Document:

NSE 2002 10-K Corey Lindley Letter of Understanding

May 30, 2002 

Corey B. Lindley
Nu Skin International, Inc.
75 West
Center Street

Provo, Utah 84601

Dear Corey, 

LETTER OF UNDERSTANDING

I am pleased to confirm your international assignment with Nu Skin
International Management Group, Inc. (NSIMG) effective August 8, 2002. You have
already received the following documents relating to this assignment for your
review. 

	<	 Expatriate
Compensation Profile 

	<	International
Assignment Policy for Expatriates 

	<	International
Assignment Tax Equalization Policy 

These documents represent NSIMG’s financial commitment to
you as well as other important policies related to your assignment. Additional
terms and conditions of your international assignment are as follows: 

1.     Position

	 	You
will continue as an NSE Executive Vice President. You will be directly accountable to
Steve Lund, CEO & President of NSE. Your primary responsibility will be to oversee the
strategies, development and operations in China, as well as continuing in your role as an
Executive Vice President. 

2.     Term

	 	The
assignment is for a period of two years, commencing on or about August 8, 2002. By mutual
written agreement the terms of the agreement may be extended, shortened or otherwise
modified. Upon satisfactory completion of your assignment the Company will use 

	 	 its best
efforts to assign you to a position comparable to the position held immediately prior to
the foreign assignment with the salary comparable to the salary earned prior to the
foreign assignment. 

3.     Compensation

	 	Your
annual base salary will remain at its current level with no international service premium.
Annual salary increases, if any, will be determined by the company. Your salary will be
paid to you on a bi-weekly basis along with the various differentials and allowances, as
indicated on the Expatriate Compensation Profile and subject to periodic review and
adjustment according to company policy. Your incentives and level at which you receive
those incentives will remain the same as stated in the Cash Incentive Plan. 

4.     Housing

	 	The
company will allow flexibility in the amount of the housing allowance to assist in
identifying a home that will be adequate for your family. In addition an employee housing
contribution will not be deducted from your bi-weekly pay during your term of service. 

5.     Location

	 	Your
residence and office shall be located in or near Shanghai and your work assignment area
shall consist of China, for the China portion of your work. 

6.     Passport/Visa/Work Permit

	 	The
Human Resources Department and the Company’s Travel Administrator at extension 3939
will assist you in obtaining these necessary documents at your earliest opportunity. 

7.     Travel and Auto

	 	Advance
fare, economy class air travel on the most direct routing is authorized for expatriation,
home leave, emergency leave and repatriation for you and your dependents. Schedule flights
through the Company’s Travel Administrator at extension 3939. You and your family are
also authorized for one additional home leave or trip authorization per year with the
first such trip taken approximately six months from the begginng of the assignment. The
cost of the economy class air travel for the additional annual trip should not exceed
$1,500 per ticket. 

	 	In
place of the transportation allowance the company will provide transportation for you and
your family at the assignment location. The company will also provide storage for your two
vehicles during the two year assignment. 

8.     Tax

	 	NSIMG’s
policy with respect to tax reimbursement is based on tax equalization. NSIMG expects its
employees to comply fully with all applicable tax laws in both the home and host
countries. With tax equalization, you will pay roughly the same amount in taxes that you
would have paid had you remained in your home country under similar circumstances.
PriceWaterhouseCoopers, a international accounting firm, will assist you in filing your
foreign and U.S. tax returns as outlined in the International Assignment Tax Equalization
Policy. 

9.     Resignation/Termination

	 	Either
party may terminate this agreement with four (4) weeks written notice. See the
International Assignment Policy for Expatriates for further details regarding other terms
related to resignation/termination. 

Please review the contents of this letter of understanding
carefully since it represents essential terms of your international assignment.
If the terms of this letter are agreeable to you, please sign the original copy
and return it to me. Should there be any questions pertaining to any element of
this letter, I or a member of my staff are ready to assist in answering them. 

Sincerely, 

/s/  Steven J. Lund         
               
               
               

Steven J. Lund

President & CEO Nu Skin Enterprises

Date: 5/30/2002

ACCEPTED:

/s/  Corey B. Lindley         
               
               
               

Corey B. Lindley

NSE Executive Vice President 

Date:  5/30/02QuickLinks
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 	 	Exhibit 4.42

news release  

  
 

    NORANDA TO WEBCAST 2002
  FINANCIAL RESULTS CONFERENCE CALL    
  

TORONTO, ONTARIO, February 5, 2003 — Noranda Inc. announced today that it will host a live,
interactive internet webcast presentation for shareholders and investors on Tuesday, February 11, at 10:00 a.m. (EST), to review its 2002 financial results. Fourth-quarter 2002 results
for the Company will be released on Tuesday, February 11, ahead of the market opening. 

During
the meeting, senior management from the Company will review financial and operating results for 2002. The live, interactive webcast and slide presentation will be accessible via  www.noranda.com under
the "For Investors" section. 

If
you are unable to participate during the live webcast, the call will be archived on Noranda's website at www.noranda.com. To access the replay, click
on the Conference Call button on the home page. 

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. Noranda employs over 16,000 people. It is listed on The Toronto Stock Exchange and The New York Stock Exchange (NRD).

-30- 

Contact:  

Dale
Coffin

Manager, External Communications

Tel: 416-982-7161

dale.coffin@toronto.norfalc.com

www.noranda.com 

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 	 	Exhibit 4.43

news release  

  
 

    NORANDA REPORTS FOURTH QUARTER LOSS OF $50 MILLION
  BEFORE WRITEDOWNS AND PROVISIONS    
  

TORONTO, February 11, 2003 — Noranda Inc. today reported a fourth quarter loss of
$50 million, or $0.23 per common share, before taking into account $623 million of writedowns and other items ($2.61 per common share), most of which have been previously announced. This
compares to a loss in the fourth quarter of 2001 of $84 million, or $0.37 per common share. 

The
quarter's results reflect improved margins in our business units from higher metal prices, especially for nickel, and lower operating costs as a result of measures taken to improve productivity.
This improvement was achieved despite lower sales of copper due to the ongoing strike at the Horne smelter. During the quarter, the Company's magnesium plant was written down by $630 million
and other closure, tax, reclamation and restructuring provisions amounting to $81 million were recorded. This was offset by the reversal of a pension valuation provision and capitalized
interest expenses during the quarter totaling $88 million. 

