Fording announces second quarter cash distribution
18 Giugno 2004 - 2:40AM
PR Newswire (US)
Fording announces second quarter cash distribution CALGARY, June 17
/PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) today announced that its second quarter cash
distribution of $1.00 per unit will be paid on July 15, 2004 to
unitholders of record on June 30, 2004. The ex-distribution date is
June 28, 2004. This distribution is in respect of the period from
April 1, 2004 to June 30, 2004. Tax Information for Cash
Distributions 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. It is expected that 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 2004 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. 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 subsidiary,
Fording Inc., holds a 65% ownership of Elk Valley Coal and is the
world's largest 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, capable of supplying approximately 25 million
tonnes of high-quality coal products annually to the international
steel industry. DATASOURCE: Fording Canadian Coal Trust CONTACT:
Catherine Hart, Coordinator, Investor Relations, Fording Canadian
Coal Trust, (403) 260-9817,
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