Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:RE:Noranda Income Fund Ordinary Unit Holder's (Glencore Canada)

[quest13]

More or less right.

after 2017 NIF.UN will still exist but may or may not be processing Zinc Concentrates (either from Glencore or others).

If it is processing Zinc concentrates it will be under new contracts which may or may not be sufficiently profitable to pay dividend at a rate which we as owners may desire.

If it is not able to get new contracts then we look at breakup value. the trustees 4 of whom are independent are running it to pay as much as they now think prudent 4.167 cents, and they are also running it so that all debt is paid off by 2017 and breakup value could be a lot or not. I have seen people speak loosely about maybe the land alone may be worth 300 million or more. Reserves or provisions are also being set up to cover future remediation costs of whatever they think is necessary.

Capital is being spent to allow the plant to process concentrate of different characteristics than the concentrate from Glencore.

A big poker game is being played and my personal view is that the plant will go on in operation and I have no intention of selling my shares at the moment.  I bought my shares for less than the current price in 2009 and sold some at the above $5.00 point but stick with approximately 1/2 of my highest number of shares bought in 2009. the way I look at it the dividend is 50 cents per year and I have essentially got my money back on the shares I still have from the dividend I have received.

On the subject of going on beyond 2017, I of course have been wrong before but I also have been right before. 

In any case it is a very interesting situation!