alertmeipp Posted April 11, 2014 Share Posted April 11, 2014 re: IQ loan. Agreed. I hope they can actually increase their borrowing base there. Link to comment Share on other sites More sharing options...
colinwalt Posted April 12, 2014 Share Posted April 12, 2014 3m$ in capex for both mills is pretty low in my opinion. As for the cash cost for Thurso, I will believe when I'll see it in a 10Q report I think that's about what left for this and next. From The MD&A Liquidity and Capital Resources As at December 31, 2013, the Company had cash and cash equivalents balance of $61.9 million and had made aggregate expenditures of approximately $243 million, including $0.6 million in accounts payable, on the conversion of FSC mill into a dissolving pulp mill and the construction of a new cogeneration facility. As of the date of this MD&A, both the conversion project and the cogeneration project at the FSC mill have been completed. The Company anticipates that approximately $15.5 million in project capital expenditures will be required through to the end of 2015 in order to achieve production efficiency targets and health, safety and environmental objectives. Link to comment Share on other sites More sharing options...
alertmeipp Posted April 16, 2014 Share Posted April 16, 2014 Yes, my bad. Remaining capex per year is ~. 2-3 millions for Landquart. 5-10 millions for Thurso. Per year. Link to comment Share on other sites More sharing options...
OptsyEagle Posted April 16, 2014 Share Posted April 16, 2014 I always add another $25 million to the required EBITDA number to cover interest costs and ongoing maintenance expenses. EBITDA is nice but profits are what is required to be a viable business. Link to comment Share on other sites More sharing options...
triedtestedand Posted April 18, 2014 Share Posted April 18, 2014 Looks like FTP isn't waiting around for regulator to approve/fund extension of natural gas pipeline to Thurso, as it wouldn't be until 2015, so have contracted to get it shipped in instead. http://translate.google.ca/translate?hl=en&sl=fr&u=http://www.lapresse.ca/le-droit/actualites/actualites-regionales/201404/17/01-4758575-nouvelle-tuile-pour-larrivee-du-gaz-naturel-a-thurso.php&prev=/search%3Fq%3Dfortress%2Bthurso%26sa%3DX%26espv%3D2%26es_sm%3D91%26biw%3D1265%26bih%3D1067%26tbs%3Dqdr:w Link to comment Share on other sites More sharing options...
obtuse_investor Posted May 1, 2014 Share Posted May 1, 2014 VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2014) - Fortress Paper Ltd. ("Fortress Paper" or the "Company") (TSX:FTP) announced today that its Landqart Mill's Durasafe® banknote paper has been confirmed as the substrate of the ninth series of the Swiss Franc by the Swiss National Bank (SNB). Durasafe® is the innovative new composite paper-polymer-paper banknote substrate developed by the Company's Swiss security paper manufacturer, Landqart AG, in cooperation with the Swiss Federal Institute of Technology (ETH) Zürich. Durasafe® is composed of two cotton paper outer layers with a fully transparent polymer core. The polymer core in Durasafe® adds stability and higher mechanical strength properties to banknotes as well as high security features. The substrate's unique properties allow windows to be formed virtually anywhere on the banknote and can contain a watermark and security fibres as well as traditional security features, including easy-to-recognise banknote paper tactility. Chadwick Wasilenkoff, Chief Executive Officer of Fortress Paper, commented: "After several years of development, we are pleased to have Durasafe® accepted as the substrate for the new Swiss Franc series. The Swiss Franc is widely accepted as having one of the highest standards of banknote security features in the world and we believe this reference contract will enable us to further generate interest with state banks around the world." Link to comment Share on other sites More sharing options...
lessthaniv Posted May 1, 2014 Share Posted May 1, 2014 "The Swiss Franc is widely accepted as having one of the highest standards of banknote security features in the world and we believe this reference contract will enable us to further generate interest with state banks around the world." This is good news for a change... Link to comment Share on other sites More sharing options...
triedtestedand Posted May 1, 2014 Share Posted May 1, 2014 Link to comment Share on other sites More sharing options...
sculpin Posted May 1, 2014 Share Posted May 1, 2014 Anyone know the value of the Swiss Durasafe contract? Link to comment Share on other sites More sharing options...
alertmeipp Posted May 12, 2014 Share Posted May 12, 2014 What is everyones expectation on tonights release? Link to comment Share on other sites More sharing options...
jeffmori7 Posted May 12, 2014 Share Posted May 12, 2014 What is everyones expectation on tonights release? Haha, I don't have any expectations! Link to comment Share on other sites More sharing options...
alertmeipp Posted May 12, 2014 Share Posted May 12, 2014 All I hope is cash balance increase and nshk break even. Link to comment Share on other sites More sharing options...
