Noranda Sees Profit for Quarter

Noranda Inc. reported net income of $20 million for the three months ended September 30, 2003. For the same time last year the company reported a loss of $43 million. The company attributed the profit to increased production from new projects, higher metal prices and the gain in the sale of units in Noranda Income Fund.

For the first nine months, the company reported a net loss of $30 million compared to a net loss of $5 million in 2002.

Mr. Derek Pannell, Noranda's President and Chief Executive Officer, stated that "the impact of increased prices has only begun to be seen in the financial numbers of the Company. A complete quarter at current prices would further positively impact results."

Revenues were 31 percent higher in the quarter reflecting the increase in metal prices and higher sales volumes from recently completed projects.

The increase in the cost of operations reflects primarily the impact of the stronger Canadian dollar and higher production levels.

The cost to purchase raw materials was higher year-over-year due to increased feed requirements at the expanded Altonorte smelter, the resumption of full operations at the Horne smelter and higher metal prices.

Broken out by the various metals, the company noted that its nickel business produced operating income of $37 million in the quarter compared to $6 million in the comparable period of 2002.

The Copper business reported operating income of $35 million in the quarter compared to $11 million in the comparable period of 2002.

Canadian Copper and Recycling

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The Canadian Copper and Recycling business recorded an operating loss of $12 million in the quarter. The results reflect the impact of the 13-week shutdown of the zinc metallurgical operations and maintenance shutdowns at the Kidd Creek copper smelter and refining operations as well as the province-wide power outage in August.

Production from the Horne smelter and CCR refinery were affected by the return to work ramp-up following a labor strike. Over the next nine months, the smelter will focus on processing an increased volume of higher-margin recycle material and scaling back the volume of the lower-margin, off-shore primary concentrate. Current initiatives will reduce the smelter feed and anode production by approximately 20 percent commencing the middle of next year, lower staff levels by one-third and improve operating cost.