Noranda Income Fund Unit T.NIF.UN

Without more information we are totally in the dark

[Bigbird9999]

The last financials we have seen are Q3.  4 months ago and we wo'nt see Q4 for another month so we are working on 5 month old info....

I find the wording in their press release very confusing/alarming. 
Noranda Income Fund (TSX:NIF.UN) (the "Fund") has reached an agreement in principle pursuant to which Glencore Canada will supply the Fund with all of its zinc concentrate requirements and purchase all of the Fund's zinc metal and by-products for the 12 month period ending April 30, 2018. The agreement is being entered into in the ordinary course of the Fund's business and has been unanimously approved by the independent trustees of Noranda Operating Trust, after consultation with their independent industry consultant.

This is a MAJOR change to what they previously announced.  Previously it was stated that, post May, Glencore would change from the role of concentrate supplier to that of an AGENT who would procur concentrate for the fund at undefined "market terms".  Also Glencore would continue to act (as they do today) as NIF's agent to market NIF's products (metal and by products) under the agency agreement that is currently in place. 

When I read the release it sounds like they now have entered into another agreement whereby Glencore becomes a supplier of the concentrate similar to today (but at a higher cost due to "market terms").  It also says that Glencore wil PURCASE all of the metal and by products, from NIF which is totally different than being an agent who sells the product.   It sounds like on off take agreement whereby Glencore supplies the feed and takes back the metal.  In effect Glencore controls both ends of the deal. They supply the feed and take back the metal.   I am not sure how this can be done at a supossed "arms length" arrangement between the NIF and Glencore

Not sure how we mere mortals can get or force access to this info, but sureley they must release the explicit terms of the contract to allow investors to scrutinize and make their own determination of value.

BB