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Exhibit 4.75    
    

	

 	 	news release	 	Contacts:

Denis Couture

Vice-President, Public Affairs

& Communications

(416) 982-7020
	

 	
 	

 	
 	

Lars-Eric Johansson

Executive Vice-President

& Chief Fiancial Officer

(416) 982-7377

NORANDA RE-ISSUES THIRD QUARTER RESULTS WITH REVISED EARNINGS 

PER COMMON SHARE NUMBERS

NORANDA REPORTS NET INCOME OF US$20 MILLION

FOR THE THIRD QUARTER

Successfully Completes Recapitalization Plan Further Strengthening Financial Position  

        Note: Noranda has changed the currency in which it reports its financial statements from Canadian dollars to
US dollars. This change was effective as of July 1, 2003. As a result, the Company's financial results and the management discussion in this report are stated in US dollars unless
otherwise noted.

TORONTO, October 23, 2003 — Noranda Inc. today reported net income of US$20 million (US$0.05
per common share) for the three months ended September 30, 2003. For the same period in 2002, the Company reported a net loss of US$43 million or US$0.21 per common share. The improved
performance is attributed to increased production from recently completed projects, higher achieved metal prices and a gain from the sale of units in the Noranda Income Fund. For the first nine months
of 2003, the net loss is US$30 million or US$0.21 per share compared to a net loss of US$5 million or US$0.06 per share in 2002. 

        Mr. Derek
Pannell, Noranda's President and Chief Executive Officer, stated that "the impact of increased prices has only begun to be seen in the financial
numbers of the Company. A complete quarter at current prices would further positively impact results." 

Third Quarter Highlights
  

	•
	Increased
EBITDA by US$116 million for the nine months year over year despite the negative impact of the stronger Canadian dollar on costs.

	•
	Completed
recapitalization plan announced at the end of the second quarter:

	–
	Equity
issue grossed US$431 million

	–
	Prefunded
8% debentures maturing in 2004 with US$350 million notes bearing 6% interest

	–
	Redeemed
US$100 million of Preferred Shares

	–
	Reduced
net debt by US$387 million in the quarter; total reduction of US$392 since year-end 2002

	–
	Converted
to US dollar reporting.

	•
	Sold
priority units in the Noranda Income Fund for net proceeds of US$84 million and a net after-tax gain of US$28 million.

	•
	Implemented
a new business plan at the Horne smelter aimed at improving profitability.

	•
	Obtained
release from guarantee of the Antamina debt as the operation achieved full financial completion. 

 

Commentary  

        "Noranda's financial position was strengthened this quarter with the implementation and completion of the recapitalization
plan," continued Mr. Pannell. "Solid financial and operational progress has been achieved, however, improved results from higher metal prices
were offset during the quarter by scheduled plant shutdowns and higher costs at our Canadian operations. The continuing positive trend in metal prices should improve results for the remainder of the
year and into 2004." 

Consolidated Results  

        Revenues were 31% or US$276 million higher in the quarter reflecting the increase in metal prices and higher sales volumes from recently-completed
projects. 

        The
increase in the cost of operations reflects primarily the impact of the stronger Canadian dollar and higher production levels. 

        The
cost to purchase raw materials was higher year-over-year due to increased feed requirements at the expanded Altonorte smelter, the resumption of full
operations at the Horne smelter and higher metal prices. 

        Corporate
and general administration, exploration and research expenses were over 16% lower than the third quarter of 2002 as a result of the restructuring and cost control measures
which were undertaken in prior periods in these areas. 

        Interest
expense of US$33 million is net of capitalized interest of US$3 million, which relates to the capital projects currently under construction. For the third quarter
of 2002, capitalized interest was US$2 million. 

OPERATIONS  

Nickel  

        The Nickel business produced operating income (earnings before interest, taxes and minority interest) of US$37 million in the quarter compared to
US$6 million in the comparable period of 2002. The LME nickel price averaged US$4.25 per pound for the quarter compared to the third quarter 2002 average of US$3.10 per pound and current levels
of US$5.00 per pound. 

        Production
from the Sudbury mines of 5,170 tonnes during the quarter was 4% below the level in 2002 primarily as a result of lower ore grades. Operating costs increased during the period
due to the impact of a strengthening Canadian dollar and higher ground support costs. 

        At
Raglan, nickel production in the quarter was 6,082 tonnes and copper production was 1,688 tonnes. Nickel and copper production improved over comparable period last year as higher ore
grades offset the impact of lower mine tonnages. Operating costs in the quarter were higher than in 2002 due to the impact of a strengthening Canadian dollar on operating costs, higher contractor
costs largely related to improving the performance at the mill and increased labour costs. 

        Nickel
and copper production from the Sudbury smelter of 11,373 and 3,824 tonnes, respectively, was higher than the 10,371 and 3,702 tonnes produced in the third quarter of 2002.
Consistent with prior years, the smelter was closed for seven weeks for a maintenance and vacation shutdown during the quarter. The smelter had a record production month in September for matte and
nickel. Operating costs for the quarter were higher than last year due to the strengthening of the Canadian dollar. 

        Production
from the Nikkelverk refinery of 15,912 tonnes of nickel and 8,882 tonnes of copper were 34% and 51% ahead of last year's levels due to increased feed volumes from the Sudbury
smelter. Operating costs were also impacted by the strengthening of the Norwegian kroner in the quarter. 

        Nickel
production at Falcondo of 7,293 tonnes exceeded last year's level by approximately 5%. Cash operating costs were higher than in the corresponding quarter of 2002 primarily because
of higher oil prices. 

2

 

Copper  

        The Copper business reported operating income of US$35 million in the quarter compared to US$11 million in the comparable period of 2002. The LME
price for copper averaged US$0.80 per pound for the quarter, an improvement of 16% and 7% over the previous year's third quarter and the second quarter of 2003 respectively. This also compares to
current levels for LME copper of US$0.90 per pound. 

        Third
quarter copper production at Antamina was significantly lower than a year ago, due mainly to an unfavourable ore mix which adversely affected milling rate and recovery. Mining of
sediments from a lake drained during the construction period is not expected to be completed until June 2004, restricting access to higher quality ore underlying the sediments. The lower copper
production will be partially offset by higher zinc production during this period. Production in 2003 is projected to be 85,000 tonnes of copper and 120,000 tonnes of zinc, compared with 110,000 tonnes
of copper and 78,000 tonnes of zinc in 2002. During the quarter, the mine achieved full financial completion thereby releasing the partners of the guarantees on the project debt. 

        Collahuasi's
mine production in the third quarter, at 40,477 tonnes, was below the previous year's level due to expected lower ore grades. Cathode production at 7,241 tonnes compared to
6,794 tonnes in the third quarter of 2002. The expansion project continues on budget and on schedule with over 60% of the work already completed. 

        Production
from Lomas Bayas of 15,663 tonnes set a new quarterly record for the mine. The crusher expansion continues on schedule and on budget. A feasibility study of the adjacent
Fortuna de Cobre deposit has been initiated. An option to acquire the deposit for US$15 million is in existence until 2006. 

        At
the Altonorte smelter, copper anode production of 72,781 tonnes was higher than the third quarter of 2002 and the second quarter of 2003 by 79% and 7% respectively as the new
facilities continue to ramp up to full capacity. During the quarter, additional casting capacity was brought online with the successful installation of a second casting wheel. The smelter has already
attained its new annual operating capacity of 820,000 tonnes of throughput producing 290,000 tonnes of copper anode and 700,000 tonnes of sulphuric acid. 

Canadian Copper and Recycling  

        The Canadian Copper and Recycling business recorded an operating loss of US$12 million in the quarter. The results reflect the impact of the
13-week shutdown of the zinc metallurgical operations and maintenance shutdowns at the Kidd Creek copper smelter and refining operations as well as the province-wide power
outage in August. The loss of US$18 million reported in the comparable period of 2002 included the effects of the labour strike at the Horne smelter. 

        Production
from the Horne smelter and CCR refinery were affected by the return to work ramp-up following the labour strike. Over the next nine months, the smelter will focus
on processing an increased volume of higher-margin recycle material and scaling back the volume of the lower-margin, off-shore primary concentrate. Current initiatives will reduce the
smelter feed and anode production by approximately 20% commencing mid 2004, lower staff levels by one-third and improve operating cost by approximately US$23 million annually. 

