FILED BY NORANDA INC.
PURSUANT TO RULE 425 UNDER THE SECURITIES ACT
OF 1933
SUBJECT COMPANY: FALCONBRIDGE LIMITED
COMMISSION FILE NO.: 333-123547
NORANDA INC. COMMISSION FILE NO. 333-123546
The following is a narrative description of a slide presentation which is
available at www.noranda.com, by clicking on "For Investors," then
"Presentations and Webcasts."
[LOGO - NORANDA] [LOGO - FALCONBRIDGE]
[GRAPHIC OMITTED - 5 PHOTOS]
NORANDAFALCONBRIDGE
Corporate Profile
March/April 2005
FORWARD-LOOKING STATEMENTS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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Noranda and Falconbridge caution that statements made to describe the
Companies' intentions, expectations or predictions may be "forward-looking
statements" within the meaning of securities laws. The Companies caution
that, by their nature, forward-looking statements involve risk and
uncertainty and that the Companies' actual results could differ materially
from those expressed or implied in such statements. Reference should be
made to each company's most recent Annual Information Form filed with
Canadian securities regulatory authorities (and available at www.sedar.com)
for a description of the major risk factors.
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ALL DOLLAR AMOUNTS EXPRESSED IN U.S. DOLLARS
ALL PRODUCTION VOLUMES AND RESERVES AND RESOURCES IN METRIC TONNES
INVESTOR INFORMATION [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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This communication is being made in respect of (a) the offer (the
"Falconbridge Offer") by Noranda Inc. to acquire all of the outstanding
common shares of Falconbridge Limited (other than shares owned by Noranda)
on the basis of 1.77 Noranda common shares for each Falconbridge common
share and (b) the issuer bid (the "Preference Share Exchange Offer") by
Noranda to repurchase approximately 63.4 million Noranda common shares in
exchange for three new series of preference shares. In connection with the
Falconbridge Offer and the Preference Share Exchange Offer, Noranda filed
with the U.S. Securities and Exchange Commission (the "SEC") registration
statements on Form F-8 containing a share exchange take-over bid circular
to be delivered to the shareholders of Falconbridge and an issuer bid
circular to be delivered to shareholders of Noranda. Noranda, if required,
will be filing other documents regarding the transactions with the SEC.
INVESTORS ARE URGED TO READ CAREFULLY THE SHARE EXCHANGE TAKE-OVER BID
CIRCULAR AND THE ISSUER BID CIRCULAR AND ANY OTHER RELEVANT DOCUMENTS FILED
OR TO BE FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.
Investors will be able to obtain documents filed with the SEC free of
charge at the SEC's website (www.sec.gov). In addition, documents filed
with the SEC by Noranda may be obtained free of charge by contacting
Noranda at (416) 982-7111.
AGENDA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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1 NORANDAFALCONBRIDGE OVERVIEW
2 PROPOSED TRANSACTION AND PRO-FORMA FINANCIAL POSITION
3 MARKET OUTLOOK FOR PRIMARY PRODUCTS AND REVIEW OF OPERATIONS
4 NORANDAFALCONBRIDGE POSITIONED FOR GROWTH
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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COMPANY OVERVIEW
[GRAPHIC OMITTED - 4 PHOTOS]
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
AT A GLANCE
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Producer Ranking in World
o Copper 8th
o Nickel 3rd
o Zinc 3rd
o Aluminum 10% of U.S. consumption
............................................................
2004 Sales (Pro Forma) $ 7.0 B
............................................................
2004 Assets (Pro Forma) $ 11.9 B
............................................................
Market Capitalization (Pro Forma*) $ 7.5 B
* As at March 15, 2005
............................................................
SOLID FINANCIAL RESULTS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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BETTER PRICES
o Copper
o Nickel
o Zinc
o Aluminum
+ = DRAMATIC
IMPROVEMENT
OWN EFFORTS IN FINANCIAL
RESULTS
o Efficient operations
o Reduced Costs
o Increased production
o On-time and on-budget
expansions
STRONG NICKEL & COPPER FOCUS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Focused on large scale copper and nickel assets
- Approx. 80% of revenues from nickel and copper
- Integrated zinc and aluminum producer
[GRAPHIC OMITTED - PIE CHART SHOWING REVENUE BY METAL: COPPER (52%),
NICKEL (26%), ALUMINUM (14%), ZINC (6%) AND OTHER (2%)]
STRONG COPPER & NICKEL FOCUS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Significant expansion potential through portfolio of low-risk growth
projects
- Timing and sequencing at NorandaFalconbridge's control
- Many located at existing proven operations
- Providing geographical diversity
- Managed by seasoned project team
- Supported by mining and metallurgical expertise and depth
A LEADING BASE METALS COMPANY [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Geographically diverse portfolio of mines and processing facilities
o Operations in 18 countries
2004 PRODUCTION (MT)
Mined 491,000
COPPER
Refined 527,000
---------------------------------------
Mined 81,000
NICKEL
Refined 101,000
---------------------------------------
Mined 528,000
ZINC
Refined 190,000
---------------------------------------
Primary 247,000
ALUMINUM
Fabricated 174,000
IMPROVED STRATEGIC PLATFORM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Greater financial strength and capacity
o Lower cost of capital in the long term
o Improved risk management
o Simplified governance and allocation of capital
o Merger synergies
o Proven senior management team focused on operating results
and growth
INVESTOR BENEFITS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Widely-held company with increased stock float and liquidity
o Clarity of ownership and simplified corporate structure
o Removal of sale process overhang
o Increased leverage to strong market fundamentals
o Potential realignment of shares to mid-tier peer group multiples
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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PROPOSED TRANSACTION
[GRAPHIC OMITTED - 4 PHOTOS]
SUMMARY OF TRANSACTION [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o All-encompassing plan addresses our critical structural and ownership
issues which impact valuation:
- TRANSACTION #1: an offer by Noranda to purchase approximately 63.4
million of its common shares in exchange for US$1.25 billion of
Noranda junior preferred shares (the "Issuer Bid")
- TRANSACTION #2: a merger between Noranda and Falconbridge on a share
exchange basis of 1.77 Noranda shares for each Falconbridge common
share
o Completion of Transaction #1 will occur just before #2. Once both
transactions are complete NorandaFalconbridge would be a widely-held
public company with minimal capital structure complexities
o Brascan intends, except in certain circumstances, to tender 123 million
of its common shares and reduce its ownership to 16-26% from current
level of 41%
o Widely-held company with a total market capitalization of $7.5 billion*
*As at March 15, 2005
SHARE REPURCHASE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
TRANSACTION #1 - ISSUER BID
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o The issuer bid will result in a repurchase of approximately 63.4 million
Noranda common shares at an effective price of US$19.72 per share for a
total of $1.25 billion
o Common shareholders exchanging their shares will receive 0.789 preferred
shares pro-rated among the three series of preferred shares
o Provides leverage to minimize earnings and NAV dilution caused by shares
issued to merge Falconbridge with Noranda
o Cash requirements to service the new preferred shares versus the common
shares they replace are relatively low
SHARE REPURCHASE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
TRANSACTION #1 - PREFERRED SHARE TERMS
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o There will be a maximum of US$1.25 billion of preferred shares available
to shareholders in series 1, 2 and 3
o In the event the offer is oversubscribed, shareholders' participation
will be pro-rated across all three series
SELECT TERMS OF PREFERRED SHARES
SERIES 1 SERIES 2 SERIES 3
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AMOUNT US$500 mm US$500 mm US$250 mm
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TERM* 5-year 7-year 10-year
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INITIAL COUPON 6.00% 6.25% 6.50%
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RATE RESET N/A Year 5 Years 5,7,9
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REDEMPTION Anytime @101%** Anytime @101%** Anytime @101%**
* May be paid on common shares at 90% of market value
** In last two years, redemption at par
MERGER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
TRANSACTION #2 - SHARE EXCHANGE
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o Noranda and Falconbridge merge on a share exchange basis
o Falconbridge shareholders will receive 1.77 Noranda common shares for
each Falconbridge share
- a 15% premium over the 20-day average price preceding the
announcement
o The merger is effected by way of a share exchange take-over bid by
Noranda for all the shares of Falconbridge which it does not own
o If Noranda acquires more than two-thirds, inclusive of its current
holdings, it intends to acquire the remaining shares.
