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Exhibits  

	 
	 	 

	4.26	 	Press Release dated October 23, 2002 — Noranda Reports Nine Month Loss of $27 Million (Interim Financial Statements)

  

 
 

EXHIBIT 4.26    
  

	 
	 
	 	 

	

 	

news release	
 	

Contacts:

Denis Couture

Vice-President, Public Affairs

& Communications

(416) 982-7020

Lars-Eric Johansson

Executive Vice-President

& Chief Financial Officer

(416) 982-3548

NORANDA REPORTS NINE MONTH LOSS OF $27 MILLION

Measures Taken to Reduce Costs by a Further $40 Million Annually  

        TORONTO, October 23, 2002 — Noranda Inc. today reported a net
loss of $27 million, or $0.18 per common share, for the nine months ended September 30, 2002. This compares to a net loss of $8 million, or $0.10 per common share, in 2001. 

        For
the third quarter, the net loss was $70 million, or $0.32 per common share. The net loss for the third quarter of 2001 was $60 million or $0.27 per share. 

        Results
for the quarter were negatively affected by both seasonal operational shutdowns and the ongoing strike at the Horne smelter, as well as low prices for zinc, copper and aluminum
and low treatment charges for copper concentrates. 

Operating Highlights  

	•
	Increased
cash operating margin by 6% despite lower prices.

	•
	Increased
cash flow from operations by $84 million for a total of $438 million year-to-date compared to
$265 million in 2001.

	•
	Non-union
employees operated the Horne smelter at 70% of capacity.

	•
	Implemented
restructuring measures to reduce costs by $40 million annually. 

Commentary  

        "We continue to experience low metal prices as a result of the challenging global environment. Despite this, we are retooling the business
to ensure we can capture greater cash flows as the economy recovers," said Derek Pannell, Noranda's President and Chief Executive Officer. "In this
regard, we are pursuing a number of initiatives to improve our cost structure and reduce capital expenditures. We have redoubled our efforts to strengthen cash margins, restructure exploration and
technology costs and cut expenses." 

Consolidated Results  

        Revenues for the quarter were lower than for the same period last year mainly on account of the sale of 51% of the CEZ zinc refinery in May 2002 and
reduced production due to the on-going strike at the Horne copper smelter. On a year-over-year comparison, average LME prices for zinc were off by 7% and aluminum
by 5% while copper and nickel increased by 3% and 24% respectively. In addition, income from treating custom copper and zinc concentrates were substantially lower during the quarter. 

        Operating
costs of $699 million were 4% lower than the third quarter 2001. As a result of the lower year-over-year metal prices, with the exception of
nickel, the cost to purchase raw materials also declined. 

1

 

        Depreciation,
amortization and reclamation expense in the third quarter of $174 million is higher than the same period last year reflecting the start-up of the new
aluminum foil plant and the Antamina copper/zinc mine in 2002. 

        Total
expenses for corporate and general administration, exploration and research of $45 million for the quarter is $10 million lower than last year mainly as a result of
the initiatives implemented in 2001 to address the Company's cost structure. Stock option compensation costs of $1 million were recorded during the quarter, $6 million for the year to
date. Effective January 1, 2002, Noranda uses the Black-Scholes valuation model to calculate the expense associated with its stock-based compensation plan. 

        Net
interest expense of $48 million includes interest income of $5 million. Interest capitalized in the quarter amounted to $11 million. Net debt, at the end of the
period, stood at $4.8 billion compared to $4.6 billion at the end of 2001. 

        On
October 22 2002, Noranda announced a reduction of approximately 300 positions, mostly as a result of the restructuring of the corporate office, exploration and technology
programs and the integrated Canadian Copper and Recycling business unit. These initiatives are expected to result in an annual cost reduction of $40 million. Fourth quarter operating results
will reflect a charge of approximately $15 million after tax relating to this restructuring. 

OPERATIONS  

Aluminum  

        The cash operating margin in the Aluminum business was $30 million in the quarter compared to $24 million in the corresponding quarter of 2001. The
LME aluminum price averaged US$0.60 during the quarter, approximately 5% below the third quarter 2001 average of US$0.63. 

        At
the primary aluminum operations, shipments of metal totaled 60,208 tonnes for the quarter exceeding that of the prior year by over 8%. Value-added products represent approximately 82%
of total shipments in 2002. 

        The
new aluminum foil plant in Huntingdon, Tennessee continues to ramp up as planned. Foil shipments in the quarter totaled 71 million pounds, 13% higher than last year, however,
the softer market for value-added products continue to have a negative impact on margins. 