3

 

        The
Company's new electronic recycling facility in Brampton, Ontario began operations during the quarter. The plant is expected to process approximately one million pounds a month of
end-of-life electronics at full operations. The facility is the third Noranda end-of-life electronic recycling plant in North America and is part of the
Company's strategy to gather higher margin feed for the Company's Horne smelter. 

        Zinc
production from the Kidd Creek mine was lower than for the corresponding period of 2002 due to rehabilitation work in the upper mine required by ground control issues. Ore grades
improved and are expected to continue to do so with increased tonnage in the upper part of the mine. 

        Kidd's
copper cathode production for the period was lower than the same period last year as a result of the previously mentioned maintenance shutdown following a record
22-month campaign. The zinc operations, which were down for most of the quarter for market-related reasons, were restarted in early October as planned. Manpower reductions announced in
July are being implemented and employment levels at the metallurgical site have been reduced below 800 people. 

Zinc  

        The Zinc business recorded slightly improved results, with an operating loss of US$10 million excluding the gain on the sale of the Noranda Income Fund in
the quarter compared to an operating loss of US$18 million in the same period last year. The improved results are mainly due to increased production and higher zinc prices. The LME zinc price
averaged US$0.37 per pound in the quarter compared to the third quarter 2002 average of US$0.35 per pound and current levels of US$0.41 per pound. 

        Production
at the Brunswick mine of 69,629 tonnes of zinc was over 6% ahead of last year's level of 65,941 tonnes. Mill throughput averaged 9,744 tonnes per day, a 10% increase from the
2002 third quarter. 

        The
Brunswick Smelter is scheduled to restart operations in November following the planned four-month shutdown which began in mid-June. 

        At
the Bell-Allard mine, mill throughput, ore grades and recoveries all exceeded the levels of the third quarter of 2002. 

Aluminum  

        The Aluminum business produced operating income of US$1 million in the quarter compared to US$7 million in the same quarter of 2002. The LME
aluminum price averaged US$0.65 per pound for the period, up almost 8% from a year ago. 

        At
the primary smelter, production exceeded last year's level however, value-added product sales were lower due to continued slowness in the manufacturing sector. Profitability was
affected by higher power and natural gas costs of approximately US$11 million. 

        At
Norandal, shipments were up 21% over the same period last year although overall industry shipments remained flat over the same period. 

FINANCIAL RESOURCES AND LIQUIDITY  

        During the third quarter, the Company's recapitalization plan was completed and financial resources bolstered significantly. At the end of the quarter, cash
resources stood at US$728 million and net debt at US$2.7 billion. The net debt-to-equity ratio has improved to 43.5% at the end of September from 53.9% at the end
of 2002. In addition, the Company has over US$1 billion of available consolidated undrawn committed bank lines. 

4

 

        As
part of the recapitalization plan announced at the end of the second quarter, the Company issued 48.5 million new common shares for net proceeds of US$431 million.
Brascan Corporation, which owns approximately 42% of Noranda, subscribed for 20 million shares of the issue. The Company used the proceeds to reduce debt and redeem the US$100 million of
preferred shares which were issued to Brascan earlier in the year as bridge financing. 

        Additionally,
the Company prefunded its US$300 million 8% debenture due June 2004 with the sale of US$350 million of 6%, 12-year notes. Pending the
June 2004 debenture maturity, Noranda intends to use the net proceeds for general corporate purposes. 

        In
mid-July, Noranda sold its remaining 11,984,900 Priority Units of the Noranda Income Fund at Cdn$9.85 per unit to a syndicate of underwriters. Net proceeds of
US$84 million were used to repay debt and an after-tax gain of US$28 million was recorded on the sale. 

        Cash
generated from operations before changes in working capital, amounted to US$90 million for the quarter and US$386 million for the first nine months compared to
US$14 million and US$271 million a year ago. 

        Capital
investments of US$338 million for the nine-month period were as planned. For the full year investments are expected to total US$520 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. 

PROJECTS  

Nickel Rim South  

        Additional surface drilling continues to define the resource which remains open to the north-east and also to finalize the location of the necessary
exploration infrastructure for an underground definition program. A bankable feasibility study for this program is underway and will be presented to the Board of Directors early in the first quarter
of 2004. 

Montcalm  

        Work continues on securing the necessary operating permits to start the construction and operation of the Montcalm nickel project. The Company is in discussions
with both the government and other groups and is optimistic that an agreement can be reached which addresses concerns that have been raised. The net capital cost to develop the project after
pre-production revenues is estimated at Cdn$100 million. 

Koniambo  

        Work on the Koniambo project in New Caledonia continues to advance. The project team is mobilized to begin the bankable feasibility study which is expected
to begin shortly. Discussions with the French government about the financing structure of the project continues to progress. 

DIVIDENDS  

        The following dividends have been declared: 

	

Security
	 	Dividend Amount
	 	Record Date
	 	Payable Date

	Common shares	 	Cdn$0.12 per share	 	November 28, 2003	 	December 15, 2003
	Preferred Series F shares	 	Floating rate	 	November 28, 2003	 	December 12, 2003
	Preferred Series F shares	 	Floating rate	 	December 31, 2003	 	January 12, 2004
	Preferred Series F shares	 	Floating rate	 	January 31, 2004	 	February 12, 2004
	Preferred Series G shares	 	Cdn$0.38125 per share	 	January 15, 2004	 	February 1, 2004
	Preferred Series H shares	 	Cdn$0.40625 per share	 	November 15, 2003	 	December 31, 2003

5

 

QUARTERLY WEBCAST  

        Noranda will be holding its quarterly teleconference on Thursday, October 23, 2003 at 8:30 a.m. 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 US dollars unless otherwise noted.

ATTACHMENTS  

6

  

 
 

NORANDA INC.    
    
    CONSOLIDATED RESULTS    
    
    ($ US millions)    
    

	 
	 	Third Quarter
	 	Nine Months Ended

September 30
	 
	 
	 	2003
	 	Restated

2002
	 	2003
	 	Restated

2002
	 
	 
	 	 
	 	(Note 2)

	 	 
	 	(Note 2)

	 
	Revenues(1)	 	 	1,165	 	 	889	 	 	3,333	 	 	2,986	 
	
Operating expenses	
 	
 	

 	
 	
 	

 	
 	
 	

 	
 	
 	

 	
 
	Cost of operations	 	 	514	 	 	447	 	 	1,517	 	 	1,421	 
	Purchased raw materials	 	 	478	 	 	344	 	 	1,284	 	 	1,130	 
	Corporate and general administration	 	 	12	 	 	14	 	 	39	 	 	43	 
	Exploration	 	 	10	 	 	12	 	 	24	 	 	28	 
	Research	 	 	3	 	 	4	 	 	9	 	 	12	 
	Other operating costs (income)	 	 	2	 	 	7	 	 	(2	)	 	6	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	1,019	 	 	828	 	 	2,871	 	 	2,640	 
	 	 	
	 	
	 	
	 	
	 
	Operating income before depreciation and restructuring costs	 	 	146	 	 	61	 	 	462	 	 	346	 
	Depreciation, amortization and reclamation	 	 	120	 	 	117	 	 	361	 	 	356	 
	Gain on sale of investment	 	 	(34	)	 	—	 	 	(34	)	 	(61	)
	Restructuring costs (income)	 	 	(3	)	 	—	 	 	41	 	 	15	 
	 	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	 	63	 	 	(56	)	 	94	 	 	36	 
	Interest expense, net	 	 	33	 	 	26	 	 	108	 	 	71	 
	Tax recovery	 	 	(1	)	 	(33	)	 	(30	)	 	(44	)
	Minority interest in earnings of subsidiaries	 	 	11	 	 	(6	)	 	46	 	 	14	 
	 	 	
	 	
	 	
	 	
	 
	Net income (loss)	 	 	20	 	 	(43	)	 	(30	)	 	(5	)
	Dividend on preferred shares	 	 	8	 	 	6	 	 	20	 	 	8	 
	 	 	
	 	
	 	
	 	
	 
	Income (loss) attributable to common shares	 	 	12	 	 	(49	)	 	(50	)	 	(13	)
	 	 	
	 	
	 	
	 	
	 
	Basic and Diluted Earnings (Loss) per common share — $	 	$	0.05	 	$	(0.21	)	$	(0.21	)	$	(0.06	)
	 	 	
	 	
	 	
	 	
	 

Noranda Inc. has approximately 294.0 million common shares outstanding as at September 30, 2003 

	(1)
	Revenues
for the nine months and quarter ended September 30, 2003 include $5 million and $4 million
(2002 — $3 million and $3 million) as the Company's share of earnings in the Noranda Income Fund. 

7

 
 
 

NORANDA INC.    
    
    CONSOLIDATED BALANCE SHEETS    
    
    ($ US millions)    
    

	 
	 	Sept. 30

2003
	 	Restated

Dec. 31

2002

	 
	 	 
	 	(Note 2)

	Assets	 	 	 	 
	Current assets	 	 	 	 
	 	Cash and cash equivalents	 	728	 	293
	 	Accounts receivable	 	607	 	476
	 	Inventories	 	1,031	 	896
	 	 	
	 	

	 	 	2,366	 	1,665
	Capital assets	 	5,506	 	5,179
	Investments and other assets	 	312	 	258
	Future income tax asset	 	223	 	153
	 	 	
	 	

	 	 	8,407	 	7,255
	 	 	
	 	

	
Liabilities and Shareholders' Equity	
 	

 	
 	

 
	Current Liabilities	 	 	 	 
	 	Bank advances and short-term notes	 	23	 	25
	 	Accounts and taxes payable	 	815	 	720
	 	Debt due within one year	 	418	 	310
	 	 	
	 	

	 	 	1,256	 	1,055
	Long-term debt — wholly-owned operations	 	1,233	 	1,403
	                           — partially-owned subsidiaries and
projects	 	1,700	 	1,593
	Liability element of convertible debentures	 	18	 	18
	Future income tax liability	 	265	 	202
	Other deferred credits	 	474	 	367
	Minority interest in subsidiaries	 	873	 	759
	Shareholders' equity (Note 10)	 	2,588	 	1,858
	 	 	
	 	

	 	 	8,407	 	7,255
	 	 	
	 	

8

  

 
 

NORANDA INC.    
    
    CONSOLIDATED STATEMENTS OF CASHFLOWS    
    
    ($ US millions)    
    

	 
	 	Third Quarter
	 	Nine Months Ended

September 30
	 
	 
	 	2003
	 	Restated 2002
	 	2003
	 	Restated 2002
	 
	 
	 	 
	 	(Note 2)

	 	 
	 	(Note 2)

	 
	Cash realized from (used for):	 	 	 	 	 	 	 	 	 
	
Operations	
 	

 	
 	

 	
 	

 	
 	

 	
 
	Earnings (loss)	 	20	 	(43	)	(30	)	(5	)
	Charges (credits) not affecting cash:	 	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	116	 	111	 	336	 	334	 
	Future income taxes	 	(20	)	(63	)	(17	)	(60	)
	Minority interests in earnings of subsidiaries	 	11	 	(6	)	46	 	14	 
	Earnings in associates net of dividends received	 	—	 	—	 	5	 	(1	)
	Other	 	(37	)	15	 	46	 	(11	)
	 	 	
	 	
	 	
	 	
	 
	 	 	90	 	14	 	386	 	271	 
	 	Change in operating working capital	 	58	 	(28	)	(92	)	(116	)
	 	 	
	 	
	 	
	 	
	 
	 	 	148	 	(14	)	294	 	155	 
	 	 	
	 	
	 	
	 	
	 
	
Investment activities	
 	

 	
 	

 	
 	

 	
 	

 	
 
	Capital expenditures	 	(129	)	(122	)	(338	)	(377	)
	Investments and advances	 	(22	)	(41	)	(29	)	(61	)
	Sale of assets and investments	 	85	 	26	 	91	 	292	 
	 	 	
	 	
	 	
	 	
	 
	 	 	(66	)	(137	)	(276	)	(146	)
	 	 	
	 	
	 	
	 	
	 
	
Financing activities	
 	

 	
 	

 	
 	

 	
 	

 	
 
	Long-term debt, including current portion	 	 	 	 	 	 	 	 	 
	 	Issued	 	(16	)	125	 	375	 	622	 
	 	Repaid	 	(43	)	(229	)	(385	)	(439	)
	Issue of common shares	 	433	 	—	 	433	 	—	 
	Settlement of stock options	 	—	 	—	 	—	 	(2	)
	Redemption of preferred shares	 	(105	)	—	 	(105	)	—	 
	Issue of preferred shares	 	—	 	—	 	198	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	269	 	(104	)	516	 	181	 
	 	 	
	 	
	 	
	 	
	 
	Dividends	 	(32	)	(28	)	(99	)	(109	)
	 	 	
	 	
	 	
	 	
	 
	Cash generated (used)	 	319	 	(283	)	435	 	81	 
	Cash, beginning of period	 	409	 	543	 	293	 	179	 
	 	 	
	 	
	 	
	 	
	 
	Cash, end of period	 	728	 	260	 	728	 	260	 
	 	 	
	 	
	 	
	 	
	 

9

 
 
 

NORANDA INC.    
    
    PRODUCTION VOLUMES    
    

	 
	 	Third Quarter
	 	Nine Months Ended Sept. 30

	 
	 	2003
	 	2002
	 	2003
	 	2002

	Mine Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Copper	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	11,109	 	10,744	 	32,482	 	32,784
	 	 	Matagami	 	1,962	 	1,429	 	5,893	 	5,373
	 	 	Brunswick	 	2,120	 	1,935	 	6,699	 	6,524
	 	 	INO	 	7,786	 	8,028	 	27,732	 	28,399
	 	 	Antamina (33.75%)	 	17,560	 	25,577	 	63,959	 	83,267
	 	 	Collahuasi (44%)	 	40,477	 	46,279	 	128,203	 	139,291
	 	 	Lomas Bayas	 	15,663	 	14,693	 	45,044	 	43,883
	 	 	Other	 	3,094	 	4,606	 	12,828	 	14,408
	 	 	
	 	
	 	
	 	

	 	 	99,771	 	113,291	 	322,840	 	353,929
	 	 	
	 	
	 	
	 	

	 	Zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	19,782	 	27,336	 	57,433	 	79,824
	 	 	Brunswick	 	69,629	 	65,941	 	214,369	 	206,817
	 	 	Matagami	 	28,434	 	19,409	 	78,831	 	63,064
	 	 	Antamina (33.75%)	 	32,863	 	21,598	 	90,623	 	59,700
	 	 	Other	 	2,958	 	2,636	 	7,050	 	6,951
	 	 	
	 	
	 	
	 	

	 	 	153,666	 	136,920	 	448,306	 	416,356
	 	 	
	 	
	 	
	 	

	 	Nickel	 	11,252	 	11,359	 	37,967	 	38,693
	 	Ferronickel	 	7,293	 	6,948	 	20,737	 	17,212
	 	Lead	 	19,023	 	19,042	 	57,359	 	57,195
	 	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	604	 	773	 	1,891	 	2,755
	 	 	Brunswick	 	1,550	 	1,454	 	4,575	 	4,693
	 	 	Matagami	 	107	 	34	 	293	 	212
	 	 	Antamina (33.75%)	 	484	 	595	 	1,744	 	1,819
	 	 	Other	 	78	 	62	 	208	 	189
	 	 	
	 	
	 	
	 	

	 	 	2,823	 	2,918	 	8,711	 	9,668
	 	 	
	 	
	 	
	 	

	
Metal Production (tonnes, except as noted)	
 	

 	
 	

 	
 	

 	
 	

 
	 	Refined copper	 	 	 	 	 	 	 	 
	 	 	CCR	 	71,358	 	30,215	 	160,828	 	184,640
	 	 	Kidd Creek	 	24,448	 	39,327	 	99,431	 	110,467
	 	 	Nikkelverk	 	8,882	 	5,886	 	26,260	 	21,352
	 	 	Collahuasi (44%)	 	7,241	 	6,794	 	20,686	 	19,802
	 	 	Lomas Bayas	 	15,663	 	14,693	 	45,044	 	43,883
	 	 	
	 	
	 	
	 	

	 	 	127,592	 	96,915	 	352,249	 	380,144
	 	 	
	 	
	 	
	 	

	 	Copper anodes	 	 	 	 	 	 	 	 
	 	 	Gaspe	 	—	 	—	 	—	 	29,612
	 	 	Horne	 	43,293	 	23,522	 	93,614	 	116,653
	 	 	Kidd Creek	 	22,487	 	35,436	 	95,531	 	108,139
	 	 	Altonorte	 	72,781	 	40,606	 	181,791	 	103,093
	 	 	
	 	
	 	
	 	

	 	 	138,561	 	99,564	 	370,936	 	357,497
	 	 	
	 	
	 	
	 	

	 	Refined zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	5,301	 	34,278	 	74,202	 	106,717
	 	 	CEZ (Noranda Income Fund) (100% — basis)	 	69,891	 	70,358	 	197,619	 	202,687
	 	 	
	 	
	 	
	 	

	 	 	75,192	 	104,636	 	271,821	 	309,404
	 	 	
	 	
	 	
	 	

	 	Refined nickel	 	 	 	 	 	 	 	 
	 	 	Nikkelverk	 	15,912	 	11,863	 	56,615	 	47,234
	 	 	Falcondo	 	7,293	 	6,948	 	20,737	 	17,212
	 	 	            	 	            	 	            	 	            
	 	 	23,205	 	18,811	 	77,352	 	64,446
	 	 	
	 	
	 	
	 	

	 	Primary aluminum	 	60,755	 	59,749	 	183,059	 	175,963
	 	Fabricated aluminum	 	38,864	 	32,194	 	112,449	 	96,369
	 	Refined lead	 	—	 	12,335	 	47,788	 	61,819
	 	Refined gold — 000 ounces	 	265	 	206	 	828	 	839
	 	Refined silver — 000 ounces	 	6,698	 	7,799	 	22,394	 	32,476

10

  

 
 

NORANDA INC.    
    
