SALABERRY-DE-VALLEYFIELD, QUEBEC — (Marketwire) — 08/04/11 — Noranda Income Fund (the „Fund“) (TSX: NIF.UN)
Q2 2011 and Subsequent Highlights:
Noranda Income Fund (the „Fund“) (TSX: NIF.UN) reported earnings attributable to unitholders of $6.0 million for the second quarter of 2011, compared to $11.4 million in the same quarter a year ago. The $5.4 million decrease was mainly due to the current income tax expense in 2011, a stronger Canadian dollar and the impact of the change in fair value of embedded derivatives, partially offset by higher byproduct revenues, premiums and processing fee.
Earnings attributable to unitholders of $16.7 million for the first half of 2011 compared to $20.1 million for the first half of 2010. The $3.4 million decrease was mainly due to current income tax expense in 2011 and a stronger Canadian dollar partially offset by higher byproduct revenues, premiums and processing fee.
„We are very pleased to have put a long-term refinancing in place last week. At the same time, it was a positive quarter with most of our key drivers performing very well. Offsetting these good results were the impact of the current income tax expense, higher interest costs and a stronger Canadian dollar,“ said Mario Chapados, President and CEO of the Fund-s Manager. „While growth in the US economy is expected to moderate over the remainder of the year, the outlook for zinc and sulphuric acid remains healthy.“
With the long-term refinancing now in place and the resulting elimination of the prohibition on distributions to unitholders that existed with the bridge facility in place, the board of trustees of Noranda Operating Trust is set to review the Fund-s distribution practices to determine whether, when and at what level, distributions of the Fund-s excess cash may be reinstated. It is the Fund-s objective to maximize unitholder value and, when possible, provide stable monthly distributions at a sustainable level to unitholders that does not unduly risk unitholders- equity as the Fund approaches the end of the Supply and Processing Agreement in 2017. The Fund expects to provide an update on any future distributions by the middle of September.
A full version of the second quarter 2011 Management-s Discussion and Analysis („MD&A“) and the Unaudited Interim Financial Statements will be posted on the Fund-s website, today, August 4, 2011, and they will be available on on August 5, 2011. Readers should be advised that the summarized communication presented in this press release is limited in its disclosure. It is not a suitable source of information for readers who are unfamiliar with the Fund, and it is not in any way a substitute for reading the Unaudited Interim Financial Statements and MD&A because a reader relying on this summary alone might overlook decision critical information.
FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements on when it intends to provide an update on distributions and statements regarding the current outlook for its metal and sulphuric acid businesses. The Fund provides this information on its businesses because they comprise some its key drivers. Readers are cautioned that this information may not be appropriate for other reasons.
Forward-looking information contained in this press release is based on, among other things, management-s current estimates, expectations, assumptions, plans and intentions, which management believes are reasonable as of the current date, and which are subject to a number of risks and uncertainties. You should not place undue importance on forward-looking statements or information and should not rely upon such information as of any other date. Except as required by law, the Fund does not undertake to update these forward-looking statements or information, whether written or oral, that may be made from time to time by the Fund or on the Fund-s behalf.
Forward-looking information involves known and unknown risks, uncertainties and other factors, which may cause actual events, results or performance to be materially different from any future events, results or performance expressed or implied by the forward- looking information. As a result, the Fund cannot guarantee that any forward-looking statements or information will materialize. For further details concerning the risks, uncertainties and other factors which may cause actual events, results or performance to be materially different from those expressed or implied by the forward-looking statements and information, reference should be made to the Fund-s most recent Annual Report and Annual Information Form, copies of which are available on .
Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol „NIF.UN“. The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the „CEZinc processing facility“) located in Salaberry-de-Valleyfield, Quebec. The CEZinc processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of zinc customers are located. It produces refined zinc metal and various byproducts from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.
Further information about the Noranda Income Fund can be found at .
Contacts: Financial information: Michael Boone Vice President & Chief Financial Officer of Canadian Electrolytic Zinc Limited, Noranda Income Fund-s Manager 416 775-1561
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