Canadian Copper and Recycling  

        The Canadian Copper and Recycling business generated cash operating margins of $2 million in the quarter compared to $18 million in the comparable
period of 2001. 

        Operations
at both the Horne smelter and CCR refinery were negatively impacted by the Horne strike. Both facilities were shut down for a three-week period during the quarter.
Since the restart, operating rates have been gradually climbing with the Horne at approximately 70% of normal in September and CCR almost 65%. Negotiations between Noranda and the union that
represents the striking workers are scheduled to resume on October 28, 2002. 

        The
Kidd Mining Division's production was below target during the quarter due to the changeover to the new ventilation system which will service current mining areas, as well as Mine D.
The changeover has been completed and production is now running ahead of plan. 

        At
the Kidd Metallurgical Division, the concentrator performed as planned during the quarter, however lower copper feed grades continued to be offset by higher zinc grades. During the
quarter, a new three-year collective agreement was signed with the union that represents 674 production and maintenance employees at the site. 

2

 

Copper  

        The Copper business generated a cash operating margin of $78 million compared to $59 million in the corresponding quarter of 2001. Copper metal
prices on the LME averaged US$0.69 per pound for the quarter, 3% above the average for the corresponding quarter in 2001 of US$0.67. 

        At
the Antamina mine, throughput at the mill averaged 75,492 tonnes per day with an average grade of 1.33% copper and 1.23% zinc. The mine achieved the requirements for the production
completion certificate during the quarter and the environmental phase of the tests is expected to be completed by the end of the year. 

        Collahuasi's
production of 46,279 tonnes of copper concentrate and 6,794 tonnes of refined copper were slightly lower in the quarter as a result of an expected decline in ore grade. A
US$654-million expansion program is underway to boost capacity to 110,000 tonnes per day and compensate for an expected decline in ore grade. Falconbridge's share of the investment is
US$288 million. 

        Production
from the Lomas Bayas mine of 14,693 tonnes of refined copper was on target for the quarter. The mine was purchased at the end of July 2001 and contributed 9,924 tonnes
of refined copper in the third quarter of last year. 

        The
Altonorte smelter processed 121,990 tonnes of copper concentrate, an increase of 20% over the comparable period last year. The project to expand the smelter's processing capacity is
progressing well and mechanical completion is expected in early 2003. 

Nickel  

        Nickel operations generated a cash operating margin of $62 million in the quarter compared to $50 million in the corresponding quarter of 2001. The
LME nickel price averaged US$3.10 during the quarter compared to US$2.49 in 2001. 

        The
Sudbury mines and mill operated on target during the quarter. Following an extended maintenance and vacation shutdown, the smelter produced a record amount of nickel and matte during
September. The smelter is expected to run at full capacity for the remainder of the year. 

        At
the Raglan mine, production was slightly below target primarily as a result of operating problems and difficult weather conditions. 

        The
Nikkelverk refinery operated below capacity due to summer shutdowns and shortages of both mine and custom feeds. 

        Falcondo's
production of 6,948 tonnes of ferronickel was up slightly from the corresponding period of 2001. Bargaining began on October 22nd with the union that
represents the production and maintenance workers at the site. The current contract expires on November 30th, 2002. 

Zinc  

        The Zinc business recorded a cash operating loss of $7 million during the quarter compared with a margin of $18 million in the corresponding quarter
of 2001. The LME zinc price averaged US$0.35 per pound during the quarter compared to US$0.37 in 2001. 

        At
the Brunswick mine, mill throughput averaged 8,841 tonnes per day versus 10,443 tonnes in the third quarter 2001 as underground production was affected by above-normal seismic
activity. Operations at the Bell Allard mine were shut down during the month of July for market-related reasons. The mine produced 19,409 tonnes of zinc concentrate for the period. 

Other Operations  

        Production at the magnesium plant in Danville, Quebec was 7,168 tonnes for the quarter. Commercial production is now scheduled for the fourth quarter 2002 as a
result of unforeseen equipment problems encountered in the magnesium chloride prill transport system and the electrolysis cells. There are currently 22 of the 24 cells in operation. 

3

 

        American
Racing Equipment reported cash operating margins of $1 million compared to a loss of $9 million in the third quarter of 2001. Sales of higher-margin wheels to the
aftermarket now account for 66% of total sales compared to 54% in 2001. 

FINANCIAL RESOURCES AND LIQUIDITY  

        Cash realized from operations amounted to $84 million for the quarter and $438 million for the nine months to September 30, 2002, compared to
$34 million and $265 million in 2001, before taking into account changes in operating working capital. 