    SALES VOLUMES & REALIZED PRICES    
    

	 
	 	Third Quarter
	 	Nine Months Ended Sept. 30

	 
	 	2003
	 	2002
	 	2003
	 	2002

	Metal Sales (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Copper	 	 	 	 	 	 	 	 
	 	 	CCR	 	68,452	 	36,340	 	164,214	 	211,832
	 	 	Kidd Creek	 	26,098	 	29,699	 	81,246	 	79,205
	 	 	Nikkelverk	 	12,093	 	11,470	 	42,702	 	40,731
	 	 	Antamina (concentrates) (33.75%)	 	18,639	 	30,579	 	62,226	 	87,994
	 	 	Collahuasi (concentrates) (44%)	 	30,401	 	35,596	 	103,863	 	106,129
	 	 	Collahuasi (44%)	 	6,880	 	6,794	 	24,645	 	31,638
	 	 	Lomas Bayas	 	15,601	 	14,402	 	44,996	 	44,665
	 	 	
	 	
	 	
	 	

	 	 	178,164	 	164,880	 	523,892	 	602,194
	 	 	
	 	
	 	
	 	

	 	Zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	25,407	 	34,508	 	89,285	 	108,699
	 	 	Antamina (concentrates) (33.75%)	 	26,781	 	19,184	 	73,214	 	57,224
	 	 	Brunswick/Matagami (concentrates)	 	88,055	 	72,048	 	252,186	 	185,173
	 	 	
	 	
	 	
	 	

	 	 	140,243	 	125,740	 	414,685	 	351,096
	 	 	
	 	
	 	
	 	

	 	 	CEZ (Noranda Income Fund) (100% — basis)	 	72,438	 	73,269	 	196,585	 	205,440
	 	Nickel	 	17,558	 	14,780	 	58,510	 	50,685
	 	Ferronickel	 	7,361	 	6,279	 	20,352	 	14,282
	 	Aluminum	 	 	 	 	 	 	 	 
	 	 	Primary aluminum — shipments	 	58,562	 	60,208	 	181,942	 	180,977
	 	 	Norandal — shipments	 	38,864	 	32,194	 	112,449	 	96,369
	 	Lead	 	3,928	 	14,293	 	48,843	 	60,505
	 	Gold — 000 ounces	 	277	 	110	 	726	 	700
	 	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	 	CCR	 	8,654	 	7,348	 	24,044	 	32,596
	 	 	Kidd Creek	 	1,550	 	986	 	4,307	 	2,488
	 	 	Antamina (33.75%)	 	421	 	590	 	1,431	 	1,680
	 	 	
	 	
	 	
	 	

	 	 	10,625	 	8,924	 	29,782	 	36,764
	 	 	
	 	
	 	
	 	

	
Average Realized Prices — ($U.S. per pound, except as noted)	
 	

 	
 	

 	
 	

 	
 	

 
	 	 	Copper	 	0.82	 	0.74	 	0.78	 	0.75
	 	 	Copper — Falconbridge	 	0.81	 	0.67	 	0.76	 	0.72
	 	 	Zinc	 	0.42	 	0.40	 	0.41	 	0.41
	 	 	Zinc — Falconbridge	 	0.41	 	0.38	 	0.40	 	0.39
	 	 	Nickel	 	4.33	 	3.23	 	3.99	 	3.09
	 	 	Ferronickel	 	4.15	 	3.22	 	3.87	 	3.15
	 	 	Aluminum	 	0.68	 	0.64	 	0.67	 	0.65
	 	 	Lead	 	0.26	 	0.21	 	0.25	 	0.24
	 	 	Gold ($US per ounce)	 	363.78	 	316.02	 	354.59	 	303.90
	 	 	Silver ($US per ounce)	 	5.01	 	4.70	 	4.79	 	4.63
	 	 	Silver — Falconbridge ($US per ounce)	 	4.83	 	4.70	 	4.72	 	4.64
	Exchange Rate (Cdn$1 = US$1)	 	0.72	 	0.64	 	0.70	 	0.64

11

  

 
 

NORANDA INC.    
    
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS    
    
    (Millions of US dollars, 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 U.S. 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
$24 million was recorded at January 1, 2003 ($23 million at January 1, 2002). The change resulted in an increase to earnings for the nine months and quarter ended
September 30, 2003 0f $12 million and $7 million. 

3.     Change in Functional and Reporting Currency  

        Prior to July 1, 2003, Noranda's Canadian operations have been measured in Canadian dollars and the consolidated financial statements have been expressed
in Canadian dollars. Effective July 1, 2003, the United States dollar ["US dollar"] was adopted as the unit of
measure of Noranda's Canadian operations which reflect significant operational exposure to the US dollar and the predominantly US dollar-based asset and investment base of the Company. Concurrent with
this change in functional currency, Noranda adopted the US dollar as its reporting currency. In accordance with Canadian generally accepted accounting principles, the Company is required to restate
all amounts presented for comparative purposes into United States dollars using the current rate method whereby all revenues, expenses and cash flows are translated at the average rates that
were in effect during these periods and all assets and liabilities are translated at the closing rate in effect at the end of these periods. Equity transactions have been translated at historic rates;
with opening equity restated at the rate of exchange on January 1, 1999. The resulting net translation adjustment has been credited to the cumulative translation account. 

        Utilizing
this method, the comparative consolidated statements of income and cash flows for the three and nine-months periods ended September 30, 2002 were translated
into US dollars using monthly average rates, the assets and liabilities on the comparative consolidated balance sheet at December 31, 2002 were translated using the prevailing noon rate at
December 31, 2002 of Cdn. 1.5796 per U.S. $1.00. 

        For
periods after July 1, 2003, the assets and liabilities of Noranda's operations having a functional currency other than the US dollar are translated into US dollars using the
exchange rate in effect at the month end and revenues and expenses are translated at the average rate during the month. Exchange gains and losses on translation of the Company's net equity investment
in these operations are deferred as a separate component of shareholders' equity. 

12

 

4.     Sale of Investment  

        On July 17, 2003, Noranda sold its remaining 11,984,900 Priority Units of the Noranda Income Fund for net proceeds of $84 million. The
pre-tax gain on the sale was $34 million. The proceeds were used to repay debt. 

5.     Equity Share Issue  

        On March 25, 2003, Noranda issued six million Cumulative Preferred Shares, Series H to the public, for gross proceeds of $98 million.
These shares carry a 6.5% annual dividend. 

        On
April 24, 2003, Noranda completed an issue of six million Cumulative Preferred Shares, Series I to Brascan Corporation, for gross proceeds of $100 million.
These shares were redeemed by Noranda on August 18, 2003. 

        On
August 18, 2003, Noranda completed an issue of 48.52 million common shares for total gross proceeds of $431 million. 

        Proceeds
from these issues were applied against the Company's revolving bank debt and used to retire the Company's Preferred Shares Series I. 

6.     Debt  

        On May 9, 2003 Noranda's partially-owned subsidiary issued US$250 million 5.375% fixed rate debentures maturing on June 1, 2015. The proceeds
from this offering were used to repay debt outstanding under the company's commercial paper program, to fund planned expenditures and for other general corporate purposes. 

        On
September 24, 2003, Noranda issued $350 million 6% fixed rate debentures maturing October 15, 2015. The proceeds from this offering will be used to repay
Noranda's $300 million 8.125% debentures maturing in June 2004 and for general corporate purposes. 

