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Exhibit 4.60  



	 
	 	 

	 	 	 
	

 	 	Contacts:

Denis Couture

Vice-President, Public Affairs

& Communications

(416) 982-7020
	 	 	Lars-Eric Johansson

Executive Vice-President

& Chief Financial Officer

(416) 982-7139




n e w s    r e l e a s e 


NORANDA'S REPORTS FIRST QUARTER LOSS OF $29 MILLION BEFORE

PREVIOUSLY-REPORTED RESTRUCTURING CHARGES OF $30 MILLION  



TORONTO, April 23, 2003 — Noranda Inc. today reported a first quarter loss
of $29 million ($0.15 per common share) before a previously-reported after-tax restructuring charge of $30 million related to the Company's magnesium plant shutdown. The net
loss is $59 million or $0.27 per common share. The Company reported earnings of $8 million ($0.01 per common share) for the same period in 2002. 



In
addition to the restructuring charge, related to the closure of the Magnola magnesium plant, the quarter's results reflect the negative impact of the stronger Canadian dollar, higher energy prices
and the labour strike at the Horne smelter. 


Highlights  





	•
	Began ramp-up of the recently increased capacity at the Altonorte smelter. Throughput increased 75%
year-over-year.



	•
	EBITDA
increased by almost 9% year over year, notwithstanding increased energy costs of $23 million and a stronger Canadian dollar affect of
$15 million.



	•
	Realized
nickel prices were US$3.83 compared to US$2.84 in the first quarter of 2002.



	•
	Signed
new three-year collective agreements with employees at the Brunswick Mine and the Brunswick Smelter.



	•
	Expanded
electronic hardware recycling business into Canada.



	•
	Continued
reduction of capital investments with $45 million lower year-over-year expenditures.



	•
	Raised
$300 million through the issue of preferred shares — $150 million was funded in March and the
balance in April 2003. 






Commentary



"On an operating basis, Noranda's results are beginning to benefit from the restructuring and cost containment measures taken over the last eighteen
months," said Derek Pannell, Noranda's President and Chief Executive Officer. "We are working to find a solution to the Horne labour strike so that
similar profitability improvements can be applied to the Canadian Copper and Recycling business unit." 








Consolidated Results  


Higher revenues from improved metal prices were offset by the stronger Canadian dollar versus the U.S. dollar as well as the strike at the Horne smelter. The results of
the first quarter 2002 include 100% of the CEZ refinery, 51% of which was sold in May of that year, and the Gaspé smelter which was closed at the end of
April 2002.


Operating costs decreased by approximately $29 million compared to the first quarter last year. Increased costs related to energy prices and the ramp-up of
the Phase III expansion at the Altonorte smelter were more than offset by the CEZ refinery sale and Gaspé smelter shutdown.


The cost to purchase raw materials was lower in the period reflecting a lower level of purchases on account of the strike at the Horne smelter and the closure of
Gaspé.


Corporate and general administration, exploration and research expenses totalled $29 million for the quarter. This is a reduction of $9 million from the total
recorded in the first quarter 2002 and reflects the restructuring measures taken in these areas.


Depreciation, amortization and reclamation expenses of $173 million were recorded in the quarter. These expenses are estimated to total approximately $715 million
for the year as the ramp-up continues at the new projects.


Restructuring charges recorded in the quarter relate to closure costs incurred at the magnesium plant which ceased operations in mid-April.



The increase in net interest expense from $35 million to $58 million is mostly attributed to the expensing of interest associated with new projects that was
previously capitalized.


OPERATIONS  


Copper  


The
Copper business reported operating income (earnings before interest, taxes and minority interest) of $54 million in the quarter compared to $51 million in the comparable period of
2002. The LME price averaged US$0.75 per pound, an increase of almost 6% over the first quarter of 2002. 


At the Antamina mine, throughput at the mill averaged 71,374 tonnes per day in the quarter compared to 70,094 tonnes in the first quarter and 69,517 tonnes in the fourth
quarter of 2002. Average grades of 1.32% copper and 1.54% zinc exceed those of the first quarter of 2002. All units of equipment that were damaged in the sediment flow in November 2002 were
repaired and have been put back in operation.


Collahuasi's mine production was slightly below first quarter 2002 levels as a result of lower grades. Cathode production of 6,900 tonnes was higher than that of last year of
6,400 tonnes. The expansion of the Collahuasi concentrator and the transition of mining operations to the Rosario orebody continued as scheduled. At the end of the quarter, project progress was 31%.
The project will enable Collahuasi to maintain its copper production at levels similar to that of its first three years of operation.


