TWST: Please give us an overview of what you are covering in the natural
resources space.
Mr. Quinn: I'm covering 16 forest product companies. A majority of the companies
are based in Canada, with new coverage picking up either in the US or overseas.
TWST: What's going on from a business perspective so far this year?
Mr. Quinn: It has been a very difficult year for the companies under my
coverage. We've had the ongoing softwood lumber dispute, which affects a vast
number of the companies. The Canadian dollar also keeps appreciating, which
hurts our Canadian mill owners.
TWST: What's going on with the softwood lumber dispute?
Mr. Quinn: It's presently resolved. It looks like we will have the new system in
place for November 1, which at least initially will be a higher tax than the
companies are currently paying. So that's for the balance of the year. That will
come in at initially 15% for November. Currently, companies are paying around
10.8% on average. So it's slightly higher, but over 80% of the deposits with the
US government will come back to the companies, which is a benefit.
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