Fording announces second quarter cash distribution
22 Juni 2005 - 8:43PM
PR Newswire (US)
Fording announces second quarter cash distribution CALGARY, June 22
/PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) today announced that its second quarter cash
distribution of $2.80 per unit will be paid on July 15, 2005 to
unitholders of record on June 30, 2005. The ex-distribution date is
June 28, 2005. This distribution is in respect of the period from
April 1, 2005 to June 30, 2005. 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 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 wholly owned
subsidiary, Fording Inc., 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 27 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 June 22, 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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