MERGER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
TRANSACTION #2 - POST-MERGER SHARE STRUCTURE
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EXCHANGE RATIO: 1.77
Noranda basic shares outstanding - 000s (at Dec.31, 2004 296,970
Noranda shares acquired on share repurchase - 000s (63,377)
Noranda shares issued to acquire 74,967 shares of
Falconbridge - 000s (Estimate) 132,692
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TOTAL NORANDAFALCONBRIDGE SHARES OUTSTANDING 366,285
NET NEW SHARES ISSUED - 000s 69,315
Falconbridge shareholders - ownership of new company 36%
Noranda shareholders - ownership of new company 64%
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
STRONG FINANCIAL POSITION
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(PRO FORMA AS AT DEC. 31, 2004)
o Net income of $706 million
o Assets of $11.9 billion
o Liquidity > $1.5 billion in 2004
o Net-debt-to-total-capitalization ratio of 46.2%
- New preferred shares treated as equity 30.5%
o Cashflow from operations: $1.9 billion in 2004
o Capital expenditures:
- 2004 Actual: $666 million
- 2005 Forecast: $681 million
o Strong operating cashflow finances capital investments and debt
reduction
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
INDICATIVE PRO-FORMA BALANCE SHEET
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(For the year ended December 31, 2004)
(Unaudited - US$ Millions)
MERGE BUY-BACK
NORANDA INC. FALCONBRIDGE SHARES PRO FORMA
-------------- -------------- ---------- -----------
ASSETS
Cash and cash equivalents 884 - - 884
Accounts receivable 931 16 947
Metals and other inventories 1,436 59 1,495
Operating capital assets 4,870 1,363 6,233
Development projects 1,166 908 2,074
Investments and other assets 324 (53) 271
--------------------------------------------------------
9,611 2,293 - 11,904
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 1,818 2 - 1,820
Long-term debt 2,638 - - 2,638
Preferred shares - - 1,250 1,250
Convertible debentures 89 - - 89
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4,545 2 1,250 5,797
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Future income taxes 304 657 - 961
Asset retirement obligation, pension and other provisions 595 100 - 695
STOCKHOLDERS' INTERESTS
Interests of other shareholders 1,197 (1,006) - 191
Capital stock - preferred 295 - - 295
Capital stock - common 2,675 2,540 (1,250) 3,965
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2,970 2,540 (1,250) 4,260
9,611 2,293 - 11,904
THE TWO-STEP TRANSACTION INCREASES THE CAPITAL BASE OF THE MERGED COMPANY.
The pro-forma financial statements may not be indicative of results that
actually would have occurred if the events reflected therein had been in
effect on the dates indicated or of the results that may be obtained in the
future. (Estimated using shares valued at March 21, 2005)
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
INDICATIVE PRO-FORMA INCOME STATEMENT
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(For the year ended December 31, 2004)
ADDITIONAL
NORANDA MERGE DIVIDENDS & 2004
INC. FALCONBRIDGE INTEREST PRO FORMA
(UNAUDITED- US$ MILLIONS) ---------------------------------------------------
Revenues 6,978 - - 6,978
---------------------------------------------------
6,978 - - 6,978
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OPERATING EXPENSES
Cost of operations 2,094 21 - 2,115
Purchases raw materials 3,005 - - 3,005
Depreciation, amortization and accretion 499 46 - 545
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TOTAL OPERATING EXPENSES 5,598 67 - 5,665
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INCOME GENERATED BY OPERATING ASSETS 1,380 (67) - 1,313
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Interest expense, net 119 (2) 83 200
Corporate and general administration 66 - - 66
Research, development and exploration 47 - - 47
Minority interest in earnings in subsidiaries 297 (274) - 23
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529 (276) 83 336
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INCOME BEFORE UNDERNOTED 851 209 (83) 977
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Tax expense 333 (27) (2) 304
Gain net of restructuring costs and other (33) - - (33)
---------------------------------------------------
NET INCOME 551 236 (81) 706
===================================================
BASIC EARNINGS PER SHARE $ 1.78 $ 1.88
DILUTED EARNINGS PER SHARE $ 1.75 $ 1.84
The pro-forma financial statements may not be indicative of results that
actually would have occurred if the events reflected therein had been in
effect on the dates indicated or of the results that may be obtained in the
future. (Estimated using shares valued at March 21, 2005)
EBITDA FROM OPERATING ASSETS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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$ MILLIONS FULL YEAR
2004 2003
...............................................................
COPPER 907 370
NICKEL 773 431
ZINC 70 4
ALUMINUM 127 62
OTHER 2 20
...............................................................
EBITDA FROM OPERATING ASSETS 1,879 887
EBITDA INCREASED 112%
POTENTIAL IMPACT ON SHARE PRICE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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[GRAPHIC OMITTED - BAR CHART SHOWING PRICE/CASH FLOW RATIO FOR NORANDA
FALCONBRIDGE (PRO FORMA OF 4.9x), MID-TIER MINING AND METALS COMPANIES*
(6.7x) AND LARGE CAP MINING AND METALS COMPANIES* (9.5x)]
* Source: Bloomberg, 1/B/E/S. First Call (2005E) (as of March 7, 2005)
indicative only -- trading price of shares may not increase.
NORANDA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
STOCK PRICE POTENTIAL
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[GRAPHIC OMITTED - BAR CHART SHOWING HISTORICAL NORANDA STOCK PRICES AT
MARCH 7, 2005 (CDN $22.81) AND MARCH 18, 2005 (CDN $25.31) AND POTENTIAL
STOCK PRICES AT DIFFERENT ASSUMED MULTIPLES: AT MIDPOINT OF MID-TIER
MULTIPLE (CDN $27.03) (5.8x); AND AT FULL MID-TIER MULTIPLE (CDN $31.22)
(6.7x)]
POTENTIAL FOR A HIGHER CASH FLOW MULTIPLE FOR NORANDAFALCONBRIDGE
Indicative only -- trading price of shares may not increase.
FALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
STOCK PRICE POTENTIAL
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[GRAPHIC OMITTED - GRAPH SHOWING HISTORICAL FALCONBRIDGE STOCK PRICES:
20-DAY AVERAGE (ENDING MARCH 7, 2005) (CDN $34.77) AND MARCH 18, 2005 (CDN
$45.15); AND POTENTIAL STOCK PRICES AT 1.77 X NORANDA AT DIFFERENT ASSUMED
MULTIPLES: AT MIDPOINT OF MID-TIER MULTIPLE (CDN $47.84) AND AT FULL
MID-TIER MULTIPLE (CDN $55.26)]
POTENTIAL FOR A HIGHER CASH FLOW MULTIPLE FOR NORANDAFALCONBRIDGE
Indicative only -- trading price of shares may not increase.