For the year ended December 31, 2002 the net loss was $700 million or $3.02 per common share compared to a net loss of $92 million or $0.47 per common
share in 2001.

Highlights  

	•
	Increased
cash flow from operations, before working capital, by $269 million to $513 million despite continued low metal prices.

	•
	Surfaced
underlying value of the Zinc business by creating the Noranda Income Fund and generated $410 million of cash.

	•
	Closed
the Gaspé copper smelter.

	•
	Announced
the intent to shut the Company's magnesium plant for at least one year.

	•
	Aligned
administrative functions of Noranda and Falconbridge, and reduced costs at both companies.

	•
	Reduced
overall workforce by 12% over the last 18 months.

	•
	Signed
long-term collective agreements at the New Madrid, Missouri primary aluminum plant, the Kidd Creek Metallurgical site and the
Raglan nickel mine.

	•
	Appointed
new senior management team. 

Commentary  

"We made substantial improvements in cash flow generated by our assets despite metal markets at decade-lows," said Derek Pannell, Noranda's
President and Chief Executive Officer. "We reduced overall corporate costs by over $100 million and the increased production of copper and aluminum has positioned us to
take full advantage of strengthening metal prices." 

Annual Consolidated Results  

Revenues for the year ended December 31, 2002 were greater than 2001 as a result of the inclusion of a full year of production from the Antamina and Lomas Bayas mines as
well as higher sales volumes from both the  

 

 Company's primary aluminum and foil operations. These increases were offset by the strike at the Horne smelter, lower revenues due to the sale of the CEZ refinery in May 2002, and lower
realized prices for zinc, aluminum and precious group metals.

Operating costs of $2.9 billion were relatively unchanged from the previous year as cost increases related to the operation of the Antamina and Lomas Bayas mines and
higher production in the aluminum and nickel businesses were offset by the sale of the CEZ refinery, the reversal of the Company's pension asset valuation provision, cost reductions resulting from Six
Sigma, and the alignment of certain activities of Noranda and Falconbridge.

The cost to purchase raw materials was lower year over year due in large part to the strike at the Horne smelter and the closure of the Gaspé
smelter.

Higher depreciation, amortization and reclamation expenses were recorded during the year as new projects were started up and additional provisions of $48 million
($36 million in the fourth quarter) were taken towards the reclamation of the Company's shutdown operations.

Total expenses for corporate and general administration, exploration and research of $167 million is almost 17% lower than in 2001 mainly as a result of the new focus of
the exploration and research programs.

Magnesium and other restructuring costs of $759 million include a $811-million write-down of the magnesium plant and restructuring provisions of
$46 million offset by the gain of $98 million on the sale of CEZ.

Net interest expense of $163 million is higher than the $140 million recorded in 2001 as previously capitalized interest, related to the new projects now in
operation, is being expensed.

OPERATIONS  

Copper  

The
Copper business produced operating income (earnings before interest, taxes and minority interest) of $48 million in the quarter and $166 million for the full year compared to
$35 million and $80 million in the comparable periods of 2001. The LME price for the year of US$0.71 per pound was slightly below the average for 2001 of US$0.72, and below current
levels of US$0.75. 

At the Antamina mine, throughput at the mill averaged 69,517 tonnes per day in the quarter with an average grade of 1.41% copper and 1.15% zinc. Production was affected by
electrical and mechanical problems with the crusher, which have since been resolved, and a sediment flow in the pit which resulted in a temporary loss of some mining equipment. During the year the
mine processed lower-grade zinc ore than was previously planned. This ore should now be fully mined out and zinc grades, in 2003, are expected to be more in line with the 1.26% stated in the mine's
five-year plan.

Collahuasi's production of both copper in concentrate and refined copper were lower than previous year's quarter as a result of an expected decline in ore grade at the Ujina
deposit. The project to transfer mining activities to the Rosario orebody and to build a new grinding circuit at the Ujina concentrator is underway with a targeted completion date of June 2004.
The project will increase Collahuasi's concentrator design capacity to 110,000 tonnes per day from 60,000 tonnes per day, compensating for the decline in ore grade and thereby enabling Collahuasi to
maintain copper production at current levels. The total capital cost of the transition and concentrator expansion project is estimated at US$654 million, with the Company's 44% share of this
cost totaling US$288 million.

The Lomas Bayas mine recorded another strong production quarter with 15,400 tonnes of copper cathode output. Production for the year was over 6% higher than in
2001.

At
the Altonorte smelter, the project to increase production capacity was essentially completed by the end of the year. As a result of the expansion, the smelter processed 17% more copper concentrate
in 2002 than in 2001 and will be 70% higher in 2003. The capital project was completed within budget and on schedule. 

2

 

Canadian Copper and Recycling  

The Canadian Copper and Recycling business produced an operating loss of $38 million in the quarter and $112 million for the full year compared to losses of
$95 million and $120 million in the comparable periods of 2001. Included in the results for 2002 are restructuring charges of $4 million in the fourth quarter. In 2001, a charge
of $70 million was recorded for both the fourth quarter and the year. Benchmark terms for the treatment of copper concentrate averaged US$68.00 per tonne versus US$75.00 for
2001.

The impact on operating income from the strike at the Horne smelter has been estimated at approximately $25 million pre-tax.

Operations at both the Horne smelter and CCR refinery were affected by the Horne labour strike which commenced in June 2002. However, non-union staff at the
smelter were successful in achieving average processing rates of 70% of normal operating rate. At the CCR refinery, increased efficiencies mostly attributed to the modernization of the plant in 2000,
resulted in a 15% reduction in the workforce during the quarter. The modernization combined permanent-cathode technology with a high degree of automation in materials handling.

Negotiations with the union resumed in late October however, workers rejected the company's offer by 73% in November. There have been no formal negotiations since that
time.

At the Kidd Creek operations, mine production was down slightly for the quarter, while metallurgical production was higher compared to last year's levels. Blister copper output
in 2002 increased to 144,100 tonnes, while copper cathode production rose to 146,500 tonnes. Zinc plant production increased 5,200 tonnes to 145,300 tonnes in 2002. The Metallurgical site set new
records for refined copper and zinc production, up 15% and 4% respectively from last year.

A
new three-year collective agreement was ratified without a disruption at the Kidd Metallurgical Site. 

