Fording announces 2006 second quarter cash distribution
22 Giugno 2006 - 9:06PM
PR Newswire (US)
CALGARY, June 22 /PRNewswire-FirstCall/ -- Fording Canadian Coal
Trust (TSX: FDG.UN, NYSE: FDG) today announced that the Trustees
have declared a second quarter cash distribution of C$1.00 per unit
to be paid on July 14, 2006 to unitholders of record on June 30,
2006. The ex-distribution date is June 28, 2006. This distribution
is for the period from April 1, 2006 to June 30, 2006. Previous
guidance provided by the Trust for the 2006 calendar year remains
unchanged, including Elk Valley Coal's sales guidance of 22-25
million tonnes. Tax Information for Cash Distributions The
information below is provided to assist unitholders in
understanding the tax treatment of distributions paid by the Trust.
For unitholders resident in Canada, income distributed by the Trust
will generally be treated as ordinary income from property except
where the income is sourced from capital gains realized by the
Trust or from dividends received by the Trust. In these cases, the
Trust intends to make appropriate designations in its tax returns
so that the capital gains or dividends will retain their character
when distributed to unitholders and will be subject to income tax
accordingly. Distributions to unitholders made in a year that are
greater than the net income of the Trust for the year will not be
included in unitholders' income but will be considered a return of
capital and a reduction of the cost base of the units. Income
distributed by the Trust to non-residents of Canada will be subject
to Canadian withholding tax of 25% subject to reduction under the
provisions of any applicable tax treaty or conventions. Canadian
withholding tax is generally 15% for U.S. holders. The Trust has
made an election to be taxed as a corporation for U.S. tax
purposes. Accordingly, distributions by the Trust will be
considered foreign- source dividend income to the extent paid out
of current or accumulated earnings and profits of the Trust,
determined under U.S. income tax principles. Assuming that
applicable unitholder-level requirements are met, these
distributions are "qualified dividends," eligible for taxation at
reduced rates under recent U.S. federal income tax legislation.
Payments in excess of current or accumulated earnings and profits
will be applied first to reduce the cost base of the units and then
as a capital gain should the cost base of the units be reduced to
zero. The Trust will issue a statement after the close of its
fiscal year (December 31) that will provide information for
Canadian and U.S. resident investors about the final
characterization of the 2006 Trust distributions for income tax
purposes. Unitholders should consult their own tax advisors for
advice with respect to the income tax consequences based on their
particular circumstances. About Fording Fording Canadian Coal Trust
is an open-ended mutual fund trust. Through investments in
metallurgical coal and industrial minerals mining and processing
operations, the Trust makes quarterly cash distributions to
unitholders. The Trust, through its wholly owned subsidiaries,
holds a 60% interest in the Elk Valley Coal Partnership and is a
leading producer of the industrial mineral wollastonite. Elk Valley
Coal, comprised of Canada's senior metallurgical coal mining
properties, is the world's second largest exporter of metallurgical
coal, supplying high-quality coal products to the international
steel industry. The Trust's shares are traded on the Toronto Stock
Exchange under the ticker symbol FDG.UN and on the New York Stock
Exchange under the symbol FDG. Forward-looking Information Certain
information included in this document is of a forward-looking
nature. Forward-looking information is subject to known and unknown
risks, as well as uncertainties and other factors. Accordingly,
actual results may differ materially from those expressed or
implied in forward-looking information. Some of the risks,
uncertainties and other factors affecting Fording Canadian Coal
Trust are discussed in our public filings with the securities
regulatory authorities in Canada and the United States. Copies of
Fording Canadian Coal Trust's Canadian filings, including our most
recent management information circular, annual information form,
annual report, quarterly reports, material change reports and news
releases, are available online at http://www.sedar.com/, and copies
of our U.S. filings, including our most recent annual report on
Form 40-F as supplemented by filings on Form 6-K, are available at
http://www.sec.gov/. Information in this document is presented as
of June 22, 2006 and is subject to change after this date. However,
Fording Canadian Coal Trust disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE:
Fording Canadian Coal Trust CONTACT: Paul Armstrong, Director,
Investor Relations, (403) 260-5215; Catherine Hart, Investor
Relations Analyst, (403) 260-9817; Email: , Website:
http://www.fording.ca/
Copyright