Noranda Income Fund Unit T.NIF.UN

TC’s

[Bwrbhk]

TC's continue to rise.  Open Mineral estimate that spot TC's in China are now $US 275//t, up from US$250/t in October.  It will be recalled that benchmark TC's are currently $US230/t and the experts are estimating that they will increase to $300/t next year.
In 2021, Noranda's TC's were 100% market related, which I interpret that they were related to spot TC's.  In 2021 spot TC's averaged about $85/t and Noranda processed 503,378 tonnes of concentrate, which was not one of their better years.  In any case, despite the low TC's, the managed to generate a adjusted EBITDA of $13.5 million and a operating cash flow, before working capital changes, of $10 million.
If Noranda can get production back to the 2021 level, there could be a positive $90 to 100 million swing in cash flow from the 2021 level.