Nickel  

Nickel
operations produced operating income of $39 million in the quarter and $108 million for the full year compared to an operating loss of $13 million and an operating income
of $35 million in the comparable periods of 2001. The LME nickel price averaged US$3.07 per pound for the year compared to US$2.70 per pound in 2001 and current levels of US$3.86 per pound. 

Production from the Sudbury mines was lower than in the corresponding quarter of 2001 due to lower mine tonnage and grades. For the year, nickel in concentrate production
increased from 25,200 tonnes in 2001 to 27,800 tonnes.

During the quarter, the Sudbury smelter produced record amounts of nickel and copper in matte. The smelter effectively operated at a rate of 72,000 tonnes per year of nickel in
matte.

At Raglan, metal production exceeded output in the same quarter of 2001 as a shortfall in tonnage was more than offset by mining higher grade ore. Nickel in concentrate
production for the year remained unchanged at 24,600 tonnes.

During the quarter, the Nikkelverk refinery operated at an annual rate of 85,000 tonnes-per-year and established new production records for nickel,
cobalt and precious metals. For the year, annual nickel production totaled 68,500 tonnes which was slightly higher than the 2001 level of 68,200 tonnes.

Production
from the Falcondo plant of 6,091 tonnes of ferronickel was an increase over the fourth quarter 2001 level, which included the start of a three-month shutdown. In the 2002 fourth quarter,
operations were restricted during the latter part because of required maintenance at the power plant and the shortage of oil brought on by the Venezuelan national strike. Falcondo has since secured
new oil supplies to facilitate normal operations to the end of February and potentially into mid-March. 

3

 

Zinc  

The
Zinc business recorded an operating loss of $24 million in the quarter which included a restructuring provision of $2.5 million pertaining to the reduction of the workforce at the
Brunswick smelter. This operating loss in the fourth quarter of 2001was $30 million. For the full year, operating income totaled $9 million including a pre-tax gain on the
sale of CEZ of $98 million. This compares to a loss of $60 million in 2001, including a full year of operations at the CEZ refinery, which was sold in May 2002 to the Noranda
Income Fund. The LME zinc price averaged US$0.35 per pound compared to US$0.40 per pound in 2001. 

At
the Brunswick mine, mill throughput averaged 9,852 tonnes per day versus 9,398 tonnes in the fourth quarter of 2001. Beginning December 2002, the Brunswick smelter is being operated on an
eight-month seasonal basis to combat low treatment charges and the generally weak forecast for the lead market. Noranda estimates that under the revised operating plan, annual lead production will be
approximately 78,000 tonnes, 22% lower than current levels. Approximately 70 positions will be eliminated, the majority of which the Company expects to achieve through attrition. At the
Bell-Allard mine, the mill performed well with recoveries in the range of 92% on the zinc circuit. 

Aluminum  

The
Aluminum business produced operating income of $5 million in the quarter compared to $2 million in the corresponding quarter of 2001. For the full year, operating income totaled
$53 million compared to $71 million a year ago. The LME aluminum price for the year averaged US$0.61 per pound compared to US$0.66 per pound for 2001. 

At
the primary aluminum operations, shipments of metal totaled 61,300 tonnes for the quarter exceeding that of the prior year by over 17% as the plant ramped up to its expanded capacity with the
utilization of single-anode technology. For the full year 2002 value-added products represented approximately 80% of total shipments. Weak demand from the U.S. manufacturing sector has had a
negative effect on the demand and prices of value-added production across the industry. 

The
new aluminum foil plant in Huntingdon, Tennessee continued its ramp-up to full capacity during the year. Foil shipments in the quarter totaled 69 million pounds, 25% higher than
last year. Fabrication spreads strengthened in the fourth quarter to US$0.47 per pound. The average for the full year was US$0.45. 

Other Operations  

In
January 2003, the Company began the process of shutting down its magnesium plant in Danville, Quebec, in response to the continuing oversupply in the global magnesium industry. As a result,
an after-tax write-down of $630 million is reflected in the financial results. In 2003, a further $28 million, after-tax, related to costs incurred to
shut down the plant is expected to be recorded. After the write-down, the book value of Noranda's magnesium business will be approximately $300 million. 

American Racing Equipment encountered competitive conditions for wheels during the quarter as a result of discontinued supply reaching the market. Several measures were taken
to react to the change in the marketplace including voluntary plant shutdowns. As a result, ARE recorded a loss for the quarter of $34 million compared to a loss of $50 million in 2001.
For the full year, the loss recorded in 2002 was $39 million compared to $94 million in 2001.

FINANCIAL RESOURCES AND LIQUIDITY  

Cash generated from operations, before changes in working capital, increased to $513 million, more than double the $244 million generated in
2001.

4

 

Capital
investments totaled $824 million for the year, $516 million less than in 2001 reflecting the completion of a five-year program that increased the production profile
and lowered the unit operating costs of the Company. For 2003, capital investments are expected to decline further as the requirements of the Noranda wholly-owned operations and joint ventures are
expected to amount to approximately $120 million versus $449 million in 2002. New capital investments at partially-owned operations will be directed at the expansion of mining activities
at the Collahuasi and Kidd Creek mines. 

During
the year, Noranda's minority interest of others in its assets was reduced as other shareholders interest in assets owned in Falconbridge was reduced from 44.5% to 40.5%, through open market
purchases totaling $120 million. 

At
the end of the year, cash resources stood at $463 million and net debt at $4.8 billion, approximately 51% of total capitalization. 

In
January 2003, the Company received a standby commitment from Brascan Corporation to purchase, at any time prior to February 28, 2003, up to 12,000,000 8% Preferred Shares of Noranda
at a price of $25 per share for total gross proceeds of up to $300 million. If Noranda takes advantage of the standby commitment from Brascan and uses the proceeds to repay debt, the net debt
to capitalization would be approximately 48%. 

OTHER DEVELOPMENTS  

The total inferred resource at Nickel Rim South has increased from 4.6 million tonnes of 2.2% nickel and 4.9% copper to 6.3 million tonnes of 1.7% nickel and 3.4%
copper. The new resource figure includes a footwall-hosted resource of 3.8 million tonnes of 1.7% nickel and 5.1% copper. Further drilling of the resource will begin immediately and will be
completed in June of 2003.

OUTLOOK  

"Most of the major changes to reduce costs and improve efficiencies are behind us. In 2003, we will have much lower capital expenditures, increased production capacity and cost
efficiencies that will be in effect for the full year," concluded Pannell. 

