OTCPK:NNDIF - Post by User
Comment by
Bigbird9999on Feb 08, 2017 4:45pm
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Post# 25819134
RE:What the future may bring
RE:What the future may bringWe do not know the treatment charges that have agreed to under the new agreement. No zinc smelter buys 100% of their feed at spot terms. The majority (>80%) of cons are purchased at market terms which have yet to be struck for 2017 (This is usually done the last week of February around the International Zinc Association meetings). Typically market terms are much higher than spot terms. So the average TC for the year will be some combination of market and spot (TD assumed 70:30). This should be much higher than the $40 spot TC you are stating as fact. When you plug an average TC of $130 and a zinc price of $2700 into a conventional smelter contract you do not get a cash burn. Instead you get distributable cash of $25 million.
When somebody makes 3 posts bashing a stock over a period of 5 years, I am also cynical.
BB