Noranda Income Fund Reaches Agreement on Terms for 2022/2023 Contractual Period
June 03 2022 - 06:30AM
Noranda Income Fund (TSX:NIF.UN) (the “Fund”) announced today that
it has reached an agreement with Glencore Canada on the terms under
which zinc concentrate will be purchased and zinc metal will be
sold for the period of May 1, 2022, to April 30, 2023 (the
“2022/2023 contractual period”).
For the 2022/2023 contractual period, the Fund’s
purchases of primary zinc concentrates will be made 60% at a fixed
treatment charge and 40% at a variable treatment charge that will
fluctuate in line with market movements, among other conditions.
The Fund and Glencore Canada agreed upon a fixed premium price on
zinc metal sales for the same May 1 to April 30 contractual period.
Detailed terms are not disclosed as they are considered
commercially sensitive and confidential.
As per the agreements in place, Glencore Canada,
as principal, supplies the Fund with all of its zinc concentrate
requirements, and purchases all of the Fund’s zinc metal for the
five-year period ending April 30, 2025. The terms for each
contractual period (commencing May 1 of the respective calendar
year) are to be agreed upon annually in-line with prevailing market
conditions and in consultation with the Independent Trustees’
independent industry consultants.
Given the high level of market volatility, the
Fund has not provided an illustrative Adjusted EBITDA range
applying these terms as it has historically.
The Fund does not expect to realize the full
impact of these terms until all inventory purchased prior to May 1,
2022 has been processed. This is expected to occur in the third
quarter of 2022.
Forward-Looking InformationThis
press release contains forward-looking information and statements
within the meaning of applicable securities laws. 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.
About Noranda Income
FundNoranda Income Fund is an income trust whose units
trade on the Toronto Stock Exchange under the symbol “NIF.UN”.
Noranda Income Fund owns the electrolytic zinc processing facility
and ancillary assets (the “Processing Facility”) located in
Salaberry-de-Valleyfield, Quebec. The 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 sourced zinc concentrates.
The Processing Facility is operated and managed by Canadian
Electrolytic Zinc Limited, a wholly-owned subsidiary of Glencore
Canada Corporation. Further information about Noranda Income Fund
can be found at: www.norandaincomefund.com
For more information: |
Paul EinarsonChief Executive Officer of Canadian Electrolytic
Zinc Limited Noranda Income Fund’s ManagerTel.: 514
745-9380info@norandaincomefund.com |
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