Noranda Income Fund Unit T.NIF.UN

RE:TC's

[Bigbird9999]

For sure TCs are low and that pushes down the profits of the Trail smelter complex.  But TECK is and integrated mining and smelting company that treats their own concentrate and sells any excess.  They sell about the same amount of Zn con to Asia as they process at Trail.  So they are making out like bandits on the low TCs on the con they sell and moving the smelter profits to the mine on the stuff they treat at Trail. 

As metal moves from the mine to the end user, there  is a finite amount of revenue to be extracted from a tonne of concentrate.  Integrated mining/smelting companies can decide which pocket of their pants they want to put the money in. 

Lindsy is talking of the TC's that TECK has to pay the smelters so for him the lower the better. 
In this situation, only the most efficient smelters can compete and/or survive.  Efficient smelters require 3 things, tide water, cheap power. and proximity to a market for the sulphuric acid.  Obviously things like labour cost , proximity to markets for metal and acid tax  policy and environmental regs are important, but if a smelter does not have the 3 key items they are at a huge disadvantage.  NIF has all 3.
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