        During
the quarter, 1.1 million common shares were issued under the Dividend Re-investment Plan. This reduced Noranda's cash requirement for payment of the dividend by
approximately $19 million for the quarter. 

        Capital
investments for the nine-month period were $569 million compared to $1,048 million last year. For the fiscal year 2002, they are estimated to be
approximately $710 million of which $400 million relates to the expansion of the Altonorte copper smelter, the expansion project at Collahuasi, the construction of Mine D at Kidd Creek
and the completion of the magnesium plant. During the quarter, Noranda invested approximately $64 million to increase its ownership of Falconbridge and US$19 million for its portion of
the payment to Centromin which related to the purchase of the Antamina property, in Peru. 

        At
the end of the period, net debt was $4.8 billion representing approximately 46% of total capitalization. Proceeds from the second quarter debt issues of US$550 million
were used to repay commercial paper and retire US$200 million of maturing debentures. 

OUTLOOK  

        "We continue to focus our attention on the variables over which we have control. We have redoubled our efforts on cost containment and
capital investments so that we will be in even greater shape to benefit when the economy and metals prices recover from the current low levels," concluded Pannell. 

DIVIDEND  

        The following dividends have been declared: 

	Security
 
	 	Dividend Amount
 
	 	Record Date
 
	 	Payable Date
 

	Common shares	 	$0.20 per share	 	November 29, 2002	 	December 15, 2002
	Preferred Series F shares	 	Floating rate	 	November 29, 2002	 	December 12, 2002
	Preferred Series F shares	 	Floating rate	 	December 31, 2002	 	January 12, 2003

QUARTERLY WEBCAST  

        Noranda will be holding its quarterly teleconference on Thursday, October 24, 2002 at 14:00 Eastern Standard Time. The call will be broadcast live on the
internet via www.noranda.com. 

	(1)
	Cash operating margin is defined as sales plus share of earnings in associates less operating costs and raw material purchases. Management
believes that most of its shareholders, creditors, other stakeholders and analysts prefer to analyse the Company's results based on this performance measure. 

        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 nine 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).

4

 

-30-

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

        ATTACHMENTS  

5

 
 

NORANDA INC.
  
    CONSOLIDATED RESULTS
  
    ($ millions)    
  

	 
	 	Third Quarter
	 	Nine Months ended

September 30
	 
	 
	 	2002
	 	2001
	 	2002
	 	2001
	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales	 	 	1,381	 	 	1,457	 	 	4,681	 	 	4,716	 
	Share of earnings from associate	 	 	7	 	 	—	 	 	10	 	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	1,388	 	 	1,457	 	 	4,691	 	 	4,716	 
	 	 	
	 	
	 	
	 	
	 
	Operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating costs	 	 	699	 	 	727	 	 	2,234	 	 	2,223	 
	Purchase of raw materials	 	 	538	 	 	588	 	 	1,774	 	 	1,937	 
	 	 	
	 	
	 	
	 	
	 
	 	 	 	1,237	 	 	1,315	 	 	4,008	 	 	4,160	 
	 	 	
	 	
	 	
	 	
	 
	Cash operating margin	 	 	151	 	 	142	 	 	683	 	 	556	 
	Other Expenses (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation, amortization and reclamation	 	 	174	 	 	160	 	 	553	 	 	455	 
	Corporate and general administration	 	 	20	 	 	23	 	 	65	 	 	66	 
	Exploration	 	 	18	 	 	24	 	 	44	 	 	62	 
	Research	 	 	7	 	 	8	 	 	19	 	 	24	 
	Interest expense, net	 	 	48	 	 	31	 	 	135	 	 	89	 
	Other expense (income)	 	 	3	 	 	(2	)	 	(91	)	 	(65	)
	Taxes and provisions	 	 	(42	)	 	(33	)	 	(37	)	 	(90	)
	Minority interest in earnings of subsidiaries	 	 	(7	)	 	(9	)	 	22	 	 	23	 
	 	 	
	 	
	 	
	 	
	 
	Earnings (loss)	 	 	(70	)	 	(60	)	 	(27	)	 	(8	)
	 	 	
	 	
	 	
	 	
	 
	Earnings (loss) per common share — $	 	$	(0.32	)	$	(0.27	)	$	(0.18	)	$	(0.10	)
	 	 	
	 	
	 	
	 	
	 
	Diluted earnings (loss) per common share	 	$	(0.32	)	$	(0.27	)	$	(0.18	)	$	(0.10	)
	 	 	
	 	
	 	
	 	
	 
