Aug 18, 2011. /Lesprom Network/. Conifex Timber Inc. reported a net loss of $3.6 million and negative EBITDA of $0.8 million on sales of $26.9 million for the 2Q ended June 30, 2011. EBITDA improved by $0.5 million compared to the previous quarter and $0.1 million compared to the same quarter last year. The Company added a second shift at its Fort St. James and Site II Mackenzie operations at the end of March 2011. Overall operating rates based on current total estimated production capacity improved to approximately 55% during the current quarter compared to 34% in the previous quarter and 22% for the same quarter last year, as the company said in a press release received by Lesprom Network. Current quarter revenue from lumber shipments increased by 18% compared to the previous quarter and reflects a 30% increase in shipment volumes offset by a 12% decline in average unit sales prices. The Company achieved higher mill nets in the current quarter than would be indicated by the quarter over quarter decline in benchmark prices due to an improved product and grade mix, a robust order file entering the quarter, and less volatility in prices in export markets compared to the North American market. The Company shipped a record 83% of total 2Q shipments to export markets compared to 44% in the previous quarter and 41% in the same quarter last year. The Company's primary export markets are China and Japan. Shipments to export markets during the first six months of 2011 represented 66% of total shipments compared to 36% for the first six months of 2010. Current quarter lumber revenue increased by 105% compared to the 2Q 2010 with most of the increase attributable to higher shipment volumes. Lumber production during the 2Q 2011 totalled 102.4 million board feet, an increase of approximately 61% over the previous quarter and 148% over the 2Q 2010. Unit conversion costs declined by approximately 23% compared to the previous quarter and 8% compared to the same quarter last year. The improvement was largely attributable to increased operating rates during the current quarter. Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing.