Canadian authorities urge central government to support paper industry

Sylvamo's board of directors unanimously adopted a limited-duration shareholder rights plan to protect the interests of all shareholders. The rights plan is effective immediately. The board adopted the plan after Atlas Holdings confirmed it entered into a block trade that would give Atlas nearly 14% of Sylvamo's outstanding shares and informed Sylvamo it also holds an unspecified amount of derivatives on Sylvamo shares. Sylvamo's leaders maintain open dialogue with Sylvamo's investors, including Atlas, and plan to continue these conversations. Sylvamo recognizes Atlas' extensive experience in the paper industry.

Second Quarter of 2022 Highlights *Second quarter 2022 (“Q2 2022”) net earnings were $29.5 million or $0.15 per share (diluted), compared to $34.0 million or $ 0.18 per share in the first quarter of 2022 (“Q1 2022”). This was the Company’s third full quarter operating its acquired forest-products assets. *Lumber pricing remained strong in Q2 2022, with an average selling price of $1,255/mfbm compared to $1,325/mfbm in Q1 2022. Rising interest rates and inflation headwinds, coupled with macro supply tightening and the risk of disruptions to lumber supply underlies our expectation of continued volatility in lumber prices. *The Company made a voluntary repayment of US$8.9 million on its outstanding term debt during the second quarter of 2022. *Asset-backed revolving loan facility of $65.0 million was undrawn at quarter end and has remained undrawn at August 10, 2022. Strong operating cash flow continues to fund working capital needs. Cash and equivalents ended Q2 2022 with a balance of $74.2 million.

After first “paper on reel” on March 31st, LEIPA will soon complete the startup period of its PM 5 and begin supplying customers with uncoated White Top Testliner from PM 5. LEIPA Group CEO Peter Probst: “We look forward to growing successfully with our customers and partners. The demand for White Top Liner remains consistently high and the trend is rising. Prices are at a high level as well. These factors result in excellent conditions for the market launch of the PM 5.” As an international market leader LEIPA will have developed a one-stop shop for their customers with the PM 3 and PM 5, offering an annual total capacity of 700,000 tons of coated and uncoated White Top Testliner. Click Read More below for additional information.