Noranda Aluminum Holding Corporation Reports Third Quarter 2007 Results

Noranda Aluminum Holding Corporation (“Noranda” or the “Company”) announced its results for the three and nine months ended September 30, 2007. Sales increased to $359.6 million in the three months ended September 30, 2007 compared to sales of $349.9 million in the three months ended September 30, 2006 due primarily to a 12.5% increase in shipment volumes in our upstream business and partially offset by a 5.3% decrease in sales volumes in our downstream business. Operating income for the three months ended September 30, 2007 decreased to $26.9 million from $50.4 million in the three months ended September 30, 2006, primarily due to higher depreciation and amortization expense as a result of the allocation of the cost of the acquisition of Noranda Aluminum, Inc. by affiliates of Apollo Management, L.P. in May 2007 (the “Apollo Acquisition”). Adjusted EBITDA decreased to $69.0 million in the three months ended September 30, 2007 from $75.5 million in the three months ended September 30, 2006, due mainly to higher energy costs. The Company generated cash flows from operating activities of $39.6 million for the three months ended September 30, 2007.

Bill Brooks, the Company’s President and CEO, stated, “Our operations continued to perform well during the 3rd quarter, with record production levels attained at our New Madrid smelter for the three and nine months ended September 30, 2007. The Gramercy alumina refinery and the St. Ann bauxite mine both operated in line with our expectations, with no disruptions despite Hurricane Dean’s passage over Jamaica. While LME aluminum prices declined during the latest quarter, our aluminum hedges cushioned the impact of this decline on our cash flow. Also, notwithstanding the technical sell-off impacting the spot price of aluminum over the last quarter, the global supply/demand fundamentals for primary aluminum remain quite strong.

“Our downstream segment increased volumes in the 3rd quarter by 6% over those in the previous quarter, but average prices were down reflecting a weaker aluminum industry demand environment and a shift in product mix. In response to the softness in some of our end markets, we have flexed our operations, our workforce and our product mix to optimize output on our lowest cost mills with the goal of maximizing cash flow.

“The record performance at the smelter was especially gratifying, given that negotiations for a new labor contract were underway during most of August, which is a strong reflection of the quality of our dedicated workforce. A new five-year contract was agreed to in late August with an all-in cost increasing annually at 3% per year. With this labor contract, a secure power contract, our aluminum hedges, and continuing strong global demand for aluminum, we believe Noranda Aluminum is well positioned to generate earnings and cash flow.”

Sales increased to $1,059.5 million in the nine months ended September 30, 2007 from $999.2 million in the nine months ended September 30, 2006. Operating income for the nine months ended September 30, 2007 was $129.1 million compared to $157.8 million for the nine months ended September 30, 2006. Adjusted EBITDA grew to $242.6 million in the nine months ended September 30, 2007 from $217.8 million in the nine months ended September 30, 2006. Adjusted EBITDA for the Last Twelve Month period ended September 30, 2007 was $325.3 million, compared with $300.5 million for the year ended December 31, 2006.

For the three months ended September 30, 2007, cash flows from operating activities were favorably impacted by decreases in inventories in the Company’s upstream and downstream businesses. During this quarter, Noranda entered into additional forward aluminum sales contracts. Including the most recent hedges, the Company has hedged approximately 45% of forecasted production through 2010. Additionally in this quarter, the Company made its scheduled quarterly principal payment, reducing the term loan b balance to $423.8 million, and total consolidated debt to $1,151.6 million at September 30, 2007. The Company has a $250.0 million revolving credit facility of which $246.5 million was available at September 30, 2007.