OFFER PREMIUM - FALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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[GRAPHIC OMITTED - GRAPH SHOWING FALCONBRIDGE STOCK PRICE FROM 7/2/2004 TO
3/18/2005 AND RELATED PREMIUMS]
FALCONBRIDGE SHAREHOLDERS ARE REALIZING A SIGNIFICANT PREMIUM TO HISTORICAL
PRICES
NORANDAFALCONBRIDGE TO BE ONE OF THE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
WORLD'S LARGEST MINING COMPANIES
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[GRAPHIC OMITTED - BAR GRAPH SHOWING TOTAL ENTERPRISE VALUE OF MID-TIER BASE
METAL COMPANIES(1)]
In US$millions: Xstrata ($14,758), NorandaFalconbridge ($13,255(3),
$12,562(2), and $11,869), Phelps Dodge ($10,996), Noranda ($10,166), Inco
($9,749), WMC(4) ($8,303), Teck Cominco ($7,807) and Falconbridge ($7,752)
(1) Source -- Bloomberg. Total Enterprise Value calculated as market
capitalization (including convertible securities and preferred
shares), plus minority interest plus net debt.
(2) Illustrative of total enterprise value if NorandaFalconbridge trades
up to multiples 1/2 way between Noranda current multiples and multiples
for mid-tier group.
(3) Illustrative of total enterprise value if NorandaFalconbridge trades
up to full multiples for mid-tier group.
(4) Currently subject to a cash take-over bid by BHP Billiton
(as at March 18, 2005).
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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MARKET OUTLOOK
MARKET OUTLOOK
[GRAPHIC OMITTED - 4 PHOTOGRAPHS]
BUSINESS OVERVIEW [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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o Industry fundamentals are exceptionally strong with the demand shock
from Asia and specifically China
o China has now become the world's largest consumer of most major
commodities as it continues to industrialize its economy
o The base metals industry is challenged to add supply due to the
increased size, complexity and time required to develop new projects
o NorandaFalconbridge is very well positioned as one of the world's
largest base metal producers with one of the best pipelines of
development projects
o The Company's financial capacity will further increase based on the
expectation of the continuing strong metal price environment
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LEVERED TO METAL PRICES
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o Five years of depressed prices curtailed exploration and development of
new deposits
o Increasing use of copper in China and India to build basic
infrastructure is driving demand
o Very positive outlook for copper price and NorandaFalconbridge cashflow
o Sensitivity to copper price:
- $0.05/lb. [RIGHT ARROW] $43 million change in net earnings
[GRAPHIC OMITTED - CHART SHOWING LME COPPER PRICE BETWEEN JAN '03 AND MAR
'05 AND STOCKS OF COPPER FOR SAME PERIOD]
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LEVERED TO METAL PRICES
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o Failure of Australian acid-leach initiatives and lack of development
projects have left the market short of production; stocks expected to
remain low
o Stainless steel demand, particularly in Asia, is driving nickel demand
o Very positive outlook for nickel price and NorandaFalconbridge cashflow
o Sensitivity to nickel price:
- $0.50/lb. [RIGHT ARROW] $58 million change in net earnings
[GRAPHIC OMITTED - CHART SHOWING LME NICKEL PRICE BETWEEN JAN '03 AND MAR
'05 AND STOCKS OF NICKEL FOR SAME PERIOD]
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LEVERED TO METAL PRICES
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o Zinc has a positive outlook due to significantly improving supply and
demand fundamentals
o Shortages of zinc concentrate expected to persist, keeping markets in
deficit
o Further stock reductions expected to support zinc prices;
NorandaFalconbridge's cashflow to benefit
o Sensitivity to zinc price:
- $0.05/lb. [RIGHT ARROW] $35 million change in net earnings
[GRAPHIC OMITTED - CHART SHOWING LME ZINC PRICE BETWEEN JAN '03 AND MAR '05
AND STOCKS OF ZINC FOR SAME PERIOD]
ALUMINUM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LEVERED TO METAL PRICES
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o Global economic growth fuelling strong demand for primary and
value-added aluminum products
o LME stocks decreased sharply during 2004
o High aluminum prices expected for 2005
o Sensitivity to aluminum price:
- $0.05/lb. [RIGHT ARROW] $19 million change in net earnings
[GRAPHIC OMITTED - CHART SHOWING LME ALUMINUM PRICE BETWEEN JAN '03 AND MAR
'05 AND STOCKS OF ALUMINUM FOR SAME PERIOD]
MARKET OUTLOOK [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
CONCLUSIONS
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Strong Fundamentals For Base Metals:
o Positive demand growth rates
o Additional supply needed to meet growing demand
o New supply likely; however:
- Long lead times
- Projects are more capital intensive, more complex
- Longer permitting process
FAVOURABLE PRICE ENVIRONMENT
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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REVIEW OF OPERATIONS
[GRAPHIC OMITTED - 4 PHOTOS]
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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[GRAPHIC OMITTED - WORLD MAP SHOWING EXISTING OPERATIONS AT KIDD CREEK,
HORNE, CCR, ANTAMINA, COLLAHUASI, LOMAS BAYAS AND ALTONORTE AND DEVELOPMENT
PROJECTS AT EL MORRO, EL PACHON, WESTWALL AND FRIEDA RIVER]
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
WORLD-CLASS ASSETS
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o Long-life, low-cost mines located primarily in South America
o Technologically advanced processing facilities, including Altonorte
smelter in northern Chile
- Technology produces high margins from the treatment of complex feeds
o Integrated operations drive benefits:
- Mitigate market volatility in treatment costs
- Create freight cost arbitrage
o 2004 net operating cash cost of $0.38/lb. versus $0.40/lb. in 2003
[GRAPHIC OMITTED - BAR GRAPH SHOWING NORANDAFALCONBRIDGE TOTAL MINED COPPER
OUTPUT (METRIC TONNES) FROM 2000 (304,195), 2001 (356,743), 2002 (474,602),
2003 (429,910), 2004 (490,691) AND 2005 (FORECASTED) (512,000)]
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
PROJECTS
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OPERATION PROJECT ANNUAL PRODUCTION STATUS
INCREASE
COLLAHUASI - CHILE (44%) Phase III expansion 77,000 tonnes* Scoping study initiated;
start-up in 2007+
COLLAHUASI - CHILE (44%) Molybdenum plant 12,000 tonnes Initiated construction;
(molybdenum start-up early 2006
concentrate)
LOMAS BAYAS, CHILE (100%) Option to purchase 30,000 tonnes Under review; decision by
nearby deposit Fortuna mid-2006
de Cobre
EL PACHON, ARGENTINA (100%) Development Project (5 245,000F tonnes Pre-feasibility completed
km from Chilean border)
EL MORRO, CHILE (EARN-IN 70%) Development Project 145,000F tonnes Pre-feasibility study initiated
FRIEDA RIVER, PAPUA NEW GUINEA Development Project TBD Advanced exploration project
