Noranda Income Fund Unit NNDIF

RE:RE:Breaking out!

[opta1]

The independant directors met 40 times last year which is up from 21 the year before.  There seems to be a lot to talk about with November rapidly approaching.

 One of the signs which may give an indication of where we are headed will be in concentrate inventory levels.  Because Glencore controls all concentrate purchases we may be able to determine if a new agreement is coming if the levels of concentrate continue to be maintained as we approach the end of the agreement. A significant decline will not be good news.

I continue to expect Glencore to not renew the agreement in November but to renegotiate an agreement after the deadline but before May 2017.  Part of the reason is to pressure the fund as well as to pressure production staff with the labour agrreement ending in November 2016.

Concentrate availability going forward, I think, will be the key driver as to what the final outcome will be.  Zinc concentrate supply has declined somewhat and thus smelters will be vying for concentrate or may simply close their doors.  On the flip side it looks as though zinc is attempting to rally which could bring supply to the market.

 The posters to this board have shown a very real talent for gathering good information and sharing it.  Thanks