Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:Getting realistic about NIF

[Bigbird999]

Sorry I dont buy this at all.........

Trevali has 2 mines one in Peru and 1 in Canada (Caribou mine).  Caribou produces max of 60 ktpa of Zn concentrate which is about 10% of NIF requirement (550 ktpa).  Both mines are  Pb-Zn Ag orebodies which produce a Pb Ag concentrate and a  Zn  Ag con with a lower (48% vs 51%) Zn content that the NIF plant requires.  Bottom line is Trevali con is not economic to treat at NIF because NIF was not designed to treat low grade Zn con and does not recover Ag which is payable to the miner.  IMO there is ZERO common ground that would make a merger with Trevail or any other junior miner attractive.

CEZ started in 1964 as a custom smelter (I.e buys the feed from the miner and sell the metal).  It remains so today.....buying feed and selling metal and making money on the treatment charges, by products and LME premiums.  Post SAP if they acquire cons at market NIF can sustain the dividend..

I still don't count out the possibility that GC will make an offer.  At today's SP they could pick up the rest of NIF for about $90 million CAD.  I still expect a lowball offer about 50 cents over market..

I put my money with my mouth bought 3000 today.....

BB