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Exhibit 99.1
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 | | FALCONBRIDGE
FALCONBRIDGE LIMITED Suite 200 - 181 Bay Street PO Box 755 Toronto, Ontario M5J 2T3 Telephone: 416-982-7111 Fax: 416-982-7423 www.falconbridge.com |
FOR IMMEDIATE RELEASE; ALL NUMBERS IN U.S. DOLLARS
FALCONBRIDGE REPORTS RECORD FIRST QUARTER
EARNINGS OF US$184 MILLION
TORONTO, Ontario April 16, 2004 — Falconbridge Limited (TSX: FL) today reported consolidated earnings of $184 million or $1.02 per common share ($1.01 per share on a diluted basis) for the first quarter of 2004. This compares with earnings of $38 million or $0.21 per common share on a basic and diluted basis for the first quarter of 2003.
First quarter 2003 earnings have been restated to reflect the adoption of new CICA standards to account for asset retirement obligations.
First Quarter 2004 Highlights
Realized prices
- •
- Significantly increased over first quarter 2003 — nickel, copper, zinc and cobalt were 80%, 55%, 33% and 201% higher, respectively
Production
- •
- Exceeded most targets despite strike impact in Sudbury, Ontario and an eight-day planned shutdown to facilitate the transition and expansion of Collahuasi mine in Chile
- •
- Secured additional long-term zinc feed for Kidd, which will enable the zinc refinery to run at full capacity and with improved margins
Financial position
- •
- Annualized return on shareholders' equity of 36%
- •
- Cash flow increased to $262 million from $106 million a year ago
- •
- Improved net debt to net debt plus equity ratio at the end of March 2004 to 32% from 37% at year-end 2003
- •
- Reinforced ability to fund projects and grow the businesses resources
Resources
- •
- Increased Nickel Rim South inferred resource to 13.2 million tonnes
- •
- Signed letter of intent for joint venture with Barrick Gold Corporation in Tanzania
1
Commentary
"We are pleased with our financial results, which established a new quarterly record. We had solid production despite the strike in Sudbury and as a result of our initiatives to control costs, we were able to take full advantage of the substantial increase in metal prices," said Aaron Regent, President and Chief Executive Officer of Falconbridge. "The outlook continues to be very positive with high metal prices expected for the balance of the year. We are becoming increasingly optimistic that we will be able to make up a large portion of the nickel production lost during the Sudbury strike and our copper production is expected to exceed last year's level by 10%. We are in an excellent position to continue to benefit from the positive metal price environment."
Report on Operations
First Quarter 2004 Results
First quarter 2004 operating income totaled $268 million, compared with operating income of $61 million for the same period of 2003. Consolidated revenues of $734 million increased from $472 million in the first quarter of 2003. Both increases reflect higher average realized nickel, copper and zinc prices, which were up 80%, 55% and 33%, respectively, partially offset by lower copper sales volumes and by the impact of a higher US/Canadian exchange rate on Canadian operating costs. Corporate income of $10 million compared to corporate costs of $7 million in the same period last year, because of mark-to-market gains on interest rate swaps and related interest income. During the quarter, cash flow from operations before working capital improved to $262 million, compared to $106 million for the corresponding period of 2003.
Nickel Operations
During the first quarter of 2004, refined nickel production totaled 26,858 tonnes compared with 27,450 tonnes for the corresponding quarter a year ago. Production in the quarter was negatively affected by the strike at the Sudbury operations. Operating income for the quarter increased to $186 million from $48 million a year ago, due to higher nickel, copper, cobalt and precious metal prices, partially offset by strike costs, estimated at $13 million.
Integrated Nickel Operations (INO)
Sudbury mines production was 4,404 tonnes during the first quarter of 2004 compared with 6,221 tonnes in the first quarter of 2003. The shortfall in production was attributable to the strike. The production ramp-up after the strike was completed ahead of schedule. For 2004, nickel in concentrate production is now forecast at 22,000 tonnes (original target was 25,000 tonnes).
At Raglan, nickel in concentrate production in the quarter was on target at 6,668 tonnes and copper production was 1,733 tonnes, essentially unchanged from 2003.
