Victor Wells
VP Finance & CFO

Thank you, Mark. Good morning ladies and gentlemen.

For the period from July 18, 2001 to December 31, 2001, Chemtrade reported EBITDA of $13.7 million and distributable cash of $11.2 million.

In the IPO marketing materials, we indicated expected annual EBITDA of $25.6 million and distributable cash of $19.2 million, or about 37 cents per unit per quarter. When those estimates are pro-rated for the five and a half months from July 18 to December 31, 2001, the result is EBITDA of $11.6 million and distributable cash of $8.7 million. Comparing our actual results to these benchmark numbers for the period, Chemtrade's performance was considerably ahead of the IPO expectations.
These results reflected strong performances from both our North American business and from BCT Chemtrade.

The North American business was in line with our expectations for the period despite an unexpected interruption in August to operations at our Timmins liquid sulphur dioxide plant due to a problem at the Falconbridge Kidd Creek smelter.

Although there were signs that the economic slowdown was affecting some industries - such as a dramatic decrease in inventories by some end-use customers - the nature of our contracts and the diversity of our customer base which you saw in Mark's presentation, enabled us to avoid any serious fluctuations in cash flow.

BCT Chemtrade also posted excellent results last year. BCT has a very solid customer base which provides a strong, steady volume of product. When there is additional spot supply, as there was in the fourth quarter of 2001, BCT is able to generate increased earnings, and this contributed to our strong performance last year.
The solid performance in 2001 has continued into 2002 and the first quarter was still comfortably ahead of our IPO estimates. As you can see from this chart, cash available for distribution was approximately $6.3 million which was generated from EBITDA of $7.2 million.

The North American business and BCT both performed well in the first three months of 2002. North America benefited from the new agreement with Irving Oil and from a seasonal increase in the availability of low cost sulphuric acid from a regeneration facility that has extra volume in the winter months.

BCT Chemtrade's business, like all of Chemtrade's, is very much supply driven. Due to the tight market in the first quarter of 2002, the opportunities for spot volumes on

the supply side were not available, as they were in the fourth quarter of 2001. In spite of this lack of spot product, BCT's first quarter results were in line with our expectations.

Demand for our products from end-use customers remained firm and there is evidence that industries that had run down inventories late last year are now restocking in anticipation of an improved economy later in the year.

These very satisfactory results have led to returns for our unitholders that have exceeded our initial expectations.