Brascade Resources Inc. - Announcement.Business Editors TORONTO--(BUSINESS WIRE)--May 09, 2001 Brascade Resources Inc. today reported net income of $5 million for the first quarter of 2001, down from $28 million in the same period in 2000 as a result of lower contributions from natural resource operations due largely to lower metal, lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to and panelboard prices. Operations Mining and metal operations contributed $6 million to revenue in the first quarter of 2001, down from $18 million in the same period of 2000. This reflected lower base metal prices and sales volumes and the impact of a strike at Falconbridge's nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. operations in Sudbury Sudbury, city, Canada Sudbury, city (1991 pop. 92,884), central Ont., Canada. It is the center of Canada's largest mining region, which produces much of the world's nickel and large quantities of copper, platinum, gold, silver, cobalt, and sulfur. , offset partly by a tax recovery. Forest product operations lost $2 million in the quarter, compared to a contribution of $10 million in the first quarter of 2000. The decline was caused by lower lumber and oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. strandboard prices and provisions related to a mill closing as part of the consolidation of Nexfor's specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. paper operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Brascade's affiliates continue their emphasis on improving productivity through margin improvement programs and advancing their capital investment programs. -- Construction of the US$2.3 billion Antamina copper-zinc mine in Peru is virtually completed, with initial start-up scheduled in the third quarter and full production expected by the year end. -- Noranda and Falconbridge signed a letter of intent to acquire the Lomas Bayas copper mine and adjacent Fortuna de Cobre copper deposit in northern Chile, with closing expected in the second quarter. -- Commercial production started at the $360 million Huntingdon high-speed aluminum mill in Tennessee. When all phases of the mill are completed, it will produce 100,000 tonnes of heavy gauge foil for industrial and packaging users. -- Engineering and construction are 90% and 30% completed, respectively, on the $260 million Altonorte copper smelter expansion in Chile, which will nearly double its annual copper production to 290,000 tonnes and triple annual sulphuric acid output to 700,000 tonnes. -- Construction continued on two projects to increase the group's panelboard production capacity -the new $230 million oriented strandboard mill in Barton, Alabama and a $40 million particleboard line installation at the Cowie mill in Scotland. Corporate and Outlook The company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. the regular quarterly dividends on its Series B and C preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. payable on June June: see month. 30, 2001 to shareholders of record on June 20, 2001. Natural resource prices are expected to remain low for the first half of 2001, with some strengthening in prices expected later in the year particularly with a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the US economy. The company's affiliates remain focussed on creating shareholder value by improving productivity and expanding their production base through the development of high quality assets. Brascade Resources Inc. is a natural resources investment company with interests in the mining and forest products sectors. Brascan Corporation owns 99.9% of the common shares of Brascade. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide C. Kress Kress may mean any of several people, places or things: Stores
FINANCIAL STATEMENTS
Statement of Operations
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Three months ended March 31
millions, except per share amounts 2001 2000
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Revenues
Income from Noranda Inc. $ 5.5 $ 18.4
Income (Loss) from Nexfor Inc. (1.5) 9.8
Other income 1.9 1.2
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5.9 29.4
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Expenses
Corporate 0.1 0.1
Depreciation and amortization 1.1 1.1
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1.2 1.2
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Net income $ 4.7 $ 28.2
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Earnings per common share
Net income (loss) (Note 2) $ (0.09) $ 0.26
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Statement of Retained Earnings
---------------------------------------------------------------
Three months ended March 31
millions 2001 2000
---------------------------------------------------------------
Retained earnings, beginning
of period $ 78.9 $ 8.8
Adjustment for change in accounting
policies (Note 3) - 5.0
Net income for the period 4.7 28.2
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83.6 42.0
Shareholder distributions
Preferred share dividends 10.7 10.8
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Retained earnings, end of period $ 72.9 $ 31.2
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Balance Sheet
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March 31 December 31
millions 2001 2000
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Assets
Accounts and notes receivable $ 63.4 $ 55.6
Investment in Noranda Inc. 1,113.8 1,123.1
Investment in Nexfor Inc. 270.9 275.4
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$1,448.1 $1,454.1
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Liabilities
Accounts payable $ 0.5 $ 0.5
Shareholders'equity (Note 4) 1,447.6 1,453.6
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$1,448.1 $1,454.1
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Statement of Cash Flows
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Three months ended March 31
millions 2001 2000
---------------------------------------------------------------
Cash provided from operations $ 18.5 $ 17.8
Financing and shareholder
distributions
Preferred share dividends (10.7) (10.8)
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Loans receivable
Increase 7.8 7.0
Balance, beginning of period 55.6 26.1
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Balance, end of period $ 63.4 $ 33.1
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NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF ACCOUNTING POLICIES
Reference is made to the company's most recently issued Annual
Report, which includes information necessary or useful to
understanding the company's businesses and financial statement
presentation. In particular, the company's significant accounting
policies and practices are presented as Note 1 to the Financial
Statements included in that Report.
The quarterly financial statements are unaudited. Financial
information in this Report reflects any adjustments (consisting only
of normal recurring adjustments) that are, in the opinion of
management, necessary to a fair statement of results for the interim
periods in accordance with generally accepted accounting principles
("GAAP") in Canada.
The results reported in these consolidated financial statements
should not be regarded as necessarily indicative of results that may
be expected for the entire year. Certain prior year amounts have been
restated or reclassified to conform to the current year's
presentation.
2. EARNINGS PER COMMON SHARE
After payment of preferred share dividends.
3. CHANGE IN ACCOUNTING POLICIES
The company adopted the new recommendations of The Canadian
Institute of Chartered Accountants with respect to accounting for
income taxes and employee future benefits. These changes were applied
as of January 1, 2000. The effect of adopting these new
recommendations was a decrease to corporate investments of $55
million, a decrease in deferred credits of $60 million and an increase
to retained earnings of $5 million.
4. SHAREHOLDERS' EQUITY
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March 31 December 31
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millions, except number of shares 2001 2000
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10,501,528 Preferred shares
Series B (2000 - 10,501,528) $ 420.1 $ 420.1
3,125,000 Preferred shares
Series C (2000 - 3,125,000) 125.0 125.0
-----------------------
545.1 545.1
66,999,326 Common shares
(2000 - 66,999,326) 779.6 779.6
Contributed surplus 50.0 50.0
Retained earnings 72.9 78.9
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$ 1,447.6 $ 1,453.6
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