Production from the Lomas Bayas mine, of 14,600 tonnes of refined copper, was above plan for the quarter and similar to last year's levels.



At
the Altonorte smelter, construction of the expansion project was completed and the ramp-up phase began in early January. To date, the operation is performing well. Concentrate
throughput, for the quarter, of over 133,000 tonnes exceeded last year's levels by 75%. 


Canadian Copper and Recycling  


The Canadian Copper and Recycling business produced an operating loss of $22 million in the quarter compared to a loss of $13 million in the comparable period of
2002.


The impact on operating income from the strike at the Horne smelter has been estimated at approximately $10 million for the quarter.


Processing trials between the Horne smelter and the Kidd Metallurgical Division continued during the quarter as part of the review of options to address the profitability
issues concerning the Canadian metallurgical operations. Refined copper production for the business unit was approximately 70% of last year's first quarter level. The reduction is due to the labour
strike and the closure of the Gaspé smelter. Silver and gold output were also affected by the fire at the Brunswick silver refinery.








Negotiations with the union at the Horne smelter resumed at the end of February following discussions during which Noranda reviewed its strategic plan for the smelter and its
need to eliminate 125 unionized positions as part of its cost reduction measures.


Production from the Kidd Mine was slightly lower than for the corresponding period of 2002. Copper cathode production for the period was above last year's due in large part to
the process trials mentioned above, while zinc production was similar to first quarter 2002 levels.


The
Kidd Creek zinc plant will be shut down for approximately nine weeks, from June 30th to September 2nd for market and supply-related reasons. Maintenance
will be conducted during the first three weeks of the outage with the remainder taken as vacation. 


During
the quarter, the Company announced the expansion of its recycling of electronic materials business to Canada with the investment in a new material separation plant in Brampton, Ontario. The
plant is expected to be operational by the summer of this year and will process approximately one million pounds a month of end-of-life electronics after its
ramp-up. 


Nickel  


The
Nickel business produced operating income of $71 million in the quarter compared to $17 million in the comparable period of 2002. The LME nickel price averaged US$3.79 per pound for
the quarter, a 34% improvement over the first quarter 2002 average of US$2.82 per pound. 


The
Sudbury mines operated on plan during the quarter but at lower rates than the corresponding period of 2002, due to lower mine tonnages and grades. In the third quarter, the Craig and Fraser Mines
are expected to operate throughout the summer months while the Mill will shut down from June 29th to July 7th and from July 24th to
August 1st inclusive. The Lockerby and Thayer Lindsley Mines will each be down for approximately two weeks beginning July 20th and extending to
August 5th. 


At Raglan, metal production improved over first quarter 2002 levels as higher ore grades compensated for lower mine tonnages.


At
the Sudbury smelter, metal output increased from a year ago, with better recoveries offsetting lower concentrate tonnages. The smelter is expected to take a maintenance and vacation shutdown from
June 22nd to August 4th inclusive. 


The Nikkelverk refinery operated at a higher level than in the first quarter of 2002, establishing a new record for the production of precious metals. However, production
during the second quarter will be affected by the shutdown of the BCL smelter in Botswana earlier this year. The refinery's overall production target remains at 72,000 tonnes of nickel for
2003.


Production at Falcondo was higher than a year ago, as operations were shut down for a portion of the first quarter of 2002. However, production was lower than plan due mainly
to disruptions in the oil supply at the beginning of the year, which have now been resolved.


Zinc  


The
Zinc business recorded an operating loss of $34 million in the quarter compared to a loss of $11 million in the same period last year, which included results from the CEZ refinery.
The LME zinc price averaged US$0.36 per pound in the quarter, essentially unchanged from that of the first quarter 2002. 


At
the Brunswick Mine, mill throughput averaged 9,829 tonnes per day compared to 9,675 tonnes in the first quarter of 2002. Recoveries of 88.73% also exceeded last year's average 87.1%. 



At
the Brunswick Smelter, operations in silver refinery were halted as a result of a fire in late January. This has resulted in a build-up of metals in process. The plant will be rebuilt
and is expected to be fully operational in November of this year. 


Operations
at Bell-Allard Mine were running very well during the quarter. Zinc production of 25,300 tonnes exceeded last year's by over 32%. 


Employees
at the Brunswick smelter ratified a new three-year collective agreement, which included an increase in the pension program, a progressive increase in benefits and a freeze on
wages and premiums for the life of the contract. 









The
new three-year collective agreement which was ratified by the employees of the Brunswick mine includes provisions for an average wage increase of 9.6% over the life of the agreement
and improvements to the benefits and pension programs. 


