OTCPK:NNDIF - Post by User
Post by
Bigbird9999on Mar 09, 2019 12:27pm
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Post# 29465350
New TC announced
New TC announced Over the last several months, treatment charges have rebounded in favour of smelters but the pricing environment
threatens to continue to be volatile. The Fund, in that context, has favoured and successfully negotiated a combination
of 50% of the concentrate feed at a fixed treatment charge and the remaining 50% at a variable treatment charge that
will reflect market movement during that period, in addition to other provisions of the four-year agreement.
They have agreed on terms of may 2019 - April 2020 Based on 50% market terms and 50% fixed RTC. of course we dont know the terms because they keep them secret. (still not sure how they can do that....)
They say 50% market terms but they do not state clearly what that means (spot or benchmark) and they do not say if the reference market term changes monthly, quarterly or annually. So we are really in the dark . However today spot is >$250 average with whatever TC they have managed to negotiate I am guressing $100ish so the new TC will be a lot higher (probably $180 - 220 range) than the $80 TC today. Last year earnings were a small profit/break even. As previously posted an improvement in TC of $10 increases annual earnings by $5 million per year. If new TC is $200, it is $120 higher than the current $80 and will translate to earnings of $60 million = $1.20 per share. Remember this is USD so translates to earnings $1.50 Cad per share. on 50 million shares.
Mystery of sudden SP increase on Friday is now clear. Somebody with inside information jumped on this. Same as they just before the 3 cent dividend in Dec.
BB