OTCPK:NNDIF - Post by User
Comment by
ZincDink1on Jun 25, 2021 12:28pm
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Post# 33450785
RE:RE:RE:Glencore contract is exclusive
RE:RE:RE:Glencore contract is exclusiveI can't say GC is 100 percent paying spot, but it is based on market conditions and the only floating zinc tc I am aware of is China imports (the domestic market price floats as well, but not nearly as much). This is what the management team refers to in updates.
So, it could be market conditions with floor price, riders, whatever.
Would no board agree to that? This is how the board bankrupted Nyrstar by going almost exclusively spot price if memory serve me, when zinc prices were very low overall.
https://iceberg-research.com/2019/10/08/what-really-killed-nyrstar-nv-shareholders-have-a-strong-case-against-nyrstars-board-and-trafigura/
Actually, appears they paid less than spot! GC may be difficult, but Trafigura appears to be corrupt at heart.
I don't believe our board is as bad as Nyrstar, but if GC can get 159 at major contracts, then its likely we will obtain a lot less. Prior to the pandemic, spot was not a horrible idea and maybe the board took a risk that didn't pan out as planned.
Kind of glad we haven't had an update on the contract. I believe spot price hit its low and we should improve now.
Anyhow, can't remember the point I was trying to make other than bad contracts can be made