Noranda Income Fund Successfully Completes Major Cellhouse Repairs and Restarts Operations
December 14 2022 - 5:10PM
Noranda Income Fund (TSX:NIF.UN) (the “Fund”) today provided an
update regarding the successful completion of the maintenance
shutdown and recommissioning of its electrolytic zinc processing
facility (the “Processing Facility”) located in
Salaberry-de-Valleyfield, Quebec.
As previously announced, the Fund temporarily
shut down operations to proceed with a proactive cell repair
program and a cell-by-cell integrity assessment aimed at mitigating
risk in the cellhouse. The shutdown lasted approximately
six weeks, following which the facility went through a
recommissioning phase. The Fund expects to benefit from the
findings of its cell-by-cell integrity assessment as it continues
the execution of its repair and maintenance program.
“Various levels of repairs were made to the
cells in the cellhouse and all cells were thoroughly cleaned and
inspected. Together, the repairs and cleaning are aimed at
stabilizing cellhouse operating conditions while our longer-term
cellhouse revitalization plan is being finalized,” said Paul
Einarson, Chief Executive Officer of Canadian Electrolytic Zinc
Limited, Noranda Income Fund’s Manager.
“In addition to our repairs and maintenance
strategy, we continue to address the labour and operational
efficiency challenges we face due to the tight labour market. We
are optimistic for the future after having successfully completed
the repair and maintenance shutdown and given some of the positive
results we’ve seen this year due to our proactive labour
strategies,” concluded Mr. Einarson.
The Fund remains steadfast in its commitment to
unitholders that despite unprecedented challenges across the
resource industry brought on by global supply chain challenges and
labour shortages, the objective remains the same – to pursue
opportunities to create value for unitholders. To that end, the
Board of Trustees and management will continue to focus on
solutions that are practical and implementable to deliver on that
objective.
Cellhouse Revitalization
Project While the Fund believes the cellhouse repairs
conducted during the maintenance shutdown will contribute to
stabilizing near-term cellhouse operating conditions, they will not
fully address underlying operational issues. The ongoing
performance of cellhouse operations will depend on the eventual
rate of deterioration of the cells.
As previously disclosed, evaluations undertaken
thus far have led to the conclusion that a replacement of all cells
will be necessary to stabilize and improve operating conditions for
the long-term, in addition to planned crane replacements. The cost
of a full cell and crane replacement is currently estimated to be
approximately US$100 million and replacement would not
commence before 2024. Since its last update, the Fund has been
advancing its long-term cellhouse revitalization plan, including
work on financing options, engineering plans and the procurement of
long-lead items. More updates will follow once the plan has been
finalized. The project timeline may be influenced by supply chain
constraints and by the securing of appropriate financing.
Forward-Looking
InformationCertain information in this press release,
including statements regarding the Fund’s ability to repair its
existing cellhouse, to finance and realize a full cell and crane
replacement and the expected impact of such repairs and replacement
on production and sales, is “forward-looking information” within
the meaning of Canadian provincial securities laws and
“forward-looking statements” within the meaning of Canadian
provincial securities laws. In some cases, but not necessarily in
all cases, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "targets",
"expects" or "does not expect", "is expected", "an opportunity
exists", "is positioned", "estimates", "intends", "assumes",
"anticipates" or "does not anticipate" or "believes", or variations
of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might", "will" or "will be
taken", "occur" or "be achieved". Statements containing
forward-looking information are not historical facts but instead
represent management's expectations, estimates and projections
regarding future events.
Forward-looking information is necessarily based
on a number of opinions, assumptions and estimates that, while
considered reasonable as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of the Fund’s Annual Information Form dated
March 30, 2022 for the year ended December 31, 2021 and the Fund’s
other periodic filings available at www.sedar.com. These factors
are not intended to represent a complete list of the factors that
could affect the Fund; however, these factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking
statements contained in this press release are made as of the date
of this press release, and the Fund expressly disclaims any
obligation to update or alter statements containing any
forward-looking information, or the factors or assumptions
underlying them, whether as a result of new information, future
events or otherwise, except as required by law.
About the 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 |
Noranda Income (TSX:NIF.UN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Noranda Income (TSX:NIF.UN)
Historical Stock Chart
From Sep 2023 to Sep 2024