2
At the Sudbury smelter, nickel in matte production decreased to 11,404 tonnes in the first three months of 2004 from 14,851 tonnes in the same period of 2003. The ramp-up following the strike went smoothly. The smelter will begin an eight-week maintenance shutdown starting June 14.
At Nikkelverk, the first-quarter nickel production level of 18,859 tonnes was lower than in the first quarter of 2003 due to the strike. For 2004, refined nickel production is now forecast at 72,000 tonnes (previously 75,000 tonnes).
First quarter 2004 INO operating income was $130 million compared to $44 million in the same period of 2003. The increase in INO's contribution was due to the impact of higher metal prices, which was reduced by costs associated with the strike, higher depreciation and amortization charges and higher unit costs, which were exacerbated by a stronger Canadian dollar.
Falconbridge Dominicana, C. por A. (Falcondo)
In the first quarter of 2004, Falcondo produced 7,999 tonnes of nickel in ferronickel compared to 6,887 tonnes in the first quarter of 2003. Falcondo's operating income for the first quarter of 2004 was $55 million, which compares with $4 million for the three months ended March 31, 2003. The $51 million higher contribution reflects an 86% increase in realized ferronickel prices and higher sales volumes.
Copper Operations
During the first quarter of 2004, mine copper production totaled 65,929 tonnes compared with 78,562 tonnes a year ago. Operating income for the first quarter increased to $72 million from $20 million a year ago, due to the impact of higher copper prices offset by lower sales volumes.
Kidd Operations
Kidd realized an operating profit of $3 million in the quarter, compared to an operating loss of $14 million for the corresponding period of 2003. Kidd generated $16 million of operating cash flow, up from a breakeven cash flow in the corresponding quarter a year ago. The profit reflects higher base metal prices, improved realizations for by-products and lower cost of sales offset in part by the impact of lower treatment and refining charges and lower sales volumes for both copper and zinc.
Copper and zinc production from the Kidd Mine during the first quarter of 2004 totaled 9,296 and 20,792 tonnes, respectively. Mine production was negatively impacted by a stope blockage and a ventilation fan breakdown. Copper and zinc ore grades were 1.81% and 5.05%, respectively. The copper and zinc mine production forecast for 2004 have been revised to 43,000 tonnes and 90,000 tonnes, respectively.
Copper cathode production for the first quarter of 2004 was 33,722 tonnes and refined zinc production was 28,458 tonnes, reflecting lower mine production and a shortage of custom feed availability. For 2004, zinc production is now forecast to be 120,000 tonnes as a result of securing additional custom feed.
3
During the quarter, the Company reached an agreement with Agnico Eagle for a life-of-mine contract to process the majority of their annual production of zinc concentrate. This will ultimately provide the zinc operations at Kidd with an annual supply of over 100,000 tonnes of precious metal-bearing zinc concentrate, and will enable it to run with improved margins at full capacity.
At the beginning of July, the copper and zinc operations will take shutdowns of five and seven weeks respectively. The shutdowns are largely for maintenance reasons, but they will also reduce custom concentrate requirements, given the current low treatment charge environment and energy consumption in what is typically a period of high rates. Duration of the outages is subject to change based on market conditions.
Work at Mine D is advancing as planned with first ore production expected near the end of 2004 with ramp-up during the first half of 2005. Mine D will improve operational reliability and predictability and maintain the mining rate at 2.4 million tonnes per year.
Collahuasi (all numbers based on Falconbridge's 44% share)
Copper production in the first quarter of 2004 was 35,369 tonnes, compared to the 44,211 tonnes produced in the same quarter last year, due to lower ore grades (1.45% versus 1.57% in the first quarter of 2003). Copper cathode production in the quarter was 6,152 tonnes, 10% lower than first quarter 2003 production of 6,862 tonnes, due to operational difficulties with the leaching process after heavy rainfall in January and February.
Operating earnings for the first quarter of 2004 were $45 million, compared to $28 million earned in the same quarter last year. Earnings reflect the significant increase of average copper prices to $1.24 a pound during the first quarter of year 2004, compared with the 75 cents a pound of a year ago.