Aluminum  


The
Aluminum business produced operating income of $15 million in the quarter compared to $16 million in the same quarter of 2002. The impact of higher prices for natural gas reduced the
Aluminum business operating income by $4 million. The LME aluminum price for the quarter averaged US$0.63 per pound, essentially unchanged from the first quarter a year ago. At the Primary
smelter, the production of 61,000 tonnes of aluminum was on plan and exceeded last year's levels by approximately 8%. 


At
Norandal, sales of aluminum foil and sheet increased by over 23% as production volumes increased at each of the plants and market share in targeted segments continued to grow. Overall fabrication
spreads averaged about the same as last year, with increases in light-gauge products and lower spreads on some of the heavier gauges. 



Other Operations  


The
shutdown of the Magnola magnesium plant is now largely completed and the equipment is currently being prepared for an extended period of closure. As previously announced, pre-tax costs
related to this closure of $42 million were recorded in the period. 


The continued availability of wheel inventory owned by producers who have since exited the business continued to impact the market for American Racing Equipment (ARE). As a
result, ARE recorded a loss for the quarter of $9 million compared to a loss of $4 million in 2002.



FINANCIAL RESOURCES AND LIQUIDITY  


Cash generated from operations, before changes in working capital, amounted to $160 million compared to $217 million a year ago. Cashflow for the quarter was
negatively affected by the shutdown of the magnesium plant.


Investments
in capital projects totalled $152 million for the quarter. The Company expects total investments for the year to approximate $780 million with the major commitments being the
deepening of the Kidd Mine D, the transition and expansion of the Collahuasi facility and the development of the Montcalm nickel/copper project. Noranda's wholly-owned operations and joint ventures
share of these expenditures are expected to amount to approximately $140 million for the full year 2003. 



During
the quarter, Noranda issued six million cumulative preferred shares to the public for gross proceeds of $150 million. The shares pay a 6.50% annual dividend. Proceeds from the issue were
used to reduce the Company's revolving bank debt. 


At
the end of the quarter, cash resources stood at $402 million and net debt at $4.6 billion representing 48% of total capitalization. At year-end 2002 the net debt was
$4.8 billion, or 50% of total capitalization. Consolidated undrawn and committed bank lines stood at $920 million at quarter end. 


In
addition, Noranda will issue a further $150 million of preferred shares prior to April 30, 2003 pursuant to a previously-announced underwriting commitment provided by Brascan
Corporation. These preferred shares will pay an 8% annual dividend and will be redeemable by Noranda at any time without penalty. The proceeds will be used together with available cash to repay the
US$200 million of debentures due in June 2003 which will improve the net debt to total capitalization ratio to approximately 47%. 


OTHER DEVELOPMENTS  


At the Nickel Rim South project in Sudbury, Ontario, the drilling program continues with five machines currently on site. Drilling results this year have been better than
anticipated with detailed assay results pending on a number of recently drilled holes.


The current drilling program will be completed by the end of the second quarter and it is anticipated that a decision to proceed with an underground exploration program will be
made before the fourth quarter. As of December 31, 2002 an inferred resource of 6.3 million tonnes of 1.7% nickel and 3.4% copper had been estimated, including a significant  








 high grade footwall resource consisting of 3.8 million tonnes of 1.7% nickel, 5.1% copper, 3.3 g/t platinum, 3.8 g/t palladium and 2.3 g/t gold.


OUTLOOK  


"We anticipate more of the challenging environment for our industry over the next few quarters. Our plan to meet these conditions remains one of cost and cash containment.
Noranda has the staying power to weather this multi-year trough and will benefit significantly when prices turn around," concluded Pannell. 



DIVIDEND  


        The following dividends have been declared: 



	Security
 
	 	Dividend Amount
 
	 	Record Date
 
	 	Payable Date
 

	Common shares	 	$0.20 per share	 	May 30, 2003	 	June 15, 2003
	Preferred Series F shares	 	Floating rate	 	May 30, 2003	 	June 12, 2003
	Preferred Series F shares	 	Floating rate	 	June 30, 2003	 	July 12, 2003
	Preferred Series F shares	 	Floating rate	 	July 31, 2003	 	August 12, 2003
	Preferred Series G shares	 	$0.38125 per share	 	July 15, 2003	 	August 1, 2003
	Preferred Series H shares	 	$0.43333 per share	 	May 15, 2003	 	June 30, 2003





ANNUAL GENERAL MEETING AND WEBCAST  


The
Company's Annual General Meeting will be held on Wednesday, April 23, 2003 at 10:00 am Eastern Standard Time at The Design Exchange, Trading Floor, 234 Bay Street, Toronto. The meeting will
be webcast live on the internet via www.noranda.com. 



