Noranda Income Fund Unit T.NIF.UN

sea change to value of NIF

[opta1]

The renewal of the agreement recognizes that the smelter has stategic value for Glencore, particlarly in the North American context.  Where the concentrate comes from is a question, but certainly some of it is nearby in Quebec and New Brunswick.  Although Trevali has a spec problem there is no reason it can not be blended to make up for the spec (and charged accordingly). At current prices more concentrate will come onto the market.

There is one question I have which has not been discussed here.  That is note 10 on the quarterly reports which suggests that after May 2017, Glencore can convert its shares to priority status which will require that they receive the distribution and that a $33 million pronissary note will become payable for the amounts foregone in the past.  It is a convoluted note and a little unclear when the promissary note has to paid but is there neverthe less.

As a longstanding holder of NIF all in all the news is positive.