Adjustment in Basis of Accounting

In the Press Release for the quarter ending June 30, 2007, published on September 19, 2007, the financial information of Noranda Aluminum, Inc. as of and for the year ended December 31, 2006 and for the period from January 1, 2007 to May 17, 2007 was prepared under U.S. generally accepted accounting principles (“U.S. GAAP”) applicable to privately held companies. Accordingly, the acquisition, on August 15, 2006, by Xstrata plc of Falconbridge Limited, the Company’s parent at that time, (the “Xstrata Acquisition”) was not reflected in the financial information of Noranda Aluminum, Inc. for those periods. In this document, the Company has applied U.S. GAAP applicable to public companies, in particular Staff Accounting Bulletin Topic 5-J (SAB Topic 5-J), and accordingly, management has revised the aforementioned financial information of Noranda Aluminum, Inc. to reflect the application of SAB Topic 5-J to the Xstrata Acquisition. In doing so, management has applied push-down accounting to the financial information of Noranda Aluminum, Inc. as of and for the year ended December 31, 2006 and for the period from January 1, 2007 to May 17, 2007 by treating the transactions leading to the Xstrata Acquisition as a step acquisition using the purchase method. Under the purchase method of accounting, the purchase price consideration in excess of the acquired assets and liabilities has to be allocated to the assets acquired and the liabilities assumed, including identifiable intangible assets, with the residual being recorded as goodwill.

Noranda Aluminum Holding Corporation

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

September 30, 2007

 

December 31, 2006

$

 

$

 

(as adjusted)

ASSETS

Current assets:

Cash and cash equivalents

83,542

40,549

Accounts receivable

Trade, less allowance for doubtful accounts

149,113

143,497

Affiliates

–

14,884

Inventories

157,439

168,645

Deferred tax assets

–

7,614

Other current assets

18,987

 

9,949

Total current assets

409,081

 

385,138

 

Advances due from parent

–

10,711

Investments in affiliates

194,202

183,266

Property, plant and equipment, net

670,354

672,837

Goodwill

258,087

478,001

Other intangible assets, net

71,079

52,002

Other assets

76,668

 

41,625

Total assets

1,679,471

 

1,823,580

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

Trade

66,985

66,509

Affiliates

29,316

54,339

Accrued liabilities

71,767

34,868

Deferred tax liabilities

19,872

–

Current portion of long-term debt due to third parties

5,000

 

–

Total current liabilities

192,940

 

155,716

 

Long-term debt due to related party

–

160,000

Long-term debt due to third parties

1,146,616

–

Pension and other long-term liabilities

100,395

68,149

Deferred tax liabilities

234,307

 

232,048

Total liabilities

1,674,258

 

615,913

Total shareholders’ equity

5,213

 

1,207,667

Total liabilities and shareholders’ equity

1,679,471

 

1,823,580

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

 

Pre-predecessor

Three MonthsEndedSeptember 30,2007

 

Period fromAugust 16, 2006to September 30,2006

 

Period fromJuly 1, 2006 toAugust 15, 2006

$

 

$

 

$

Sales

359,575

 

 

183,141

 

 

166,761

 

Operating costs and expenses

 

 

Cost of sales

329,540

154,179

138,939

Selling, general and administrative expenses

3,316

2,787

3,044

Other recoveries, net

(137

)

 

22

 

 

519

 

332,719

 

 

156,988

 

 

142,502

 

Operating income

26,856

 

 

26,153

 

 

24,259

 

 

Other expenses (income)

Interest expense (income), net:

Parent and a related party

–

2,098

2,433

Third-party

27,403

(260

)

(39

)

(Gain) loss on derivative instruments and hedging activities

(4,504

)

4,893

815

Equity in net income of investments in affiliates

(1,055

)

(1,610

)

(777

)

Other, net

–

 

 

(20

)

 

(10

)

21,844

 

 

5,101

 

 

2,422

 

Income before income taxes

5,012

21,052

21,837

Income tax expense

2,762

 

 

10,976

 

 

145

 

Net income for the period

2,250

 

 

10,076

 

 

21,692

 

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

 

Pre-predecessor

Period fromMay18, 2007toSeptember30, 2007

 

Period fromJanuary1, 2007toMay17, 2007

 

Period fromAugust16, 2006toSeptember30, 2006

 

Period fromJanuary1, 2006toAugust15, 2006

$

 

$

 

$

 

$

 

(as adjusted)

 

 

Sales

547,471

 

 

512,055

 

 

183,141

 

 

816,042

 

Operating costs and expenses

Cost of sales

494,866

419,374

154,179

674,365

Selling, general and administrative expenses

8,642

7,749

2,787

10,097

Other recoveries, net

(143

)

 

(37

)

 

22

 

