Noranda Income Fund Unit NNDIF

WTF is wrong here?

[ZincDink1]

You look at the balance sheet, and the net assets is 152 M$ of which I would consider about 50 M$ to be almost like cash if assets were liquidated today. The plant value of 118 M$ is just a tad on the low side - by about 900 M$ replacement cost, 500 M$ probable valuation, and typical 250 M$ from historical valuations...even though they have invested 10's of millions in recent upgrades.

Yet, here we are, less than 60 M$ can buy a 1 billion dollar asset, which you could use 50 M$ on hand to pay for it...only 10 M$ out of pocket expense.

Granted, GC has been freely using shareholder value to update the plant and pocket a few million on the side, but surely they can't bankrupt us like Trafigura did to Nyrstar? If you wnat to make GC look like saints, compare them to Trafigura.

Typically when stocks fall into the wastebasket, management scoops up shares for themselves or for the company to hold, yet NIF just seems happy to let the Market value fall.

[Northforce13]

You would need someone to come along with >=5% ownership of the share to enact change. It wouldn't be very complicated, with that amount of shares you can call a shareholder vote on different subjects.  Like calling a vote on selling the plant to whoever might want to buy it... and distributing the funds from sale and working capital to share holders.  Boom > $5 per share

[JCW]

My thoughts also NF. I thought that at least one other "would be" white knight showed up in the last few years...then for some reason became discouraged and dropped their shares. Don't know how that might happen unlesws there's some hush money being doled out by GC? what we need is someone like the group that freed up Detour mines last year with great results!!....IMO

[DeanEdmonton]

You guys are buying shares in a company where you know for sure the game is rigged. You can't trust the board, management or Glencoe. Why the hell would you ever play with a share like this, they have made an art of screwing the average investor.

[ZincDink1]

Prehaps we are looking at it the wrong way. GC is not acting so much as in bad faith, but operating Noranda and the mines as independant business units which can go out to get the best deal available in the market. Unfortunately, unlike Teck and Korea Zinc, we don't have the clout to negotiate a fixed price. We are tied into competing with the biggest zinc market of all, China. Trevali has a

[Northforce13]

Sell the plant to Teck Resources Sell the plant to Korea Zinc Trafigura, etc.   Sell the plant to whoever, I don't care, there's got to be some company out there that would want to buy it. As far as I know, Shareholders owning >5% have the legal right to call a share holder vote Vote on a resolution to solicit offers to purchase the plant. 1)  an independent

[ZincDink1]

Think the Xstrata final bid was 3.9 a share. or 269 M$ back in around 2009 2010. They actually had a valuation of the plant at almost 300 M$...until the previous CFO wrote us down by 100 M$ or so. So, back then, the board thought we were worth more but Xstrata said not with competition from China. Really just boggles the mind the current valuation, especially now that NIF has adequate zinc

[Scotch12]

I think the issue with somebody making an offer for the plant is Glencore's 25 % ownership.   They are unlikely to ever approve a takeover.  If I recall you need  65% approval of shareholders to accept a takeover. However, many shareholders don't vote so Glencore probably could effectively veto any such attempt. In my hometown Labatt’s took over a discount private