Eacom Timber Corp. has completed upgrades to its Nairn Centre mill and construction is nearing completion at its Elk Lake mill.
The upgrades at both sites are expected to partially offset the capacity lost at the company's Timmins mill and mitigate some of the damages incurred as a result of a fire in early January. A significant portion of these investments will be reimbursed under the business interruption insurance claim, a press release stated.
The company is planning to reconstruct its Timmins mill and a substantial portion of the total cost of the project is being funded from proceeds of insurance related to the fire. To date, Eacom has received $23.7 million of insurance proceeds, of which $10 million is for damage or destruction of assets and $13.7 million is related to business interruption.
“We are progressing well with our capital expenditure program at Nairn Centre and Elk Lake. We also moved forward with the commencement of the rebuilding process at Timmins. The company intends to continue its focused capital investments with a view to increase capacity and recovery, and reduce manufacturing costs. This should contribute to improve our competitiveness in the global forestry sector. It should also provide a more stable and sustainable employment environment for our employees in the communities where we operate,” said CEO and president Rick Doman.
Eacom is also reporting a positive adjusted EBITDA of $1.5 million for the third quarter of 2012. The net loss attributable to shareholders amounted to $964,000, compared to a net loss of $709,000 in the previous quarter and a net loss of $564,000 in the same quarter of 2011.
During the third quarter, the company recorded sales of $63,380,000, down three per cent against sales of $65,256,000 in the previous quarter but up three per cent against sales of $61,396,000 in the corresponding quarter of 2011.
Eacom owns eight sawmills, such as in Gogama and Ear Falls, and others in Quebec.
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