 

(56

)

503,365

 

 

427,086

 

 

156,988

 

 

684,406

 

Operating income

44,106

 

 

84,969

 

 

26,153

 

 

131,636

 

 

Other expenses (income)

Interest expense (income), net:

Parent and a related party

–

7,187

2,098

12,576

Third-party

41,730

(952

)

(260

)

96

(Gain) loss on derivative instruments and hedging activities

(5,093

)

56,939

4,893

16,632

Equity in net income of investments in affiliates

(2,703

)

(4,876

)

(1,610

)

(8,337

)

Other, net

–

 

 

–

 

 

(20

)

 

45

 

33,934

 

 

58,298

 

 

5,101

 

 

21,012

 

Income before income taxes

10,172

26,671

21,052

110,624

Income tax expense

4,959

 

 

12,935

 

 

10,976

 

 

32,944

 

Net income for the period

5,213

 

 

13,736

 

 

10,076

 

 

77,680

 

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

 

Pre-predecessor

Period fromMay18, 2007toSeptember30, 2007

 

Period fromJanuary 1, 2007toMay17, 2007

 

Period from August16, 2006toSeptember30, 2006

 

Period fromJanuary1, 2006toAugust15, 2006

$

 

$

 

$

 

$

 

(as adjusted)

 

 

Cash provided by operating activities

150,884

 

 

41,169

 

 

52,480

 

 

81,875

 

 

Cash flows from investing activities

Capital expenditures

(18,353

)

(5,768

)

(3,889

)

(20,538

)

Net increase (decrease) in advances due from parent

 

–

10,925

(24,473

)

–

Proceeds from disposal of equipment

–

–

–

25

Payments for the Apollo Acquisition

(1,161,519

)

 

–

 

 

–

 

 

–

 

Cash (used in) provided by investing activities

(1,179,872

)

 

5,157

 

 

(28,362

)

 

(20,513

)

 

Cash flows from financing activities

Proceeds from issuance of shares

216,130

–

–

–

Distribution to shareholders

(216,130

)

–

–

–

Capital contributions from parent

–

101,256

–

–

Distributions to parent

–

(25,000

)

–

–

Net (decrease) increase in advances payable to parent

–

–

(24,202

)

21,723

Payment for exercise of stock options

–

–

–

(7,428

)

Borrowings on long-term debt

1,227,800

–

–

73,000

Deferred financing costs

(39,020

)

–

–

–

Repayments on long-term debt

(76,250

)

 

(160,000

)

 

–

 

 

(125,000

)

Cash provided by (used in) financing activities

1,112,530

 

 

(83,744

)

 

(24,202

)

 

(37,705

)

Net change in cash and cash equivalents

83,542

(37,418

)

(84

)

23,657

Cash and cash equivalents, beginning of period

–

 

 

40,549

 

 

25,031

 

 

1,374

 

Cash and cash equivalents, end of period

83,542

 

 

3,131

 

 

24,947

 

 

25,031

 

Noranda Aluminum Holding Corporation

Unaudited Supplemental Segment Information

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

 

Pre-predecessor

 

CombinedPre-predecessorand Predecessor

Three MonthsEndedSeptember 30,2007

 

Period fromAugust 16,2006toSeptember 30,2006

 

Period fromJuly 1,2006toAugust 15,2006

 

Three MonthsEndedSeptember 30,2006

$

 

$

 

$

 

$

Upstream:

 

 

 

Sales

183,280

82,752

80,257

163,009

Operating income

24,550

20,903

19,132

40,035

Shipments (pounds)

141,044

67,987

57,423

125,410

Capital expenditures

12,831

3,378

3,665

7,043

 

Downstream:

Sales

176,295

100,389

86,504

186,893

Operating income

2,306

5,250

5,127

10,377

Shipments (pounds)

103,478

59,779

49,454

109,233

Capital expenditures

1,940

511

2,933

3,444

Noranda Aluminum Holding Corporation

Unaudited Supplemental Segment Information

(Unaudited)

(in thousands)

 

Successor

 

Predecessor

 

Combined Predecessorand Successor

 

Predecessor

 

Pre-predecessor

 