ECCO Posted May 12, 2014 Share Posted May 12, 2014 All I hope is cash balance increase and nshk break even. Cash balance increase and thurso break even??? Well, I think you have more chances to win the loto 6/49... Link to comment Share on other sites More sharing options...
lessthaniv Posted May 12, 2014 Share Posted May 12, 2014 Fortress receives acceptance for power supply increase 2014-05-12 16:39 ET - News Release Mr. Chadwick Wasilenkoff reports FORTRESS SPECIALTY CELLULOSE BID TO INCREASE POWER SUPPLY AGREEMENT BY 5.2 MW ACCEPTED Fortress Paper Ltd.'s Fortress Specialty Cellulose (FSC) mill located in Thurso, Que., has successfully been awarded by Hydro Quebec a power supply agreement for an additional 5.2 megawatts of power to be produced at its cogeneration facility. Once finalized, the amount of green power supplied by the FSC Mill's cogeneration facility to Hydro Quebec will increase from the current amount of 18.8 megawatts of power to 24 megawatts of power. This increase will result in significant incremental revenue, which will translate into an anticipated overall cost savings at the FSC Mill of approximately $2.7 million annually with an opportunity for further optimization. Pursuant to the new power supply agreement, the FSC Mill is expected to begin delivering the additional power in April 2015, at the latest, with a provision to start delivering power as early as the fourth quarter of 2014. Yvon Pelletier, President of Fortress Specialty Cellulose Inc., commented: "The acceptance of our power supply bid is indicative of our positive partnership with Hydro Quebec and will allow us to better utilize the potential of our cogeneration facility and produce more environmentally friendly green energy for the region. The increased revenue from the additional 5.2 megawatts of power delivered under this new agreement will further improve the economics of the FSC Mill and reflects the value of the cogeneration facility." The Company also provides an operational update on its FSC Mill. -- The FSC Mill has recently switched from producing northern bleached hardwood kraft (NBHK) pulp to swing production to other specialty dissolving pulps. -- Alain Dubuc has been appointed as Chief Operating Officer of Fortress Specialty Cellulose Inc., a wholly-owned subsidiary of Fortress Paper which operates the FSC Mill. Mr. Dubuc has over 25 years of industry experience in mill operations, including over 20 years managing mills in Quebec. Most recently, Mr. Dubuc was Senior Vice President of Operations at Pinnacle Renewable Energy, where he oversaw six forestry related mills across British Columbia. We seek Safe Harbor. © 2014 Canjex Publishing Ltd. All rights reserved. Link to comment Share on other sites More sharing options...
triedtestedand Posted May 12, 2014 Share Posted May 12, 2014 Hmmm ... interesting elaborations ... who know$ if they tran$late into incremental margin$ a) "savings at the FSC Mill of approximately $2.7 million annually" ... "with an opportunity for further optimization" b) "the FSC Mill is expected to begin delivering the additional power in April 2015, at the latest" ... "with a provision to start delivering power as early as the fourth quarter of 2014." c) "The FSC Mill has recently switched from producing northern bleached hardwood kraft (NBHK) pulp to swing production to" ... "other specialty dissolving pulps" Link to comment Share on other sites More sharing options...
alertmeipp Posted May 12, 2014 Share Posted May 12, 2014 All I hope is cash balance increase and nshk break even. Cash balance increase and thurso break even??? Well, I think you have more chances to win the loto 6/49... I wasn't clear. Not Q1, but was hoping they can guide similar starting Q2 or later half of the year. I think the market is pricing in going concern. Link to comment Share on other sites More sharing options...
alertmeipp Posted May 13, 2014 Share Posted May 13, 2014 Result out: http://www.fortresspaper.com/images/pdfs/releases/FTP%20NR%20Q1%202014.pdf Link to comment Share on other sites More sharing options...
OptsyEagle Posted May 13, 2014 Share Posted May 13, 2014 Cash is down to 60 million. It seems they burned through about $18 million in Q1 plus or minus a little when you net out some increases in accounts receivable and increases in accounts payable and another $3 million of debt. How many more quarters can they do this? Link to comment Share on other sites More sharing options...
triedtestedand Posted May 13, 2014 Share Posted May 13, 2014 CURRENT ASSETS Q1/14 Q4/13 Cash and cash equivalents 43,097 61,888 Restricted cash 17,761 14,934 Trade accounts receivable 22,845 12,446 Other accounts receivable 10,479 8,751 Inventories 63,262 62,390 Prepaid expenses 8,735 8,486 TOTAL 166,179 168,895 CURRENT LIABILITIES AP 45,586 34,044 Current Portion of Debt 14,255 14,572 TOTAL 59,841 48,616 THEREFORE: a) Working capital down to $106M from $120M ($61M in cash+restricted vs $75M in previous quarter ... everything else pretty much a wash -> including high inventory of $63M quarter over quarter) b) Key #1 remains to stop the hemorraging at Thurso ... this quarter remains key to showing can do it ... first full quarter in a long time with no ramp up/planned shut/construction/etc. c) Key #2 is to get IQ to defer long-term debt repayments, and/or defer/reduce interest ... have secured 2 quarters grace period already d) Key #3 is to get into regular sales flow so don't carry inventory ... some movement there (neutral quarter over quarter, some progress post-quarter now that MOFCOM decision out) e) Key #4 is to keep Landqart (and optical threads biz) progressing ... $38M in sales with 2500K, and highest $/tonne mix ... and still pre-large-scale Durasafe production ... the new Dresden! We'll see ... Link to comment Share on other sites More sharing options...
