Canada-based Noranda Income Fund (The Fund) estimates zinc metal production to be between 260,000-270,000mt for 2020. The company has stated that there are various risks and uncertainties in meeting the set target. Noranda Income Fund has released its Q3 (September quarter) performance on November 5.
The company produced 64,748mt of zinc, down by 2pc in Q3 from the previous year. Zinc metal sales was also down 2pc to 64,749mt in Q3, compared to previous year. The company’s measures implemented to curb COVID-19 has lead to added costs and complexity in Q3 but sales and production volumes remained stable and the company’s expansion is on track to achieve 2020 output and sales guidance.
The company’s concentrate inventory continue to be variable on the back of large and irregular offshore deliveries, said the company. Production costs before change in inventory in the September quarter were $31.4mn, $2.1mn lower than the $33.5mn recorded in the year prior.
Unit production costs in Q3 were $485/mt, compared to $507/mt in the previous year, reflecting the decreased production costs offset by lower production volumes in Q3, said the company.
The company posted net loss before tax at $4.1mn in Q3 compared to a profit before taxes of $15.5mn in 2019 Q3.
The Fund owns the electrolytic zinc processing facility and ancillary assets in Salaberry-de-Valleyfield, Québec. The processing facility is the second-largest zinc processing facility in North America. The company produces refined zinc metal and various by-products from sourced zinc concentrates.