OTCPK:NNDIF - Post by User
Post by
Bigbird9999on Nov 23, 2016 5:05pm
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Post# 25505129
Market Terms
Market TermsI managed to find an updated (Aug 2016) model of Nyrstars Zn business. Essentially, Nyrstar is 5 zinc smelters (Holland, Belgium, France, USA and Oz) and a lead smelter. The following link
https://www.nyrstar.com/investors/en/Investors%20Materials/English/Modeling%20Nyrstar.pdf
Shows pretty much what the 2009 model shows but there are 2 major points worthy of mention. Have a look at pages 11 - 14 where it discusses market terms and treatment charges
- Only about 10% of Nyrstar's concentrate is purchased on spot terms (lowest TC) rather than 30% that TD used in their analysis
- Benchmark contracts with significant price participation terms (when the price of Zn metal goes up the TC increases) make up 90% of the feed The price participation escalators are significant ($10 - $20 per dmt TC)
If a company like Nyrstar paying European rates for power and socialist European labour rates can make money at this game NIF should be able to kick their asK
BB