The move of the operations from Ujina to Rosario and the expansion of the concentrator to 110,000 tonnes per day of ore are on schedule and budget. At the end of March, the project was 93% complete. The commissioning of the new crusher at Rosario and the conveyor belt transporting the ore from Rosario to Ujina began at the end of March.
Lomas Bayas
Copper cathode production in the first quarter of 2004 was 15,728 tonnes, 8% higher than the 14,572 tonnes produced in same quarter last year. Operating earnings in the first quarter were $24 million, compared to $6 million earned in the same quarter last year. The increase largely reflects the significant improvement in copper prices.
Lomas Bayas had stable operations during the first quarter of 2004. Roughly 93% of the copper produced was LME-deliverable, compared to a plan estimate of 85%. The completion date for the expansion of the crusher is April 2004 and the project remains on budget.
4
Liquidity and Capital Resources
Cash generated from operating activities before working capital changes totaled $262 million compared to $106 million for the first quarter of 2003. Capital expenditures and deferred project costs for the first quarter of 2004 were $101 million. Working capital increased to $791 million at the end of the first quarter of 2004 from $649 million at the end of December of 2003. Dividends of $15 million were paid during the first quarter.
Cash resources stood at $416 million at March 31, 2004. The net debt to net debt plus equity ratio improved to 32% at the end of March from 37% at the end of 2003.
Other Developments
Nickel Rim South, Ontario
On March 12, 2004, Falconbridge updated its estimate of the inferred resources at the Nickel Rim South deposit. The total estimate is now 13.2 million tonnes grading 1.7% nickel, 3.5% copper, 0.04% cobalt and significant platinum group metals, compared to 6.3 million tonnes at the beginning of 2003. Additional surface drilling continues to define the resource, which remains open in the up-dip direction.
An underground definition program has been approved and site preparation has begun. The five-year, $368-million program has already gone ahead with production expected to start in 2008. Once completed, a further $185 million will be required to bring the mine into production. After taking into account pre-production revenues of $141 million, the overall net capital cost will be $413 million.
"The development of Nickel Rim South reinforces the potential of the Company's mining base in an area where it has extensive infrastructure available," said Mr. Regent. "In addition, it will support the full utilization of Falconbridge's smelting and refining capacity, further improving its cost structure and re-establishing Sudbury as a strong production base."
Fraser Morgan, Ontario
Exploration is continuing at the Fraser Morgan deposit, which now has an indicated resource of 3.8 million tonnes grading 1.71% nickel, 0.52% copper and 0.06% cobalt, plus inferred resources of 2.5 million tonnes grading 1.4% nickel, 0.4% copper and 0.05% cobalt. One major advantage is that this deposit is accessible from existing Fraser Mine infrastructure.
Kabanga, Tanzania
Work on the Kabanga joint venture with Barrick Gold Corporation continues to advance, with work focusing on completing due diligence, the closing documents and the off-take agreements.
5
Labour Contracts
Two contracts will expire during the second quarter of 2004. In Norway, the trade unions negotiate a nation-wide collective agreement, which includes unionized workers at Nikkelverk. The current contract expires on May 31, 2004. In Chile, the current contract with unionized employees at Collahuasi will expire on June 30, 2004. There are 645 operators involved, representing 90% of operators and 67% of all employees.
Dividend Payment
On April 16, 2004 the Board of Directors declared dividends of 10 cents Cdn per Common Share payable May 12, 2004 to shareholders of record April 28, 2004 and of 2 cents Cdn per Preferred Share Series 1 payable June 1, 2004 to shareholders of record May 16, 2004. The Preferred Share Series 2 pays a monthly floating dividend based on the prime interest rate, payable on the 12th day of each following month for record holders of the last business day of the preceding month. For Preferred Share Series 3, a dividend of 28.63 cents Cdn per share was declared and is payable June 1, 2004 to shareholders of record May 18, 2004. The Company intends to continue paying the common share dividend in Canadian dollars but will review the situation on a periodic basis. The preferred share dividends will continue to be declared in Canadian dollars.