alertmeipp Posted May 13, 2014 Share Posted May 13, 2014 Agree this quarter is significant. The conference call will be very interesting. Hope those who can call in, call in and ask some questions. Link to comment Share on other sites More sharing options...
lessthaniv Posted May 13, 2014 Share Posted May 13, 2014 I think Q3/13 is a better comp for the balance sheet to where they need to be. Inventory started to increase in q4/13. Q3/13 was $43M, I think. They need to get the inventory moving. looking forward to what they have to say in the morning in this regard. Link to comment Share on other sites More sharing options...
triedtestedand Posted May 13, 2014 Share Posted May 13, 2014 <IV: Thurso -> "As at March 31, 2014, the FSC mill held finished goods inventory consisting of 18,716 ADMT of dissolving pulp and 11,240 ADMT of NBHK pulp." -> Before all the MOFCOM issues, Thurso carried no inventory ... so if they sold all of above, they'd increase their unrestricted cash balances by $20M+, and get back down to the $43M in (combined Thurso+Landqart) inventory that you note. -> If they got long-term deferral of IQ loan ... their working capital would immediately go up by $14M ... as current (<1yr due) portion of debt all relates to IQ loan only. Landqart -> Interesting the quarterly increases in restricted cash amounts ... presume this is a good thing, indicating higher value/longer-term contracts for Landqart? -> Keep this up, and Landqart will be able to secure loan off it's own assets at sub level ... helping to contribute to parent liquidity. Link to comment Share on other sites More sharing options...
lessthaniv Posted May 13, 2014 Share Posted May 13, 2014 thx. wanted to check that but haven't had time to filter through yet. Link to comment Share on other sites More sharing options...
jeffmori7 Posted May 13, 2014 Share Posted May 13, 2014 When is the conference call? Someone had the time to listen to it and would like to share his notes? Thanks! Link to comment Share on other sites More sharing options...
triedtestedand Posted May 13, 2014 Share Posted May 13, 2014 Unlike last quarter ... lots of questions. Some tidbits as follows: Thurso operations - late April/early May ... getting close towards EBITDA neutral for DP production (even with current pricing and duty) - both reliability AND quality much better ... need to maintain this however before can be more confident (i.e. months) - will maintain small NBHK production for specific local customers - referred several times regarding investigating producing non viscose grade DP (based on much better quality) ... will want/need to accelerate this initiative owing to MOFCOM Thurso further improvements - natural gas still being investigated - number of small discretionary CAPEX quick return options being considered (chemical, oil consumption, etc.) Cash Utilization (lot of questions here) - #1 priority is CAPEX to reduce operating cost ... and therefore minimize eliminate future burn - #2 priority is interest/debt repayments ... contingent upon creative discussions w IQ so can reduce/defer - #3 would be looking at debentures ... soonest 3mo +, or into 2015 ... contingent upon success of #1 & #2 - My interpretation: Kept stressing that want discretionary CAPEX to put towards lowering costs further ... I presume that is the angle they are taking talking to IQ to get repayment relief and/or interest repayment/rate relief (i.e. we can pay it to you and reduce working capital OR we can put it towards CAPEX to reduce opex costs ... and be both better off long term) - Working to reduce inventories back down to normal levels ... could secure $20M back as free cash if/as successful - Landqart restricted cash relate to performance bonds ... could free up/reduce as contracts get fulfilled/conditions met ... also looking at loan at sub-level which could be allocated towards such perf bonds, which would free up restricted cash to holdco level. - Directive that Thurso needs to stand on it's own ... unofficially no more cash from holdco ongoing LSQ - looking at running it as cogen only - need to propose options vis-a-vis electricity supply agreement ... unsure if/how options will be received Landqart - Q2 won't be as good as Q1 (owing to product mix, lumpy, timing) ... so don't just multiply $3.2M EBITDA by 4 to get annual Optical Threads - No announcements ... but have opportunities that could fill mill for latter part of the year and all of 2015 that are progressing well MOFCOM - duties don't automatically expire after 5yrs ... more than 50% of cases they roll over - can apply for re-audit after 1yr - working w fed gov ... no real sense of if there is political will to pursue (country has to make case vs individual companies) Getting Creative - Various and sundry about partnering w chinese viscose, expanding DP sales beyond china, etc. ... - No other non-core asset sales anticipated - Asked if entertained selling % of Thurso at sub-level ... answer was that all would be considered if interest expressed, but no firesales So sounds like have priorities: -> Thurso OPEX ... maintain/increase reliability, increase quality, discretionary capex to reduce costs -> Thurso debt ... push w IQ to get relief -> Ringfence Thurso fm cash standpoint -> Push other rev opportunities (Security threads, durasafe, LSQ cogen) Link to comment Share on other sites More sharing options...
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