OTCPK:NNDIF - Post by User
Comment by
Armcorpon Dec 02, 2017 12:11am
242 Views
Post# 27076818
RE:RE:RE:RE:RE:Other issues remain
RE:RE:RE:RE:RE:Other issues remainI am not sure how much you follow Noranda, not much it appears, or you are being strangely leading in your questioning, but to keep it simple, Glencore controls the zinc ore and finished metal. All they need from Noranda is a functioning smelter. Of course it is not in Glencore's interest for Noranda to pay us a dividend, because Glencore is therefore getting less cash (Noranda has to make a profit to pay us a divvie, and Glencore sells them the ore and "buys" the finished metal). If Noranda makes Glencore enough profit, then down the road they may stoop to offer us a few cents divvie - but if they want to buy us out that would not make sense, because the shares would rise and make the acquisition more expensive. One of the unknowns in this set-up is what is going to happen to the accumulated dividend owing to Glencore but not paid. It is a potential time-bomb, not to mention the ability of Glencore to change their shares to our class and make an apparent 25% dilution. Glencore's shares amount to 1/4 of the total, were they to convert, not 1/3 as you suggest.
Your point about minority shareholder rights is puzzling - Glencore is the minority shareholder, WE are the majority (if we were to organize). So the question with Noranda is, do we still have majority shareholder rights? I have yet to see the independent directors of Noranda make any public statements or actions that show them to be on our side. For example, as far as I know, the supply contract between Glencore and Noranda that came into effect this year is still secret in its details. The directors seem to make no effort to show they are protecting our rights. You would think that there would be some sparks somewhere if they really were doing something for us. How can Noranda not be making a huge profit for Glencore with zinc prices as high as they have been? And this without having to pay us anything at all, nor 371 union members, yet operating at 50% for the last nine months?