DIVIDEND  

The
following dividends have been declared: 

	Security
 
	 	Dividend Amount
 
	 	Record Date
 
	 	Payable Date
 

	Common shares	 	$0.20 per share	 	February 28, 2003	 	March 17, 2003
	Preferred Series F shares	 	Floating rate	 	March 31, 2003	 	April 14, 2003
	Preferred Series F shares	 	Floating rate	 	April 30, 2003	 	May 12, 2003
	Preferred Series G shares	 	$0.38125	 	April 15, 2003	 	May 1, 2003

QUARTERLY WEBCAST  

Noranda
will be holding its quarterly teleconference on Tuesday, February 11, 2003 at 10:00 am Eastern Standard Time. The call will be broadcast live on the internet via www.noranda.com. 

	(1)
	Operating income is defined as earnings before interest, taxes and minority interest.

        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 

5

 

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. Noranda employs over 16,000 people. 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  

6

 
 

NORANDA INC.    
    
    CONSOLIDATED RESULTS    
    
    ($ millions)    
    

	 
	 	Fourth Quarter
	 	Twelve Months ended

December 31
	 
	 
	 	2002
	 	2001
	 	2002
	 	2001
	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales	 	 	1,392	 	 	1,436	 	 	6,073	 	 	6,152	 
	Share of earnings from associate	 	 	7	 	 	—	 	 	17	 	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	1,399	 	 	1,436	 	 	6,090	 	 	6,152	 
	 	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	699	 	 	687	 	 	2,933	 	 	2,910	 
	Purchase of raw materials	 	 	410	 	 	540	 	 	2,184	 	 	2,477	 
	Corporate and general administration (note 5)	 	 	26	 	 	20	 	 	91	 	 	86	 
	Exploration	 	 	11	 	 	16	 	 	55	 	 	78	 
	Research	 	 	2	 	 	13	 	 	21	 	 	37	 
	Other operating costs	 	 	(26	)	 	26	 	 	17	 	 	23	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	1,122	 	 	1,302	 	 	5,301	 	 	5,611	 
	 	 	
	 	
	 	
	 	
	 
	Operating income before depreciation and restructuring costs	 	 	277	 	 	134	 	 	789	 	 	541	 
	

Depreciation, amortization and reclamation	
 	
 	

210	
 	
 	

164	
 	
 	

763	
 	
 	

619	
 
	Magnesium and other restructuring costs, net (note 3,4)	 	 	846	 	 	109	 	 	777	 	 	47	 
	 	 	
	 	
	 	
	 	
	 
	Operating loss	 	 	(779	)	 	(139	)	 	(751	)	 	(125	)
	

Interest expense, net	
 	
 	

28	
 	
 	

51	
 	
 	

163	
 	
 	

140	
 
	Tax recovery	 	 	(148	)	 	(101	)	 	(250	)	 	(191	)
	Minority interest in earnings of subsidiaries	 	 	14	 	 	(5	)	 	36	 	 	18	 
	 	 	
	 	
	 	
	 	
	 
	Net loss	 	 	(673	)	 	(84	)	 	(700	)	 	(92	)
	

Dividend on preferred shares	
 	
 	

4	
 	
 	

4	
 	
 	

17	
 	
 	

17	
 
	 	 	
	 	
	 	
	 	
	 
	Loss attributable to common shares	 	 	(677	)	 	(88	)	 	(717	)	 	(109	)
	
Basic and Diluted Loss per common share - $ 	
 	
$	

(2.84	
)	
$	

(0.37	
)	
$	

(3.02	
)	
$	

(0.47	
)
	 	 	
	 	
	 	
	 	
	 

Commitments (note 2)

Noranda Inc.
has approximately 241.3 million common shares outstanding as at December 31, 2002 

 
 

NORANDA INC.    
    
    CONSOLIDATED BALANCE SHEETS    
    
    ($ millions)    
    

	 
	 	Dec. 31

2002
	 	Dec. 31

2001

	Assets	 	 	 	 
	

Current assets	
 	

 	
 	

 
	 	Cash and cash equivalents	 	463	 	285
	 	Accounts receivable	 	752	 	829
	 	Inventories	 	1,415	 	1,463
	 	 	
	 	

	 	 	2,630	 	2,577
	

Capital assets	
 	

8,073	
 	

9,208
	

Investments and other assets	
 	

408	
 	

247
	

Future income tax asset	
 	

266	
 	

109
	 	 	
	 	

	 	 	11,377	 	12,141
	 	 	
	 	

	Liabilities and Shareholders' Equity	 	 	 	 
	

Current Liabilities	
 	

 	
 	

 
	 	Bank advances and short-term notes	 	39	 	5
	 	Accounts and taxes payable	 	1,137	 	1,185
	 	Debt due within one year	 	490	 	512
	 	 	
	 	

	 	 	1,666	 	1,702
	

Long-term debt — wholly-owned operations	
 	

2,810	
 	

2,614
	Long-term debt — partially-owned subsidiaries and projects	 	1,923	 	1,754
	

Liability element of convertible debentures	
 	

29	
 	

35
	

Future income tax liability	
 	

306	
 	

429
	

Other deferred credits	
 	

579	
 	

590
	

Minority interest in subsidiaries	
 	

1,136	
 	

1,220
	

Shareholders' equity (note 6)	
 	

2,928	
 	

3,797
	 	 	
	 	

	 	 	11,377	 	12,141
	 	 	
	 	

 
 

NORANDA INC.    
    
    CONSOLIDATED STATEMENTS OF CASHFLOWS    
    
    ($ millions)    
    

	 
	 	Fourth Quarter
	 	Twelve Months ended

December 31
	 
	 
	 	2002
	 	2001
	 	2002
	 	2001
	 
	Cash realized from (used for):	 	 	 	 	 	 	 	 	 
	
Operations	
 	

 	
 	

 	
 	

 	
 	

 	
 
	 	Loss adjusted for non-cash items	 	75	 	(21	)	513	 	244	 
	 	Change in operating working capital	 	246	 	188	 	69	 	157	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	321	 	167	 	582	 	401	 
	 	 	
	 	
	 	
	 	
	 
	Investment activities	 	 	 	 	 	 	 	 	 
	 	Capital expenditures	 	(255	)	(292	)	(824	)	(1,340	)
	 	Lomas Bayas cash acquired	 	—	 	—	 	—	 	17	 
	 	Investments and advances	 	(85	)	(11	)	(182	)	(26	)
	 	Sale of assets and investments	 	4	 	5	 	418	 	261	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	(366	)	(298	)	(588	)	(1,088	)
	 	 	
