OTCPK:NNDIF - Post by User
Comment by
dbcaron Mar 11, 2015 9:10am
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Post# 23508569
RE:Impairment Charge
RE:Impairment ChargeIt's like they do not want to show anything positive....
The $40.5 million non-cash asset impairment charge is primarily as a result of:
- the Fund's anticipated sourcing of zinc concentrate on market terms instead of at current fixed processing fee following the expiry of the initial term of the Supply and Processing Agreement in May 2017, which in recent years would have resulted in lower cash flow generation for the Fund;
- the increase in the Fund's net asset carrying amount in 2014 relating to fluctuations in the price of zinc and foreign exchange rates; and
- a sustained increase in the sourcing of concentrates from overseas resulting in higher inland freight and feed acquisition costs.