Noranda Income Fund
TSX : NIF.UN

Noranda Income Fund

September 19, 2011 08:15 ET

Noranda Income Fund Announces A Cash Distribution for the Month of September 2011 of $0.04167 Per Priority Unit

SALABERRY-DE-VALLEYFIELD, QUEBEC--(Marketwire - Sept. 19, 2011) - Noranda Income Fund (the "Fund") (TSX:NIF.UN) announced today that the Board of Trustees of Noranda Operating Trust has approved a distribution for the month of September 2011 of $0.04167 per priority unit payable on October 25, 2011 to Priority Unitholders of record as at the close of business on September 30, 2011.

Mr. John J. Swidler, chairman of the Board of Trustees, stated: "The Board of Trustees is pleased to announce this monthly distribution, the first such monthly distribution since June 2009. Given that the Fund has completed its refinancing and given the more recent strong performance of the Fund, we believe that this distribution will be welcomed by the holders of our priority units." Mr. Swidler added that "now that the Fund has stable financing until 2016, management and the Board of Trustees are turning to address the challenges which the Fund faces with the expiration of the Supply and Processing Agreement (the "SPA") in 2017".

Pursuant to the SPA, the Fund is guaranteed a supply of a sufficient quantity of zinc concentrate to operate at full capacity. With the current uncertainty surrounding the viability of the Fund as it approaches the end of the SPA in 2017, the Fund's capacity to make distributions may be negatively affected by the need to establish out of its available cash flows, cash reserves to meet its obligations at that time. Mr. Swidler concluded by stating: "The Board of Trustees will need to determine if further distributions, including the amount of such distributions, if any, are warranted, taking into account the Fund's performance, general economic conditions, including commodity prices, and the potential necessity of establishing post-SPA reserves".

There is no assurance that monthly distributions will continue in the future, nor is there any assurance that, if they do continue, the level of such monthly distributions will not vary from the level of this September 2011 distribution.

FORWARD-LOOKING INFORMATION

This press release contains forward-looking information and statements within the meaning of applicable securities laws, including statements on determination of further distributions and the end of the SPA. 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 and the conditions of financial and credit markets, the Fund's ability to operate at normal production levels, changes to the supply and demand for specific zinc metal products 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". The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the "CEZinc processing facility") located in Salaberry-de-Valleyfield, Québec. 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 www.norandaincomefund.com.

Contact Information

  • Financial information:
    Michael Boone, Vice President & Chief Financial Officer of
    Canadian Electrolytic Zinc Limited, Noranda Income Fund's
    Manager
    416 775-1561
    mboone@xstrata.ca