Noranda Income Fund Unit T.NIF.UN

TD Report and analysis

[Bwrbhk]

In their latest report following the 3rd Q report, the analyst estimates that the company will generate an EBITDA of $50.2 million.  He was using a zinc price of $1.20/lb.  The analyst did not say what TC's he used.  Assuming that the $50.2 million number is correct, it is interesting to see what that translates to EPS.  After deducting interest expenses ($8 million), depreciation ($16 million) and taxes (26%) we get net income of $19.4 million or CDN $24.2 million, which is $0.48 per share. This would easily support a dividend of $0.25/share, which at the current share price of $1.20 is a yield of about 21%.