We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mercer Suspends Operations at Its Peace River Mill Till Mid-October
Read MoreHide Full Article
Mercer International Inc. (MERC - Free Report) reported that its Peace River mill operations will be suspended for repairs of the digester for a mechanical failure.
Impacts of Peace River’s Halt on Mercer
The company forecasts that hardwood pulp (NBHK) production at the mill will be decreased by around 45,000 tons until operations resume. The company has property and business interruption insurance for the Peace River mill and anticipates that the repairs and business interruption will be covered by such insurance.
MERC currently estimates the repairs and assessments to be finished by mid-October 2024.
Details on MERC’s Peace River Mill
Located around 500 km north of Edmonton, Peace River’s pulp mill operations began in 1990. It produces both softwood (NBSK) and NBHK pulp. The Peace River mill delivers its surplus electricity to the Alberta market at market rates.
Peace River holds long-term forest management agreements in Alberta, allowing it to harvest approximately 2.9 million cubic meters of hardwood and 375,000 cubic meters of softwood annually. Currently, it utilizes about 44% of its hardwood allowance and trades or sells its softwood to nearby sawmills for wood chips. These agreements are secured until 2029.
Mercer’s Q2 Top-Line Dips Y/Y
MERC reported an adjusted loss of 50 cents in the second quarter of 2024 compared with an adjusted loss of $1.48 in the prior-year quarter. Total revenues declined 6% year over year to $499 million in the second quarter.
The downside was due to lower pulp and lumber sales volumes, which was partially offset by higher pulp sales realizations and manufactured products revenues.
MERC Share Price Lags Industry
Shares of Mercer have plunged 22.3% over the past year, against the industry's 29.9% growth.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.09 per share. The consensus estimate for 2025 earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 127.1% in a year.
The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 36% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 152.6% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 16% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 82.9% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mercer Suspends Operations at Its Peace River Mill Till Mid-October
Mercer International Inc. (MERC - Free Report) reported that its Peace River mill operations will be suspended for repairs of the digester for a mechanical failure.
Impacts of Peace River’s Halt on Mercer
The company forecasts that hardwood pulp (NBHK) production at the mill will be decreased by around 45,000 tons until operations resume. The company has property and business interruption insurance for the Peace River mill and anticipates that the repairs and business interruption will be covered by such insurance.
MERC currently estimates the repairs and assessments to be finished by mid-October 2024.
Details on MERC’s Peace River Mill
Located around 500 km north of Edmonton, Peace River’s pulp mill operations began in 1990. It produces both softwood (NBSK) and NBHK pulp. The Peace River mill delivers its surplus electricity to the Alberta market at market rates.
Peace River holds long-term forest management agreements in Alberta, allowing it to harvest approximately 2.9 million cubic meters of hardwood and 375,000 cubic meters of softwood annually. Currently, it utilizes about 44% of its hardwood allowance and trades or sells its softwood to nearby sawmills for wood chips. These agreements are secured until 2029.
Mercer’s Q2 Top-Line Dips Y/Y
MERC reported an adjusted loss of 50 cents in the second quarter of 2024 compared with an adjusted loss of $1.48 in the prior-year quarter. Total revenues declined 6% year over year to $499 million in the second quarter.
The downside was due to lower pulp and lumber sales volumes, which was partially offset by higher pulp sales realizations and manufactured products revenues.
MERC Share Price Lags Industry
Shares of Mercer have plunged 22.3% over the past year, against the industry's 29.9% growth.
Image Source: Zacks Investment Research
Mercer’s Zacks Rank & Stocks to Consider
Mercer currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.09 per share. The consensus estimate for 2025 earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 127.1% in a year.
The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 36% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 152.6% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 16% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 82.9% in a year.