This press release contains forward-looking statements regarding Falconbridge's nickel, copper, zinc and precious metals production levels, sensitivity of financial results to changes in metals prices and exchange rates and other costs, and other issues and aspects relating to its business and operations. Inherent in those statements are known and unknown risks, uncertainties and other factors well beyond Falconbridge's ability to control or predict. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, such key factors as business and economic conditions in the principal markets for Falconbridge's products, the supply and demand for metals to be produced, deliveries, production levels, production and other anticipated and unanticipated costs and expenses, metals prices, premiums realized over London Metal Exchange cash and other benchmark prices, tax benefits, the Canadian – U.S. dollar and other exchange rates, the timing of the development of, and capital costs and financing arrangements associated with projects, the timing of the receipt of governmental and other approvals, political unrest or instability in countries where Falconbridge is active, risks involved in mining, processing and exploration activities, market competition and labour relations and other risk factors listed from time to time in Falconbridge's annual reports.
Note: All dollar amounts are expressed in U.S. dollars unless otherwise noted. Condensed consolidated financial statements are attached.
Log on towww.falconbridge.com to listen to Falconbridge's quarterly teleconference with investors and analysts on April 16, 2004 at 12 p.m. EST. A recording of the call will be posted on the site as soon as it is available. The Annual General Meeting will follow at 2 p.m. EST at the Design Exchange, Trading Floor, 234 Bay Street, Toronto.
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For further information please contact:
Denis Couture, Vice-President, Investor Relations, Communications & Public Affairs
416-982-7020
denis.couture@toronto.norfalc.com
Michael Doolan, Senior Vice-President and Chief Financial Officer
416-982-7355
Michael.doolan@toronto.norfalc.com
7
FALCONBRIDGE LIMITED
QUARTERLY FINANCIAL STATEMENTS
MARCH 31, 2004
FALCONBRIDGE LIMITED
CONSOLIDATED STATEMENTS OF EARNINGS
| | Three months ended March 31,
| |
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| | 2004
| | 2003
| |
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| | (unaudited — in thousands of United States dollars)
| |
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Revenues | | $ | 734,481 | | $ | 472,113 | |
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| |
| |
Operating expenses | | | | | | | |
Costs of sales | | | | | | | |
| Costs of metal and other product sales | | | 404,427 | | | 331,840 | |
| Depreciation of plant and equipment | | | 41,080 | | | 41,354 | |
| Amortization of development and preproduction expenditures | | | 15,416 | | | 16,156 | |
| |
| |
| |
| | | 460,923 | | | 389,350 | |
Selling, general and administrative | | | 24,384 | | | 21,248 | |
Exploration | | | 3,376 | | | 2,226 | |
Research and process development | | | 1,851 | | | 1,870 | |
Other income | | | (23,826 | ) | | (3,675 | ) |
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| |
| |
| | | 466,708 | | | 411,019 | |
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| |
| |
Operating income | | | 267,773 | | | 61,094 | |
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| |
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Interest | | | 10,358 | | | 12,065 | |
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Earnings before taxes and non-controlling interest | | | 257,415 | | | 49,029 | |
Income and mining taxes | | | 69,063 | | | 10,315 | |
Non-controlling interest in earnings of subsidiaries | | | 4,044 | | | 254 | |
