Fording Announces Record Third Quarter Cash Distribution
22 Settembre 2005 - 3:47AM
PR Newswire (US)
2005 Guidance Revised CALGARY, Sept. 21 /PRNewswire-FirstCall/ --
Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) today
announced that its third quarter cash distribution of C$1.80 per
unit will be paid on October 14, 2005 to unitholders of record on
September 30, 2005. The ex-distribution date is September 28, 2005.
This distribution is for the period from July 1, 2005 to September
30, 2005. Unitholders are advised that this distribution is on a
post-split basis. 2005 Guidance Update The Trust is revising its
expectations for coal sales volumes for the 2005 calendar year to
reflect a decrease in Elk Valley Coal's estimate of 2005 coal sales
volumes. Elk Valley Coal is estimating sales volumes for 2005 will
be in the range of 25.5-26.5 million tonnes of which the Trust's
share is 60%. Elk Valley Coal is reducing its coal sales estimate
primarily due to lower than anticipated production volumes at its
Cardinal River mine. There is also a possibility that some sales
will slip into the 2006 calendar year and uncertainty as to
shipments to some steelmakers in China. Tax Information for Cash
Distributions The Trust reorganization approved by unitholders at
the recent Annual and Special Meeting was completed in August. As a
result of the reorganization, Canadian federal income taxes are no
longer deducted from the Trust's share of income received from Elk
Valley Coal. However, taxes will be payable by unitholders on
distributions paid to them by the Trust. 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. 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 2005 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 subsidiaries,
holds a 60% interest in the Elk Valley Coal Partnership and is the
world's largest producer of the industrial mineral wollastonite.
Elk Valley Coal Partnership, comprised of Canada's senior
metallurgical coal mining properties, is the world's second largest
exporter of metallurgical coal, and expects to supply approximately
26 million tonnes of high-quality coal products to the
international steel industry in 2005. 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 September 21, 2005 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: Susan J.
Soprovich, Director, Investor Relations, Fording Canadian Coal
Trust, (403) 260-9834; Catherine Hart, Investor Relations Analyst,
Fording Canadian Coal Trust, (403) 260-9817; Email: , Website:
http://www.fording.ca/
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