Noranda Income Fund Unit T.NIF.UN

RE:Electricity savings

[Bigbird9999]

Read it carefully.....  They have not reduced their power costs by 20%....  They are simply recovering 40% of the capital that they have already spent on power saving projects

The power rebate is an amount equal to 40% of CAPEX for approved power saving projects.  I.e. If they spend $10 million CAPEX on a power saving project they will get a $4 million rebate for the $10 million they spent.  The rebate is given as a reduction in the monthly power bill of up to 20%.  Thie rebate continues until 40% of the approved CAPEX has been recovered.

At the current 50% production rate the monthly power bill is about $1.3 million US per month ($120 US per tonne x 11000 tonnes).  They will receive a reduction of 20%  = ~$250K per month until they recoup 40% of the money they have already spent..

Boone went to great lengths to say that there were no guarantees that thie 20% discount would continue past the recovery of the 40% of CAPEX that they havemade.  Continuation of the rebate will be dependant upon NIF generating new power saving projects, getting them appproved  and spending $2.5 in CAPEX to get back $1 in rebates ain the future.

The 20% reduction is just spin designed to confuse anus rubes and make us think theat they have actually saved  money......THEY HAVE NOT.  They are siply getting back 40% of what has already been spent.
BB