Noranda Income Fund Unit T.NIF.UN

RE: What TC is implied by PF $90 mln change in '16 EBITDA?

[Bigbird9999]

Before we do that we need to know how much metal was produced, and how much was sold and how much concentrate was purchased.  As well, one needs to know the average LME to calculate the payables in the con and the average realized price (including the premium) the metal sold and the average FX rate.  Their accounting is convoluted and designed to confuse and frustrate the competition and anyone who is not privy to all the information.  In every report there is a caution that EBITDA is not a recognized accounting standard and that the method of calculation is not likely to be comparable to other entities THEN they go on for a dozen pages of convoluted language and supply a calculation without telling us the key value (TC) used to generate the EBITDA. 

Most, if not all, of this info is available in the year end financial statement and the MD&A on page 12 in the table of key performance drivers .  The income statement statement shows sales revenue of $787 million  Of this amount. $27 million was byproduct sales.  Therefore Zn metal sales revenue was 787 - 27 = $760 million.  Total metal sales were reported as 273053 tonnes This was 4000 less than the production of 277,022 tonnes indicating a 4000 tonne increase in finished metal inventory over 2016. 

The sales revenue from the 273053 tonnes of metal sales was $760 million = $2783 CAD/t
2783/1.33 = US$2092 per t  /2204.6 = US$0.95 per lb.  This does not agree with the average realize sales price of US$1.02 reported in the MDA. 
If you calculate from the other direction using the numbers from the MDA:
Metal Sales revenue = 273052 tonnes x US$1.02 per lb x 2204.6 lb/t = US$614 million x1.33 = $816 CAD + Byproduct revenue of $27 million = $843 million Total sales revenue.

The difference is 843 - 787 = $56 million or about US$0.07 per lb which coincidently is the premium to the average Lme PRICE. 

So which is correct?  Did they sell 273000 tonnes at US$1.02 or $0.95?  Or is the tonnage sold something different whic would mean that there is ~15000 tonnes of metal hiding somewhere The difference is $56 million.  Where did it go? 

BB