Noranda Income Fund Unit T.NIF.UN

RE:RE:Nyrstar news

[Bigbird999]

Careful not to mix up cuts in mine production with metal production from the smelters.  It is easy to get confused.  Glencore has announced 500K cut from its mines, not its smelters.  They have not cut tonnage from any of their smelters.  This means that they are selling less concentrates and/or toll smelting less concentrates through other zinc plants.   Nyrstar has announced 50000 tonne cut at its east Tennesee mines but only 7% cut in tonnage (9000 t) at theClarksville zinc plant.  

Mine cuts are made because the miner is losing money mining Zn at the current LME metal price.  Mine cuts mean less concentrate available for the smelters which in turn puts upward pressure on the metal price.  The only place cutting smelter production is China and the amount they are cutting will roughly equal the amount of mine production cuts.  All this takes a while to happen.

Meanwhile Glencore is contractually bound for the next 18 months to supply 550000 tpa of concentrate to NIF per the SPA treatment terms. 

Zn price goes up or down, NIF makes money.  Dividend is secure.  Useing mine to buy Xmas presents.

Happy holidays

BB

E