<FN>
* NorandaFalconbridge share
</FN>
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
SUBSTANTIAL GROWTH POTENTIAL
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[GRAPHIC OMITTED - GRAPH SHOWING POTENTIAL CONTRIBUTION TO COPPER OUTPUT
(000s METRIC TONNES) FROM COLLAHUASI (77), LOMAS BAYAS (30), EL PACHON
(245) AND EL MORRO (145) (POTENTIAL NET INCREASE OF 101% FROM 490 IN 2004
TO POTENTIAL OUTPUT OF 987)]
Additional projects include: Frieda River, West Wall
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
RELATIVE OUTPUT POTENTIAL
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[GRAPHIC OMITTED - GRAPH SHOWING POTENTIAL COPPER OUTPUT (000s METRIC
TONNES) FROM NORANDAFALCONBRIDGE (987 (490 FROM CURRENT OPERATIONS)), ANGLO
(705), BHP (1,297), CODELCO (1,885), GRUPO MEXICO (780), AND PHELPS DODGE
(1,163. NORANDA DATA INDICATES BY COLOR CURRENT OPERATIONS, BROWNFIELD
PROJECTS AND GREENFIELD PROJECTS)]
(As at December 2004)
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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[GRAPHIC OMITTED - WORLD MAP SHOWING EXISTING OPERATIONS AT INO-RAGLAN,
INO-NIKKELVERK, INO-SUDBURY AND FALCONDO AND DEVELOPMENT PROJECTS AT
KABANGA AND KONIAMBO]
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
WORLD-CLASS ASSETS
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o World's third-largest producer of refined nickel
o Fully integrated operations
o Low-cost facilities, including Nikkelverk, which ranks among the
lowest-cost nickel/cobalt refineries
o One of the world's largest recyclers and processors of nickel and cobalt
bearing materials
o 2004 net operating cash cost of:
- INO: $2.57/lb. vs. $2.64/lb. in 2003
- Falcondo $3.50/lb. vs. $3.04/lb. in 2003
[GRAPHIC OMITTED - BAR GRAPH SHOWING NORANDAFALCONBRIDGE TOTAL REFINED
NICKEL OUTPUT (METRIC TONNES) FROM 2000 (86,509), 2001 (89,883), 2002
(91,833), 2003 (104,410), 2004 (100,887) AND 2005 (FORECASTED) (113,000)]
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
PROJECTS
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OPERATION PROJECT ANNUAL PRODUCTION STATUS
INCREASE
NICKEL RIM SOUTH, SUDBURY, Development Project 12,000 - 16,000 tpy Underground definition program
ONTARIO started in Q1 2004; start-up
in 2009+
FRASER MORGAN, SUDBURY, ONTARIO Development Project 7,000 - 9,000 tpy Scoping study underway
RAGLAN, CANADA Optimization Program 5,000 - 6,000 tpy Initiated optimization
program; completion expected
in 2006
FALCONDO, DOMINICAN REPUBLIC Expansion 6,000 tpy Scoping study in progress
KONIAMBO, NEW CALEDONIA Development Project 30,000 tpy Completed bankable feasibility
study in late 2004; earliest
production in 2009/2010;
evaluating financing options
KABANGA, TANZANIA Development Project 15,000 - 18,000 tpy Preliminary joint-venture
agreement with Barrick Gold;
major exploration program to
follow
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
SUBSTANTIAL GROWTH POTENTIAL
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[GRAPHIC OMITTED - GRAPH SHOWING POTENTIAL CONTRIBUTION TO NICKEL OUTPUT
(000s METRIC TONNES) FROM INO AT CAPACITY (12), FALCONDO (6), KONIAMBO
(30*) AND KABANGA (15*) (POTENTIAL INCREASE OF 62% FROM CURRENT OUTPUT OF
101 TO POTENTIAL OUTPUT OF 164)
*Share of production.
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
RELATIVE OUTPUT POTENTIAL
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[GRAPHIC OMITTED - GRAPH SHOWING NICKEL RELATIVE OUTPUT POTENTIAL (000s
METRIC TONNES) FROM NORANDAFALCONBRIDGE (164(101 FROM EXISTING
OPERATIONS)), INCO (222), NORILSK (243), BHP (80.7), JINCHUAN (71.7), WMR
(62.5. NORANDA DATA INDICATES BY COLOR EXISTING OPERATIONS, BROWNFIELD
PROJECTS AND GREENFIELD PROJECTS)]
(As at December 2004)
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
[GRAPHIC OMITTED - WORLD MAP SHOWING EXISTING OPERATIONS AT KIDD CREEK,
CE2, BRUNSWICK AND ANTAMINA AND DEVELOPMENT PROJECTS AT PERSEVERANCE,
LENNARD SHELF AND LADY LORETTA]
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
INTEGRATED OPERATIONS
------------------------------------------------------------------------------
o World's third-largest zinc miner
o 2004 net operating cash cost of:
- $0.32/lb., unchanged from 2003
o Attractive brownfield and greenfield projects under consideration
o Closed the Bell Allard mine in Oct. 2004
o Well positioned to benefit from increase in zinc and lead prices
[GRAPHIC OMITTED - BAR GRAPH SHOWING NORANDAFALCONBRIDGE TOTAL MINED ZINC
OUTPUT (METRIC TONNES) FROM 2000 (436,467), 2001 (509,291), 2002 (553,172),
2003 (602,131), 2004 (528,250) AND 2005 (FORECASTED) (451,000]
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
PROJECTS
------------------------------------------------------------------------------
OPERATION PROJECT ANNUAL PRODUCTION STATUS
INCREASE
PERSEVERANCE, QUEBEC (90%) Development Project 125,000 tpy Feasibility study completed in
2001
LENNARD SHELF, AUSTRALIA (50%) Development Project Up to 75,000 tpy Currently on care and
maintenance
LADY LORETTA, AUSTRALIA (EARN-IN Development Project 120,000 tpy Feasibility study completed
RIGHT FOR 75%)
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
RESOURCE REPLACEMENT POTENTIAL
------------------------------------------------------------------------------
[GRAPHIC OMITTED - GRAPH SHOWING 2004 ZINC PRODUCTION AND POTENTIAL
PRODUCTION (000s METRIC TONNES/YEAR): - 2004 PRODUCTION (530): BRUNSWICK**
(268), BELL ALLARD* (99), ANTAMINA (65) AND KIDD (88); POTENTIAL PRODUCTION
(400-475): LENNARD SHELF*** (0-75), LADY LORETTA (120), AND PERSEVERANCE
(120) PROJECTS AND ANTAMINA (65) AND KIDD (88)]
*The Bell Allard Mine closed in October 2004
**Expected to close in 2010
***Estimate only, subject to developmental decision with partner
ALUMINUM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
[GRAPHIC OMITTED - MAP SHOWING ALUMINUM SITES AT HUNTINGDON, NEW MADRID,
NEWPORT, GRAMERCY, SALISBURY AND ST ANN]
ALUMINUM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
SMELTING AND FABRICATING OPERATIONS
------------------------------------------------------------------------------
o Supplies approximately 10% of U.S. primary aluminum consumption
o Primary aluminum smelter located in Missouri
- Renewed environmental permit will allow up to 6,000 tonnes per year
of additional output
- Received FERC approval for long-term power contract
o Three state-of-the-art sheet and foil rolling facilities providing high
margins
[GRAPHIC OMITTED - 2 GRAPHS SHOWING PRIMARY ALUMINUM SMELTER OUTPUT (METRIC
TONNES) FROM 2000 (220,031), 2001 (220,234), 2002 (236,459), 2003
(244,044), 2004 (247,472) AND 2005 (FORECASTED (253,000) AND FABRICATED
ALUMINUM PRODUCTS OUTPUT (METRIC TONNES) FROM 2000 (114,000), 2001
(112,430), 2002 (127,911), 2003 (146,716) AND 2004 (173,853)]
ALUMINUM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
BAUXITE AND ALUMINA OPERATIONS
------------------------------------------------------------------------------
o Fully integrated operations: from bauxite/alumina, through primary
reduction into high-margin foil and value-added products
