Noranda Income Fund Unit NNDIF

They have an agreement!

[Scotch12]

It looks like they did work something out an agreement after all.

https://www.stockwatch.com/News/Item/Z-C!NIF-3263565/C/NIF

[ZincDink]

And now they won't even disclose the premium. Lovely. Anyone worked out the formula based on what we supplied is the best guess of TC? Are we going to be able to figure out premium? Commercially sensitive and confidential...we don't want shareholders to know because they may realize what a lousy deal the company negotaiated. The good news is if the premium is anywhere near 40 cent a

[schocor]

60% is at a fixed TC charge - lovely how they dont disclose what that fixed TC is.  40% is at market - So about $200 USD per tonne as of today  The North American Premium is also fixed in the contract. Somebody said that this was currently about $.40/lb; I am sure we are not getting $.40/lb and I am sure that the concentrate sales into Montreal reflect a higher sales price given this

[Scotch12]

Obviously, for Incredibly dubious reasons, Glencore has decided not to disclose the fixed TC rate but I would have assumed that it was at this years bench mark rate which is $230 dollars per ton. Presumably, Noranda could have held out and got 100% at market, as appears to have happened last year.  As schocor indicated one should be able to make a reasonably accurate calculation after Q3

[Bwrbhk]

When they report quarterly results, they report the average LME price and the price that they received. For the first quarter of this year the difference was $0.13/lb., which would be the premium that they received.  Last year the premium was fixed at $0.06/lb.

[deev869]

If Glenn core has managed to manipulate this deal like they have with other deals around the world and are now being charged for corruption and bribery why isn't Canada looking into the dealings Glenncor has in Canada because I'm sure somebody's getting paid off. 

[ljp0101]

Glencore wins again. This is almost certaintly going to reduce near term cashflow. Have to think the physical premium got fixed at a significant discount to current spot given it's at historically high levels, though we won't know until 3Q results are out. On the plus side, it will be hard for CEZ to lose money under these contract terms over the next year ... but never say never when the

[Scotch12]

I think the "independent board's" interests are not aligned with shareholders.   They have at best small positions in Noranda.   As long as CEZ can keep the lights on they collect their  salary.  Who ever decided to hedge, in the manner that  it was executed, when we were in a inflationary environment is not competent.