Lake Babine Nation and West Fraser form partnership to strengthen forestry sector

Published 24/07/2025, 19:34
Lake Babine Nation and West Fraser form partnership to strengthen forestry sector

VANCOUVER - Lake Babine Nation Forestry Limited Partnership and West Fraser Timber Co. Ltd. (TSX and NYSE:WFG) have established a new partnership following the British Columbia government’s approval of a First Nations Woodland Licence in the Smithers area, according to a press release statement issued Thursday. West Fraser, currently valued at $5.65 billion, has demonstrated strong financial health according to InvestingPro analysis, with liquid assets exceeding short-term obligations and a robust current ratio of 2.89.

The new area-based licence will be held by Lake Babine Nation Forestry, which is owned by Lake Babine Nation. West Fraser contributed portions of its licence volume from the Bulkley and Morice Timber Supply Areas to help create the licence, with additional volume provided through BC Timber Sales.

"As stewards of our lands since time immemorial, Lake Babine Nation has always recognized the deep responsibility we hold in ensuring our forests are managed with respect and sustainably," said Chief Wilf Adam of Lake Babine Nation.

Under the agreement, West Fraser will provide forest stewardship services to support the management of the new licence in alignment with the Nation’s values for its traditional territory.

The partnership builds on previous agreements between the two organizations, including a Joint Development Agreement signed in April 2024 and a Log Supply and Forest Management Agreement from January 2025.

Sean McLaren, President and CEO of West Fraser, said the milestone "recognizes Lake Babine Nation’s role as the resource steward in its traditional territory and reflects our shared commitment to sustainable forestry."

Ravi Parmar, British Columbia’s Minister of Forests, called it "a significant forestry partnership" that creates "an opportunity to create jobs and strengthen our forest economy."

Lake Babine Nation is one of British Columbia’s largest Indigenous nations with over 2,500 members. The nation established Lake Babine Nation Forestry in 2016, which now employs approximately 27 people. Trading near its 52-week low, West Fraser’s stock currently appears undervalued according to InvestingPro Fair Value metrics. Detailed analysis and comprehensive research reports covering West Fraser and 1,400+ other US equities are available through InvestingPro’s research platform.

In other recent news, West Fraser Timber Co. Ltd. has announced a quarterly dividend of US$0.32 per share on its Common and Class B Common shares. The dividend is set to be payable on July 14, 2025, for shareholders who are on record as of June 26, 2025. This development comes as part of the company’s regular financial updates to its investors. The announcement was made through a press release, highlighting the company’s ongoing commitment to returning value to its shareholders. Investors may view this as a sign of financial stability and consistent performance. The dividend declaration is an important event for shareholders, providing them with a direct financial benefit. This recent update underscores West Fraser’s financial strategies and shareholder engagement.

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