Noranda Income Fund Unit NNDIF

To Fix or Not to Fix

[schocor]

I am assuming that they WILL spend the money to fix this plant. It is run terribly, but Quebec is a good juristiction for a zinc refinery (electricity) and lets be honest, we are still a better invetment that a mothballed plant in EUropr with their energy concerns. 

$100M required to fix the pot room does not sound like a very "secure" number to me; I have no idea what it will actuallly cost (probably no-body does yet) but I am thinking it will be in well in excess of $100m - not good for us. 

Does anybody  think that they may end up just shuttering CZE? Would be curious to get your thinking on that. 

I am feeling like a bit of a goof this morning for believing this woudl be a good investment after following it for SO many years. Meh.

[BSdetector2016]

Quebec has a long history of interventionist economic policy. If CEZ were to shut down I'm sure that the environmental ministry will be crawling all over the place to ensure that the clean-up becomes an onerous, expensive option. They will be "encouraged" to keep the place running. One needs to understand the entire history of NIF.UN to make sense of what is happening now.

[schocor]

Apprciated. I woud llove a bumper sticker version of that NIF.UN history is and when time permits. I am well aware of the Glencore self dealing, I honestly just didnt think nthey woud lbe quite so brazen abot it......fool me once eh? 

[ljp0101]

What a mess. There's zero chance CEZ shuts down. Questions are how the capex gets fund and how badly operations perform over the next two years. Think bankruptcy is unlikely given it could cause the SPA to get cancelled. Guessing they do some sort of highly dilutive financing where Glencore teams up with a politically linked entitity like Caisse de Depot. Given where the price is today, they