Noranda Income Fund Unit T.NIF.UN

RE:RE:Disgusting

[Bigbird999]

Cui Bono?

Glencore??? 

When you do all the math and US to Cdn conversions, the terms of the supply contract that forces Glencore to supply 550,000 tpa of Zn concentrate until 2017 are equivalent to a concentrate treatment charge (TC) of $285/t compared to a world market TC of $235.  This means that Glencore, who just happens to be the world's largest zinc miner and trader is losing $60 of revenue for every one of the 550,000 tonnes of Zn con they they ship to Valleyfield = $33 miilion pa.   They can't get out of this until 2017 when the agreement ends.  This $33 million earned by the fund ends up being distributed to everybody that is not Glencore ( i.e. you, me, and the predatory traders who happen to hold the fund units on the 28th of each month).  Glencore's 25% holding is in ordinary units (which are subordinate to the priority units that we own) and do not receive the distribution until termination of the agreement in 2017 at which point they will receive 25% of the $33 million.  Obviously, Glencore would much rather receive $33 million pa in revenue today than 25% of $33 million 2 1/2 years from now.

Because they already own 25% Glencore must make an offer for all 37 million of the priority units if they want to "takeover" the fund.  Hmmmmm, which is cheaper???   Buy a company with a market cap of $75 million or a market cap of $150 million?

Don't forget that Glencore is first and foremost a trading company founded by the infamous Mark Rich (look it up he was pardoned by Clinton).  The predators who manipulated this whole scenario and the greedy among us who bought in at today's depressed price may jump at a $3.00 offer.  I hope sanity prevails like it did when this exact scenario played out in 2010. 

Like I said,  Cui Bono????