I want to put the following motion onto the agenda of the NIF 2021 annual general meeting, in the hope that it will make the directors feel a little more pressure to better serve the interests of unitholders. I will finalize the CAPEX and EBITDA amounts when the figures for Q4-2020 become available at the end of February. The motion needs a seconder; if you would be prepared to second it please email me at rjk1234@rogers.com.
The proposed motion:
All monetary amounts in the following are in $CAD ($CAD ~0.75$US). From January1, 2018 to December 31, 2020 the market price of a unit of the Noranda Income Fund (NIF) has gone from $1.426 to $ 1.137. During that three-year period total distributions to unit holders have been $0.09 per unit. Thus the overall yield to unitholders during that time has been minus 14%. During that three-year period total CAPEX has been approximately $83million or $1.66 per unit and total Adjusted EBITDA has been approximately $95million or $1.90 per unit. Recall that adjusted EBITDA is used by the Fund as an indication of cash generated from operations. The allocation of most of the Adjusted EBITDA to CAPEX has not been reflected in an increased market price of the units and has not produced a positive return to unitholders.
It is therefore moved that the Board of Directors assign a much increased priority to devoting Adjusted EBITDA funds towards resumption of monthly distributions to unitholders, such that they enjoy positive returns from increases in market price of the units and/or distribution yields.
MOVED: rjk1234, unitholder
SECONDED: ?????????, unitholder