Fording Announces Fourth Quarter Cash Distribution
16 Dicembre 2003 - 12:39AM
PR Newswire (US)
Fording Announces Fourth Quarter Cash Distribution CALGARY, Dec. 15
/PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) today announced that its fourth quarter cash
distribution of $1.00 per unit will be paid on January 15, 2004 to
unitholders of record on December 31, 2003. The ex-distribution
date is December 29, 2003. This distribution is in respect of the
period from October 1, 2003 until December 31, 2003. The Trust has
paid or declared cash distributions totalling $4.49 per unit for
the 10-month period beginning when the Trust was formed to December
31, 2003, based on the number of units outstanding at each record
date. Of this amount, $2.993362 per unit represented income
regularly distributed by the Trust. For the first and second
quarters of 2003 the Trust also paid cash totalling $1.496638 per
unit as the special distribution contemplated by the plan of
arrangement that formed the Trust. Tax Information For unitholders
resident in Canada, income regularly 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. The special
distribution of $1.496638 per unit represents a return of capital
to unitholders. Income regularly 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 special distribution was not subject to
Canadian withholding taxes. The Trust has made an election to be
taxed as a corporation for U.S. tax purposes. Accordingly,
distributions by the Trust, including the special distribution,
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. Payments in
excess of these 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) and prior to the mailing of income tax slips and
forms that will provide information for Canadian and U.S. resident
investors about the final characterization of Trust distributions
for income tax purposes. Information with respect to other
Canadian, United States and foreign tax considerations is included
in the Third Supplement to the Management Information Circular for
the Special Meeting dated January 27, 2003. Unitholders should also
consult their tax advisors. Fording Canadian Coal Trust is an
open-ended investment 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 the Elk Valley Coal Corporation and is the world's
largest producer of the industrial mineral wollastonite. The Elk
Valley Coal Corporation, 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:
Mark Gow, CA, Director, Investor Relations, Fording Canadian Coal
Trust, 403-260-9834,
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