QUARTERLY WEBCAST  


Noranda
will be holding its quarterly teleconference on Wednesday, April 23, 2003 at 1:00 pm Eastern Standard Time. The call will be broadcast live on the internet via
www.noranda.com. 





This
news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and
uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a
description of the major risk factors. 


Noranda Inc. is a leading international mining and metals company with more than 48 mining and metallurgical operations and projects under development
in 17 countries. Noranda is one of the world's largest producers of zinc and nickel and is a significant producer of copper, primary and fabricated aluminum, lead, silver, gold, sulphuric acid and
cobalt. Noranda is also a major recycler of secondary copper, nickel and precious metals. It is listed on The Toronto Stock Exchange and The New York Stock Exchange
(NRD).


—30— 


Note: This press release is also available at www.noranda.com. All dollar amounts are in Canadian dollars unless otherwise
noted.


ATTACHMENTS  









 
 

NORANDA INC.    
    
    CONSOLIDATED RESULTS    
    
    ($ millions)    
    



	 
	 	First Quarter
	 
	 
	 	2003
	 	2002
	 
	Revenues(1)	 	 	1,585	 	 	1,635	 
	 	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 
	 	Cost of operations	 	 	740	 	 	769	 
	 	Purchased raw materials	 	 	586	 	 	614	 
	 	Corporate and general administration	 	 	18	 	 	20	 
	 	Exploration	 	 	6	 	 	11	 
	 	Research	 	 	5	 	 	7	 
	 	Other operating income	 	 	(3	)	 	—	 
	 	 	
	 	
	 
	 	 	 	1,352	 	 	1,421	 
	 	 	
	 	
	 
	 	Operating income before depreciation and restructuring costs	 	 	233	 	 	214	 
	 	Depreciation, amortization and reclamation	 	 	173	 	 	182	 
	 	Magnesium and other restructuring costs	 	 	43	 	 	—	 
	 	 	
	 	
	 
	Operating income	 	 	17	 	 	32	 
	Interest expense, net	 	 	58	 	 	35	 
	Tax recovery	 	 	(9	)	 	(23	)
	Minority interest in earnings of subsidiaries	 	 	27	 	 	12	 
	 	 	
	 	
	 
	Net income (loss)	 	 	(59	)	 	8	 
	Dividend on preferred shares	 	 	4	 	 	4	 
	 	 	
	 	
	 
	Income (loss) attributable to common shares	 	 	(63	)	 	4	 
	Basic and Diluted Earnings (Loss) per common share — $	 	$	(0.27	)	$	0.01	 
	 	 	
	 	
	 








Noranda Inc. has approximately 242.9 million common shares outstanding as at March 31, 2003 


	(1)
	Revenues
for the 2003 first quarter include $1 million (2002 — nil) as the Company's share of earnings in the Noranda Income Fund. 







 
 

NORANDA INC.    
    
    CONSOLIDATED BALANCE SHEETS    
    
    ($ millions)    
    



	 
	 	Mar. 31

2003
	 	Dec. 31

2002

	Assets	 	 	 	 
	Currrent assets	 	 	 	 
	 	Cash and cash equivalents	 	402	 	463
	 	Accounts receivable	 	896	 	752
	 	Inventories	 	1,405	 	1,415
	 	 	
	 	

	 	 	2,703	 	2,630
	

Capital assets	
 	

7,846	
 	

8,169
	Investments and other assets	 	424	 	407
	Future income tax asset	 	275	 	242
	 	 	
	 	

	 	 	11,248	 	11,448
	 	 	
	 	

	Liabilities and Shareholders' Equity	 	 	 	 
	Current Liabilities	 	 	 	 
	 	Bank advances and short-term notes	 	36	 	39
	 	Accounts and taxes payable	 	1,118	 	1,137
	 	Debt due within one year	 	482	 	490
	 	 	
	 	

	 	 	1,636	 	1,666
	

Long-term debt — wholly-owned operations	
 	

2,088	
 	

2,219
	                           — partially-owned subsidiaries and
projects	 	2,350	 	2,514
	Liability element of convertible debentures	 	27	 	29
	Future income tax liability	 	326	 	319
	Other deferred credits	 	626	 	579
	Minority interest in subsidiaries	 	1,172	 	1,154
	Shareholders' equity (Note 7)	 	3,023	 	2,968
	 	 	
	 	

	 	 	11,248	 	11,448
	 	 	
	 	










 
 

NORANDA INC.    
    
