OTCPK:NNDIF - Post by User
Post by
Knatoron Mar 22, 2017 10:11pm
269 Views
Post# 26017978
Distribution cut question
Distribution cut questionI've read most of the posts in here for the better part of a few years. One question that I don't think is answered is why the Board decided to cut the distribtuion. They make reference to increasing their "reserves".
But what does this mean?
I suppose one story is that the TC is in the US$40/dmt range forcing them to cut.
However, Bigbird suspects the TC to be anywhere from $100 to $170 per dmt. Under this scenario, BigBird has showed the math which indicates that the TC in this range could support a distribution. Now back to my original question, why did the Board cut the div they were able to get the TC in this range?
Is the Board just being prudent in wanting to set aside some extra cash for unplanned capex? I don't recall reading anything indicating a signficant increase in caapex requirements for F2017/ So why cut the distribution? Could this be a negociation strategy against the union?
Bigbird, in your opinion, do you think CEZ will still be operating in 10-15 years? I know you mentioned that there are 6 zinc refineries active in NA. Are there other inactive oens that could be restarted? Were there more smelters in the past? If so why did they shut down?