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| |
| |
Earnings for the period | | $ | 184,308 | | $ | 38,460 | |
Dividends on preferred shares | | | 1,965 | | | 2,043 | |
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| |
| |
Earnings attributable to common shares | | $ | 182,343 | | $ | 36,417 | |
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| |
| |
Basic earnings per common share | | $ | 1.02 | | $ | 0.21 | |
Diluted earnings per common share | | $ | 1.01 | | $ | 0.21 | |
2
FALCONBRIDGE LIMITED
EARNINGS CONTRIBUTIONS
| | Three months ended December 31,
| |
---|
| | 2004
| | 2003
| |
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| | (unaudited — in thousands of United States dollars)
| |
---|
Principal operations — | | | | | | | |
| Integrated Nickel Operations (INO) | | $ | 130,428 | | $ | 43,830 | |
| Falconbridge Dominicana, C. por A. | | | 55,416 | | | 3,987 | |
| |
| |
| |
| Nickel Operations | | | 185,844 | | | 47,817 | |
| |
| |
| |
| Kidd Creek Operations | | | 3,018 | | | (13,547 | ) |
| Collahuasi | | | 45,239 | | | 27,503 | |
| Lomas Bayas | | | 23,500 | | | 5,870 | |
| |
| |
| |
| Copper Operations | | | 71,757 | | | 19,826 | |
Corporate costs | | | (10,172 | ) | | 6,549 | |
| |
| |
| |
Operating income | | | 267,773 | | | 61,094 | |
Interest | | | 10,358 | | | 12,065 | |
Income and mining taxes | | | 69,063 | | | 10,315 | |
Non-controlling interest in earnings of subsidiaries | | | 4,044 | | | 254 | |
| |
| |
| |
Earnings for the period | | | 184,308 | | | 38,460 | |
Dividends on preferred shares | | | 1,965 | | | 2,043 | |
| |
| |
| |
Earnings attributable to common shares | | $ | 182,343 | | $ | 36,417 | |
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3
FALCONBRIDGE LIMITED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| | March 31, 2004
| | December 31, 2003
|
---|
| | (unaudited — in thousands of United States dollars)
|
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ASSETS | | | | | | |
Current | | | | | | |
Cash and cash equivalents | | $ | 415,519 | | $ | 298,091 |
Accounts and metals settlements receivable | | | 296,412 | | | 257,835 |
Inventories | | | 477,542 | | | 441,733 |
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| |
|
Total current assets | | | 1,189,473 | | | 997,659 |
| |
| |
|
Property, plant and equipment | | | 2,165,236 | | | 2,148,964 |
Development and preproduction expenditures, net | | | 832,049 | | | 821,036 |
Deferred expenses and other assets | | | 295,103 | | | 203,984 |
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| |
|
Total assets | | $ | 4,481,861 | | $ | 4,171,643 |
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LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
Current | | | | | | |
Accounts payable and accrued charges | | $ | 284,669 | | $ | 255,085 |
Income and other taxes payable | | | 37,526 | | | 23,158 |
Long-term debt due within one year | | | 76,598 | | | 70,637 |
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Total current liabilities | | | 398,793 | | | 348,880 |
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Long-term debt | | | 1,341,258 | | | 1,356,589 |
Future income and mining taxes | | | 242,968 | | | 204,948 |
Employee future benefits | | | 141,612 | | | 150,399 |
Other long-term liabilities | | | 209,108 | | | 146,488 |
Non-controlling interest | | | 29,968 | | | 25,923 |
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Total liabilities | | | 2,363,707 | | | 2,233,227 |
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Shareholders' equity | | | 2,118,154 | | | 1,938,416 |
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| |
|
Total liabilities and shareholders' equity | | $ | 4,481,861 | | $ | 4,171,643 |
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4
FALCONBRIDGE LIMITED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
| | Period ended March 31, 2004
