Noranda Income Fund Unit T.NIF.UN

RE:RE:Conf Call July 25

[Bigbird9999]

Hard to know what the fininancials will look like, but they will certainly be different with Glencore purchasing all of the finished goods inventory at the end of each month.  finished goods inventory has typically been $50 to $100 million (>$75 million at the end of Q1).  All of this will have been sold under the terms of the new agreement and used to pay down the line of credit. 
Optimistic view is a balance sheet with a line of credit debt approaching zero and a greatly reduced inventory.  They should be producing their high premium products so premium revenue should be higher than in the past (think >10 cents rather than 7 cents per lb)

If they are indeed able to keep running the plant at 50 - 60% with management the Q2 results could be surprisingly good.  Pessimistic view is that they produce all kinds of accounting baffelgab and make the enterprise look to be worthless. 
The strike is now +5 months.  If 150 management can do the work of 350 union guys to operate at 50% they have learned a lot and will surely be asking for major reductions in labour in the future.

I don't expect much in the way of clarity but there is aq possibility that Q2 resuults could look very good (or be made to look very bad).  Or just beplain  BAD. 
BB


It will be interesting