Noranda Income Fund Unit T.NIF.UN

RE:RE:Some Dates

[Bigbird999]

Just remember who owns the talking horse........

The Kidd mine is at the end of its life mining the last crumbs of a giant orebody at 10,000 ft.  depth.  This makes it expensive and high risk. It could last beyond 2021 or it could close tomorrow with some bad luck (like I said, mining at 10,000 ft. is risky).   Production numbers are hard to come by because the current owners do not publish the data in any transparent manner, but we do know that Kidd mine produces about 125,000 tpa of Zn con (20%) of CEZ requirements.

It doesn't really matter if the Kidd mine lasts one more year or 10 years.  Glencore is bound by the supply agreement to deliver 550,000 tpa of con to CEZ.  We don't care where they get this tonnage.  They are pissed because as traders, they could deliver this feed to any other smelter on the planet for $50/t more than they get by processing it at CEZ.  And then they are pissed again when they only get 25% of the profits of the smelter and have to distribute the other 75% to those "pesky NIF shareholders".

The smelter is hugely profitable under the terms of the current supply agreement and falls to profitable after the agreement ends in 2017.

Plain and simple, the play on this stock is to scare the "pesky shareholders" into accepting a lowball offer in the coming months. 

BB