OTCPK:NNDIF - Post by User
Comment by
Bwrbhkon Mar 18, 2021 12:12pm
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Post# 32826260
RE:Comparing valuations
RE:Comparing valuationsYou are correct about the Glencore discount impacting Noranda's market valuation. Glencore has an offtake agreement with Trevali based on benchmark TC's which are $300/tonne. They also have an agreement with Noranda based on spot TC's which are currently $80/tonne. The difference, about $220/tonne is pocketed by Glencore to the detriment of both Noranda and Trevali shareholders. Glencore, in additional to being a mining company is a trading company and if they were independent, one could conclude that it was a great trade. However, Glencore owns about 25% of both companies and through this ownership control the boards, including Noranda's so called independent trustees who are nominated by Glencore. If not illegal, Glencore is acting in an unethical manner . It is amazing that the larger institutional shareholders with deep pockets do not sue them.