FREQUENTLY ASKED QUESTIONS What are the main sources of net revenue for the Fund? How does the Fund manage the price risk for zinc purchases and sales? How are the day-to-day operations of the Fund and its facilities managed? Can I buy units in the Noranda Income Fund directly? When can I expect my T3 tax receipt? What was the tax deferral of distributions in 2007? Can investors other than Canadian residents purchase units of the Noranda Income Fund? How are energy costs managed? What is your distribution policy? How many outstanding units are there? What are the main sources of net revenue¹ for the Fund? In 2007, 72% of the net revenues were derived from the fixed processing fee, 18% from premiums 11% came from byproduct credits and 1% from recovery gains. ¹Net revenue less raw material purchase costs How does the Fund manage the price risk for since purchases and sales? Zinc concentrate is priced two months after it arrives at the refinery – this is equal to the expected amount of time it takes to refine it into zinc. With the concentrate and metal being priced in the same period, a natural hedge has been created. How are the day-to-day operations of the Fund and its facilities managed? Canadian Electrolytic Zinc Limited (the Manager), which is wholly owned by Xstrata Canada, operates and maintains the processing facility. It provides management services, including the preparation of the annual operating and management plans, capital expenditures and strategic planning. It also provides accounting services, including the preparation of the financial statements. In consideration for supplying the management services, a fee of $250,000 is paid annually to the Manager. This fee is adjusted upwards by 2% per annum, beginning January 1, 2004. The agreement lasts until 2017. Can I buy units in the Noranda Income Fund directly? No. You may purchase units only through a licensed investment dealer who is registered with the Canadian Depository for Securities. When can I expect my T3 tax receipt? Your brokerage firm is responsible for sending out your T3. Noranda Income Fund sends tax-related information to the Canadian Depository for Securities before the end of February each year. Brokerage firms have until March 31 to access this information and mail out the T3 supplementary forms to individual investors. What was the tax deferral of distributions in 2007? In 2007, 8% of the cash distributions were tax-deferred. Can investors other than Canadian residents purchase units of the Noranda Income Fund? Yes. Non-residents of Canada can purchase units of the Fund providing they accumulate no more than 49% of the units outstanding. Distributions payable to non-residents of Canada in the United States will be subject to a withholding tax, for which they may receive credit when their taxes are filed. Non-resident investors should consult their financial advisor. How are energy costs managed? Energy costs represent 38% of the production costs. In 2007, 85% came from hydro, and the balance from natural gas, propane, gasoline and oil. The Noranda Income Fund buys its hydro from Hydro-Québec under the industrial rate that it negotiates. The processing fee is adjusted upwards or downwards by approximately 50% of the change in the annual electricity costs from the preceding year. At the same time, the Fund is working on new ways to reduce its energy consumption. What is your distribution policy? The Fund will pay monthly distributions to unitholders of record on the 25th day of each month following the record date. If this date falls on a Saturday, Sunday or holiday, it will be paid the next business day. How many outstanding units are there? There are 50 million units outstanding. The Priority Units total 37,497,975 units, representing an effective 75% of the Fund. Xstrata Canada holds an economic 12,500,000 Ordinary Units. Its interest is in the Noranda Income Limited Partnership. Terms & Conditions of Use   -   Privacy Policy