o In 2004, acquired Kaiser's St. Ann bauxite mine and Gramercy alumina
refinery in a 50/50 joint venture with Century Aluminum
- St. Ann bauxite mine in Jamaica (50%)
- Proven and probable reserves of 33M tonnes at 47% alumina
- Capacity of 4.5M tonnes of bauxite per year
- Alumina refinery in Louisiana (50%)
- Completely modernized in 2002
- Capacity of 1.25M tonnes of alumina per year (Noranda share is
625,000 tonnes)
ENVIABLE DEVELOPMENT PIPELINE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
WORLD-CLASS OPPORTUNITIES
------------------------------------------------------------------------------
[GRAPHIC OMITTED - CHART SHOWING ENVIABLE DEVELOPMENT PIPELINE WORLD-CLASS
OPPORTUNITIES (1) AT THE FOLLOWING BROWNFIELD SITES: COLLAHUASI EXPANSION,
COLLAHUASI MOLY RECOVERY, SUDBURY EXPANSION (NICKEL RIM), SUDBURY EXPANSION
(MONTCALM), RAGLAN EXPANSION, LOMAS BAYAS EXPANSION, LENNARD SHELF,
PERSEVERANCE, SUDBURY EXPANSION (FRASER MORGAN) AND SUDBURY EXPANSION
(ONAPING); AND (2) AT THE FOLLOWING GREENFIELD SITES: KONIAMBO, EL PACHON,
LADY LORETTA, WEST WALL, ALUMYSA, EL MORRO AND FRIEDA RIVER AND INDICATING
BY COLOR WHETHER COPPER, NICKEL, ZINC AND ALUMINUM]
Disciplined approach to growth
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
POSITIONED FOR GROWTH
[GRAPHIC OMITTED - 4 PHOTOS]
STRATEGIC RATIONALE FOR MERGER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o One public company, widely-held with enhanced market capitalization
- Increased trading liquidity
o Elimination of current cap on both companies' share prices due to
ownership uncertainties
o Enhanced investor appeal due to simplified corporate structure
o Potential expansion of multiple to the comparable "mid-tier" base-metals
multiple offers substantial upside
o Focused play on copper and nickel
STRATEGIC RATIONALE FOR MERGER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o Merger will be accomplished without disruption by:
o Experienced, multi-disciplined management team
- CEO: Derek Pannell
- President: Aaron Regent
- COO: Peter Kukielski
- CFO: Steve Douglas
o Creation of a premier international mining company with:
- Increased leverage to strong Cu, Ni, Zn and Al market fundamentals
- Diversified portfolio of mines and integrated processing capacity
- Significant portfolio of low-risk, high-potential brownfield and
greenfield development projects
- Improved ability to fund new growth with substantial operating cash
flows
- Track record of strengthening operating and financial results
[GRAPHIC OMITTED - 2 PHOTOS] [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
NORANDAFALCONBRIDGE
CORPORATE PROFILE
MARCH/APRIL 2005
[GRAPHIC OMITTED - 3 PHOTOS]
NORANDAFALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
[GRAPHIC OMITTED - 4 PHOTOS]
FALCONBRIDGE PROCESS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o Falconbridge Board of Directors formed a Special Committee comprised
solely of Independent Directors whose mandate was to:
- Oversee and supervise the negotiation of the Offer
- Supervise the preparation of a formal valuation relating to the
Offer as required by Rule 61-501 of the Ontario Securities
Commission and Policy Q-27 of the Quebec Autorite des marches
financiers (the `Policies")
- Consider all applicable legal and regulatory requirements relating
to the Offer
- Make recommendations to the Board of Directors as to whether, and as
to the appropriate terms and conditions under which, the Board of
Directors should, to the extent applicable, consider approving an
Offer
- Supervise the preparation of any documents of the Corporation
required in connection with the Offer
- Advise the Board of Directors with respect to the recommendation
that the Board of Directors should, to the extent applicable, make
to the holders of Falconbridge Shares in connection with the Offer
FALCONBRIDGE PROCESS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o Special Committee retained independent legal advice from the law firm
Goodmans LLP and separate financial advice from TD Securities
- TD Securities provided valuation and fairness opinion to the
Falconbridge Board of Directors that this transaction is fair from a
financial point of view for Falconbridge shareholders
o The Special Committee of the Board has met 10 times over the last two
months
- Negotiations resulted in Noranda agreeing to an exchange ratio of
1.77 Noranda shares for every Falconbridge share and to include a
minimum condition in the offer
o Opinion of TD and the background to the transaction are detailed in
Directors' Circular
Special Committee unanimously recommended that the Falconbridge Board of
Directors agree to merge with Noranda on the basis of 1.77 Noranda shares
for each Falconbridge share
BENEFITS TO FALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
SHAREHOLDERS
------------------------------------------------------------------------------
o Transaction simplifies ownership structure and provides greater
ownership certainty going forward
- Uncertainty has hindered Falconbridge's share price performance
resulting in the stock trading at discount to peers
o Exchange ratio of 1.77 shares represents a 15% premium to Falconbridge's
20-day average market price preceding announcement
- Shareholders can continue to participate in Falconbridge ownership
through ownership in new company
o Brascan's ownership will be reduced to 16%-26%
- Control of new company largely back into the market
BENEFITS TO FALCONBRIDGE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
SHAREHOLDERS
------------------------------------------------------------------------------
o Increased size and diversification of new company will facilitate
ability to advance new growth initiatives and reduce concentration risk
of any one project or operation
o Falconbridge shareholders will own approximately 36% of new company
compared to the 41% currently owned of Falconbridge
- Similar exposure to Falconbridge's existing copper and nickel
assets, as well as exposure to zinc and aluminum, two metals whose
strong fundamentals present a potential upside
o Proposal from Noranda requires that a majority of Falconbridge minority
shareholders tender to the transaction
- Majority of Falconbridge minority shareholders required to support
this bid in order to proceed
NET EARNINGS SENSITIVITY [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
CHANGES IN METAL PRICES AND EXCHANGE
------------------------------------------------------------------------------
IMPACT ON 2005
CHANGE IN PRO-FORMA EARNINGS
Realized Price Net Earnings Per Share
US $/lb. US$ millions US$
--------------------------------------------
Copper $0.05 $43 $0.12
Nickel $0.50 $58 $0.16
Zinc $0.05 $35 $0.10
Aluminum $0.05 $19 $0.05
Lead $0.05 $ 6 $0.02
Exchange Rate US$ = Cdn$ $0.01 $ 7 $0.02
POTENTIAL FOR MULTIPLE EXPANSION [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
(March 7, 2005)
------------------------------------------------------------------------------
[GRAPHIC OMITTED - GRAPH SHOWING POTENTIAL FOR MULTIPLE EXPANSION DATED
MARCH 7, 2005 (PRO FORMA FIGURES)]
