Noranda Income Fund Provides COVID-19 Business Update; Maintains Its Priority Manufacturing Activities
TORONTO, April 02, 2020 (GLOBE NEWSWIRE) — Noranda Income Fund (TSX:NIF.UN) (the “Fund”) announced today that its electrolytic zinc processing facility, located in Salaberry-de-Valleyfield, Québec, continues to maintain its priority manufacturing activities following the Government of Québec’s order to minimize all non-essential activities in the province in response to the COVID-19 pandemic.
The facility produces refined zinc metal and other by-products, including sulfuric acid. As a supplier of chemicals to several sectors deemed essential, the processing facility’s own manufacturing activities are considered priority manufacturing activities by the Government of Québec.The Fund has suspended all activities deemed non-essential to the maintenance of its operations effective March 25, 2020, and until further notice. All necessary precautions to curb the spread of COVID-19 and to protect the health and safety of its workforce have been implemented onsite, in accordance with the directives of public health officials.Management continues to monitor the situation closely to ensure the health and safety of its workforce and that it follows any subsequent government-mandated orders and public health directives. To date, measures implemented have not had a significant impact on its operations, and previously released guidance regarding 2020 sales and production levels remain unchanged.Potential impact of COVID-19The World Health Organization (WHO) declared a novel coronavirus (COVID-19) to be a pandemic on March 11, 2020. Major health issues and pandemics, such as COVID-19, may adversely affect national or global economies, global trade and commercial activity, and could result in a general or sharp decline in economic activity.As a result of COVID-19, many companies and local and national governments have imposed restrictions, such as closures, quarantines, cancellations and travel restrictions. The Fund may incur losses or expenses relating to such events outside of its control. Given the evolving and dynamic nature of COVID-19, it is difficult to predict how significant or adverse the impact of the outbreak may be, including on the Fund’s business, its operations, and the market for its securities.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.Noranda 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, Québec. 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 further information, please contact:
Chief Financial Officer of Canadian Electrolytic Zinc Limited, Noranda Income Fund’s Manager