    CONSOLIDATED STATEMENTS OF CASHFLOWS    
    
    ($ millions)    
    



	 
	 	First Quarter
	 
	 
	 	2003
	 	2002
	 
	Cash realized from (used for):	 	 	 	 	 
	
Operations	
 	

 	
 	

 	
 
	 	Cash flow from operations, before working capital	 	160	 	217	 
	 	Change in operating working capital	 	(182	)	(168	)
	 	 	
	 	
	 
	 	 	(22	)	49	 
	 	 	
	 	
	 
	
Investment activities	
 	

 	
 	

 	
 
	 	Capital expenditures	 	(152	)	(197	)
	 	Investments and advances	 	—	 	(33	)
	 	Sale of assets and investments	 	2	 	4	 
	 	 	
	 	
	 
	 	 	(150	)	(226	)
	 	 	
	 	
	 
	Financing activities	 	 	 	 	 
	 	Long-term debt, including current portion	 	8	 	290	 
	 	Share purchase plan repayment	 	—	 	1	 
	 	Issue of preferred shares	 	146	 	—	 
	 	 	
	 	
	 
	 	 	154	 	291	 
	 	 	
	 	
	 
	Dividends	 	(43	)	(63	)
	 	 	
	 	
	 
	Cash generated/(used)	 	(61	)	51	 
	Cash, beginning of period	 	463	 	285	 
	 	 	
	 	
	 
	Cash, end of period	 	402	 	336	 
	 	 	
	 	
	 









 
 

NORANDA INC.    
    
    PRODUCTION VOLUMES    
    



	 
	 	 
	 	First Quarter
	 	Fourth Quarter

	 
	 	 
	 	2003
	 	2002
	 	2002

	Mine Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	Copper	 	 	 	 	 	 	 	 
	 	Kidd Creek	 	 	 	10,718	 	10,888	 	12,650
	 	Matagami	 	 	 	2,003	 	1,859	 	1,883
	 	Brunswick	 	 	 	2,386	 	2,220	 	2,394
	 	INO	 	 	 	9,061	 	9,546	 	9,151
	 	Antamina	 	(33.75%)	 	24,457	 	26,059	 	28,332
	 	Collahuasi	 	(44%)	 	44,211	 	46,067	 	45,723
	 	Lomas Bayas	 	 	 	14,572	 	14,769	 	15,421
	 	Other	 	 	 	6,489	 	5,194	 	5,119
	 	 	 	 	
	 	
	 	

	 	 	 	 	113,897	 	116,602	 	120,673
	 	 	 	 	
	 	
	 	

	Zinc	 	 	 	 	 	 	 	 
	 	Kidd Creek	 	 	 	21,172	 	25,630	 	24,259
	 	Brunswick	 	 	 	70,798	 	69,494	 	70,600
	 	Matagami	 	 	 	25,284	 	19,134	 	21,728
	 	Antamina	 	(33.75%)	 	24,168	 	22,165	 	18,176
	 	Other	 	 	 	1,972	 	2,007	 	2,053
	 	 	 	 	
	 	
	 	

	 	 	 	 	143,394	 	138,430	 	136,816
	 	 	 	 	
	 	
	 	

	Nickel	 	 	 	12,961	 	14,142	 	13,776
	Ferronickel	 	 	 	6,887	 	3,102	 	6,091
	Lead	 	 	 	18,425	 	19,113	 	18,982
	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	Kidd Creek	 	 	 	739	 	1,208	 	916
	 	Brunswick	 	 	 	1,482	 	1,639	 	1,535
	 	Matagami	 	 	 	97	 	90	 	117
	 	Antamina	 	(33.75%)	 	685	 	655	 	620
	 	Other	 	 	 	69	 	61	 	79
	 	 	 	 	
	 	
	 	

	 	 	 	 	3,072	 	3,653	 	3,267
	 	 	 	 	
	 	
	 	

	Metal Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	Refined copper	 	 	 	 	 	 	 	 
	 	CCR	 	 	 	43,026	 	82,922	 	59,612
	 	Kidd Creek	 	 	 	36,959	 	33,794	 	36,059
	 	Nikkelverk	 	 	 	8,535	 	8,194	 	9,280
	 	Collahuasi	 	(44%)	 	6,862	 	6,429	 	6,876
	 	Lomas Bayas	 	 	 	14,572	 	14,769	 	15,421
	 	 	 	 	
	 	
	 	

	 	 	 	 	109,954	 	146,108	 	127,248
	 	 	 	 	
	 	
	 	

