Noranda Income Fund Unit T.NIF.UN

RE:RE:Dividend cut? - Yield at + 24%....

[quest13]

In a nutshell story is that there is fear about the ongoing business after the contract comes to an end in 2017.

Fear has been spread quite extensively as to whether or not Glencore will or wont negotiate a new contract. Glencore will say for sure only at the 6 month before end date of the old contract point. that is the point at which it must (proverbial) or get off the pot.

the independent board members are working on how to get new raw material supply; but cannot commit to a new customer / raw material supplier until Glencore says yes or no.

In meantime operation generates very good cash which pays distribution and  will also result in debt being paid off at end of glencore contract. More could be paid as a distribution (in my opinion) if it were not for the need to pay off the debt.

there are some of us ( myself being one of them ) who feel that the plant will get a new contract or contracts and continue on generating cash and paying distributions.

conversely I also believe that if there is not a new contract the break up value of the assets at that time will result in a cash payout to us as equity holders since there will be no debt at that time. You are free to speculate as much as you want as to what that amount would - be read old messages for various speculation which has been done.

there is also a body of belief that Glencore will come out with a lowball offer to buy out the existing holders and there is also rampant speculation as to the amount of that offer.

good luck to all who are holding these units.