	 	
	 	
	 	
	 
	Financing activities	 	 	 	 	 	 	 	 	 
	 	Long-term debt, including current portion	 	100	 	(67	)	388	 	563	 
	 	Issue of common shares	 	13	 	—	 	15	 	2	 
	 	Settlement of stock options	 	—	 	—	 	(3	)	—	 
	 	Share purchase plan repayment	 	(2	)	—	 	—	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	111	 	(67	)	400	 	565	 
	 	 	
	 	
	 	
	 	
	 
	 	
Dividends	
 	

(45	
)	

(64	
)	

(216	
)	

(256	
)
	 	 	
	 	
	 	
	 	
	 
	 	
Cash generated/(used)	
 	

51	
 	

(262	
)	

178	
 	

(378	
)
	 	
Cash, beginning of period	
 	

412	
 	

547	
 	

285	
 	

663	
 
	 	 	
	 	
	 	
	 	
	 
	 	
Cash, end of period	
 	

463	
 	

285	
 	

463	
 	

285	
 
	 	 	
	 	
	 	
	 	
	 

 
 

NORANDA INC.    
    
    OPERATING INCOME (LOSS)    
    
    ($ millions)    
    

	 
	 	Fourth Quarter
	 	Twelve Months ended

December 31
	 
	 
	 	2002
	 	2001
	 	2002
	 	2001
	 
	Business Units:	 	 	 	 	 	 	 	 	 
	 	Aluminum	 	5	 	2	 	53	 	71	 
	 	Canadian Copper and Recycling	 	(38	)	(95	)	(112	)	(120	)
	 	Copper	 	48	 	35	 	166	 	80	 
	 	Nickel	 	39	 	(13	)	108	 	35	 
	 	Zinc	 	(24	)	(30	)	9	 	(60	)
	 	American Racing	 	(34	)	(49	)	(39	)	(94	)
	 	 	
	 	
	 	
	 	
	 
	 	 	 	(4	)	(150	)	185	 	(88	)
	

Magnesium (note 4)	
 	

(811	
)	

—	
 	

(811	
)	

—	
 
	Corporate and other	 	36	 	11	 	(125	)	(37	)
	 	 	
	 	
	 	
	 	
	 
	Operating loss	 	(779	)	(139	)	(751	)	(125	)
	

Interest expense, net	
 	

(28	
)	

(51	
)	

(163	
)	

(140	
)
	Tax recovery	 	148	 	101	 	250	 	191	 
	Minority interest	 	(14	)	5	 	(36	)	(18	)
	 	 	
	 	
	 	
	 	
	 
	Net Loss	 	(673	)	(84	)	(700	)	(92	)
	 	 	
	 	
	 	
	 	
	 

 
 

NORANDA INC.    
    
    PRODUCTION VOLUMES    
    

	 
	 	Fourth Quarter
	 	Twelve Months

	 
	 	2002
	 	2001
	 	2002
	 	2001

	Mine Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	
Copper	
 	

 	
 	

 	
 	

 	
 	

 
	Kidd Creek	 	12,650	 	13,842	 	45,434	 	42,340
	Matagami	 	1,883	 	2,107	 	7,256	 	8,637
	Brunswick	 	2,394	 	2,015	 	8,918	 	8,529
	INO	 	9,151	 	10,703	 	37,550	 	29,773
	Antamina (33.75%)	 	28,332	 	27,148	 	111,599	 	27,148
	Collahuasi (44%)	 	45,723	 	51,341	 	185,014	 	193,135
	Lomas Bayas	 	15,421	 	14,778	 	59,304	 	24,702
	Other	 	5,119	 	5,562	 	19,527	 	22,479
	 	 	
	 	
	 	
	 	

	 	 	120,673	 	127,496	 	474,602	 	356,743
	 	 	
	 	
	 	
	 	

	
Zinc	
 	

 	
 	

 	
 	

 	
 	

 
	Kidd Creek	 	24,259	 	27,694	 	104,083	 	81,670
	Brunswick	 	70,600	 	77,835	 	277,417	 	303,881
	Matagami	 	21,728	 	22,016	 	84,792	 	88,754
	Antamina (33.75%)	 	18,176	 	18,836	 	77,876	 	18,836
	Other	 	2,053	 	2,553	 	9,004	 	16,150
	 	 	
	 	
	 	
	 	

	 	 	136,816	 	148,934	 	553,172	 	509,291
	 	 	
	 	
	 	
	 	

	
Nickel	
 	

13,776	
 	

14,564	
 	

52,469	
 	

49,796
	
Ferronickel	
 	

6,091	
 	

2,500	
 	

23,303	
 	

21,662
	
Lead	
 	

18,982	
 	

22,421	
 	

76,177	
 	

83,127
	
Silver — 000 ounces	
 	

 	
 	

 	
 	

 	
 	

 
	Kidd Creek	 	916	 	1,086	 	3,671	 	2,865
	Brunswick	 	1,535	 	1,926	 	6,228	 	7,051
	Matagami	 	117	 	103	 	329	 	394
	Antamina (33.75%)	 	620	 	686	 	2,439	 	686
	Other	 	79	 	87	 	268	 	382
	 	 	
	 	
	 	
	 	

	 	 	3,267	 	3,888	 	12,935	 	11,378
	 	 	
	 	
	 	
	 	

	
Metal Production (tonnes, except as noted)	
 	

 	
 	

 	
 	

 	
 	

 
	
Refined copper	
 	

 	
 	

 	
 	

 	
 	

 
	CCR	 	59,612	 	84,892	 	244,252	 	323,023
	Kidd Creek	 	36,059	 	34,824	 	146,526	 	127,824
	Nikkelverk	 	9,280	 	8,403	 	30,632	 	26,722
	Collahuasi (44%)	 	6,876	 	7,056	 	26,678	 	26,180
	Lomas Bayas	 	15,421	 	14,778	 	59,304	 	24,702
	 	 	
	 	
	 	
	 	

	 	 	127,248	 	149,953	 	507,392	 	528,451
	 	 	
	 	
	 	
	 	

	
Copper anodes	
 	

 	
 	

 	
 	

 	
 	