International Diversified (IBES)[1] - (a) Price/Cash Flow (2005 Estimated):
Anglo American plc (7.1x), BHP Billiton Ltd (10.9x), Compania Vale do Rio
Doce (9.4x) and Rio Tinto Ltd (10.4x) (Average of 9.5x), (b) price/earnings
(2005 Estimated): Anglo American plc (13.2x), BHP Billiton Ltd (12.9x),
Compania Vale do Rio Doce (9.0x) and Rio Tinto Ltd (12.5x) (Average of
11.9x),(c) Price/Net Asset value: Anglo American plc (1.1x), BHP Billiton
Ltd (1.6x), Compania Vale do Rio Doce (1.6x) and Rio Tinto Ltd (1.6x)
(average of 1.5x). Market cap (US$mill): Anglo American plc ($37,513), BHP
Billiton Ltd ($89,105), Compania Vale do Rio Doce ($38,787) and Rio Tinto
Ltd ($48,823)
Mid-Tier (IBES)[1] - (a) Price/Cash Flow (2005 Estimated): Inco Ltd (7.6x),
Phelps Dodge Corp (6.0x); Teck Cominco Ltd (7.3x) and Xstrata plc (6.0x)
(Average of 6.7x); (b) Price/earnings (2005 estimated): Inco Ltd (11.7x),
Phelps Dodge Corp (12.1x), Teck Cominco Ltd (10.6x) and Xstrata plc (11.0x)
(Average of 11.4x); (c) Price/net asset value: Inco Ltd (1.1x), Phelps
Dodge Corp (1.6x), Teck Cominco Ltd (1.5x) and Xstrata plc (1.6x) (Average
of 1.5x). Market Cap (US$mill); Inco Ltd ($7,860), Phelps Dodge Corp ($10,
172), Teck Cominco Ltd ($7,597) and Xstrata plc ($12,579)
NRD & FL (IBES)[1] - (a) Price/Cash Flow (2005 Estimated): NRD[2] (4.9x)
and FL (5.2x); (b) Price/earnings (2005 Estimated): NRD (8.8x) and FL
(8.6x); (c)Price/net asset value: NRD (1.1x) and FL (1.3x), Market Cap
(US$mill): NRD ($5,514) and FL ($5,392)
Noranda and Falconbridge are both trading at multiples below peer group
averages
1. Source - Bloomberg, I/B/E/S, First Call
2. Noranda Cash Flow per share has been adjusted to remove minority cash
flow provided by Falconbridge
SIX SIGMA RESULTS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
2000 TO 2004
------------------------------------------------------------------------------
Program continues to deliver excellent operational improvements and value:
o 569 completed projects at continuing operations
o Cumulative annual projects savings: $184M
o Average project EBITDA: $323,000
o 2004 - 154 completed projects valued at $51M
o 517 project leaders trained (Black or Brown Belt)
o 3,175 employees received Six Sigma training
o Noticeable "performance culture" taking root
[LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
COPPER
[GRAPHIC OMITTED - 4 PHOTOS]
COPPER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LONG-LIFE ASSETS
------------------------------------------------------------------------------
[GRAPHIC OMITTED - CHART SHOWING OWNERSHIP STAKE AND MINE LIFE (YEARS)* OF
NORANDAFALCONBRIDGE COPPER ASSETS: COLLAHUASI (44% OWNERSHIP STAKE) 40+,
ANTAMINA (33% OWNERSHIP STAKE) 20+, LOMAS BAYAS (100% OWNERSHIP STAKE) 20+
AND KIDD CREEK (100% OWNERSHIP STAKE) 15+]
* Reflects impact of expansions on a pro-forma basis
COLLAHUASI, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - MINE (44%)
------------------------------------------------------------------------------
o Proven and probable reserves of 1.85B tonnes at 0.90% copper
o Measured and indicated resources of 480M tonnes at 0.64% copper
o 2004 production (44% basis):
- 205,000 tonnes of contained copper in concentrate vs. 169,000 tonnes
in 2003
o Completed Phase II mine and concentrator capacity expansion ahead of
schedule and under budget
o Acquired necessary water rights and started Phase III expansion
feasibility study
o Approved new molybdenum recovery plant; providing high returns even at a
low moly price
[GRAPHIC OMITTED - BAR GRAPH SHOWING CASH COST PER LB. VS. REALIZED PRICE
OF $0.45 (2004 CASH COST), $0.90 (LONG-TERM COPPER PRICE) AND $1.30 (2004
COPPER PRICE)]
ANTAMINA, PERU [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER/ZINC - MINE (33.75%)
------------------------------------------------------------------------------
o Proven and probable reserves of 468M tonnes grading 1.22% copper and
0.96% zinc
o Measured and indicated resources of 58M tonnes at 0.49% copper and 0.24%
zinc
o 2004 production (33.75% basis):
- 122,000 tonnes of contained copper
- 64,000 tonnes of contained zinc
o Accessed higher-grade copper ores in June 2004 when removal of lake
residue was completed
o Increased molybdenum recoveries from 26% to 40%; will further reduce
cash costs
o Advanced drilling program to further confirm resources as part of new
mine plan
[GRAPHIC OMITTED - 1 PHOTO]
LOMAS BAYAS, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - MINE
------------------------------------------------------------------------------
o Proven and probable reserves of 343M tonnes grading 0.34% copper
o Measured and indicated resources of 287M tonnes at 0.28% copper
o 2004 production: 62,000 tonnes of contained copper, another record
o Expansion of crushing capacity was completed on schedule and on budget
o Started treating Altonorte smelter dust to improve margins
o Cash cost of $0.52/lb.
o Initiated scoping study at adjacent deposit
[GRAPHIC OMITTED - 1 PHOTO]
KIDD CREEK MINE D, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - MINE
------------------------------------------------------------------------------
o Proven and probable reserves of 18.1M tonnes grading 1.80% copper and
6.03% zinc
o Measured and indicated resources of 14.1M tonnes grading 3.4% copper and
4.9% zinc
o Started pre-production at Mine D expansion project which has inferred
resources of 15.3M tonnes grading 3.0% copper and 4.6% zinc
o 2004 Kidd mine production:
- 41,000 tonnes of contained copper
- 88,000 tonnes of contained zinc
o Rationalized infrastructure with Noranda operations and reduced
workforce by 15%
o Established new feed agreement with Agnico-Eagle to fill zinc smelter
capacity at improved margins
o Completed milling circuit modifications for the new Montcalm mine ore
processing and began treatment
[GRAPHIC OMITTED - 1 PHOTO]
ALTONORTE SMELTER, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - MINE
------------------------------------------------------------------------------
o Well situated to treat Chilean copper concentrates
o 2004 production: 266,000 tonnes of copper anodes; exceeded nameplate
throughput capacity
o Current sulphuric acid prices in the $85 range
o Improved complex concentrates treatment capability by increasing bismuth
and other minor element removal
o Initiated molybdenum roaster conversion project, creating 10,000 tonnes
of concentrate roasting capacity
o Will begin to benefit from rising copper TC/RCs
[GRAPHIC OMITTED - 1 PHOTO]
KIDD CREEK, HORNE, [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
CCR - CANADA
------------------------------------------------------------------------------
o Canadian copper metallurgical operations:
- Kidd Creek Copper/Zinc Smelter
- Copper cathodes: 116,000 tonnes per year
- Refined zinc: 122,000 tonnes per year
- Horne Copper Smelter
- Copper anodes: 150,000 tonnes per year
- CCR Copper Refinery
- Copper cathodes: 288,000 tonnes per year
o Poised to benefit from improved treatment/refining charges
- Spot treatment and refining charges currently as high as
US$180/tonne and US$0.18/lb.
