Resolute Forest Merchandise Inc. just lately declared a particular money dividend of $1.00 per share of widespread inventory, payable on July 7 for holders of file on the shut of enterprise on June 28. The corporate additionally introduced further capital investments of $50 million in its wooden merchandise operations to help its continued progress, and it confirmed the compensation of all quantities excellent beneath its revolving and time period credit score amenities, decreasing debt by $180 million within the second quarter.
“The money generated with our lumber platform in these robust lumber markets gives the chance to share advantages immediately with shareholders,” stated Remi G. Lalonde, president and chief government officer. “We’re additionally enhancing long-term worth by bettering our firm fundamentals with investments in high-return and fast payback lumber initiatives in three key areas for Resolute: the Abitibi in Quebec, Northwestern Ontario and the Southeast U.S. What’s extra, we’ve eliminated a fabric quantity of debt from the stability sheet with the additional $180 million compensation in Q2, leaving as our solely remaining debt the $300 million of unsecured 4.875 per cent senior notes due 2026, and our liquidity stands at round $850 million. As we enhance the competitiveness of the strongest components of our enterprise, immediately’s announcement will profit shareholders, staff and a variety of group and enterprise companions. As demonstrated with this announcement, our intention is to keep up a balanced method to capital allocation, utilizing our free money movement to generate worth for shareholders and construct a stronger firm whereas driving financial exercise within the communities the place we function.”
The extra $50 million in wooden merchandise investments embody:
- $22 million to modernize gear on the Senneterre (Quebec) sawmill, which can improve total effectivity and productiveness of the Abitibi regional operations;
- $13 million on the Thunder Bay/Fort William First Nation (Ontario) sawmill to extend capability by as much as 40 million board toes with new gear and modifications to the fibre movement; and
- $15 million on the Glenwood (Arkansas) and Cross Metropolis (Florida) sawmills to help fibre optimization and total effectivity. The Cross Metropolis funding may even enhance capability by as much as 20 million board toes.
Every of those initiatives will serve to generate further worth from Resolute’s wooden merchandise phase throughout market cycles. The enhancements on the U.S. sawmills construct on the beforehand introduced investments related to the restart of the El Dorado (Arkansas) sawmill. The corporate anticipates finishing all of the initiatives by the tip of the third quarter of 2022. Accordingly, it’s elevating its 2021 capital investments steerage from $100 million to $125 million.