Combined Pre-predecessorand Predecessor

Period fromMay 18, 2007to September30, 2007

 

Period fromJanuary 1,2007 to May17, 2007

 

Nine MonthsEndedSeptember 30,2007

 

Period fromAugust 16, 2006to September 30,2006

 

Period fromJanuary 1, 2006to August 15,2006

 

Nine MonthsEndedSeptember 30,2006

$

 

$

 

$

 

$

 

$

 

$

 

(as adjusted)

 

 

 

 

Upstream:

Sales

280,675

267,711

548,386

82,752

400,316

483,068

Operating income

41,682

76,904

118,586

20,903

121,461

142,364

Shipments (pounds)

207,198

194,869

402,067

67,987

308,831

376,818

Capital expenditures

15,810

4,389

20,199

3,378

17,078

20,456

 

Downstream:

Sales

266,796

244,344

511,140

100,389

415,726

516,115

Operating income

2,424

8,065

10,489

5,250

10,175

15,425

Shipments (pounds)

153,768

135,566

289,334

59,779

259,071

318,850

Capital expenditures

2,543

1,379

3,922

511

3,460

3,971

Adjusted EBITDA

Certain corporate actions are limited by the covenants contained in our credit agreement and our indentures. These covenants are based on ratios which are based on pro forma Adjusted EBITDA. As of September 30, 2007 the Company is in compliance with the covenant requirements.

EBITDA represents net income before income taxes, net interest expense, and depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA by the items described below. We have provided EBITDA and Adjusted EBITDA because we believe they provide investors with additional information to measure our performance and evaluate our ability to service our indebtedness. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. GAAP and may not be comparable to similarly titled measures used by other companies in our industry. EBITDA and Adjusted EBITDA should not be considered in isolation or as alternatives to net income, income from continuing operations, operating income or any other performance measures derived in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. For example, EBITDA and Adjusted EBITDA exclude certain tax payments that may represent a reduction in cash available to us; do not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; do not reflect capital cash expenditures, future requirements for capital expenditures or contractual commitments; do not reflect changes in, or cash requirements for, our working capital needs; and do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness. You should not consider our EBITDA or Adjusted EBITDA as an alternative to operating or net income, determined in accordance with U.S. GAAP, as an indicator of our operating performance, or as an alternative to cash flows from operating activities, determined in accordance with U.S. GAAP, as an indicator of our cash flows or as a measure of liquidity.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods presented:

 

 

Successor

 

Predecessor

 

CombinedPredecessorandSuccessor

 

Predecessor

 

Pre-predecessor

 

CombinedPre-predecessorandPredecessor

 

Combined,Predecessorand Successor

 

CombinedPre-predecessorandPredecessor

(in thousands)

 

May 18,2007toSeptember30, 2007

 

January 1,2007toMay 17,2007

 

NineMonthsendedSeptember30, 2007

 

August 16,2006 toSeptember30, 2006

 

January 1,2006 toAugust 15,2006

 

NineMonthsendedSeptember30, 2006

 

Last TwelveMonthsEndedSeptember30, 2007

 

Year EndedDecember31, 2006

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

(as

adjusted)

 

 

 

 

 

 

(as

adjusted)

Net income

5,213

13,736

18,949

10,076

77,680

87,756

50,071

118,878

Income taxes

4,959

12,935

17,894

10,976

32,944

43,920

37,565

63,591

Interest expense, net

41,730

6,235

47,965

1,838

12,672

14,510

52,454

18,999

Depreciation and

amortization

42,194

 

29,637

 

71,831

 

 

10,449

 

23,968

 

34,417

 

 

94,726

 

 

57,312

 

EBITDA

94,096

 

62,543

 

156,639

 

 

33,339

 

147,264

 

180,603

 

 

234,816

 

 

258,780

 

 

Joint venture EBITDA (a)

11,292

10,573

10,075

9,356

LIFO expense (b)

7,072

2,892

11,489

7,309

LCM adjustment (c)

8,790

–

8,790

–

Non-cash derivative

gains and losses (d)

51,846

5,540

53,759

7,453

Non-recurring natural

gas losses (gains) (e)

–

15,985

(1,354

)