 
	Gaspe	 	—	 	25,708	 	29,612	 	108,673
	Horne	 	30,367	 	51,188	 	147,020	 	188,145
	Kidd Creek	 	35,955	 	36,366	 	144,094	 	132,100
	Altonorte	 	43,966	 	37,900	 	147,059	 	145,991
	 	 	
	 	
	 	
	 	

	 	 	110,288	 	151,162	 	467,785	 	574,909
	 	 	
	 	
	 	
	 	

	
Refined zinc	
 	

 	
 	

 	
 	

 	
 	

 
	Kidd Creek	 	38,592	 	35,904	 	145,309	 	140,073
	CEZ (Noranda Income Fund) (100% — basis)	 	68,388	 	69,574	 	271,075	 	265,525
	 	 	
	 	
	 	
	 	

	 	 	106,980	 	105,478	 	416,384	 	405,598
	 	 	
	 	
	 	
	 	

	
Refined nickel	
 	

 	
 	

 	
 	

 	
 	

 
	Nikkelverk	 	21,296	 	19,828	 	68,530	 	68,221
	Falcondo	 	6,091	 	2,500	 	23,303	 	21,662
	 	 	
	 	
	 	
	 	

	 	 	27,387	 	22,328	 	91,833	 	89,883
	 	 	
	 	
	 	
	 	

	
Primary aluminum	
 	

60,496	
 	

54,685	
 	

236,459	
 	

220,234
	
Fabricated aluminum	
 	

31,542	
 	

25,113	
 	

127,911	
 	

112,430
	
Refined lead	
 	

28,348	
 	

26,599	
 	

90,167	
 	

98,868
	
Refined gold — 000 ounces	
 	

191	
 	

280	
 	

1,030	
 	

1,236
	
Refined silver — 000 ounces	
 	

7,963	
 	

11,219	
 	

40,439	
 	

42,943

 
 

NORANDA INC.    
    
    SALES VOLUMES & REALIZED PRICES    
    

	 
	 	Fourth Quarter
	 	Twelve Months

	 
	 	2002
	 	2001
	 	2002
	 	2001

	Metal Sales (tonnes, except as noted)	 	 	 	 	 	 	 	 
	
Copper	
 	

 	
 	

 	
 	

 	
 	

 
	CCR	 	59,318	 	74,644	 	271,150	 	331,592
	Kidd Creek	 	31,370	 	25,345	 	110,575	 	105,143
	Nikkelverk	 	13,764	 	11,647	 	54,495	 	34,514
	Antamina (concentrates) (33.75%)	 	25,812	 	28,739	 	113,806	 	28,739
	Collahuasi (44%)	 	49,757	 	48,007	 	187,524	 	191,858
	Lomas Bayas	 	15,600	 	14,266	 	60,265	 	27,415
	 	 	
	 	
	 	
	 	

	 	 	195,621	 	202,648	 	797,815	 	719,261
	 	 	
	 	
	 	
	 	

	
Zinc	
 	

 	
 	

 	
 	

 	
 	

 
	Kidd Creek	 	39,719	 	32,371	 	148,418	 	141,671
	Antamina (concentrates) (33.75%)	 	14,408	 	8,983	 	71,632	 	8,983
	Brunswick/Matagami (concentrates)	 	71,776	 	54,586	 	256,949	 	192,493
	 	 	
	 	
	 	
	 	

	 	 	125,903	 	95,940	 	476,999	 	343,147
	 	 	
	 	
	 	
	 	

	

CEZ (Noranda Income Fund) (100% — basis)	
 	

67,512	
 	

66,501	
 	

272,952	
 	

260,196
	
Nickel	
 	

20,468	
 	

19,032	
 	

71,153	
 	

65,239
	
Ferronickel	
 	

7,164	
 	

4,772	
 	

21,446	
 	

24,572
	
Aluminum	
 	

 	
 	

 	
 	

 	
 	

 
	Primary Aluminum — shipments	 	61,312	 	52,046	 	242,289	 	223,105
	Norandal — shipments	 	31,542	 	25,113	 	127,911	 	112,430
	
Lead	
 	

30,391	
 	

25,990	
 	

90,896	
 	

99,535
	
Gold — 000 ounces	
 	

253	
 	

327	
 	

953	
 	

1,128
	
Silver — 000 ounces	
 	

 	
 	

 	
 	

 	
 	

 
	CCR	 	8,614	 	9,900	 	41,210	 	41,291
	Kidd Creek	 	1,235	 	781	 	3,723	 	3,256
	Antamina (33.75%)	 	530	 	596	 	2,210	 	596
	 	 	
	 	
	 	
	 	

	 	 	10,379	 	11,277	 	47,143	 	45,143
	 	 	
	 	
	 	
	 	

	
Average Realized Prices ($US per pound, except as noted)	
 	

 	
 	

 	
 	

 	
 	

 
	Copper	 	0.72	 	0.69	 	0.74	 	0.73
	Copper — Falconbridge	 	0.72	 	0.65	 	0.72	 	0.70
	Zinc	 	0.40	 	0.39	 	0.40	 	0.45
	Zinc — Falconbridge	 	0.38	 	0.38	 	0.39	 	0.44
	Nickel	 	3.28	 	2.36	 	3.14	 	2.79
	Ferronickel	 	3.19	 	2.29	 	3.16	 	2.85
	Aluminum	 	0.65	 	0.64	 	0.65	 	0.70
	Lead	 	0.21	 	0.24	 	0.23	 	0.25
	Gold ($US per ounce)	 	319.49	 	275.32	 	308.00	 	272.11
	Silver ($US per ounce)	 	4.52	 	4.30	 	4.60	 	4.40
	Silver — Falconbridge ($US per ounce)	 	4.54	 	4.35	 	4.61	 	4.39
	
Exchange Rate (US$1 = Cdn$1)	
 	

1.57	
 	

1.58	
 	

1.57	
 	

1.55

 
 

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

1.    Accounting Policies  

These unaudited interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles and follow the same accounting
principles and methods of application as the recent annual consolidated financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company's
audited annual consolidated financial statements and the accompanying notes included in the 2001 Annual Report.

2.    Sale of Asset and Commitment  

On May 3, 2002, the Company successfully completed an initial public offering of Priority Units of the Noranda Income Fund ("the Fund"). The Fund was created to acquire
the Company's CEZ processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec. Net cash proceeds of $410 million were received and applied
against debt. The net pre-tax gain on sale was $98 million.

