OTCPK:NNDIF - Post by User
Post by
Bigbird9999on Nov 09, 2017 1:53pm
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Q3 Report tomorrow
Q3 Report tomorrowThe financials which will be released tomorrow will have a very different look. - Q3 is the first full reporting period under the new supply agreement
- The report will be in US$ for the first time
- The inventory will be lower because Glencore purchases the entire finished product inventory at the end of each month. Previously this inventory was carried by the fund and could fluctuate between zero and 15000 tonnes ($40 million)
You can be assured that the reports will be anything but transparent, They will be designed to confuse the shareholder and bury the performance in a flurry of accounting baffelgab. I expect that the FS will look negative at first glance because of the 3 points above. Initially, I would expect a negative SP reaction to the confusing data.
As was much discussed previously, the independent board signed the new agreement which contains a "secret" TC described by the chairman as "between $40 and $100. It is confirmed from some pretty reliable sources that the TC is $70-$75 at a time when the world benchmark TC was $130. Meanwhile competitors such as Nyrstar have negotiated TCs at a discount of $40 from the bench mark = $90. No doubt some of Nyrstar's feed is coming from Glencore. This is the real problem facing NIF. Every $10 change in the TC means about $5 million in revenue. To date nobody has held the feet of the independent directors to the fire...... Maybe tomorrow>>>>>
BB