Noranda Income Fund Unit NNDIF

Valuation

[Finalsay]

Was thinking about how the stream agreement with BaseCore gives us an implied relpaced valuation of Noranda. Noranda is spending $40,000,000 to increase annual production by 20,000 tonnes implying US$ 2,000 per additional tonne of capacity. Investment is said to have an IRR of 30% suggesting its certainly profitable using these numbers. Extrapolating this out to the plants current 280,000 - 290,000 tonne capacity produces an enterprise valuation of $560,000,000 - $580,000,000 USD. Clearly market has no interest in pricing Noranda anywhere close to replacement value.