14,631

Incremental stand-

alone costs (f)

(2,700

)

(3,825

)

(3,375

)

(4,500

)

Other items, net (g)

9,708

 

6,047

 

 

11,112

 

 

7,451

 

Adjusted EBITDA

242,647

 

217,815

 

 

325,312

 

 

300,480

 

 

Successor

 

Predecessor

 

Pre-predecessor

 

Combined Pre-predecessorandPredecessor

(in thousands)

 

Three MonthsendedSeptember 30,2007

 

August 16,2006 toSeptember 30,2006

 

July 1, 2006to August 15,2006

 

Three MonthsendedSeptember 30,2006

$

 

$

 

$

 

$

Net income

2,250

 

10,076

 

21,692

 

31,768

Income taxes

2,762

10,976

145

11,121

Interest expense, net

27,403

1,838

2,394

4,232

Depreciation and amortization

29,264

 

 

10,449

 

5,451

 

15,900

 

EBITDA

61,679

 

 

33,339

 

29,682

 

63,021

 

 

Joint venture EBITDA (a)

4,194

3,358

LIFO expense (b)

(1,417

)

(597

)

LCM adjustment (c)

6,918

–

Non-cash derivative gains andlosses (d)

(4,504

)

3,302

Non-recurring natural gas losses (e)

–

2,406

Incremental stand-alone costs (f)

–

(1,275

)

Other items, net (g)

2,150

 

5,334

 

Adjusted EBITDA

69,020

 

75,549

 

(a) Our upstream business is fully integrated from bauxite mined by the St. Ann Bauxite Limited joint venture to alumina produced by the Gramercy Alumina LLC joint venture to primary aluminum metal manufactured by our aluminum smelter in New Madrid, Missouri. Our reported EBITDA includes 50% of the net income of the Gramercy Alumina LLC and St. Ann Bauxite Limited joint ventures, based on transfer prices that are generally in excess of the actual costs incurred by the joint venture operations. To reflect the underlying economics of the vertically integrated upstream business, this adjustment eliminates the following components of equity income to reflect 50% of the EBITDA of the joint ventures, for the following combined periods:

 

Successor

 

Combined Pre-predecessor and Predecessor

 

Combined Pre-predecessor and Predecessor

 

Combined Predecessor and Successor

 

Combined Pre-predecessor and Predecessor

(in thousands)

 

ThreeMonthsendedSeptember30, 2007

 

ThreeMonthsendedSeptember30, 2006

 

Year ended December31, 2006

 

NineMonthsendedSeptember30, 2007

 

NineMonthsended September30, 2006

$

 

$

 

$

 

$

 

$

 

 

(as adjusted)

 

 

Depreciation and amortization

expenses

3,560

2,356

8,546

9,166

6,984

Net tax expense

884

1,002

3,600

2,376

3,589

Interest income

(250

)

–

(300

)

(250

)

–

Non-cash purchase accounting

adjustments

–

 

 

–

 

(2,490

)

 

–

 

 

–

Total joint venture EBITDA

adjustments

4,194

 

 

3,358

 

9,356

 

 

11,292

 

 

10,573

(b) We use the LIFO method of inventory accounting for financial reporting and tax purposes. To achieve better matching of revenues and expenses, particularly in the downstream business where customer LME pricing terms generally correspond to the timing of primary aluminum purchases, this adjustment restates EBITDA to the FIFO method of inventory accounting by eliminating the LIFO expenses related to inventory held at the smelter and downstream facilities. The adjustment also includes non-cash charges relating to inventories that have been revalued at fair value at the date of the Xstrata Acquisition and Apollo Acquisition and recorded in cost of sales during the periods presented resulting from the sales of inventories.

(c) Reflects adjustments to reduce inventory to the lower of cost, adjusted for purchase accounting, to market value.

(d) We use derivative financial instruments to mitigate effects of fluctuations in aluminum prices. We do not enter into derivative financial instruments for trading purposes. This adjustment eliminates the non-cash gains and losses resulting from fair market value changes of aluminum swaps.

