Noranda Income Fund Unit T.NIF.UN

RE:RE:RE:RE:RE:RE:No actual reduction in shareholder value

[Bigbird9999]

That's the big question. My answer is "that Glencore will not do anything until the NIF board forces them to S*it or get off the pot"

NIF is trading at about 25% of book value (market cap (CAD$80 million vs book of ~CAD$240 million). Plus the value of 290 acres of industial land on the St Lawrence seaway.which is on the books at about $12 million.  The real land value is anybody's guess but for sure it is way above the $12 million book value.  My guess is that the breakup value of the company after paying all the shutdown/remediation costs is >$3.00 per share.  At the end of Q3 the inventory alone was worth CAD $300 million ($6 per share).

NIF will generates positive earnings with a "reasonable" TC of something greater than $80 per tonne.  Current world TCs are greater that $80 (up to $125).  The basic problem is that the independent board agreed to less than $80 terms.  The board need to grow a pair and tell Glencore unless they give them "reasonable" TC that will generate a profit, they will shut down and liquidate the company.  Now if only we could find a way to make that happen....
BB