- Smelter and refinery revenues to increase with completion of current
frame contracts and increased exposure to spot market terms
COPPER PROJECTS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o Brownfield Projects
- Collahuasi, Chile (Mo Recovery)
- Collahuasi, Chile (Phase III)
- Lomas Bayas, Chile
- Antamina, Peru
o Greenfield Projects
- El Pachon, Argentina
- El Morro, Chile
- West Wall, Chile
- Frieda River, Papua New Guinea
[GRAPHIC OMITTED - 1 PHOTO]
COLLAHUASI, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
MOLYBDENUM - BROWNFIELD PROJECT (44%)
------------------------------------------------------------------------------
Molybdenum Recovery Circuit:
o Construction expected to begin in Q1, 2005
o Production expected to begin in Q1, 2006
o Average of 12,000 tonnes of molybdenum concentrate annually
o Estimated capital expenditure of $42 million
o Forecast NPV > $100 million, even at low molybdenum prices
o Will provide a very high IRR
[GRAPHIC OMITTED - 1 PHOTO]
COLLAHUASI, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - BROWNFIELD PROJECT (44%)
------------------------------------------------------------------------------
Phase III Expansion Concept:
o Scoping study has been initiated to further increase total copper
production by 175,000+ tpy to +/- 675,000 tpy
o Noranda/Falconbridge share of output to increase from 220,000 to 297,000
tonnes of contained copper
o Expansion concept is to add an additional grinding circuit and increase
production from the higher grade Rosario pit
o Expected start-up in 2007+
[GRAPHIC OMITTED - 1 PHOTO]
LOMAS BAYAS, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - BROWNFIELD PROJECT
------------------------------------------------------------------------------
o Reviewing adjacent Fortuna de Cobre deposit
- Measured/indicated resources of 470M tonnes at 0.29% copper
- Inferred resources of 150M tonnes at 0.21% copper
- Potential to add 30,000 MTPY of contained copper and extend mine
life beyond 2020
- Low projected cash cost of $0.48/lb.
o Secured water rights
o Key attributes:
- Low stripping ratio
- Mineralogy and leaching kinetics appear to be unusually
favourable
- Advancing to decision to conduct pre-feasibility study
- Option to purchase by mid-2006
[GRAPHIC OMITTED - 1 PHOTO]
EL PACHON, ARGENTINA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - GREENFIELD PROJECT
------------------------------------------------------------------------------
o Measured and indicated resource of 724M tonnes at 0.65% copper and 0.02%
molybdenum
o Indicated resources of 560M tonnes at 0.52% copper and 0.01% molybdenum
o Located 5 km from the Los Pelambres mine
o Projected average annual production of 245,000 tonnes of contained
copper
o Projected average net cash cost of $0.53 - $0.58/lb. of copper
o Net capital investment ~ $1B
o Key attributes:
- Low stripping ratio and attractive metallurgical recoveries
- Accessible location
- Ample water supply, favourable site construction characteristics
[GRAPHIC OMITTED - 1 MAP SHOWING EL PACHON PROJECT]
EL MORRO, CHILE [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER - GREENFIELD PROJECT (70%)
------------------------------------------------------------------------------
o Inferred resource of 466M tonnes @ 0.61% copper and 0.50 grams per tonne
gold
o Projected annual production of 145,000 tonnes of copper and 320,000
ounces of gold
o Projected cash cost of $0.42 - $0.51/lb. of copper
o Net capital investment ~ $900M
o Exploration resumed in 2004 in parallel with other development studies
o Key attributes:
- Significant gold co-product
- Supergene enrichment blanket
- Favourable location
o Noranda can earn 70% in this project
[GRAPHIC OMITTED - 1 PHOTO]
[LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
NICKEL
[GRAPHIC OMITTED - 4 PHOTOS]
NICKEL [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
LONG-LIFE ASSETS
------------------------------------------------------------------------------
[GRAPHIC OMITTED - CHART SHOWING OWNERSHIP STAKE AND MINE LIFE (YEARS)* OF
NORANDAFALCONBRIDGE NICKEL ASSETS: SUDBURY BASIN (100% OWNERSHIP STAKE)
20+, RAGLAN (100% OWNERSHIP STAKE) 20+ AND FALCONDO (100% OWNERSHIP STAKE)
20+]
* Reflects impact of expansions on a pro-forma basis
INO SUDBURY AND RAGLAN, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - MINES AND SMELTER
------------------------------------------------------------------------------
o INO Sudbury mines and smelter
- Successful exploration program has added 18M tonnes of additional
resources over the last two years
- Total nickel reserves and resources of 69M tonnes
- Smelter produces matte for refining at Nikkelverk
o Raglan mine
- Produces nickel and copper concentrates with significant palladium,
platinum and cobalt credits
- Proven and probable reserves of 15.7M tonnes grading 2.82% nickel
and 0.78% copper
- Maintained total reserves and resources at approximately same level
since 1998 start-up
[GRAPHIC OMITTED - 2 PHOTOS]
NIKKELVERK REFINERY, NORWAY [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
FALCONDO MINE/PLANT, DOMINICAN REPUBLIC
------------------------------------------------------------------------------
o INO Nikkelverk
- Refinery produces nickel, copper and precious metals
- Ranks amongst the lowest-cost refineries in the world
- Has capacity expansion potential
o Falcondo
- Forecast to produce 28,000 tonnes of nickel contained in
ferro-nickel in 2005
- Proven and probable reserves of 57M tonnes grading 1.21% nickel
- Mine life of 20+ years
- Considering output expansion
[GRAPHIC OMITTED - 2 PHOTOS]
MONTCALM, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - MINE
------------------------------------------------------------------------------
o 4.9M tonnes reserves at 1.51% nickel and 0.73% copper
o Project completed in Q4 2004; ahead of schedule and under budget
o Potential annual ore output of 750,000 tonnes with 9,000 tonnes of
contained nickel in concentrate production
o First ore extracted in Q4 2004
o Net capital investment after pre-production revenues of $100M, ROI
greater than 15% at long-term prices of $3.25 per pound of nickel
[GRAPHIC OMITTED - 1 PHOTO]
NICKEL PROJECTS [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
------------------------------------------------------------------------------
o Brownfield Projects
- Nickel Rim South - Canada
- Fraser Morgan, Canada
- Onaping Depth, Canada
- Raglan, Canada
o Greenfield Projects
- Koniambo, New Caledonia
- Kabanga, Tanzania
[GRAPHIC OMITTED - 1 PHOTO]
NICKEL RIM SOUTH, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - BROWNFIELD PROJECT
------------------------------------------------------------------------------
o Updated resources of 13.4M tonnes of 1.8% nickel and 3.3% copper;
significant PGMs
o Drilling program and infrastructure continuing to define resource;
underground definition started in Q1 2004 with $368M program
o Net capital investment of $415M
o Projected operating cash cost of negative $0.65 per pound of nickel
o Five year development timeframe
o First ore production in late 2009
[GRAPHIC OMITTED - 1 PHOTO]
FRASER MORGAN, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - BROWNFIELD PROJECT
------------------------------------------------------------------------------
o Discovered in 2001
o Access from existing infrastructure, scoping study underway
o Growing resource:
- Measured and indicated resources: 4.9M tonnes @ 1.8% nickel and 0.6%
copper
- Inferred resources: 2.1M tonnes of inferred @ 1.8% nickel and 0.5%
copper
o Recent drilling results encouraging, further expansion possible
[GRAPHIC OMITTED - MAP OF NICKEL-BROWNFIELD PROJECT, FRASER MORGAN, CANADA]
KONIAMBO, NEW CALEDONIA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - GREENFIELD PROJECT
------------------------------------------------------------------------------
o Partnership with local arm of North Province - SMSP (51%) - with
governance issues decided equally
o Bankable Feasibility Study (BFS) completed in late 2004
- Increased engineering level from 10% to 25%
- Capital investment of $2.2 billion
- Including $600 million for construction of power-generation
facilities
- Excluding $500 million for working capital, cost escalation from
2004 to start-up, financing & arrangement fees and interest costs
- Operating cost of $1.65/lb.
