Noranda Income Fund Unit T.NIF.UN

So last years hedge is now this years loss

[ZincDink1]

I was wondering if the hedges would come back to bite us after giving us a boost last year

So in 2018, the presold at top of zinc market and captured gains as the price fell. This time we sell near the bottom and lose as the price rises.

I am not sure how hedging really works, but I would think we would try and offset both a rise or fall in the metal price.

Oh wait, its Glencore that oversees the hedge. Now I understand, its heads I win tails you lose.

I have to say I am a little bit disappointed that GC allows such wide swings in zinc prices. If they want to act as a responsible monopoly, they need to keep Zn heading up steadily at say 10 % per year (appears they got zinc from 1500 to 3500 over a 2 yr period - maybe too rapid a rise).

We will see an initial panic sell. Lets see where it stabilizes.

For gods sake, just buy us out GC. Then you can do whatever you want.