7.     Business Restructuring  

        The total year-to-date restructuring costs of $33 million includes a first quarter charge of $29 million related to costs
associated with the Company's decision to temporarily shutdown its Magnesium operation. 

8.     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. 

        During
the third quarter, the company granted 40,000 stock options at a price of $12.67 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 an 8-year term, 25% volatility, a weighted-average
expected dividend of 5.16% annually and an interest rate of 4.73%, and is being charged against net income over its vesting period. 

        Corporate
and general administration for the nine months and quarter ended September 30, 2003 include compensation costs of $2 million and $1 million relating to
outstanding options. 

13

 

9.     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. Prior to July 1, 2003, at which point Noranda changed its functional currency to the US dollar (note 3),
Noranda managed its US dollar revenue exposure by utilizing spot and forward foreign exchange contracts with its banks as counter-parties. 

        The
impact to earnings for nine months and quarter ended September 30, 2003 are exchange gains of $29 million and $13 million
(2002 — exchange loss of $18 million and $9 million respectively). 

        Other
foreign currency exchange contracts, relating to foreign currency expenditures and other foreign currency denominated monetary assets and liabilities, generated a loss of
$11 year-to-date and $7 million for the quarter (2002 — gain of $3 million in the quarter and $2 million) at
Noranda's partially-owned subsidiary. 

10.   Shareholders' Equity  

	 
	 	September 30, 2003
	 	December 31, 2002
	 
	 
	 	Shares
	 	Amount
	 	Shares
	 	Amount
	 
	 
	 	(000)

	 	 
	 	(000)

	 	 
	 
	Share capital	 	 	 	 	 	 	 	 	 	 	 
	 	Authorized - an unlimited number of:	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Preferred, Common and Participating shares	 	 	 	 	 	 	 	 	 	 	 
	 	Issued:	 	 	 	 	 	 	 	 	 	 	 
	 	 	Common Shares	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Balance, beginning of year	 	241,289	 	$	1,595	 	238,584	 	$	1,568	 
	 	 	 	 	Issue of common shares	 	48,520	 	 	431	 	—	 	 	—	 
	 	 	 	 	Issued on exercise of stock options	 	2	 	 	—	 	15	 	 	—	 
	 	 	 	 	Issued under dividend re-investment	 	4,221	 	 	41	 	2,553	 	 	26	 
	 	 	 	 	Issued under share purchase plan	 	—	 	 	—	 	137	 	 	1	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	Balance, end of period	 	294,032	 	$	2,067	 	241,289	 	$	1,595	 
	 	 	
	 	
	 	
	 	
	 
	 	 	Preferred Shares, Series F	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Balance beginning of year and end of period	 	3,246	 	 	59	 	3,246	 	 	59	 
	 	 	
	 	
	 	
	 	
	 
	 	 	Preferred Shares, Series G	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Balance beginning of year and end of period	 	8,754	 	 	137	 	8,754	 	 	137	 
	 	 	
	 	
	 	
	 	
	 
	 	 	Preferred Shares, Series H	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Balance beginning of year	 	—	 	 	—	 	—	 	 	—	 
	 	 	 	 	Issued	 	6,000	 	 	98	 	—	 	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	Balance end of period	 	6,000	 	 	98	 	—	 	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	Preferred Shares, Series I	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Balance beginning of year	 	—	 	 	—	 	—	 	 	—	 
	 	 	 	 	Issued	 	6,000	 	 	100	 	—	 	 	—	 
	 	 	 	 	Redeemed	 	(6,000	)	 	(100	)	 	 	 	 	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	Balance end of period	 	—	 	 	—	 	—	 	 	—	 
	 	 	
	 	
	 	
	 	
	 
	Contributed Surplus	 	 	 	 	1	 	 	 	 	1	 
	 	 	
	 	
	 	
	 	
	 
	Convertible Debentures	 	 	 	 	82	 	 	 	 	79	 
	 	 	
	 	
	 	
	 	
	 
	Basic and Diluted weighted average number of shares	 	 	 	 	248,222,224	 	 	 	 	238,823,521	 
	 	 	
	 	
	 	
	 	
	 
	
Retained Earnings (deficit):	
 	

 	
 	
 	

 	
 	

 	
 	
 	

 	
 
	 	Balance beginning of year	 	 	 	$	24	 	 	 	$	608	 
	 	 	Loss	 	 	 	 	(30	)	 	 	 	(447	)
	 	 	Dividends: Common	 	 	 	 	(96	)	 	 	 	(122	)
	 	 	                  Preferred	 	 	 	 	(20	)	 	 	 	(11	)
	 	 	Other	 	 	 	 	(3	)	 	 	 	(4	)
	 	 	
	 	
	 	
	 	
	 
	 	Balance end of period	 	 	 	 	(125	)	 	 	 	24	 
	 	 	
	 	
	 	
	 	
	 
	Currency Translation and other at end of period	 	 	 	 	269	 	 	 	 	(37	)
	 	 	
	 	
	 	
	 	
	 
	Total Shareholders' Equity	 	 	 	$	2,588	 	 	 	$	1,858	 
	 	 	
	 	
	 	
	 	
	 

14

 

11.   Post-employment costs  

        Noranda's post-employment benefit expense for the nine months and quarter ended September 30, 2003 was $87 million and
$25 million (2002 — $70 million and $36 million), which included $54 million and $7 million for its pension benefit plans and
$32 million and $17 million for other benefit plans (2002 — nine months $41 million and $17 million; quarter $29 million and
$19 million). 

        At
September 30, 2003, Noranda's pension plan assets were $1,445 (Dec 2002 — $1,872) while obligations were $1,612 (Dec
2002 — $2,203). 

12.   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. 

13.   Comparative Figures  

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

15

 

14.   Segmented Information  

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

	 
	 	Third Quarter 2003
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	173	 	356	 	285	 	297	 	102	 	(48	)	$	1,165	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	
Operating expenses	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
 	

 	
 
	 	Cost of operations	 	 	95	 	114	 	91	 	148	 	49	 	17	 	 	514	 
	 	Purchased raw materials	 	 	66	 	238	 	125	 	69	 	45	 	(65	)	 	478	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	12	 	 	12	 
	 	Exploration	 	 	—	 	—	 	—	 	8	 	—	 	2	 	 	10	 
	 	Research and development	 	 	—	 	—	 	—	 	3	 	—	 	—	 	 	3	 
	 	Other operating income	 	 	—	 	1	 	—	 	—	 	—	 	1	 	 	2	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	161	 	353	 	216	 	228	 	94	 	(33	)	 	1,019	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	Operating income (loss) before depreciation and restructuring costs	 	 	12	 	3	 	69	 	69	 	8	 	(15	)	 	146	 
	 	Depreciation, amortization and reclamation	 	 	11	 	19	 	34	 	32	 	19	 	5	 	 	120	 
	 	Gain on sale of investment	 	 	—	 	—	 	—	 	—	 	(34	)	—	 	 	(34	)
	 	Restructuring costs (income)	 	 	—	 	(4	)	—	 	—	 	(1	)	2	 	 	(3	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	1	 	(12	)	35	 	37	 	24	 	(22	)	$	63	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(33	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(11	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	20	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Capital investments	 	$	5	 	25	 	63	 	31	 	—	 	5	 	$	129	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Third Quarter 2002 (Restated - Note 2)
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	167	 	250	 	188	 	195	 	92	 	(3	)	$	889	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	
Operating expenses	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
 	

 	
 
	 	Cost of operations	 	 	85	 	90	 	79	 	124	 	47	 	22	 	 	447	 
	 	Purchased raw materials	 	 	62	 	160	 	58	 	30	 	50	 	(16	)	 	344	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	14	 	 	14	 
	 	Exploration	 	 	—	 	—	 	5	 	6	 	1	 	—	 	 	12	 
	 	Research and development	 	 	1	 	—	 	1	 	1	 	—	 	1	 	 	4	 
	 	Other operating costs (income)	 	 	1	 	—	 	—	 	—	 	(2	)	8	 	 	7	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	149	 	250	 	143	 	161	 	96	 	29	 	 	828	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	Operating income (loss) before depreciation	 	 	18	 	—	 	45	 	34	 	(4	)	(32	)	 	61	 
	 	Depreciation, amortization and reclamation	 	 	11	 	19	 	34	 	28	 	15	 	10	 	 	117	 
	 	Restructuring costs (income)	 	 	—	 	(1	)	—	 	—	 	(1	)	2	 	 	—	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	7	 	(18	)	11	 	6	 	(18	)	(44	)	$	(56	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(26	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	33	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(43	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Capital investments	 	$	7	 	21	 	34	 	22	 	1	 	37	 	$	122	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

