SALABERRY-DE-VALLEYFIELD, QUEBEC -- (Marketwire) -- 12/17/12 -- Noranda Income Fund (the "Fund") (TSX: NIF.UN) announced today that it has approved the 2013 operating plan for the Processing Facility. Refined zinc production next year is forecast to be 265,000 tonnes, approximately 1% higher than the 262,000 tonnes forecast for 2012. Capital investment is expected to rise from a forecast of $27 million in 2012 to $46 million in 2013, of which approximately $20 million is expected to be invested to increase the Processing Facilities' capabilities for removing silica, an impurity present in the zinc concentrate, and the remainder will be for sustaining capital at the plant.
During 2012, the Fund has advised that with the closure of Brunswick Mine, the Processing Facility may be required to treat concentrate containing higher levels of impurities. In order for the Processing Facility to remain competitive in the future, it is important that it increase its silica removal capabilities.
Approximately $5 million has been approved to procure long-delivery items, conduct a pilot plant study and complete feasibility engineering on the project. The bulk of the investment is expected to occur in 2013 and the project is scheduled to be completed by June 2014.
The increase in capital investment in 2013 will reduce the Fund's cash available for distribution and reserves. The Fund currently expects the capital investments for 2013 to be funded from its cash provided from operating activities. In addition, as at September 30, 2012, the Fund had $83.7 million of excess availability on its asset-based revolving credit facility.
There is no assurance that monthly distributions will continue in the future, nor is there any assurance that, if they do continue, the level or frequency of such monthly distributions will not vary from the level of the most recent monthly cash distributions.
This press release contains forward-looking information and statements within the meaning of applicable securities laws, including statements on 2012 and 2013 zinc metal production, 2012 and 2013 capital expenditures and expected source of funding for 2013 capital expenditures. 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, and as a result, the Fund cannot guarantee that any forward-looking statements or information will materialize.
Such risks and uncertainties include, but are not limited to, the effect of general business and economic conditions, the Fund's ability to operate at normal production levels, the Fund's capital expenditure requirements and other general risks and uncertainties set out in the Fund's continuous disclosure documents on available on SEDAR at www.sedar.com.
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. 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.
Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". Noranda Income Fund was created to acquire Noranda Inc.'s CEZ processing facility and ancillary assets (the "CEZ processing facility") located in Salaberry-de-Valleyfield, Quebec. The CEZ 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 by-products from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.
Further information about Noranda Income Fund can be found at www.norandaincomefund.com.
Vice President and Chief Financial Officer,
Canadian Electrolytic Zinc Limited
Noranda Income Fund's Manager
Most Popular Stories
- Adam Levine Wins Big as 'The Voice' Crowns Champ
- Target Security Breach May Affect 40 Million Cardholders
- Archer Daniels Midland Moving HQ to Chicago
- Tyson Foods Charged With Civil Rights Violation
- 'Beyonce' Tops the U.S. Album Chart
- Bernanke Lets Congress Have It in Final Press Conference
- Texting With Vodka: Booze and Social Media Can Mix After All
- Wall Street Falls a Day After Surge
- How to Protect Yourself After Target Data Breach
- Hispanic PR Firm Launches Chicago Chapter