	Retained Earnings:	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Balance at beginning of year	 	 	 	 	 	 	 	 	896	 	 	1,199	 
	 	Earnings	 	 	 	 	 	 	 	 	(27	)	 	(8	)
	 	Dividends:  Common	 	 	 	 	 	 	 	 	(143	)	 	(143	)
	 	                    Preferred	 	 	 	 	 	 	 	 	(13	)	 	(13	)
	 	                    Other	 	 	 	 	 	 	 	 	(3	)	 	(2	)
	 	 	 	 	 	 	 	 	
	 	
	 
	 	Balance at end of period	 	 	 	 	 	 	 	 	710	 	 	(1,033	)
	 	 	 	 	 	 	 	 	
	 	
	 

Commitments (note 2)  

Noranda Inc. has approximately 239.9 million common shares outstanding as at September 30, 2002. 

 
 

NORANDA INC.
  
    CONSOLIDATED BALANCE SHEETS
  
    ($ millions)    
  

	 
	 	Sep. 30 2002
	 	Dec. 31 2001

	Assets	 	 	 	 
	Current assets	 	 	 	 
	 	Cash and cash equivalents	 	412	 	285
	 	Accounts receivable	 	877	 	829
	 	Inventories	 	1,431	 	1,463
	 	 	
	 	

	 	 	2,720	 	2,577
	Investments and advances	 	156	 	39
	Capital assets	 	8,786	 	9,208
	Other assets	 	245	 	208
	 	 	
	 	

	 	 	11,907	 	12,032
	 	 	
	 	

	
Liabilities and Shareholders' Equity	
 	

 	
 	

 
	Current Liabilities	 	 	 	 
	 	Bank advances and short-term notes	 	15	 	5
	 	Accounts and taxes payable	 	1,096	 	1,185
	 	Debt due within one year	 	636	 	512
	 	 	
	 	

	 	 	1,747	 	1,702
	

Long-term debt — wholly owned operations	
 	

2,121	
 	

2,028
	                           — partially-owned subsidiaries and
projects	 	2,408	 	2,340
	Liability element of convertible debentures	 	30	 	35
	Future income taxes	 	226	 	320
	Other deferred credits	 	597	 	590
	Minority interest in subsidiaries	 	1,142	 	1,220
	Shareholders' equity (Note 4)	 	3,636	 	3,797
	 	 	
	 	

	 	 	11,907	 	12,032
	 	 	
	 	

 
 

NORANDA INC.
  
    CONSOLIDATED STATEMENTS OF CASHFLOWS
  
    ($ millions)    
  

	 
	 	Third Quarter
	 	Nine Months ended

September 30
	 
	 
	 	2002
	 	2001
	 	2002
	 	2001
	 
	Cash realized from (used for):	 	 	 	 	 	 	 	 	 
	Operations	 	 	 	 	 	 	 	 	 
	 	Earnings adjusted for non-cash items	 	84	 	34	 	438	 	265	 
	 	Change in operating working capital	 	(47	)	56	 	(177	)	(31	)
	 	 	
	 	
	 	
	 	
	 
	 	 	37	 	90	 	261	 	234	 
	 	 	
	 	
	 	
	 	
	 
	Investment activities	 	 	 	 	 	 	 	 	 
	 	Capital expenditures	 	(182	)	(448	)	(569	)	(1,048	)
	 	Lomas Bayas cash acquired	 	—	 	17	 	—	 	17	 
	 	Investments and advances	 	(64	)	(8	)	(97	)	(15	)
	 	Sale of assets and investments	 	1	 	—	 	414	 	256	 
	 	 	
	 	
	 	
	 	
	 
	 	 	(245	)	(439	)	(252	)	(790	)
	 	 	
	 	
	 	
	 	
	 
	Financing activities	 	 	 	 	 	 	 	 	 
	 	Long-term debt, including current portion	 	(160	)	359	 	288	 	630	 
	 	Issue of common shares	 	19	 	1	 	21	 	2	 
	 	Settlement of stock options	 	—	 	—	 	(3	)	—	 
	 	Share purchase plan repayment	 	—	 	—	 	2	 	—	 
	 	 	
	 	
	 	
	 	
	 
	 	 	(141	)	360	 	308	 	632	 
	 	 	
	 	
	 	
	 	
	 
	Dividends	 	(63	)	(63	)	(190	)	(192	)
	 	 	
	 	
	 	
	 	
	 
	Cash generated/(used)	 	(412	)	(52	)	127	 	(116	)
	Cash, beginning of period	 	824	 	599	 	285	 	663	 
	 	 	
	 	
	 	
	 	
	 
	Cash, end of period	 	412	 	547	 	412	 	547	 
	 	 	
	 	
	 	
	 	
	 

 
 

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 estimated pre-tax gain on the sale was $94 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.    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 third quarter, the Company granted 91,175 stock options at a price of $15.90 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, 36% volatility, a weighted-
average expected dividend of 5.48% annually and an interest rate of 5.2%, and is being charged against net income over its vesting period. 