16

 

14.   Segmented Information  

	 
	 	Nine Months ended September 30, 2003
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	515	 	1,006	 	706	 	887	 	293	 	(74	)	$	3,333	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	
Operating expenses	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
 	

 	
 
	 	Cost of operations	 	 	281	 	316	 	249	 	459	 	166	 	46	 	 	1,517	 
	 	Purchased raw materials	 	 	184	 	660	 	250	 	179	 	138	 	(127	)	 	1,284	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	39	 	 	39	 
	 	Exploration	 	 	—	 	—	 	3	 	18	 	—	 	3	 	 	24	 
	 	Research and development	 	 	—	 	—	 	—	 	6	 	—	 	3	 	 	9	 
	 	Other operating (costs)	 	 	—	 	1	 	—	 	—	 	—	 	(3	)	 	(2	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	465	 	977	 	502	 	662	 	304	 	(39	)	 	2,871	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	Operating income (loss) before depreciation and restructuring costs	 	 	50	 	29	 	204	 	225	 	(11	)	(35	)	 	462	 
	 	Depreciation, amortization and reclamation	 	 	32	 	56	 	101	 	96	 	52	 	24	 	 	361	 
	 	Gain on sale of investment	 	 	—	 	—	 	—	 	—	 	(34	)	—	 	 	(34	)
	 	Restructuring costs (income)	 	 	—	 	3	 	—	 	—	 	(1	)	39	 	 	41	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	18	 	(30	)	103	 	129	 	(28	)	(98	)	$	94	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(108	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(46	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(30	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Total assets, excluding cash, cash equivalents and future tax assets	 	$	802	 	1,552	 	2,400	 	1,575	 	438	 	689	 	$	7,456	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital investments	 	$	15	 	65	 	157	 	68	 	—	 	33	 	$	338	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Nine Months ended September 30, 2002 (Restated — Note 2)
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Revenues	 	$	500	 	1,011	 	554	 	591	 	327	 	3	 	$	2,986	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	
Operating expenses	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	
 	

 	
 
	 	Cost of operations	 	 	254	 	345	 	231	 	337	 	191	 	63	 	 	1,421	 
	 	Purchased raw materials	 	 	184	 	644	 	138	 	100	 	129	 	(65	)	 	1,130	 
	 	Corporate and general administration	 	 	—	 	—	 	—	 	—	 	—	 	43	 	 	43	 
	 	Exploration	 	 	—	 	1	 	8	 	13	 	2	 	4	 	 	28	 
	 	Research and development	 	 	1	 	1	 	1	 	5	 	1	 	3	 	 	12	 
	 	Other operating costs (income)	 	 	1	 	—	 	—	 	—	 	(2	)	7	 	 	6	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	440	 	991	 	378	 	455	 	321	 	55	 	 	2,640	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	Operating income (loss) before depreciation	 	 	60	 	20	 	176	 	136	 	6	 	(52	)	 	346	 
	 	Depreciation, amortization and reclamation	 	 	30	 	56	 	104	 	88	 	47	 	31	 	 	356	 
	 	Gain on sale of investment	 	 	—	 	—	 	—	 	—	 	(61	)	—	 	 	(61	)
	 	Restructuring costs	 	 	—	 	12	 	—	 	—	 	—	 	3	 	 	15	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating income (loss)	 	$	30	 	(48	)	72	 	48	 	20	 	(86	)	$	36	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Interest expense, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(71	)
	Tax recovery	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	44	 
	Minority interest in earnings of subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(14	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(5	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	Total assets, excluding cash, cash equivalents and future tax assets	 	$	800	 	1,257	 	2,256	 	1,397	 	534	 	1,081	 	$	7,325	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital investments	 	$	22	 	75	 	110	 	61	 	4	 	105	 	$	377	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

17

QuickLinks

Exhibit 4.75

NORANDA INC. CONSOLIDATED RESULTS ($ US millions)

NORANDA INC. CONSOLIDATED BALANCE SHEETS ($ US millions)

NORANDA INC. CONSOLIDATED STATEMENTS OF CASHFLOWS ($ US millions)

NORANDA INC. PRODUCTION VOLUMES

NORANDA INC. SALES VOLUMES & REALIZED PRICES

NORANDA INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Millions of US dollars, except as otherwise indicated)QuickLinks
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Exhibit 4.5    
    

 
 

AXIS Capital Holdings Limited
  2003 Directors Long-Term Equity Compensation Plan  
  

Effective
March 14, 2003

(as amended September 17, 2003) 

  

 
 

Table of Contents    
    

	 
	 	Page

	ARTICLE 1 Establishment, Objectives, and Duration	 	1
	ARTICLE 2 Definitions	 	1
	ARTICLE 3 Administration	 	3
	ARTICLE 4 Shares Subject to the Plan and Maximum Awards	 	3
	ARTICLE 5 Shares	 	4
	ARTICLE 6 Options	 	4
	ARTICLE 7 Restricted Stock	 	5
	ARTICLE 8 Restrictions on Shares; Puts, Calls and Rights of First Refusal	 	6
	ARTICLE 9 Beneficiary Designation	 	6
	ARTICLE 10 Change in Control	 	6
	ARTICLE 11 Amendment, Suspension, and Termination	 	7
	ARTICLE 12 Withholding	 	7
	ARTICLE 13 Indemnification	 	7
	ARTICLE 14 Successors	 	8
	ARTICLE 15 Miscellaneous	 	8

i

  

 
 

AXIS Capital Holdings Limited
  2003 Directors Long-Term Equity Compensation Plan    
    

 
  ARTICLE 1
  
    Establishment, Objectives, and Duration    
    

        1.1    Establishment of the Plan.    AXIS Capital Holdings Limited, a company organized and existing under Bermuda law
(hereinafter referred to as the "Company"), hereby establishes an incentive compensation plan for Directors to be known as the "AXIS Capital Holdings Limited 2003 Directors Long-Term
Equity Compensation Plan" (hereinafter referred to as the "Plan"), as set forth in this document and individual Award Agreements setting forth certain terms and conditions applicable to awards granted
under the Plan. The Plan permits the grant of Shares, Options and Restricted Stock. 

        The
Plan shall become effective March 14, 2003 (the "Effective Date"), subject to shareholder approval, and shall remain in effect as provided in Section 1.3 herein. 

        1.2    Objectives of the Plan.    The objectives of the Plan are to optimize the profitability and growth of the
Company through incentives which are consistent with the Company's goals and which link the personal interests of Directors to those of the Company's shareholders. The Plan is further intended to
provide flexibility to the Company in its ability to retain and attract well-qualified persons for service as Directors. 

        1.3    Duration of the Plan.    The Plan shall commence on the Effective Date, as described in Section 1.1
herein, and shall remain in effect, subject to the right of the Board to amend or terminate the Plan at any time pursuant to Article 11 herein, until all Shares subject to it shall have been
purchased or acquired according to the Plan's provisions. 

 
 

ARTICLE 2
  
    Definitions    
    

        Whenever used in the Plan, the following terms shall have the meanings set forth below, and, when the meaning is intended, the initial letter of the word shall be
capitalized: 

        2.1    "Affiliate" means any person or entity which, at the time of reference, directly, or indirectly through one or more
intermediaries, controls or is controlled by the Company. 

        2.2    "Award" means, individually or collectively, a grant under the Plan of Shares, Options or Restricted Stock. 

        2.3    "Award Agreement" means an agreement entered into by the Company and a Director setting forth the terms and provisions
applicable to Awards granted under the Plan. 

        2.4    "Board" means the board of directors of the Company. 

