Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:RE:RE:Other TD observations

[Bigbird9999]

daffin, I love your sarcastic wit.  You must be a Brit......

I calculate the current SPA TC would have to be reduced by 9 cents/lb to 32 cents per lb to get to an EBITDA of $5 million.  I calculate as follows:
A reduction in the EBITDA to $5 million from $46 million implies a $41 million reduction in revenue.  9 month revenue at the current 41 cents CAD TC was $180 million on 202,500 tonnes Zn in 400,000 tonnes con.  (202500 x 2204.6 = 446.5 million lbs  x 0.41 cents = $180 million).  In order to reduce the revenue by $41 million the TC would be reduced by $41 million with the other 3 revenue streams remaining the same.  ($41 million / 446.5 million lbs = 9 cents per lb)   I.e. an equivalent TC of 32 cents/lb instead of the  current 41 cents/lb.

BB