| | Period ended March 31, 2003
| |
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| | Number
| | Amount
| | Number
| | Amount
| |
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| | (unaudited — in thousands of United States dollars)
| |
---|
Share capital | | | | | | | | | | | |
| Authorized | | | | | | | | | | | |
| Unlimited preferred shares | | | | | | | | | | | |
| Unlimited common shares | | | | | | | | | | | |
| Issued | | | | | | | | | | | |
| Common shares | | | | | | | | | | | |
| | Balance, beginning of period | | 178,792,492 | | $ | 1,449,980 | | 177,603,432 | | $ | 1,430,383 | |
| | Issued pursuant to employee stock options | | 700,498 | | | 11,243 | | 7,800 | | | 81 | |
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| |
| |
| |
| |
| | Balance, end of period | | 179,492,990 | | | 1,461,223 | | 177,611,232 | | | 1,430,464 | |
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| |
| Preferred shares Series 1 | | | | | | | | | | | |
| | Balance, beginning and end of period | | 89,835 | | | 587 | | 89,835 | | | 587 | |
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| |
| Preferred shares Series 2 | | | | | | | | | | | |
| | Balance, beginning of period | | 7,910,165 | | | 129,209 | | 7,910,165 | | | 129,209 | |
| | Conversion of units | | (3,122,882 | ) | | (78,072 | ) | — | | | — | |
| |
| |
| |
| |
| |
| | Balance, end of period | | 4,787,283 | | | 51,137 | | 7,910,165 | | | 129,209 | |
| |
| |
| |
| |
| |
| Preferred shares Series 3 | | | | | | | | | | | |
| | Balance, beginning of period | | — | | | — | | — | | | — | |
| | Issue of units | | 3,122,882 | | | 78,072 | | — | | | — | |
| |
| |
| |
| |
| |
| | Balance, end of period | | 3,122,882 | | | 78,072 | | — | | | — | |
| |
| |
| |
| |
| |
Contributed surplus | | | | | 2,196 | | | | | 2,265 | |
| |
| |
| |
| |
| |
Surplus (Deficit) | | | | | | | | | | | |
| Balance, beginning of year | | | | | 128,316 | | | | | (77,231 | ) |
| | Adjustment for change in accounting standards | | | | | | | | | | | |
| | Asset retirement obligations | | | | | 10,517 | | | | | 13,707 | |
| | Adjustment for change in accounting policies | | | | | | | | | | | |
| | Capitalization of interest | | | | | — | | | | | 37,821 | |
| | Costing of inventory | | | | | — | | | | | 33,669 | |
| Earnings for the period | | | | | 184,308 | | | | | 38,460 | |
| Dividends | | | | | | | | | | | |
| | — Common shares | | | | | (13,513 | ) | | | | (11,943 | ) |
| | — Preferred shares | | | | | (1,966 | ) | | | | (2,043 | ) |
| |
| |
| |
| |
| |
| Balance, end of period | | | | | 307,662 | | | | | 32,440 | |
| |
| |
| |
| |
| |
Cumulative translation adjustment | | | | | 217,277 | | | | | 76,363 | |
| |
| |
| |
| |
| |
Total shareholders' equity | | | | $ | 2,118,154 | | | | $ | 1,671,328 | |
| |
| |
| |
| |
| |
5
FALCONBRIDGE LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | Three months ended March 31,
| |
---|
| | 2004
| | 2003
| |
---|
| | (unaudited — in thousands of United States dollars)
| |
---|
Operating activities | | | | | | | |
| Earnings (loss) for the period | | $ | 184,308 | | $ | 38,460 | |
| Add (deduct) items not affecting cash | | | | | | | |
| | Depreciation and amortization | | | 56,590 | | | 56,456 | |
| | Future income and mining taxes | | | 39,521 | | | 6,024 | |
| | Non-controlling interest in loss of subsidiaries | | | 4,044 | | | 327 | |
| | Other | | | (15,457 | ) | | 7,582 | |
| Contributions to pension fund in excess of expense | | | (6,660 | ) | | (2,386 | ) |
| |
| |
| |
| Cash provided by operating activities before working capital changes | | | 262,346 | | | 106,463 | |
| Net change in receivables, inventories and payables | | | (30,964 | ) | | (51,654 | ) |
| |
| |
| |
Cash provided by operating activities | | | 231,382 | | | 54,809 | |
| |
| |
| |
Investing activities | | | | | | | |
| Capital expenditures and deferred project costs | | | (100,715 | ) | | (65,101 | ) |
