension obligations.

Opportunities:

• The spin-out of Kap Corporation allows GreenFirst to focus on its core lumber business and provides shareholders potential future upside from Kap.

• Lower interest rates expected to rebound lumber pricing, supported by housing market fundamentals.

Risks:

• Continued low lumber demand due to high mortgage rates and an oversupply of inventory.

• Pricing and operational challenges in the paper segment.

• High SG&A expenses driven by corporate reorganization and spin-off plans.

More details: GREENFIRST FOREST PRODUCTS INC IR

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