Domtar Light Weight Opaque Papers – Important Pricing Information

Highlights *Fourth quarter 2023 net loss from continuing operations was $21.6 million or $0.12 per share (diluted), compared to net earnings of $2.7 million or earnings of $0.01 per share (diluted) in the third quarter of 2023. For fiscal 2023, net loss from continuing operations was $48.8 million or $0.27 per share (diluted), compared to a net loss of $4.1 million or $0.02 per share (diluted) in 2022 on the same basis. *Average lumber prices for Q4 2023 were lower than Q3 2023, with an average selling price of $611/mfbm compared to $642/mfbm in Q3 2023. There was strong pricing momentum in the first half of Q3 2023 due to supply related concerns, which benefited results at the beginning of the third quarter. Despite lower prices, volumes in Q4 2023 were higher than Q3 2023 due to increased demand in the latter half of Q4 driven by positive trends in US housing starts and the central banks indicating a pause of further interest rate hikes. *The valuation provision for lumber and log inventory was decreased to $4.3 million from $8.7 million at the end of Q4 2022, generating a $4.4 million credit to cost of sales in fiscal 2023. *US Department of Commerce’s (“US DOC”) Final Determination of its Fourth Administrative Review resulted in a final duty rate of 8.05%. The Company stands to benefit from an approximate US$6.9 million (CAD$9.2 million) recovery on duties paid in 2021, as recorded in 2023. Additionally, the ongoing lower duty rate has positively impacted the Company’s earnings and free cash flow since August 1, 2023.

Stora Enso has signed a strategic partnership agreement with the Swedish University of Agricultural Sciences (SLU). Through the agreement Stora Enso and SLU intend to establish a long-term collaboration in research and development, education, competence building, and innovation within the fields of forestry and bio-based materials. The main objective of the collaboration is to jointly drive research projects to develop new knowledge within sustainable forestry and wooden biomaterials. Special focus areas include bio-based materials, forest and ecosystem management, forest technology and plant- and forest production. Moreover, the collaboration will act to strengthen competence development of staff members at Stora Enso and SLU. Click Read More below for additional information.

Sofidel announced the formal opening of its second greenfield plant in the United States, signaling a significant expansion by the company in response to consumer demand. The 1.8 million-square-foot production plant is fully operational in Inola, Okla., leveraging one of the United States’ most recently built paper manufacturing facilities, equipped with state-of-the art technology. The $360 million technologically and environmentally advanced plant is Sofidel’s second greenfield investment in the U.S.. An integrated facility, with its paper mill that transforms pulp into paper and the converting plant that makes the finished product, it can turn out 120,000 tons of tissue annually.