| Change in other assets | | | (2,002 | ) | | (2,326 | ) |
| |
| |
| |
Cash used in investing activities | | | (102,717 | ) | | (67,427 | ) |
| |
| |
| |
Financing activities | | | | | | | |
| Long-term debt, including current portion: | | | | | | | |
| | Issued | | | — | | | 30,490 | |
| | Repaid | | | (7,500 | ) | | — | |
| Dividends paid | | | (14,980 | ) | | (13,986 | ) |
| Repurchase of common shares | | | — | | | — | |
| Issue of common shares | | | 11,243 | | | 82 | |
| |
| |
| |
Cash provided by (used in) financing activities | | | (11,237 | ) | | 16,586 | |
| |
| |
| |
Cash provided (used) during the period | | | 117,428 | | | 3,968 | |
Cash and cash equivalents, beginning of period | | | 298,091 | | | 164,563 | |
| |
| |
| |
Cash and cash equivalents, end of period | | $ | 415,519 | | $ | 168,531 | |
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6
FALCONBRIDGE LIMITED
PRODUCTION DURING THE PERIOD
| | Three months ended March 31,
|
---|
| | 2004
| | 2003
|
---|
| | (unaudited)
|
---|
Mine production (tonnes) | | | | |
| Sudbury | | | | |
| | Nickel | | 4,404 | | 6,221 |
| | Copper | | 3,803 | | 7,264 |
| Raglan | | | | |
| | Nickel | | 6,668 | | 6,740 |
| | Copper | | 1,733 | | 1,797 |
| Falcondo | | | | |
| | Ferronickel | | 7,999 | | 6,887 |
| Kidd Mining Division | | | | |
| | Copper | | 9,296 | | 10,718 |
| | Zinc | | 20,792 | | 21,172 |
| | Silver (000s ounces) | | 1,194 | | 739 |
| Collahuasi | | | | |
| | Copper | | 35,369 | | 44,211 |
| Lomas Bayas | | | | |
| | Copper | | 15,728 | | 14,572 |
| Total mine output | | | | |
| | Nickel | | 19,071 | | 19,848 |
| | Copper | | 65,929 | | 78,562 |
Metal production (tonnes) | | | | |
| Sudbury — Smelter output | | | | |
| | Nickel | | 11,404 | | 14,851 |
| | Copper | | 4,234 | | 5,187 |
| Nikkelverk — Refinery output | | | | |
| | Nickel | | 18,859 | | 20,563 |
| | Copper | | 9,746 | | 8,535 |
| Falcondo | | | | |
| | Ferronickel | | 7,999 | | 6,887 |
| Kidd Metallurgical Division | | | | |
| | Zinc plant output — zinc | | 28,458 | | 37,935 |
| | Copper Cathode — refinery output | | 33,722 | | 36,959 |
| | Blister Copper | | 33,597 | | 36,768 |
| Collahuasi | | | | |
| | Copper | | 6,152 | | 6,862 |
| Lomas Bayas | | | | |
| | Copper | | 15,728 | | 14,572 |
| Total refined output | | | | |
| | Nickel | | 26,858 | | 27,450 |
| | Copper | | 65,348 | | 66,928 |
7
FALCONBRIDGE LIMITED
SALES OF PRODUCTS AND AVERAGE REALIZED PRICES
| | Three months ended March 31,
|
---|
| | 2004
| | 2003
|
---|
| | (unaudited)
|
---|
Metal sales (tonnes, except precious metals and silver) | | | | | | |
| Integrated Nickel Operations (INO) | | | | | | |
| | Nickel | | | 18,118 | | | 20,325 |
| | Nickel purchased for resale | | | — | | | — |
| |
| |
|
| | | Total | | | 18,118 | | | 20,325 |
| |
| |
|
| | Copper | | | 13,197 | | | 14,470 |
| | Precious metal revenues ($000s) | | | 21,727 | | | 19,964 |
| Ferronickel | | | 6,777 | | | 6,536 |
| Kidd Creek Division | | | | | | |
| | Zinc (including metal in concentrate) | | | 26,525 | | | 35,517 |
| | Copper (including metal in concentrate) | | | 28,969 | | | 28,773 |
| | Silver (000s ounces) | | | 1,004 | | | 1,204 |
| Collahuasi | | | | | | |
| | Copper (including metal in concentrate) | | | 28,879 | | | 44,429 |
| Lomas Bayas | | | | | | |
| | Copper | | | 15,935 | | | 14,578 |
| Total Sales | | | | | | |
| | Nickel | | | 24,895 | | | 26,861 |
| | Copper | | | 86,980 | | | 102,250 |
Average prices realized (US$ per pound, except silver) | | | | | | |
| | Nickel | | $ | 6.88 | | $ | 3.83 |
| | Ferronickel | | | 6.80 | | | 3.65 |
| | Copper | | | 1.21 | | | 0.78 |
| | Zinc | | | 0.52 | | | 0.39 |
| | Silver (US$ per ounce) | | | 6.42 | | | 4.69 |
8
QuickLinks
FALCONBRIDGE REPORTS RECORD FIRST QUARTER EARNINGS OF US$184 MILLIONFALCONBRIDGE LIMITED QUARTERLY FINANCIAL STATEMENTS MARCH 31, 2004