Noranda Income Fund Unit T.NIF.UN

RE:RE:News on upcoming TC negociations

[Bigbird9999]

Agreed that TC north of $125 would generate earnings approaching $60 million.  The problem is that Glencore refused to sign at anywhere approaching the 2017  benchmark TC.        Last year the benchmark TC was $172.  NIF signed a deal without disclosing the terms but from pretty good source it is around $75 - $80.  A discount of $90 from benchmark terms.  Nyrstar is on record saying that the majority of their concentrate for 2017 was booked at $50 discount from benchmark i.e. $100ish.  NIF needs about $70 TC to break even.  The real question  is why did they sign for $75 when benchmark was $172.  This year benchmark is $30 lower at $140.  Even at a discount of $50 like Nyrstar, NIF would get $90 which would generate $10 -$20 million in earnkings.  The question is what will NIF be able to negotiate against an even lower benchmark than last year. 

BB