Noranda Income Fund has reported its financial results for the three-month period ended March 31, 2016. As quoted in the press release: 2016 First Quarter Highlights Adjusted Net Revenues1 were $66.3 million, down from $67.5 million. Earnings before income taxes (EBT) were $4.4 million, down from $15.4 million. Zinc metal production was 67,627 tonnes, flat …
Noranda Income Fund has reported its financial results for the three-month period ended March 31, 2016.
As quoted in the press release:
2016 First Quarter Highlights
- Adjusted Net Revenues1 were $66.3 million, down from $67.5 million.
- Earnings before income taxes (EBT) were $4.4 million, down from $15.4 million.
- Zinc metal production was 67,627 tonnes, flat from 67,804 tonnes.
- Zinc metal sales increased 38% from Q1 2015 to 72,639 tonnes, helping to offset the impact of lower zinc premiums, lower copper prices and lower sulphuric acid prices.
- Zinc premiums revenue was $15.7 million, up from $14.5 million for Q1 2015 primarily as a result of higher sales volumes.
- By-product sales were $6.3 million, down from $7.6 million.
- Cash provided by operating activities was $69.4 million, primarily due to the $60.2 million decrease in working capital.
- Extended its asset-based revolving credit facility to April 3, 2017.
- Declared monthly cash distributions from January to April 2016 of $0.04167 per Priority Unit.
- Glencore Canada committed to provide zinc concentrate throughout 2017.
- Declared monthly cash distribution for the month of May 2016 of $0.025 per Priority Unit.
Eva Carissimi, president and CEO said:
Although soft market conditions had a major impact on our first quarter results, our performance in Q1 was consistent with our strategy of preparing for the transition to market terms in 2017 after the expiry of the initial term of the Fund’s Supply and Processing Agreement with Glencore Canada. Through our focus on increasing productivity, lowering unit operating costs and better managing our inventory levels, we generated cash flow of $69.4 million, strengthened our balance sheet by reducing our debt by $64.6 million, and lowered our energy costs by $0.3 million. These developments are encouraging signs of progress.