        Corporate
and general administration to September 30, 2002 include compensation costs of $6 million (this includes an amount of $4 million on options granted by
Noranda's partially-owned subsidiary) relating to outstanding options. 

4.    SHAREHOLDERS' EQUITY  

	 
	 	Sept 30, 2002
	 	Dec. 31, 2001

	Convertible Debentures	 	$	120	 	$	115
	Capital Stock	 	 	2,721	 	 	2,701
	Retained Earnings	 	 	710	 	 	896
	Currency translation and other	 	 	85	 	 	85
	 	 	
	 	

	 	 	$	3,636	 	$	3,797
	 	 	
	 	

5.    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. 

        Revenues
to September include exchange losses of $14 million for Noranda and $10 million for Noranda's partially-owned subsidiary
(2001 — $10 and $25 respectively). 

        Other
foreign currency exchange contracts, relating to foreign currency expenditures and other foreign currency denominated monetary assets and liabilities, generated a gain of
$5 million (2001 — negligible loss) by Noranda's partially-owned subsidiary. 

6.    PENSION BENEFIT PLANS  

        At September 30, 2002, Noranda's pension plan assets were $1,858 (Dec 2001- $2,096) while obligations were $2,239 (Dec 2001-
$2,170). 

        The
pension plan funding requirements for 2002 are $10 million for the Company and its wholly-owned operations and $38 million for the partially-owned subsidiaries, of
which $7 million and $36 million respectively have already been contributed as at September 30, 2002. 

7.    COMPARATIVE FIGURES  

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

8.    SEGMENTED INFORMATION  

        As reported last quarter, 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. 

	 
	 	Third Quarter 2002
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Sales	 	$	260	 	393	 	292	 	303	 	138	 	(5	)	$	1,381	 
	Share of earnings from associate	 	 	—	 	—	 	—	 	—	 	7	 	—	 	 	7	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	260	 	393	 	292	 	303	 	145	 	(5	)	 	1,388	 
	Cost of operations	 	 	133	 	141	 	123	 	194	 	74	 	34	 	 	699	 
	Purchased raw materials	 	 	97	 	250	 	91	 	47	 	78	 	(25	)	 	538	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cash operating margins	 	 	30	 	2	 	78	 	62	 	(7	)	(14	)	 	151	 
	Depreciation, amortization and reclamation	 	 	16	 	26	 	50	 	47	 	22	 	13	 	 	174	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating margins	 	$	14	 	(24	)	28	 	15	 	(29	)	(27	)	$	(23	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Corporate and general administration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(20	)
	Exploration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(18	)
	Research and development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(7	)
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(48	)
	Other expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(3	)
	Taxes and provisions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	42	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Earnings (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(70	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	11	 	32	 	54	 	35	 	1	 	49	 	$	182	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Third Quarter 2001
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Sales	 	$	239	 	505	 	246	 	299	 	168	 	—	 	$	1,457	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cost of operations	 	 	132	 	139	 	77	 	195	 	119	 	65	 	 	727	 
	Purchased raw materials	 	 	83	 	348	 	110	 	54	 	31	 	(38	)	 	588	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cash operating margins	 	 	24	 	18	 	59	 	50	 	18	 	(27	)	 	142	 
	Depreciation, amortization and reclamation	 	 	12	 	28	 	32	 	43	 	29	 	16	 	 	160	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating margins	 	$	12	 	(10	)	27	 	7	 	(11	)	(43	)	$	(18	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Corporate and general administration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(23	)
	Exploration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(24	)
	Research and development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(8	)
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(31	)
	Other income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	 
	Taxes and provisions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	33	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Earnings (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(60	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	25	 	41	 	243	 	37	 	10	 	92	 	$	448	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Nine Months ended September 30, 2002
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Sales	 	$	784	 	1,595	 	869	 	928	 	505	 	—	 	$	4,681	 
	Share of earnings from associate	 	 	—	 	—	 	—	 	—	 	10	 	—	 	 	10	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	784	 	1,595	 	869	 	928	 	515	 	—	 	 	4,691	 
	Cost of operations	 	 	401	 	546	 	363	 	530	 	300	 	94	 	 	2,234	 
	Purchased raw materials	 	 	288	 	1,013	 	217	 	157	 	203	 	(104	)	 	1,774	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cash operating margins	 	 	95	 	36	 	289	 	241	 	12	 	10	 	 	683	 
	Depreciation, amortization and reclamation	 	 	45	 	88	 	158	 	143	 	72	 	47	 	 	553	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating margins	 	$	50	 	(52	)	131	 	98	 	(60	)	(37	)	$	130	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Corporate and general administration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(65	)
	Exploration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(44	)
	Research and development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(19	)
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(135	)
	Other income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	91	 
	Taxes and provisions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	37	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(22	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Earnings (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(27	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash and cash equivalents	 	$	1,256	 	1,967	 	3,543	 	2,213	 	838	 	1,678	 	$	11,495	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	35	 	113	 	174	 	96	 	6	 	145	 	$	569	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

