NEW YORK Strong
zinc metal sales and higher premiums boosted Noranda Income
Funds earnings in the second quarter.
"From a seasonally
slow first quarter, zinc demand in the second quarter saw
orders pick up in response to improved market conditions,"
president and chief executive officer Eva Carissimi said in an
earnings conference call. "Customers are maintaining a cautious
outlook for the second half of the year.
Noranda, the majority
owner of Canadian Electrolytic Zinc Ltd., posted after-tax
earnings of Canadian $10.97 million ($10.67 million) for the
three months ended June 30, up 52 percent from C$7.22 million a
year earlier, on a 6.5-percent increase in sales to C$162.58
million ($158.13 million).
The Salaberry de
Valleyfield, Quebec-based company produced 68,286 tonnes of
zinc, up 4.1 percent from 65,621 tonnes in the second quarter
of last year, and sold 75,081 tonnes of zinc metal, up 7.8
percent from 69,664 tonnes in the same comparison. Zinc
premiums averaged 8.4 cents per pound in the second quarter vs.
7.4 cents a year earlier.
delivered zinc premiums ranged from 8 to 10 cents per pound in
July compared with 8 to 9 cents in June (
amm.com, July 5).
"Production in the
second half of the year is expected to be lower than the first
half as the earlier period benefited from the drawdown in
working process inventory," manager Michael Boone said during
the conference call. "In addition, the processing facility has
a planned maintenance shutdown during the second half of the
year, which is expected to reduce production."