        2.5    "Change in Control" will be deemed to have occurred as of the first day any of the following events occurs: 

        (a)   Any
Person is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company's then outstanding voting securities entitled to vote generally in the election of directors (the "Outstanding Company
Voting Securities"); provided however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the
Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, or
(iv) any acquisition by any entity pursuant to a transaction which complies with clauses (i), (ii) and (iii) of paragraph (c) below; 

1

 

        (b)   Individuals
who, as of January 1, 2003, constitute the Board (hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided however, that any individual becoming a director subsequent to the date herein whose election, or nomination for election by the Company's stockholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered a member of the Incumbent Board, excluding any individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; 

        (c)   Consummation
of a reorganization, merger, share exchange, amalgamation, recapitalization, consolidation or similar transaction by and among the Company and another
Person, including, for this purpose, a transaction as a result of which another Person owns the Company or all or substantially all of the Company's assets, either directly or through one or more
subsidiaries (a "Business Combination"), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors (or equivalent management personnel) of the Person resulting from such Business Combination or that, as a
result of such Business Combination, owns the Company or all or substantially all of the Company's assets, either directly or through one or more subsidiaries, in substantially the same proportions as
their ownership of the Outstanding Company Voting Securities immediately prior to such Business Combination; (ii) no Person (excluding any Person resulting from such Business Combination, or
that, as a result of such Business Combination, owns the Company or all or substantially all of the Company's assets, either directly or through one or more subsidiaries, or any employee benefit plan
(or related trust) of the foregoing) beneficially owns, directly or indirectly, 50% or more of the then outstanding shares of common stock or the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors (or equivalent management personnel) of the Person resulting from such Business Combination or that, as a result of such Business
Combination, owns the Company or all or substantially all of the Company's assets, either directly or through one or more subsidiaries, except to the extent that such ownership existed with respect to
the Company prior to the Business Combination; and (iii) at least a majority of the members of the board of directors (or equivalent management personnel) of the Person resulting from such
Business Combination or that, as a result of such Business Combination, owns the Company or all or substantially all of the Company's assets, either directly or through one or more subsidiaries, were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the board, pursuant to which such Business Combination is effected or approved; or 

        (d)   Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company or the sale or other disposition of all or substantially all of the
Company's assets. 

        2.6    "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        2.7    "Company" means AXIS Capital Holdings Limited, a company organized and existing under the laws of the Islands of Bermuda,
and any successor thereto as provided in Article 14 herein. 

        2.8    "Director" means any director of the Company or an Affiliate who is not an employee of the Company or an Affiliate. 

        2.9    "Effective Date" shall have the meaning ascribed to such term in Section 1.1 herein. 

        2.10    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time. 

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        2.11    "Exercise Price" means the price at which a Share may be purchased by a Director pursuant to an Option. 

        2.12    "Fair Market Value" means the closing sale price of a Share on the principal securities exchange or market on which the
Shares are traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported or, if the Shares are not publicly traded, the fair market value of the
Shares as determined in good faith by the Board. 

        2.13    "Fees" means the compensation payable to a Director by reason of service on the Board either (i) as a retainer
(without regard to attendance at meetings) or (ii) on a per meeting basis. 

        2.14    "Option" means an option to purchase Shares granted pursuant to Article 6 herein. 

        2.15    "Person" shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections
13(d) and 14(d) thereof, including a "group" as defined in Section 13(d) thereof. 

        2.16    "Period of Restriction" means the period during which the transfer of Shares of Restricted Stock is limited in some way
and the Shares are subject to a substantial risk of forfeiture, as provided in Section 7.4 herein. 

        2.17    "Restricted Stock" means an Award granted pursuant to Article 7 herein. 

        2.18    "Shares" means shares of the Company's common stock, par value U.S. $0.10 per share. 

 
 

ARTICLE 3
  
    Administration    
    

        The Plan shall be administered by the Board. Except as limited by law or by the Memorandum of Association or the Bye-laws of the Company, and subject
to the provisions herein, the Board shall have full power to determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any agreement or
instrument entered into under the Plan; establish, amend, or waive rules and regulations for the Plan's administration; and (subject to the provisions of Article 11 herein) amend the terms and
conditions of any outstanding Award to the extent such terms and conditions are within the discretion of the Board. Further, the Board shall make all other determinations which may be necessary or
advisable for the administration of the Plan. As permitted by law, the Board may delegate its authority as identified herein. 

        All
determinations and decisions made by the Board pursuant to the provisions of the Plan, and all related orders and resolutions of the Board, shall be final, conclusive and binding on
all persons, including the Company, its Affiliates, its shareholders, Directors, and their estates and beneficiaries. 

 
 

ARTICLE 4
  
    Shares Subject to the Plan and Maximum Awards    
    

        4.1    Number of Shares Available for Grants.    Subject to adjustment as provided in Section 4.2 herein, the
maximum number of Shares available for Awards hereunder shall be 1,200,000. If any Award is forfeited or for any reason expires, is terminated, or is cancelled without exercise, if an Option, or
without vesting, if Restricted Stock, the Shares subject to such Award shall again be available for grant or issuance under the Plan. 

        4.2    Adjustments in Authorized Shares.    In the event of any change in capitalization of the Company, including,
but not limited to, a stock split, stock dividend, merger, recapitalization, share exchange, amalgamation, consolidation, reorganization (whether or not such reorganization comes within the definition
of such term in Code Section 368), separation, including a spin-off or other 

3

 

distribution
of stock or property of the Company, or any partial or complete liquidation of the Company, an adjustment shall be made to the (a) maximum number of Shares available for grants
under the Plan, as provided in Section 4.1, and/or kind of Shares that may be delivered under the Plan, and (b) number, kind and/or price of Shares
(i.e., Exercise Price for Options) subject to outstanding Awards granted under the Plan, as may be determined to be appropriate and equitable by the
Board, in its sole discretion, to prevent dilution or enlargement of rights; provided, however, that the number of Shares subject to the Plan and/or any Award shall always be rounded to the nearest
whole number, with one-half (1/2) of a share rounded up to the next higher number. 

 
 

ARTICLE 5
  
    Shares    
    

        Subject to the terms and provisions of the Plan, the Board shall grant Shares to Directors who elect to receive Fees in common stock of the Company in lieu of
cash compensation. Each Share grant shall be evidenced by an Award Agreement that shall specify the number of Shares granted and such other provisions as the Board shall determine. 

 
 

ARTICLE 6
  
    Options    
    

        6.1    Grant of Options.    Subject to the terms and provisions of the Plan, each Director may be granted Options in
such number, and upon such terms, and at any time and from time to time as shall be determined by the Board. 

        6.2    Award Agreement.    Each Option grant shall be evidenced by an Award Agreement that shall specify the Exercise
Price, the duration of the Option, and such other provisions as the Board shall determine. 

        6.3    Exercise Price.    The Exercise Price for each grant of an Option under the Plan shall be no less than one
hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted. 

        6.4    Duration of Options.    Each Option granted to a Director shall expire at such time as the Board shall
determine at the time of grant; provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary date of its grant. 

        6.5    Exercise of Options.    Options shall be exercisable at such times and subject to such restrictions and
conditions as set forth in the Award Agreement and as the Board shall in each instance approve, which need not be the same for each grant or for each Director. 

        6.6    Payment.    Options shall be exercised by the delivery of a written notice of exercise to the Company, setting
forth the full number of Shares with respect to which the Option is to be exercised and by full payment for the Shares. 

        The
Exercise Price of any Option shall be payable to the Company in full either (a) in cash or its equivalent or (b) if permitted by the Board, by tendering previously
acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price (provided that the Shares, other than Shares purchased by the Director on the open
market, which are tendered must have been held by the Director for at least six (6) months prior to their tender to satisfy the Exercise Price), or (c) by a combination of (a) and
(b). 

        Additionally,
if the Company's shares are publicly traded, Options may be exercised by a cashless exercise, as permitted under Federal Reserve Board's Regulation T, subject to
applicable securities law restrictions, or by any other means may be allowed on such terms and conditions as the Board, in its 

4

 

sole
discretion, shall determine to be consistent with the Plan's purpose and applicable law, from time to time. 

        Subject
to any applicable laws and governing rules or regulations, as soon as practicable after receipt of a written notification of exercise and full payment, the Company shall issue to
the Director and/or a transferee of all or a portion of the Option (provided such transfer was permitted under law and the terms of the Plan and Award Agreement) Shares in an appropriate amount based
upon the number of Shares purchased under the Option(s). 

        6.7    Termination of Service.    Each Director's Option Award Agreement shall set forth the extent to which the
Director shall have the right to exercise the Option following termination of service as a Director. Such provisions shall be determined in the sole discretion of the Board, shall be included in the
Award Agreement entered into with each Director, need not be uniform among all Options, and may reflect distinctions based on the reasons for termination of service. 

        6.8    Nontransferability of Options.    Except as otherwise provided in a Director's Award Agreement, no Option may
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise provided in a Director's
Award Agreement, during the lifetime of a Director, all Options granted to such Director shall be exercisable only by such Director. 