	 
	 	Nine Months ended September 30, 2001
	 
	 
	 	Aluminum
	 	Canadian Copper & Recycling
	 	Copper
	 	Nickel
	 	Zinc
	 	Other
	 	Total
	 
	Sales	 	$	766	 	1,814	 	634	 	923	 	541	 	38	 	$	4,716	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cost of operations	 	 	389	 	496	 	201	 	561	 	377	 	199	 	 	2,223	 
	Purchased raw materials	 	 	273	 	1,250	 	288	 	162	 	96	 	(132	)	 	1,937	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Cash operating margins	 	 	104	 	68	 	145	 	200	 	68	 	(29	)	 	556	 
	Depreciation, amortization and reclamation	 	 	37	 	86	 	82	 	120	 	83	 	47	 	 	455	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Operating margins	 	$	67	 	(18	)	63	 	80	 	(15	)	(76	)	$	101	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Corporate and general administration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(66	)
	Exploration	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(62	)
	Research and development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(24	)
	Interest, net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(89	)
	Other income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	65	 
	Taxes and provisions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	90	 
	Minority interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(23	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Earnings (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(8	)
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Total assets, excluding cash and cash equivalents	 	$	1,265	 	2,004	 	3,458	 	2,224	 	1,176	 	1,602	 	$	11,729	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	Capital expenditures	 	$	74	 	110	 	485	 	96	 	61	 	222	 	$	1,048	 
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 

 
 

NORANDA INC.
  
    PRODUCTION VOLUMES    
  

	 
	 	Third Quarter
	 	Nine Months

	 
	 	2002
	 	2001
	 	2002
	 	2001

	Mine Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Copper	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	10,744	 	8,005	 	32,784	 	28,498
	 	 	Matagami	 	1,429	 	2,394	 	5,373	 	6,530
	 	 	Brunswick	 	1,935	 	2,313	 	6,524	 	6,514
	 	 	INO	 	8,028	 	8,176	 	28,399	 	19,070
	 	 	Antamina — (33.75%)	 	25,577	 	—	 	83,267	 	—
	 	 	Collahuasi — (44%)	 	46,279	 	51,594	 	139,291	 	141,794
	 	 	Lomas Bayas	 	14,693	 	9,924	 	43,883	 	9,924
	 	 	Other	 	4,606	 	6,660	 	14,408	 	16,917
	 	 	
	 	
	 	
	 	

	 	 	113,291	 	89,066	 	353,929	 	229,247
	 	 	
	 	
	 	
	 	

	 	Zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	27,336	 	24,506	 	79,824	 	53,976
	 	 	Brunswick	 	65,941	 	77,168	 	206,817	 	226,046
	 	 	Matagami	 	19,409	 	24,578	 	63,064	 	66,738
	 	 	Antamina — (33.75%)	 	21,598	 	—	 	59,700	 	—
	 	 	Other	 	2,636	 	1,788	 	6,951	 	13,597
	 	 	
	 	
	 	
	 	

	 	 	136,920	 	128,040	 	416,356	 	360,357
	 	 	
	 	
	 	
	 	

	 	Nickel	 	11,359	 	12,878	 	38,693	 	35,232
	 	Ferronickel	 	6,948	 	5,636	 	17,212	 	19,162
	 	Lead	 	19,042	 	20,940	 	57,195	 	60,706
	 	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	773	 	530	 	2,755	 	1,779
	 	 	Brunswick	 	1,454	 	1,798	 	4,693	 	5,125
	 	 	Matagami	 	34	 	107	 	212	 	355
	 	 	Antamina — (33.75%)	 	595	 	—	 	1,819	 	—
	 	 	Other	 	62	 	93	 	189	 	231
	 	 	
