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Noranda Income Fund Unit T.NIF.UN


Primary Symbol: NNDIF

Noranda Income Fund is a Canadian based income trust. The fund owns the electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec. It produces refined zinc metal and by-products from sourced zinc concentrates. The fund's long-term objective is to maximize unitholder value and provide monthly distributions to unitholders.


OTCPK:NNDIF - Post by User

Bullboard Posts
Comment by Bigbird999on Dec 21, 2015 1:48pm
120 Views
Post# 24401882

RE:RE:RE:RE:RE:RE:seems to be stabilizing

RE:RE:RE:RE:RE:RE:seems to be stabilizingAll in cost for a Greenfield elrectrolytic Zn plant is US$3000 per annuat tonne.  So replacement cost of Valleyfield plant (265000 tpa) is ~US$750 million or 1 billion CAD.  Property plant and equipment is on the books for ~20% (215 million CAD) of the replacement value.  Note that this value includes the 866 acres of land at the 1960's acquisition cost of 15 million.  Today the land alone is worth 10 - 20 30 - 50 (pick your own number) times the original $15 million acquisition price.

Inventories (concentrate and finished metal) carried at cost are $182 million CAD.  Inventory alone = ~$3.60 per share.

So book value of PPE + Inventory = ~$400 million or $8 per share
Replacement cost + Inventory = $1.2 billion or about $24 per share

BB
Bullboard Posts