Noranda Income Fund Unit T.NIF.UN

RE:Last man standing wins.

[Bigbird999]

The European plants keep running because they make money even with high labour and power costs. 

Nyrstar produces about 600,000 tpa at 3 plants (Balen in Belgium, Budel in Holland and Auby in France).  They also produce about 300,000 t in Oz and 150,000 t in the USA.  Only 25% of the approximate 1 million tonnes comes from Nyrstar mines the rest is purchased on the world markets at the much discussed BENCHMARK TERMS that seems to have caused all the concern.  100% of the feed to the European plants feed is imported by sea at benchmark treatment terms.  That is about 1.25 million tonnes of Zn concentrate (double that of CEZ)

Zn refining consumes about 3500 kWh/t so it costs Nyrstar about US$270/t to make Zn in Europe  (at the European industrial power price of $0.075 per kWh).   Compare this to the CAD$0.042 per kWh at CEZ  and you get a power cost of US$135/t for NIF.  So it costs NIF about 265000 X $135 = US$35 million less to make Zn in Canada than it would cost in Europe.

Power is just one of the 35 million reasons why it is ludicrous to think that CEZ cannot be profitable at world tratment terms.

BB