	 	
	 	
	 	

	 	 	2,918	 	2,528	 	9,668	 	7,490
	 	 	
	 	
	 	
	 	

	Metal Production (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Refined copper	 	 	 	 	 	 	 	 
	 	 	C.C.R.	 	30,215	 	73,510	 	184,640	 	238,131
	 	 	Kidd Creek	 	39,327	 	24,950	 	110,467	 	93,000
	 	 	Nikkelverk	 	5,886	 	6,853	 	21,352	 	18,319
	 	 	Collahuasi — (44%)	 	6,794	 	6,577	 	19,802	 	19,124
	 	 	Lomas Bayas	 	14,693	 	9,924	 	43,883	 	9,924
	 	 	
	 	
	 	
	 	

	 	 	96,915	 	121,814	 	380,144	 	378,498
	 	 	
	 	
	 	
	 	

	 	Copper anodes	 	 	 	 	 	 	 	 
	 	 	Gaspe	 	—	 	24,259	 	29,612	 	82,965
	 	 	Horne	 	23,522	 	48,004	 	116,653	 	136,957
	 	 	Kidd Creek	 	35,436	 	23,292	 	108,139	 	95,734
	 	 	Altonorte	 	40,606	 	38,105	 	103,093	 	108,091
	 	 	
	 	
	 	
	 	

	 	 	99,564	 	133,660	 	357,497	 	423,747
	 	 	
	 	
	 	
	 	

	 	Refined zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	34,278	 	32,577	 	106,717	 	104,169
	 	 	C.E.Z. (Noranda Income Fund) — (100%-basis)	 	70,358	 	66,062	 	202,687	 	195,951
	 	 	
	 	
	 	
	 	

	 	 	104,636	 	98,639	 	309,404	 	300,120
	 	 	
	 	
	 	
	 	

	 	Refined nickel	 	 	 	 	 	 	 	 
	 	 	Nikkelverk	 	11,863	 	16,044	 	47,234	 	48,393
	 	 	Falcondo	 	6,948	 	5,636	 	17,212	 	19,162
	 	 	
	 	
	 	
	 	

	 	 	18,811	 	21,680	 	64,446	 	67,555
	 	 	
	 	
	 	
	 	

	 	Primary aluminum	 	59,749	 	53,431	 	175,963	 	165,549
	 	Fabricated Aluminum	 	32,194	 	28,589	 	96,369	 	87,317
	 	Refined lead	 	12,335	 	21,687	 	61,819	 	72,269
	 	Refined gold — 000 ounces	 	206	 	297	 	839	 	956
	 	Refined silver — 000 ounces	 	7,799	 	9,708	 	32,476	 	31,724

 
 

NORANDA INC.
  
    SALES VOLUMES & REALIZED PRICES    
  

	 
	 	Third Quarter
	 	Nine months

	 
	 	2002
	 	2001
	 	2002
	 	2001

	Metal Sales (tonnes, except as noted)	 	 	 	 	 	 	 	 
	 	Copper	 	 	 	 	 	 	 	 
	 	 	C.C.R.	 	36,340	 	76,590	 	211,832	 	256,948
	 	 	Kidd Creek	 	29,699	 	23,316	 	79,205	 	79,798
	 	 	Nikkelverk	 	11,470	 	9,784	 	40,731	 	22,867
	 	 	Antamina (concentrate) — (33.75%)	 	30,579	 	—	 	87,994	 	—
	 	 	Collahuasi — (44%)	 	42,390	 	47,694	 	137,767	 	143,851
	 	 	Lomas Bayas	 	14,402	 	13,149	 	44,665	 	13,149
	 	 	
	 	
	 	
	 	

	 	 	164,880	 	170,533	 	602,194	 	516,613
	 	 	
	 	
	 	
	 	

	 	Zinc	 	 	 	 	 	 	 	 
	 	 	Kidd Creek	 	34,508	 	34,613	 	108,699	 	109,300
	 	 	Antamina (concentrate) — (33.75%)	 	19,184	 	—	 	57,224	 	—
	 	 	Brunswick/Matagami (concentrate)	 	72,048	 	33,579	 	185,173	 	137,907
	 	 	
	 	
	 	
	 	

	 	 	125,740	 	68,192	 	351,096	 	247,207
	 	 	
	 	
	 	
	 	

