Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:RE:RE:RE:RE:Position disclosure

[Bigbird9999]

ZincDink1 wrote: You can roughly calculate they need $ 100 TC at todays zinc price based on the typical renumeration to break even.

Now, the question of what (if any) esculators are written into the contract can make things more interesting.

With the strike, all bets are off on what this year will show - though I think it will be a loss, but how much?

I don't think they have to disclose all the commercial terms, though if the party holding the contracts is a significan minority shareholder, there may be something that needs to be disclosed.

The contract posted on Sedar contains no escalation/descalation clauses.  It is simply a flat rate TC of REDACTED US$ per dmt which is in line with the reports leaking out regarding preliminary negotiations of the 2017 benchmark terms.    By all reports the smelters are very unhappy and resisting and some like Korea Zinc have announced a 10% reduction in 2017 production.

Negotiations beween the miners and smelters will take place in earnest this week at the IZA annual meeting which marks the start of the tradition "mating season" of the smelters and miners. 

As stated by others the Zn price is currently $2850 but it could easily hit $3500 - $4000 depending on which fortune teller's crystal ball you look at.  Given that each $100 increase in LME adds $4.5 million to the EBITDA, an increase in EBITDA of $20 - $30 million could easily occur.

BB