OTCPK:NNDIF - Post by User
Post by
Bigbird9999on May 04, 2017 11:10am
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Post# 26203111
Benchmark TC
Benchmark TCNyrstar just released Q1-17 report
https://www.nyrstar.com/investors/en/news/Pages/2101667.aspx
They announced that the benchmark terms were $172 with no price participation (very similar to what was eariler reported by Teck and Korea Zn - $177). 95% of their 2017 concentrate requirements have been secured at either benchmark terms or at a discount from benchmark. They state the average terms would be at a discount of $40 -$50 USD. This would indicate an average TC of $125 (172 - 45=125).
We still don't know the TC that has been agreed to with Glencore and trying to calculate it is difficult/impossible because of the effects of the strike and the lack of transparancy in the reported data. All we know is that it is somewhere between $40 and $100 based on the comments of BOD chair Oulette.
The best calculation I can do puts the agreed TC closer to $100 than $40. This will become more clear after Q2 and should be pretty easy to calculate after Q3 when they start negotiations for the may 18 to may 19 TC. They have agreed for 5 years with an annual negotiation of the TC.
BB