	Copper anodes	 	 	 	 	 	 	 	 
	 	Gaspé	 	 	 	—	 	23,135	 	—
	 	Horne	 	 	 	28,267	 	48,329	 	30,367
	 	Kidd Creek	 	 	 	36,768	 	36,207	 	35,955
	 	Altonorte	 	 	 	41,093	 	24,306	 	43,966
	 	 	 	 	
	 	
	 	

	 	 	 	 	106,128	 	131,977	 	110,288
	 	 	 	 	
	 	
	 	

	Refined zinc	 	 	 	 	 	 	 	 
	 	Kidd Creek	 	 	 	37,935	 	37,785	 	38,592
	 	CEZ (Noranda Income Fund)	 	(100% — basis)	 	62,055	 	62,348	 	68,388
	 	 	 	 	
	 	
	 	

	 	 	 	 	99,990	 	100,133	 	106,980
	 	 	 	 	
	 	
	 	

	Refined nickel	 	 	 	 	 	 	 	 
	 	Nikkelverk	 	 	 	20,563	 	17,057	 	21,296
	 	Falcondo	 	 	 	6,887	 	3,102	 	6,091
	 	 	 	 	
	 	
	 	

	 	 	 	 	27,450	 	20,159	 	27,387
	 	 	 	 	
	 	
	 	

	Primary aluminum	 	 	 	61,126	 	56,814	 	60,496
	Fabricated Aluminum	 	 	 	36,925	 	29,964	 	31,542
	Refined lead	 	 	 	24,466	 	25,399	 	28,348
	Refined gold — 000 ounces	 	 	 	270	 	314	 	191
	Refined silver — 000 ounces	 	 	 	8,668	 	12,447	 	7,963








  



 
 

NORANDA INC.    
    
    SALES VOLUMES & REALIZED PRICES    
    



	 
	 	 
	 	First Quarter
	 	Fourth Quarter

	 
	 	 
	 	2003
	 	2002
	 	2002

	Metal Sales (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Copper	 	 	 	 	 	 	 	 
	 	 	CCR	 	 	 	47,154	 	98,064	 	59,318
	 	 	Kidd Creek	 	 	 	28,773	 	25,410	 	31,370
	 	 	Nikkelverk	 	 	 	14,470	 	15,627	 	13,764
	 	 	Antamina (concentrates)	 	(33.75%)	 	22,414	 	28,776	 	25,812
	 	 	Collahuasi	 	(44%)	 	44,429	 	42,029	 	49,757
	 	 	Lomas Bayas	 	 	 	14,578	 	15,939	 	15,600
	 	 	 	 	
	 	
	 	

	 	 	 	 	171,818	 	225,845	 	195,621
	 	 	 	 	
	 	
	 	

	 	Zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	 	 	35,517	 	35,073	 	39,719
	 	 	Antamina (concentrates)	 	(33.75%)	 	15,400	 	23,031	 	14,408
	 	 	Brunswick/Matagami (concentrates)	 	 	 	78,027	 	34,657	 	71,776
	 	 	 	 	
	 	
	 	

	 	 	 	 	128,944	 	92,761	 	125,903
	 	 	 	 	
	 	
	 	

	 	 	CEZ (Noranda Income Fund)	 	(100% — basis)	 	58,599	 	60,857	 	67,512
	 	Nickel	 	 	 	20,390	 	18,768	 	20,468
	 	Ferronickel	 	 	 	6,536	 	543	 	7,164
	 	Aluminum	 	 	 	 	 	 	 	 
	 	 	Primary Aluminum — shipments	 	 	 	59,852	 	59,811	 	61,313
	 	 	Norandal — shipments	 	 	 	36,925	 	29,964	 	31,542
	 	Lead	 	 	 	18,469	 	24,017	 	30,391
	 	Gold — 000 ounces	 	 	 	236	 	272	 	253
	 	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	 	CCR	 	 	 	9,082	 	11,910	 	8,614
	 	 	Kidd Creek	 	 	 	1,204	 	378	 	1,235
	 	 	Antamina	 	(33.75%)	 	575	 	602	 	530
	 	 	 	 	
	 	
	 	

	 	 	 	 	10,861	 	12,890	 	10,379
	 	 	 	 	
	 	
	 	

	
Average Realized Prices — ($U.S. per pound, except as noted)
	 	 	Copper	 	 	 	0.76	 	0.70	 	0.72
	 	 	Copper — Falconbridge	 	 	 	0.78	 	0.74	 	0.72
	 	 	Zinc	 	 	 	0.41	 	0.42	 	0.40
	 	 	Zinc — Falconbridge	 	 	 	0.39	 	0.39	 	0.38
	 	 	Nickel	 	 	 	3.83	 	2.84	 	3.28
	 	 	Ferronickel	 	 	 	3.65	 	2.68	 	3.19
	 	 	Aluminum	 	 	 	0.68	 	0.65	 	0.65
	 	 	Lead	 	 	 	0.24	 	0.25	 	0.21
	 	 	Gold ($US per ounce)	 	 	 	354.63	 	289.59	 	319.49
	 	 	Silver ($US per ounce)	 	 	 	4.72	 	4.49	 	4.52
	 	 	Silver — Falconbridge ($US per ounce)	 	 	 	4.69	 	4.44	 	4.54
	