The Fund is an unincorporated open-ended trust established under the laws of Ontario. The Company's participation in the Fund is 48.97%, comprising 23.97% priority
units and 25% ordinary units. Ordinary units are subordinated to the priority units with regard to distributions from the fund. The Company accounts for its share of the Fund on the equity
basis.

Through a 15-year supply and processing agreement with the Fund, Noranda has committed to sell up to 550,000 tonnes of zinc concentrate annually to the refinery
(its annual concentrate requirement to
operate to its full current capacity) at market rates for the payable metal, less a fixed treatment charge initially set at $0.352 per pound of payable zinc metal. Noranda has also committed to manage
the processing facility through operating and marketing agreements. It will act as an agent for the sale of the facility's zinc production for the duration of the supply
agreement.

3.    Business Restructuring  

As
a result of a restructuring of Noranda's corporate activities and rationalization of several business units announced in October 2002, a charge of $23 million was recorded. These
charges are reported as other restructuring costs. 

4.    Asset Valuation  

Effective January 1, 2002, the Company prospectively adopted the new CICA accounting recommendations on the impairment of long-lived
assets. Previously, asset impairments were recorded to the extent that the amount of an asset's carrying value exceeded its net recoverable amount on an undiscounted basis. The
new standard requires that the carrying value of long-lived assets be compared to its net recoverable value and an impairment loss be recognized when its fair value, measured as the
discounted cash flows over the life of the asset, falls below the asset's carrying value.

As a result of market conditions, the Company recorded an impairment charge in the fourth quarter of 2002 to reduce the carrying value of the Magnesium project by
$811 million ($630 million after-tax) and made the decision in January 2003 to temporarily shutdown the Company's Magnesium operation. The impairment charge, included
in Magnesium restructuring costs, was determined using management's best estimate of future discounted cash flows.

5.    Stock-Based Compensation  

Effective January 1, 2002, Noranda adopted, without restatement of the prior-period comparative financial statements, the new CICA accounting standards
for Stock-Based Compensation and Other Stock-Based Payments.

The Company accounts for stock options using the fair value method. Under this method, compensation expense for stock options granted since January 1, 2002 that are
direct awards of stock is measured at fair value at the grant date using the Black-Scholes valuation model and recognized over the vesting period of the options granted.

During the fourth quarter, the Company granted 10,000 stock options at a price of $15.00 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 10-year term, 26% volatility, a
weighted-average expected dividend of 5.45% annually and an interest rate of 5.31%, and is being charged against net income over its vesting period.

Corporate
and general administration to December 31, 2002 include compensation costs of $6 million (this includes an amount of $4 million on options granted by Falconbridge)
relating to outstanding options. 

6.    Shareholders' Equity  

	 
	 	DEC. 31, 2002
	 	DEC 31, 2001
	 
	Convertible Debentures	 	$	121	 	$	115	 
	Capital Stock	 	 	2,742	 	 	2,701	 
	 	 	
	 	
	 
	 	 	 	2,863	 	 	2,816	 
	 	 	
	 	
	 
	Retained Earnings (deficit):	 	 	 	 	 	 	 
	 	Balance beginning of year	 	 	896	 	 	1,199	 
	 	Loss	 	 	(700	)	 	(92	)
	 	Dividends: Common	 	 	(191	)	 	(191	)
	 	Preferred	 	 	(17	)	 	(17	)
	 	Other	 	 	(5	)	 	(3	)
	 	 	
	 	
	 
	 	Balance at end of period	 	 	(17	)	 	896	 
	 	 	
	 	
	 
	Currency Translation and Other	 	 	82	 	 	85	 
	 	 	
	 	
	 
	 	 	$	2,928	 	$	3,797	 
	 	 	
	 	
	 

7.    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 to December include exchange losses of $28 million compared with $13 in 2001.

Other foreign currency exchange contracts, relating to foreign currency expenditures and other foreign currency denominated monetary assets and liabilities, generated a gain of
$10 million compared with a loss of $2 in 2001.

8.    Pension Benefit Plans  

At December 31, 2002, Noranda's pension plan assets were $1,872 (Dec 2001- $2,096) while obligations were $2,203 (Dec 2001-
$2170).

Pension plan funding for 2002 was $16 million by the Company and its wholly-owned operations and $52 million by Falconbridge.

For 2002, pension income of $62 million was recognized by the Company and its wholly owned operations and a pension expense of $38 million by Falconbridge. The
pension income recorded by the Company includes a gain of $103 million ($69 million after-tax) related to the release of the Company's pension asset valuation
allowance.

9.    Comparative Figures  

The comparative consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2002 consolidated
statements.

10.  Segmented Information  

        As previously reported, Noranda's operating segments reflect a re-alignment of its copper and recycling assets. The change in presentation has been
consistently applied to the 2001 comparative period. 

