Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:RE:RE:RE:RE:RE:RE:Some sizeable trades lately

[ljp0101]

Replacement value is only meaningful if demand is greater than supply, which doesn't apply. Hudbay would presumably pay you to take Flin Flon off its hands. And to incentivize new supply, it's Chinese replacement cost and Chinese ROIC hurdles that matter -- given Chinese build cost is lower and Chinese ROIC hurdle is single digit, CEZ is worth a fraction of its replacement cost.

CEZ's operating cost is highly competitive and always have been. The problem is on the revenue side. Q3 numbers are going to be terrible.

Someone's hitting the ask now but the ~500k shares that traded in the last two weeks of September was almost all on the bid. That seller wanted out at 0.95 or better.

I think there's reason to be cautiously optimistic right now but the curtailments so far aren't all that material and it's unclear if mine supply could be disrupted, which would be bad for CEZ. Market should get some better clues this and next week as the dust settles post Golden Week.