Noranda Income Fund Reaches Agreement on Terms for 2022/2023 Contractual Period

TORONTO, June 03, 2022 (GLOBE NEWSWIRE) — 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 Information
This 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 Fund
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, 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