 
 

ARTICLE 7
  
    Restricted Stock    
    

        7.1    Grant of Restricted Stock.    Subject to the terms and provisions of the Plan, each Director may be granted
Shares of Restricted Stock in such amount, and upon such terms, and at any time and from time to time as shall be determined by the Board. 

        7.2    Restricted Stock Agreement.    Each Restricted Stock grant shall be evidenced by an Award Agreement that shall
specify the Period(s) of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Board shall determine. 

        7.3    Transferability.    Except as otherwise provided in a Director's Award Agreement, the Shares of Restricted
Stock may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. During the lifetime of a Director, all rights with
respect to the Restricted Stock granted to such Director under the Plan shall be available only to such Director. 

        7.4    Restrictions.    Subject to the terms herein, the Board shall impose such conditions and/or restrictions on any
Shares of Restricted Stock granted pursuant to the Plan as it may deem advisable and as are set forth in the Award Agreement including, without limitation, a requirement that Directors pay a
stipulated purchase price for each Share of Restricted Stock, restrictions based upon the achievement of specific performance goals (Company-wide, divisional, and/or individual),
time-based restrictions on vesting, and/or restrictions under applicable federal or state securities laws. 

        The
Company shall retain the certificates representing Shares of Restricted Stock in the Company's possession until such time as all conditions and/or restrictions applicable to such
Shares have been satisfied. 

        Except
as otherwise provided in the Plan, a Director's Award Agreement or as otherwise provided by the Board, Shares of Restricted Stock shall become freely transferable by the Director
after the last day of the applicable Period of Restriction. 

5

 

        7.5    Voting Rights.    During the Period of Restriction, subject to any limitations imposed under the
Bye-laws of the Company or in an Award Agreement, Directors holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares. 

        7.6    Dividends and Other Distributions.    During the Period of Restriction, Directors holding Shares of Restricted
Stock granted hereunder may be credited with regular dividends paid with respect to the underlying Shares while they are so held. The Board may apply any restrictions to the dividends that the Board
deems appropriate and as are set forth in the Award Agreement. 

        7.7    Termination of Service.    Each Award Agreement shall set forth the extent to which the Director shall have the
right to receive unvested Restricted Shares following termination of service as a Director. Such provisions shall be determined in the sole discretion of the Board, shall be included in the Award
Agreement entered into with each Director, need not be uniform among all Shares of Restricted Stock issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of
service. 

 
 

ARTICLE 8
  
    Restrictions on Shares; Puts, Calls and Rights of First Refusal    
    

        8.1    Restrictions on Shares.    All Shares acquired pursuant Awards granted hereunder shall be subject to any
applicable restrictions contained in the Company's Bye-laws, Memorandum of Association, or Shareholders Agreement. In addition, the Board may impose such restrictions on any Shares
acquired pursuant to Awards as it may deem advisable, including, without limitation, restrictions under applicable securities laws, under the requirements of any stock exchange or market upon which
such Shares are then listed and/or traded, restrictions under any blue sky or state securities laws applicable to such Shares. 

        8.2    Puts, Calls and Rights of First Refusal.    The Board may make Shares acquired pursuant to Awards granted
hereunder subject to call rights, put rights, and/or rights of first refusal as it may deem advisable and as set forth in the applicable Award Agreement. Any such rights shall terminate at the time of
an initial public offering of the Shares. 

 
 

ARTICLE 9
  
    Beneficiary Designation    
    

        Subject to the terms and conditions of the Plan and applicable Award Agreement, each Director may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Director, shall be in a form prescribed by the Company, and will be effective only when filed by the Director in writing during the Director's lifetime
with the party chosen by the Company, from time to time, to administer the Plan. In the absence of any such designation, benefits remaining unpaid at the Director's death shall be paid to the
Director's estate. 

 
 

ARTICLE 10
  
    Change in Control    
    

        10.1    Treatment of Outstanding Options and Restricted Stock.    Upon the occurrence of a Change in Control, unless
otherwise specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges: 

        (a)   any
and all Options granted hereunder shall become immediately exercisable, and shall remain exercisable throughout their entire term, unless exercised, cashed out, or
replaced; and 

6

 

        (b)   any
Period of Restriction imposed on Restricted Shares shall lapse. 

        10.2    Termination, Amendment, and Modifications of Change-in-Control
Provisions.    Notwithstanding any other provision of the Plan or any Award Agreement provision, the provisions of this Article 10 may not be terminated,
amended, or modified on or after the date of a Change in Control to affect adversely any Award theretofore granted under the Plan without the prior written consent of the Director with respect to such
Director's outstanding Awards. 

 
 

ARTICLE 11
  
    Amendment, Suspension, and Termination    
    

        11.1    Amendment, Suspension, and Termination.    The Board may at any time and from time to time amend, suspend or
terminate the Plan or any Award hereunder in whole or in part; provided, however, that no amendment which requires shareholder approval in order for the Plan to continue to comply with any applicable
tax or securities laws, or the rules of any securities exchange on which the securities of the Company are listed, shall be effective unless such amendment shall be approved by the requisite vote of
shareholders of the Company entitled to vote thereon; provided further that no amendment, suspension or termination shall adversely affect any Award hereunder without the consent of the Director to
whom such Award has been made. 

        11.2    Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.    The Board may make
adjustments in the terms and conditions of Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.2 herein) affecting the
Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Board determines that such adjustments are appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

 
 

ARTICLE 12
  
    Withholding    
    

        12.1    Tax Withholding.    The Company shall have the power and the right to deduct or withhold, or require a
Director to remit to the Company, an amount sufficient to satisfy any taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of
the Plan. 

        12.2    Share Withholding.    Directors may elect, subject to the approval of the Board, to satisfy all or part of
such withholding requirement by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory total tax which could be imposed on the transaction. All such elections
shall be irrevocable, made in writing, signed by the Director, and shall be subject to any restrictions or limitations that the Board, in its sole discretion, deems appropriate. 

 
 

ARTICLE 13
  
    Indemnification    
    

        Each person who is or shall have been a member of the Board shall be indemnified and held harmless by the Company to the fullest extent permitted by applicable
law against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in
settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding 

7

 

against
him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own
behalf. The foregoing right of indemnification is subject to the person having been successful in the legal proceedings or having acted in good faith and what is reasonably believed to be a lawful
manner in the Company's best interests. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Memorandum
of Association or the Bye-laws of the Company, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

 
 

ARTICLE 14
  
    Successors    
    

        The Company shall require any successor (whether direct or indirect, by purchase, merger, share exchange, reorganization, recapitalization, amalgamation,
consolidation, or otherwise) to all or substantially all of its business or assets to expressly assume and agree to perform under the Plan in the same manner and to the same extent that it would be
required to perform if no such succession had taken place. As used in the Plan, the term "Company" shall mean any successor that expressly assumes and agrees to perform the Plan, which otherwise
becomes bound by all the terms and provisions of the Plan by operation of law, or any other entity which expressly assumes the obligations under, and agrees to administer, the Plan, as determined by
the Board in its sole discretion. 

 
 

ARTICLE 15
  
    Miscellaneous    
    

        15.1    Legal Construction.    Except where otherwise indicated by the context, any masculine term used herein also
shall include the feminine, the plural shall include the singular, and the singular shall include the plural. References to sections, rules, or regulations shall be deemed to include references to any
successor sections, rules, or regulations. 

        15.2    Severability.    In the event any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

        15.3    Requirements of Law.    The granting of Awards and the issuance of Shares under the Plan shall be subject to,
and may be made contingent upon satisfaction of, all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

        15.4    Governing Law.    To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the Islands of Bermuda, without reference to principles of conflict of law. 

8

QuickLinks

Exhibit 4.5

AXIS Capital Holdings Limited 2003 Directors Long-Term Equity Compensation Plan

Table of Contents

AXIS Capital Holdings Limited 2003 Directors Long-Term Equity Compensation Plan

ARTICLE 1 Establishment, Objectives, and Duration

ARTICLE 2 Definitions

ARTICLE 3 Administration

ARTICLE 4 Shares Subject to the Plan and Maximum Awards

ARTICLE 5 Shares

ARTICLE 6 Options

ARTICLE 7 Restricted Stock

ARTICLE 8 Restrictions on Shares; Puts, Calls and Rights of First Refusal

ARTICLE 9 Beneficiary Designation

ARTICLE 10 Change in Control

ARTICLE 11 Amendment, Suspension, and Termination

ARTICLE 12 Withholding

ARTICLE 13 Indemnification

ARTICLE 14 Successors

ARTICLE 15 Miscellaneous

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