Exchange Rate (US$1 = Cdn$1)	
 	

 	
 	

1.51	
 	

1.59	
 	

1.57




18







 
 

NORANDA INC.    
    
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS    
    
    ($ millions except as otherwise indicated)    
    


1.    Accounting Policies  



These unaudited interim consolidated financial statements have been prepared following the accounting policies as set out in the 2002 annual consolidated financial statements
except as discussed in Note 2 below. The unaudited interim consolidated financial statements do not conform in all respects to the requirements of Canadian generally accepted accounting
principles for annual financial statements. Accordingly, these unaudited interim financial statements should be read in conjunction with the Company's audited annual consolidated financial statements
and the accompanying notes included in the 2002 Annual Report.




2.    Change in Accounting Policy  



Effective January 1, 2003, Noranda revised its capitalization of interest policy to harmonize its policies with industry practices and international accounting
standards.


Previously, Noranda capitalized interest that could be identified with major projects until the project achieved commercial production. Under the new policy, interest is
capitalized as it arises from indebtedness incurred to finance major projects, either directly or indirectly, until the project achieves commercial production. As a result, an increase to retained
earnings of $38 million was recorded at January 1, 2003. The change resulted in a negligible impact to previously reported earnings for the first quarter of 2002 and in additional
earnings of $2 million for the 2002 year.




3.    Preferred Share Issue  



On March 25, 2003, Noranda completed an issue of six million Cumulative Preferred Shares, Series H to the public, for gross proceeds of
$150 million. The preferred shares carry a 6.5% annual dividend. Proceeds from the issue were applied against the Company's revolving bank debt.




4.    Guarantees  



Effective
January 1, 2003, the new CICA Accounting Guideline 14 requires disclosure of certain guarantees binding on corporations. Noranda has determined that it has no material guarantees
requiring disclosure under the accounting standard. 




5.    Business Restructuring  



Pursuant
to its decision to temporarily shut down its Magnesium operation, Noranda recorded in the quarter a charge of $42 million ($30 million after-tax) related to costs to
shut down the plant. This charge is reported as Magnesium restructuring costs. 




6.    Stock-Based Compensation  



During the first quarter, the Company granted 1,157,500 stock options at a price of $13.82 per share. These options have a 10-year term, vesting 20% per year over
the first five years. The compensation expense associated with this stock option series was calculated using the Black-Scholes valuation model, assuming a 8-year term, 25% volatility, a
weighted-average expected dividend of 5.79% annually and an interest rate of 4.95%, and is being charged against net income over its vesting period.


Corporate
and general administration to March 31, 2003 include compensation costs of $1 million relating to outstanding options. 











7.    Shareholders' Equity



	 
	 	MAR. 31, 2003
	 	DEC. 31, 2002
	 
	Convertible Debentures	 	$	123	 	$	121	 
	Capital Stock	 	 	2,911	 	 	2,744	 
	 	 	
	 	
	 
	 	 	 	3,034	 	 	2,865	 
	 	 	
	 	
	 
	Retained Earnings (deficit):	 	 	 	 	 	 	 
	 	Balance beginning of year	 	 	(17	)	 	896	 
	 	Change in accounting policy (note 2)	 	 	38	 	 	36	 
	 	 	
	 	
	 
	 	 	 	21	 	 	932	 
	 	Loss	 	 	(59	)	 	(698	)
	 	Dividends: Common	 	 	(48	)	 	(191	)
	 	                  Preferred	 	 	(4	)	 	(17	)
	 	Other	 	 	(3	)	 	(5	)
	 	 	
	 	
	 
	 	Balance at end of period	 	 	(93	)	 	21	 
	 	 	
	 	
	 
	Currency Translation and Other	 	 	82	 	 	82	 
	 	 	
	 	
	 
	 	 	$	3,023	 	$	2,968	 
	 	 	
	 	
	 





8.    Exchange Gains and Losses



The majority of Noranda's products are denominated in US dollars or indexed to US dollar prices. In addition, operating costs of Noranda's international assets are also
denominated in their local currency and exposed to exchange volatility. Noranda manages its foreign currency exposure by utilizing spot and forward foreign exchange contracts with its banks as
counter-parties.