o Presentation of BFS to various stakeholders to take place in Q1, 2005
o Evaluating financing options with information contained in the BFS
o Earliest start-up in 2009/2010
[GRAPHIC OMITTED - 1 PHOTO]
KONIAMBO, NEW CALEDONIA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - MAJOR GROWTH OPPORTUNITY
------------------------------------------------------------------------------
[GRAPHIC OMITTED - 1 PHOTO]
WORLD-CLASS
DEPOSIT
SAPROLITE - PHASE I LIMONITE - PHASE II
o 142.1M tonnes of measured plus o 100M tonnes
indicated resources
@ 2.13% nickel o 1.6% nickel
o 156M tonnes of inferred resources o Acid-leach process
@ 2.2% nickel
o Well-known smelting process
KONIAMBO, NEW CALEDONIA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - ONE OF THE WORLD'S BEST DEPOSITS.
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[GRAPHIC OMITTED - GRAPH REPRESENTATION BY GRADE AND TONNAGE OF VARIOUS
NICKEL DEPOSITS THROUGHOUT THE WORLD]
KABANGA, TANZANIA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NICKEL - GREENFIELD PROJECT
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o Preliminary agreement for JV with Barrick Gold; documentation in
progress
o Located in northwestern Tanzania ~ 400 km west of Bulyanhulu mine;
Barrick has successfully operated there before
o Initial inferred resources estimate of 26M tonnes grading 2.6% nickel
with potential for further growth
o Potential nickel production of 30,000 to 35,000 tonnes per year
o Concentrate would be shipped to Falconbridge's smelter and refinery
o Completing a work plan over the next three years at a cost of $45
million
[LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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ZINC
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BRUNSWICK, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
ZINC - MINE
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o Brunswick mine
- Proven and probable reserves of 17.4M tonnes grading 8.94% zinc and
3.62% lead
- Low-cost operation now expected to operate to 2010
- Exploration continuing in the area
o Brunswick smelter
- Increased sulphates processing content to 27%
- Increased high silver residues processing
- Increased spent battery recycling
- Improving margins
[GRAPHIC OMITTED - 1 PHOTO]
ANTAMINA, PERU [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
COPPER/ZINC - MINE (33.75%)
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o Proven and probable reserves of 468M tonnes grading 1.22% copper and
0.97% zinc
o Commercial production in 2001: US$2.2B capital investment
o Estimated annual production for first 10 years
- 305,000 tonnes of copper
- 285,000 tonnes of zinc
o Extracting higher-grade material since completing the removal of
residual lake sediment
o Improved molybdenum recoveries from 26% to 40%
o Partners: Noranda 33.75%,Teck Cominco 22.5%, BHP Billiton 33.75%,
Mitsubishi Corporation 10%
[GRAPHIC OMITTED - 1 PHOTO]
ZINC [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
PROJECTS
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o Brownfield Projects
- Lennard Shelf, Australia
- Perseverance, Canada
o Greenfield Projects
- Lady Loretta, Australia
- Feasibility study and permitting completed
[GRAPHIC OMITTED - 1 PHOTO]
LENNARD SHELF, AUSTRALIA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
ZINC - BROWNFIELD PROJECT (50%)
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o Pillara mine and processing plant are currently on care & maintenance
o Measured and indicated resources of 2.8M tonnes at 8.2% zinc and 1.7%
lead
o Surface and underground exploration programs were conducted in 2004.
Further exploration and drilling programs are underway in 2005
o Offers potential to increase zinc exposure
o Disciplined approach to bringing back on line
o 50/50 joint venture with Teck Cominco
[GRAPHIC OMITTED - 1 PHOTO]
PERSEVERANCE, CANADA [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
ZINC - BROWNFIELD PROJECT (90%)
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o Measured and indicated resources of 5.1M tonnes of 15.82% zinc and 1.24%
copper
o Comprised of three small, high-grade zinc/copper lenses situated six
kilometres from the existing Matagami mining camp concentrator
o Feasibility study completed in 2001
o Key attributes:
- Development can be fast-tracked by utilizing existing infrastructure
at the Matagami camp
o Noranda owns 90%
[GRAPHIC OMITTED - 1 PHOTO]
[LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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ALUMINUM
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ALUMINUM [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
FULLY INTEGRATED OPERATIONS
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o Fully integrated operations: from bauxite/alumina, through primary
reduction into high-margin foil and value-added products
o St. Ann bauxite mine in Jamaica (50%)
- Proven and probable reserves of 33M tonnes at 47% alumina
- Capacity of 4.5 MT of bauxite per year
o Alumina Refinery in Louisiana (50%)
- Completely modernized in 2002
- Capacity of 1.25 MT of alumina per year (Noranda share is 625,000
tonnes)
[GRAPHIC OMITTED - 1 PHOTO]
NEW MADRID PRIMARY SMELTER [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
ALUMINUM
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o Smelter has secure alumina feed to meets its requirements of 500,000
tonnes per year
o Received new environmental operating permit for full capacity operation
that will permit up to 6,000 tonnes of increased output
o Received FERC approval for long-term power contract
[GRAPHIC OMITTED - 1 PHOTO]
HUNTINGDON, SALISBURY, [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
NEWPORT FOIL PLANTS ALUMINUM
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o Significantly increased capacity utilization rates
o Record shipments in 2004 of 174,000 tonnes
o Ramp-up of Huntingdon plant nearing entitlement
o Benefiting from improved fabrication margins
[GRAPHIC OMITTED - BAR GRAPH SHOWING ALUMINUM SHIPMENTS (MILLIONS OF LBS.)
FROM 2001 (247.9), 2002 (282.0), 2003 (323.5), 2004 (383.3), 2005
(FORECASTED) (399.0), 2006 (FORECASTED) (430.0) AND 2007 (FORECASTED)
(460.0)]
[GRAPHIC OMITTED - 2 PHOTOS] [LOGO - NORANDA] [LOGO - FALCONBRIDGE]
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NORANDAFALCONBRIDGE
CORPORATE PROFILE
MARCH/APRIL 2005
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