Noranda Income Fund Unit T.NIF.UN

Primary Symbol: NNDIF

Metals & Mining Industrial Metals & Minerals

Noranda Income Fund is a Canadian based income trust. The fund owns the electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec. It produces refined zinc metal and by-products from sourced zinc concentrates. The fund's long-term objective is to maximize unitholder value and provide monthly distributions to unitholders.

OTCPK:NNDIF - Post by User

Noranda Income Fund Unit > Why woudl I ever invest in Noranda? Help please

<< Previous

Bullboard Posts

Next >>

Comment by Bwrbhkon Dec 23, 2020 7:15pm

203 Views

Post# 32175082

RE:RE:RE:RE:RE:RE:RE:RE:RE:Why woudl I ever invest in Noranda? Help please

If you did the calculations, you would find that the 20,000 tonne expansion and upgrade of the plant will be very profitabe beginning early 2022. Approximately 70% of Noranda's costs to produce a tonne of zinc are fixed. Noranda's current cost to produce a tonne of zinc are about $500, so the incremental costs to produce an extra tonne of metal will be approximately $150/tonne. On the revenue side, they will receive more TC's, more free zinc and more byproduct revenue. At the current zinc price ($1.25/lb.) and $200 TC's, I estimate that the expansion will add about $14 million to Noranda's EBITDA on an annual basis.

<< Previous

Bullboard Posts

Next >>

Morning Market Outlook for May 22, 2024