Noranda's revenues in the period include exchange gains of $5 million compared with losses of $12 million in the same quarter of 2002.




9.    Post-employment costs



Noranda's post-employment benefit expense for the period ended March 31, 2003 was $33 million (March 31,
2002 — $26 million) which included $25 million for its pension benefit plans and $8 million for other benefit plans (March 31,
2002 — $18 million and $8 million respectively).  


At March 31, 2003, Noranda's pension plan assets were $1,804 million (Dec 2002 — $1,872 million) while obligations
were $2,181 million (Dec. 2002 — $2,203 million).




10.  Subsequent Event



Subsequent to March 31, 2003, Noranda has approved the issue of a further $150 million of preferred shares (to be issued prior to April 30, 2003), pursuant
to a previously announced underwriting commitment provided by Brascan Corporation. These preferred shares will pay an 8% annual dividend and will be redeemable by Noranda at any time without penalty.
The proceeds will be used to repay debt.




11.  Comparative Figures



The comparative consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2003 consolidated
statements.








12.  Segmented Information



Noranda
has five operating segments: Aluminum, Canadian Copper and Recycling, Copper, Nickel and Zinc. Operating results are presented below: 



	 
	 	Three Months ended March 31, 2003
 
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	258	 	477	 	300	 	433	 	145	 	(28	)	$	1,585	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Cost of operations	 	 	136	 	166	 	114	 	220	 	86	 	18	 	 	740	 
	 	Purchased raw materials	 	 	91	 	305	 	79	 	96	 	71	 	(55	)	 	585	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	18	 	 	18	 
	 	Exploration	 	 	—	 	—	 	2	 	3	 	—	 	1	 	 	5	 
	 	Research and development	 	 	—	 	—	 	—	 	2	 	—	 	3	 	 	5	 
	 	Other operating income	 	 	—	 	—	 	—	 	—	 	—	 	(3	)	 	(3	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	227	 	471	 	195	 	320	 	157	 	(18	)	 	1,352	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation and restructuring costs	 	 	31	 	6	 	105	 	113	 	(12	)	(10	)	 	233	 
	Depreciation, amortization and reclamation	 	 	16	 	28	 	51	 	42	 	22	 	14	 	 	173	 
	Magnesium and other restructuring costs	 	 	—	 	—	 	—	 	—	 	—	 	43	 	 	43	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating Income (loss)	 	$	15	 	(22	)	54	 	71	 	(34	)	(67	)	$	17	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(58	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(27	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(59	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash, cash equivalents and future tax assets	 	$	1,186	 	2,082	 	3,445	 	2,182	 	730	 	946	 	$	10,571	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital investments	 	$	7	 	33	 	66	 	17	 	—	 	29	 	$	152	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 





	 
	 	Three Months ended March 31, 2002
 
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	256	 	635	 	292	 	271	 	200	 	(19	)	$	1,635	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Cost of operations	 	 	133	 	200	 	126	 	153	 	123	 	34	 	 	769	 
	 	Purchased raw materials	 	 	92	 	416	 	61	 	48	 	59	 	(62	)	 	614	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	20	 	 	20	 
	 	Exploration	 	 	—	 	1	 	3	 	5	 	1	 	1	 	 	11	 
	 	Research and development	 	 	—	 	—	 	1	 	3	 	1	 	2	 	 	7	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	225	 	617	 	191	 	209	 	184	 	(5	)	 	1,421	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation	 	 	31	 	18	 	101	 	62	 	16	 	(14	)	 	214	 
	Depreciation, amortization and reclamation	 	 	15	 	31	 	50	 	45	 	27	 	14	 	 	182	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating Income (loss)	 	$	16	 	(13	)	51	 	17	 	(11	)	(28	)	$	32	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(35	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	23	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(12	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	8	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash, cash equivalents and future tax assets	 	$	1,298	 	2,075	 	3,603	 	2,232	 	1,125	 	1,629	 	$	11,962	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital investments	 	$	12	 	39	 	63	 	29	 	3	 	51	 	$	197	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 











QuickLinks


NORANDA INC. CONSOLIDATED RESULTS ($ millions)


NORANDA INC. CONSOLIDATED BALANCE SHEETS ($ millions)


NORANDA INC. CONSOLIDATED STATEMENTS OF CASHFLOWS ($ millions)



NORANDA INC. PRODUCTION VOLUMES


NORANDA INC. SALES VOLUMES & REALIZED PRICES



NORANDA INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ($ millions except as otherwise indicated)