(e) During 2006, as mandated by Falconbridge, we entered into natural gas swaps for the period between April and December 2006 in response to rising natural gas costs at the end of 2005. Natural gas prices, however, decreased in 2006, and as a result, we generated losses on the natural gas swaps. This adjustment eliminates the non-recurring losses incurred from the natural gas swaps.

(f) Reflects (i) the incremental insurance, audit and other administrative costs on a stand-alone basis, net of certain corporate overheads allocated by the former parent that we no longer expect to incur on a go-forward basis and (ii) the elimination of income from administrative and treasury services provided to Noranda Aluminum, Inc.’s former parent and its affiliates that are no longer provided.

(g) Represents the elimination of non-cash and non-recurring items such as stock option expenses, gains and losses from disposal of assets, non-recurring insurance recoveries, non-cash pension expenses, losses relating to GCA Leasing Holding, Inc., an entity retained by Xstrata in connection with the Transactions, payment of non-recurring bonus by the former parent company and the annual management fees to Apollo.

Forward-Looking Statements

This press release includes forward-looking statements which involve risks and uncertainties. All statements other than statements of historical fact included in this press release, including, without limitation, statements regarding our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or our expectations regarding future industry trends are forward-looking statements. You can identify forward-looking statements because they contain words such as “believes,”"expects,”"may,”"should,”"seeks,”"approximately,”"intends,”"plans,”"estimates,” or “anticipates” or similar expressions that relate to our strategy, plans or intentions. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are based upon information available to us on the date of this press release.

Some of the factors that we believe could affect our results include: our substantial indebtedness, and the possibility that we may incur more indebtedness; restrictive covenants in our indebtedness that may adversely affect our operations; as a holding company, repayment of our debt is dependent on cash flow generated by our subsidiaries; the cyclical nature of the aluminum industry and fluctuating commodity prices, which cause variability in our earnings and cash flows; a downturn in general economic conditions, including changes in interest rates, as well as a downturn in the end-use markets for certain of our products; losses caused by disruptions in the supply of power; changes in the relative cost of certain raw materials and energy compared to the price of primary aluminum and aluminum rolled products; the effectiveness of our hedging strategies in reducing the variability of our cash flows; unexpected issues arising in connection with our joint ventures; the effects of competition in our business lines; the relative appeal of aluminum compared with alternative materials; our ability to retain customers, a substantial number of which do not have long-term contractual arrangements with us; our ability to fulfill our business’s substantial capital investment needs; the cost of compliance with and liabilities under environmental, safety, production and product regulations; natural disasters; labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; unexpected issues arising in connection with our operations outside of the United States; our ability to retain key management personnel; our expectations with respect to our acquisition activity, or difficulties encountered in connection with acquisitions, dispositions or similar transactions; the ability of our insurance to cover fully our potential exposures; our lack of history as an independent company or financial statements that reflect operation as an independent company; unexpected costs incurred in separating our business from Xstrata; limitations on operating our business as a result of covenant restrictions under our indebtedness; and the ability of our customers to satisfy their financial commitments.

We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Accordingly, investors should not place undue reliance on those statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

This press release includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, important information regarding such measures is contained throughout this press release.

Conference Call

Noranda has scheduled a conference call for Tuesday, November 27, 2007 at 3PM Eastern Time. To listen to the call, dial 1-888-459-5609. International callers can dial 1-973-321-1024. When prompted, use PIN number 9473081. Dial in approximately ten minutes prior to the scheduled call. A rebroadcast will be available starting approximately two hours after the conference call ends, through midnight (ET) Tuesday, December 11, 2007. The replay of the call can be accessed by dialing 1-877-519-4471 (international callers dial 1-973-341-3080) and, when prompted, use PIN number 9473081.

About the Company

Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products as well as high quality rolled aluminum coils. We have two businesses, our primary metals business, or upstream business, which produces approximately 258,000 metric tons of primary aluminum annually, and our rolling mills, or downstream business, which is one of the largest foil producers in North America and a major producer of light gauge sheet products. Noranda Aluminum Holding Corporation is a private company owned by affiliates of Apollo Management, L.P. The information contained in this release is limited and the Company encourages interested parties to read the Company’s Quarterly Report and other additional information available at the Company’s website available at www.norandaaluminum.com