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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 electrolytic zinc 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 by-products from zinc concentrates purchased from mining operations. The CEZinc processing facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly-owned subsidiary of Xstrata Canada Corporation.
Except where otherwise indicated, all amounts in this press release are expressed in Canadian dollars.
Further information about the Noranda Income Fund can be found at www.norandaincomefund.com.
SELECTED FINANCIAL AND OPERATING INFORMATION---------------------------------------------------------------------------- Fourth Quarter Year($ thousands) 2012 2011 2012 2011----------------------------------------------------------------------------Statements of Comprehensive Income InformationRevenues 150,779 137,803 577,676 644,271Raw material purchase costs 66,003 73,614 288,047 340,446----------------------------------------------------------------------------Revenues less raw material purchase costs 84,776 64,189 289,629 303,825----------------------------------------------------------------------------Other expenses: Production 42,717 49,125 169,033 181,209 Selling and administration 5,421 5,516 21,139 20,101 Foreign currency loss (gain) 1,413 (1,844) (681) 919 Loss (gain) on derivative financial instruments 1,641 (115) (940) 3,473 Depreciation of property, plant and equipment 9,062 8,123 33,502 34,126 Rehabiliation expense 266 974 922 4,137----------------------------------------------------------------------------Earnings before finance costs and income taxes 24,256 2,410 66,654 59,860----------------------------------------------------------------------------Finance costs, net 2,009 2,281 7,981 16,110----------------------------------------------------------------------------Earnings before income taxes 22,247 129 58,673 43,750Current and deferred income tax (recovery) expense (5,131) (114) 7,650 15,408----------------------------------------------------------------------------Earnings attributable to Unitholders and Non-controlling interest 27,378 243 51,023 28,342Distributions to Unitholders 4,687 26,436 18,750 27,998Current income tax recovery on distribution (35) (7,441) (4,136) (7,751)----------------------------------------------------------------------------Increase in net assets attributable to Unitholdersand Non-controlling interest 22,726 (18,752) 36,409 8,095--------------------------------------------------------------------------------------------------------------------------------------------------------Other comprehensive income (loss) (2,371) (5,888) (5,545) (8,097)----------------------------------------------------------------------------Comprehensive income 20,355 (24,640) 30,864 (2)--------------------------------------------------------------------------------------------------------------------------------------------------------Statements of Financial Position Information Dec. 31, 2012 Dec. 31, 2011----------------------------------------------------------------------------Cash 1,303 1,497Inventories 91,697 61,017Accounts receivable 98,347 92,779Income taxes receivable 4,801 24Property, plant and equipment 270,867 277,135Total assets 477,629 447,389Accounts payable and accrued liabilities 72,448 60,795Total bank and other loans 95,509 94,216Total liabilities excluding net assets attributable to unitholders 242,621 243,245-------------------------------------------------------------------------------------------------------------------------------------------------------- Fourth Quarter YearStatements of Cash Flows Information 2012 2011 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------Cash provided by operating activities before cash distributions and net change in non-cash working capital items 22,100 22,697 83,361 77,754----------------------------------------------------------------------------Cash distributions (4,687) (4,687) (18,750) (6,250)----------------------------------------------------------------------------Net change in non-cash working capital items (36,450) 28,244 (39,297) 55,266----------------------------------------------------------------------------Cash provided by operating activities (19,037) 46,254 25,314 126,770----------------------------------------------------------------------------Cash used in investing activities (8,499) (8,540) (24,632) (25,817)Cash used in financing activities 22,754 (37,018) (876) (102,854)Net (decrease) increase in cash and cash equivalents (4,782) 696 (194) (1,901)----------------------------------------------------------------------------Cash distributions declared per Priority Unit 0.12501 0.12501 0.50004 0.16668------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Fourth Quarter Year 2012 2011 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------Zinc concentrate processed (tonnes) 124,296 127,351 497,183 504,851Zinc grade (%) 53.5 54.2 54.0 54.1Zinc recovery (%) 97.6 96.6 97.2 96.8Zinc metal production (tonnes) 74,748 67,504 263,697 263,286Zinc metal sales (tonnes) 67,511 63,655 260,401 266,814Processing fee (cents/pound) 39.2 38.9 39.2 38.9Zinc metal premium (US$/pound) 0.075 0.058 0.075 0.059By-product revenues ($ millions) 12.2 11.2 43.4 50.4 Copper in cake production (tonnes) 790 594 2,202 2,604 Copper in cake sales (tonnes) 734 585 1,951 3,396 Sulphuric acid production (tonnes) 99,884 104,798 408,849 419,003 Sulphuric acid sales (tonnes) 97,419 100,541 410,358 414,010 Average LME copper price (US$/pound) 3.59 3.40 3.61 4.00 Sulphuric acid netback (US$/tonne) 80 73 76 72----------------------------------------------------------------------------Average LME zinc price (US$/pound) 0.89 0.86 0.88 0.99Average US/Cdn. exchange rate 0.99 1.02 1.00 0.99----------------------------------------------------------------------------(i) 1 tonne = 2,204.62 pounds
