The Noranda Income Fund, which operates the CeZinc processing plant in Salaberry-de-Valleyfield, Québec, reported net earnings of $1.4 million for the fourth quarter of 2009, compared to earnings of $7.5 million in the same quarter a year ago and a net loss of $1.3 million for the third quarter.
"The plant operated at normal operating capacity during the quarter and this positively impacted fourth quarter profitability and cash flow. The benefits of improved demand for zinc, sulphuric acid and copper flowed through to the bottom line," said President and Chief Executive Officer, Mario Chapados.
Mr Chapados was upbeat in his outlook for 2010 with steel plants in the USA, the major users of zinc, running at 65% capacity against 44% in the first half of 2009, increasing stock levels and government stimulus initiatives such as the Cash for Clunkers car trade-in incentive.
Mr Chapados pointed to the ending of such initiatives and fiscal tightening in China as the main areas of uncertainty and while manufacturing activity is improving that doesn’t apply to all sectors. Low zinc premiums and a stronger Canadian dollar are also proving to be challenges.
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