Noranda shareholders salute retiring Powis

Resources giant Noranda (TSE) bid adieu to its longtime chairman, Alfred Powis, in a tribute-filled annual meeting in Toronto.

Powis, 64, spent almost 40 years with the company, including 27 years as either chairman or president (at one time he filled both positions).

“The 40 years I’ve spent with Noranda have been marked by considerable turbulence, a great deal of excitement and profound change,” he said.

“To take just one measure of change, when I joined the company, it had total assets of $120 million, almost entirely focused on minerals. Today, in constant dollars, Noranda is some 18 times larger, with assets spread over three major businesses. And the main source of earnings 40 years ago, the Horne mine, has long since been depleted.”

Powis, a native of Montreal, graduated from McGill University in 1951 with a bachelor of commerce degree. He worked for Sun Life Assurance Co. before joining Noranda Mines in 1955 as an internal auditor.

Today, Noranda’s interests, which span the globe, include forestry and oil and gas, in addition to mining and metals.

Powis is retiring at a time when the fortunes of the company, which are always open to the cyclical nature of the various resource sectors, are on the upswing. According to David Kerr, who moves from president to chairman, “Noranda’s balance sheet is the strongest it has been for more than 15 years.” Net earnings for 1994 amounted to $330 million, compared with a loss of $37 million for the previous year. In the first quarter of this year, the company reported net earnings of $158 million, up from $44 million for the same 3-month period in 1994.

During the first quarter, the mining and metals group enjoyed higher prices for copper, nickel and aluminum, and also benefited (through exports) from a weaker Canadian dollar. Improved margins and metals premiums in the copper and zinc metallurgical businesses also enhanced results.

Kerr said Noranda had been able to improve its balance sheet through debt reduction. Ten years ago, debt stood at 50% of total capital. In 1992, it was 40%. Today, Kerr said, it is 20% and declining.

Replacing Kerr as president is Courtney Pratt, formerly executive vice-president.

New projects under way include a 58,000-tonne-per-year magnesium plant to be built in Quebec, with the feed coming from mine tailings. And through subsidiary Novicourt (TSE), Noranda is participating in the recently opened Louvicourt massive sulphide mine near Val d’Or, Que.

A shareholder from the U.S. raised the issue of Noranda’s indirect involvement in the New World gold project being developed near Yellowstone National Park in Montana. The shareholder warned that environmental implications will prevent the project from being completed.

The project belongs to Crown Butte Resources (TSE), which is 60%-owned by Hemlo Gold (TSE). The latter company is controlled by Noranda.