Conifex Q3 Loss Narrows to C$7.9 Million as Liquidity Risks Persist
Conifex Timber reported a smaller third-quarter loss, but revenue fell sharply as its Mackenzie sawmill remained idle. Rising debt and restricted access to additional financing have left the Canadian lumber producer facing significant liquidity uncertainty.
Key Points
- Smaller quarterly loss: Net loss narrowed to C$7.9 million, compared with C$9.5 million in Q2 2026 and C$16.6 million a year earlier.
- Revenue collapse: Sales fell to C$0.7 million from C$23 million in the preceding quarter as lumber and power production remained suspended.
- Debt and liquidity: Total debt reached C$122.5 million, while unrestricted cash stood at C$7.4 million as of September 30.
- Conditional restart: Power generation resumed November 10, with sawmill operations targeted for approximately December 2026, subject to financing and operational requirements.
MONTREAL (Scrap Monster): Vancouver-based Conifex Timber Inc. (TSX: CFF) narrowed its net loss in the third quarter of 2026, although its Mackenzie sawmill in British Columbia remained idle and the company continued to face significant liquidity pressure.
Conifex reported a net loss of C$7.9 million, or C$0.19 per share, compared with C$9.5 million in the preceding quarter and C$16.6 million a year earlier. Its loss before interest, taxes, depreciation and amortization (EBITDA) improved to C$5.7 million from C$6.3 million in Q2.
Revenue Plunges as Mackenzie Operations Remain Curtailed
Quarterly revenue dropped to C$0.7 million, compared with C$23 million in the second quarter and C$38.2 million in Q3 2025.
The Mackenzie sawmill produced no lumber during the quarter, while the company's biomass power facility generated no electricity because of a scheduled maintenance shutdown. Conifex attributed the sharp reduction in sales to the prolonged operating curtailment.
The company confirmed that its Mackenzie power plant restarted on November 10, 2026. Sawmill operations are currently expected to resume in or around December, provided financing, sufficient sawlog supplies and other restart requirements are secured.
Debt Rises as Conifex Faces Year-End Liquidity Pressure
Conifex's total debt increased to C$122.5 million as of September 30, 2026, from C$101.8 million three months earlier.
The company held C$7.4 million in unrestricted cash, with a further C$10.2 million remaining available under a loan facility, subject to meeting specified conditions.
Conifex warned that without access to the remaining loan funds or alternative financing, it would not have sufficient liquidity to support operations beyond December 2026.
ScrapMonster Edge: Financing Remains Critical to Sawmill Restart
The planned December restart is not yet assured. Although Conifex has C$10.2 million in undrawn financing available under its loan arrangement, access depends on satisfying specified conditions. The company has warned that its existing liquidity may be insufficient beyond December without those funds or alternative financing.
Industry takeaway: The November 10 power-plant restart marks operational progress, but restoring lumber production remains dependent on financing, sawlog availability and completion of startup requirements.
Conifex also expects additional export-duty and interest expenses in the fourth quarter of 2026, adding to the financial pressures facing the company as it works toward restarting lumber production.
Source: Conifex Timber Inc., third-quarter 2026 financial results announcement, November 11, 2026.