Noranda Income Fund Unit T.NIF.UN

RE:RE:No actual reduction in shareholder value

[Bigbird9999]

Glencore's opaque accounting practices, a switch to $US accounting, an appreciating $CAD (74 to 81 cents over Q3, a 9 month strike and 40% increase in LME Zn make all but the most rudimentary analysis impossible.

I take heart that the inventory value is $233 million which backs up a debt of $93 million by a factor of 2.5.  The cathode inventory increased continuously over the quarter because the front end of the plant was operating at 70% whilee the backend operated at 50%.  In November they have sold 16000 tonnes of cathode (~$45 million) which should reduce the debt  to ~$50 million and the inventory back to ~$190 million.  ~3.5:1

As previously discussed, the real problem is the low (Reportedly ~$75) TC which the BOD agreed to.  Next month the annual TC benchmark dance begins and will be concluded in Feb/Mar.  The board must somehow put pressure on Glencore to negotiate a better TC for next year.  Options such as temorarily shutting down and or permanent closure, must be investigated.  Problem is How do the priority unit holers (you and me) make this happen.

E