Noranda Income Fund Unit NNDIF

AGM Meeting Thoughts

[Knator]

I attended the AGM in person this year and I wanted to share a few comments to those who were unable to attend.


1) Huge protest by the unionized Noranda workers outside the meeting room. For the first 20 minutes or so, they were certainly heard.


2) Usual investors where there included Paul Bloom (Bloom Investments), Roland Keiper, and a few of the retail investors (Eric Bouchard, Bigbird, and another guy who I recognized who used to work as a prop trader at a broker dealer)


3) A gentleman, who I beleived to be BirgBird, asked the Chair about the lack of transparancy in the TC, citing it could be anywhere between $40-$170. I wasnt sure if the Chair was joking or not, but he said it was between $40 and $100 dollars.


4) Roland Keiper was asking entity specific questions about various costs and at one point he asked if NIF has considered using its distribution network to sell finished zinc purchased elsewhere. He did not like the CEO's response in which she effectively said "not sure" where he went on to say something along the lines of "incompetent" which caused a gasp in the room.


5) Paul Bloom asked if the NIF has ever considered expanding outside its normal operations like buying other assets instead of being a pure zinc refiner. Board would consider it and look into it further.


6) Roland also asked about whether the fund considered shutting down the plant for a period of time until TC charges recover. Eva responded it was considered, but due to risks of inactivity, re-training etc..it was best to keep the plant running.


7) Roland might have also asked about the cost structure of operations and where NIF stood relative to other refinders using F2016 actual costs, and Eva indicated that the plant from a cost point of view was in the "3rd quartile". This was a bit of a surprise to me. I thought NIF would have been a much more efficient plant.


8) Another gentleman asked about possibility of expanding the plant to treat other types of metals or increasing secondary feed capacity. Eva cited costs for the first one, and i don't recall the response for the second question.


9) Overall, I think F2017 is all about riding it out. Certainly this investment is a multi-year long term hold.