	 	 	C.E.Z. (Noranda Income Fund) — (100% — basis)	 	73,269	 	64,126	 	205,440	 	193,695
	 	Nickel	 	14,780	 	17,201	 	50,685	 	46,207
	 	Ferronickel	 	6,279	 	5,550	 	14,282	 	19,800
	 	Aluminum	 	 	 	 	 	 	 	 
	 	 	Primary Aluminum — shipments	 	60,208	 	55,567	 	180,977	 	171,059
	 	 	Norandal — shipments	 	32,194	 	28,590	 	96,369	 	87,317
	 	Lead	 	14,293	 	22,120	 	60,505	 	73,545
	 	Gold — 000 ounces	 	110	 	300	 	700	 	801
	 	Silver — 000 ounces	 	 	 	 	 	 	 	 
	 	 	C.C.R.	 	7,348	 	10,706	 	32,596	 	31,391
	 	 	Kidd Creek	 	986	 	858	 	2,488	 	2,475
	 	 	Antamina — (33.75%)	 	590	 	—	 	1,680	 	—
	 	 	
	 	
	 	
	 	

	 	 	8,924	 	11,564	 	36,764	 	33,866
	 	 	
	 	
	 	
	 	

	Average Realized Prices — ($U.S. per pound, except as noted)	 	 	 	 	 	 	 	 
	 	 	Copper	 	0.74	 	0.73	 	0.75	 	0.76
	 	 	Copper — Falconbridge	 	0.67	 	0.66	 	0.72	 	0.73
	 	 	Zinc	 	0.40	 	0.42	 	0.41	 	0.47
	 	 	Zinc — Falconbridge	 	0.38	 	0.41	 	0.39	 	0.46
	 	 	Nickel	 	3.23	 	2.67	 	3.09	 	2.97
	 	 	Ferronickel	 	3.22	 	2.76	 	3.15	 	2.99
	 	 	4Aluminum	 	0.64	 	0.68	 	0.65	 	0.74
	 	 	Lead	 	0.21	 	0.25	 	0.24	 	0.26
	 	 	Gold ($US per ounce)	 	316.02	 	273.83	 	303.90	 	269.91
	 	 	Silver ($US per ounce)	 	4.70	 	4.31	 	4.63	 	4.43
	 	 	Silver — Falconbridge ($US per ounce)	 	4.70	 	4.21	 	4.64	 	4.40
	Exchange Rate (US$1 = Cdn$1)	 	1.56	 	1.55	 	1.57	 	1.54

QuickLinks

EXHIBIT 4.26

NORANDA INC. CONSOLIDATED RESULTS ($ millions)

NORANDA INC. CONSOLIDATED BALANCE SHEETS ($ millions)

NORANDA INC. CONSOLIDATED STATEMENTS OF CASHFLOWS ($ millions)

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

NORANDA INC. PRODUCTION VOLUMES

NORANDA INC. SALES VOLUMES & REALIZED PRICESQuickLinks
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Exhibits  

	 
	 	 

	4.27	 	Press Release dated November 15, 2002 — Antamina Copper-Zinc Mine experienced MudFlow

Exhibit 4.27  

Compania Minera Antamina  

	 
	 	 

	Press Release	 	Lima, November 15th, 2002

 
 

Antamina Copper-Zinc Mine experienced MudFlow
  
     — Concentrate Production Not Impacted —    
  

Lima,
Peru; November 15, 2002 — Compania Minera Antamina reported today that its copper-zinc mine experienced a mudflow within the open pit on
November 6, 2002. The incident occurred in an area where the mine is in the process of removing waste material and sediment from an old lake bottom. 

Sadly,
an employee, who was operating a tractor in the area, was killed in the event. In addition, several pieces of heavy-equipment including a shovel, haul truck and two drills were also surrounded
by the mudflow. Salvage operations are underway to recover the mining equipment. 

The
mudflow was mainly composed of sediments originally forming the bottom of a small lake, which had been drained during the preproduction period. It is estimated that the mudflow was
240 thousand cubic metres in volume, and was contained within the pit by rock berms. 

Mine
operations were re-established within 24 hours of the incident. No major impacts on concentrate production occurred or are foreseen. CMA is conducting a thorough investigation
of the incident. 

The
Antamina copper and zinc mine is located in the District of San Marcos (Huari), Department of Ancash, Peru. It is owned 33.75% by BHP Billiton, 33.75% by Noranda Inc., 22.5% by Teck Cominco
Limited and 10% by Mitsubishi Corporation. 

 – 30 – 

For further information please contact:  

Carlos
Oviedo, coviedo@antamina.com

Gonzalo Quijandría, gquijandria@antamina.com

Tel: (51-1) 217 3073 

QuickLinks

Antamina Copper-Zinc Mine experienced MudFlow — Concentrate Production Not Impacted —

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