Expectations for Q4 Unless there is information unreported concerning NIF's production...Q4 should be similar to Q3 and actually it should be better.
1.Considering zinc price has risen since Q3 (increasing profit from free metal sales)
2. Considering acid prices have remained above 200$ for all of Q4 (which makes by product revenues equivalent to Q3)
3. Considering zinc metal premiums are either the same or have increased slightly (I am unsure of NIF,s formula for this and how much they could benefit from rising premiums)
4. Considering that spot TC has risen (If the current secret formula is a mixture of spot and terms....we could benefit...slightly)
We expect benchmark TC to be negociated higher in April ..(perhaps by 25 - 50$). the market expects this as well.
So reasonably if Zinc price does not plummet (it is not expected to), byproduct acid sales do not plummet (it will drop but It is still tight and i predict will remain in the 145-190$ range for most of 2022 at worst)
Nif should be able to produce a 5 million per quarter or better in 2022.
As usual we are all suspect of management's loyalties and trustee's motivations (and history has show us we damm well should be).
But there are vitually no excuses on the horizon that will justify messing up 2022.
I have not included the extra production capacity that has installed and the increased ability to refine bad concentrate. (which will be quite beneificial to us).
I have followed the SP activity and volume , there has been quite accumulation for the last 5 months. So we are not the only ones that have expectations of an improved situation.
So lets have a bit more patience. At least we are invested in an asset (zinc smelter with access to cheap electricity, with quite a bit of valuable land at a time when other smelters are being hit by energy price issues) and we know it is ridicuiously undervalued.
With everything that has happened and is happening is the world NIF shares purchased below 2$ seem like a pretty safe investment.
a note concerning Sulfuric acid is Northamerica.....below
looking to the US market, 2022 contract discussions similarly remain the central focus of talks.
After several months of consistent major outages across the US and Canada, production is running mostly smoothly at present, although the market remains tight.
It is widely understood that mining major Rio Tinto will restart acid shipments from its Utah Kennecott smelter imminently, although this has not been confirmed by the company.
The smelter was shut after a molten copper spill on 21 September 2021, and the outage threw US Gulf acid trading into uproar.