	 
	 	Fourth Quarter 2002
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales	 	$	255	 	$	483	 	$	304	 	$	394	 	$	106	 	$	(150	)	$	1,392	 
	Share of earnings from associate	 	 	—	 	 	—	 	 	—	 	 	—	 	 	7	 	 	—	 	 	7	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	255	 	 	483	 	 	304	 	 	394	 	 	113	 	 	(150	)	 	1,399	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	142	 	 	162	 	 	122	 	 	235	 	 	85	 	 	(47	)	 	699	 
	Purchased raw materials	 	 	90	 	 	332	 	 	75	 	 	72	 	 	23	 	 	(182	)	 	410	 
	Corporate and general administration	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	26	 	 	26	 
	Exploration	 	 	—	 	 	1	 	 	4	 	 	5	 	 	1	 	 	—	 	 	11	 
	Research and development	 	 	—	 	 	1	 	 	1	 	 	3	 	 	1	 	 	(4	)	 	2	 
	Other operating costs	 	 	4	 	 	—	 	 	—	 	 	—	 	 	1	 	 	(31	)	 	(26	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	236	 	 	496	 	 	202	 	 	315	 	 	111	 	 	(238	)	 	1,122	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation and restructuring	 	 	19	 	 	(13	)	 	102	 	 	79	 	 	2	 	 	88	 	 	277	 
	Depreciation, amortization and reclamation	 	 	14	 	 	21	 	 	54	 	 	40	 	 	27	 	 	54	 	 	210	 
	Magnesium and other restructing costs, net	 	 	—	 	 	4	 	 	—	 	 	—	 	 	(1	)	 	843	 	 	846	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	5	 	$	(38	)	$	48	 	$	39	 	$	(24	)	$	(809	)	$	(779	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(28	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	148	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(14	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(673	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	30	 	$	30	 	$	77	 	$	36	 	$	1	 	$	81	 	$	255	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Fourth Quarter 2001
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	215	 	$	504	 	$	292	 	$	283	 	$	166	 	$	(24	)	$	1,436	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	122	 	 	138	 	 	113	 	 	197	 	 	132	 	 	(15	)	 	687	 
	Purchased raw materials	 	 	76	 	 	353	 	 	97	 	 	42	 	 	31	 	 	(59	)	 	540	 
	Corporate and general administration	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	20	 	 	20	 
	Exploration	 	 	—	 	 	—	 	 	4	 	 	9	 	 	2	 	 	1	 	 	16	 
	Research and development	 	 	—	 	 	3	 	 	—	 	 	6	 	 	2	 	 	2	 	 	13	 
	Other operating costs	 	 	3	 	 	(1	)	 	—	 	 	1	 	 	2	 	 	21	 	 	26	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	201	 	 	493	 	 	214	 	 	255	 	 	169	 	 	(30	)	 	1,302	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation and restructuring	 	 	14	 	 	11	 	 	78	 	 	28	 	 	(3	)	 	6	 	 	134	 
	Depreciation, amortization and reclamation	 	 	11	 	 	35	 	 	43	 	 	41	 	 	26	 	 	8	 	 	164	 
	Restructing costs	 	 	1	 	 	71	 	 	—	 	 	—	 	 	1	 	 	36	 	 	109	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	2	 	$	(95	)	$	35	 	$	(13	)	$	(30	)	$	(38	)	$	(139	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(51	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	101	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(84	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	26	 	$	79	 	$	70	 	$	59	 	$	14	 	$	44	 	$	292	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

   10.    Segmented Information  

	 
	 	Year ended December 31, 2002
 
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales	 	$	1,039	 	$	2,078	 	$	1,173	 	$	1,322	 	$	611	 	$	(150	)	$	6,073	 
	Share of earnings from associate	 	 	—	 	 	—	 	 	—	 	 	—	 	 	17	 	 	—	 	 	17	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	1,039	 	 	2,078	 	 	1,173	 	 	1,322	 	 	628	 	 	(150	)	 	6,090	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	541	 	 	708	 	 	485	 	 	765	 	 	385	 	 	49	 	 	2,933	 
	Purchased raw materials	 	 	378	 	 	1,345	 	 	292	 	 	229	 	 	226	 	 	(286	)	 	2,184	 
	Corporate and general administration	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	91	 	 	91	 
	Exploration	 	 	—	 	 	3	 	 	17	 	 	26	 	 	4	 	 	5	 	 	55	 
	Research and development	 	 	1	 	 	3	 	 	1	 	 	11	 	 	3	 	 	2	 	 	21	 
	Other operating costs	 	 	7	 	 	—	 	 	—	 	 	—	 	 	(3	)	 	13	 	 	17	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	927	 	 	2,059	 	 	795	 	 	1,031	 	 	615	 	 	(126	)	 	5,301	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation and restructuring	 	 	112	 	 	19	 	 	378	 	 	291	 	 	13	 	 	(24	)	 	789	 
	Depreciation, amortization and reclamation	 	 	59	 	 	109	 	 	212	 	 	183	 	 	99	 	 	101	 	 	763	 
	Magnesium and other restructing costs, net	 	 	—	 	 	22	 	 	—	 	 	—	 	 	(95	)	 	850	 	 	777	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	53	 	$	(112	)	$	166	 	$	108	 	$	9	 	$	(975	)	$	(751	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(163	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	250	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(36	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(700	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash and cash equivalents	 	$	1,245	 	$	2,057	 	$	3,580	 	$	2,178	 	$	806	 	$	782	 	$	10,648	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	65	 	$	143	 	$	251	 	$	132	 	$	7	 	$	226	 	$	824	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

19

 

	 
	 	Year ended December 31, 2001
 
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	981	 	$	2,318	 	$	926	 	$	1,206	 	$	707	 	$	14	 	$	6,152	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	509	 	 	634	 	 	314	 	 	758	 	 	509	 	 	186	 	 	2,910	 
	Purchased raw materials	 	 	349	 	 	1,603	 	 	385	 	 	204	 	 	127	 	 	(191	)	 	2,477	 
	Corporate and general administration	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	86	 	 	86	 
	Exploration	 	 	—	 	 	2	 	 	22	 	 	32	 	 	14	 	 	8	 	 	78	 
	Research and development	 	 	—	 	 	7	 	 	—	 	 	16	 	 	7	 	 	7	 	 	37	 
	Other operating costs	 	 	3	 	 	—	 	 	—	 	 	—	 	 	—	 	 	20	 	 	23	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	861	 	 	2,246	 	 	721	 	 	1,010	 	 	657	 	 	116	 	 	5,611	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss) before depreciation and restructuring	 	 	120	 	 	72	 	 	205	 	 	196	 	 	50	 	 	(102	)	 	541	 
	Depreciation, amortization and reclamation	 	 	48	 	 	121	 	 	125	 	 	161	 	 	109	 	 	55	 	 	619	 
	Restructing costs, net	 	 	1	 	 	71	 	 	—	 	 	—	 	 	1	 	 	(26	)	 	47	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	71	 	$	(120	)	$	80	 	$	35	 	$	(60	)	$	(131	)	$	(125	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(140	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	191	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(18	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(92	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash and cash equivalents	 	$	1,272	 	$	2,031	 	$	3,562	 	$	2,180	 	$	1,127	 	$	1,575	 	$	11,747	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	100	 	$	189	 	$	555	 	$	155	 	$	75	 	$	266	 	$	1,340	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

20

QuickLinks

NORANDA REPORTS FOURTH QUARTER LOSS OF $50 MILLION BEFORE WRITEDOWNS AND PROVISIONS

NORANDA INC. CONSOLIDATED RESULTS ($ millions)

NORANDA INC. CONSOLIDATED BALANCE SHEETS ($ millions)

NORANDA INC. CONSOLIDATED STATEMENTS OF CASHFLOWS ($ millions)

NORANDA INC. OPERATING INCOME (LOSS) ($ millions)

NORANDA INC. PRODUCTION VOLUMES

NORANDA INC. SALES VOLUMES & REALIZED PRICES

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]