Noranda Income Fund Unit NNDIF

Is a Turn-around Possible? My Thoughts

[schocor]

I am QUITE underwater on this stock after the cell house news, and I have very little faith in the company or its management from an operating perspective.
 
That being said, +$100M investment in this plant would likely make it a VERY efficient operation vis a vis other smelters in the world. Building new smelters is difficult and expensive; seems to me that investing in an overhaul in Montreal might be one of the better brownfield expansion projects in the zinc refinery industry.
 
Where does the money come from? Good question. Caisse seems to be a popular place to look; and this is definitely in their wheelhouse. We have also had financing arrangements for a zinc stream with basecor (now Sandstorm) in the past. I am cautiously optimistic about them being able to find the money.
 
Thoughts?

[JCW]

I am in the same boat and share your thoughts...There's a lot of potential here but my concern is that we (unitholders) don't lose our share of the potential in the process  ...somehow... Caisse is definitely a likely candidate and I would like to think that they would be able and willing to ensure that GC doesn't continue to operate like a sole proprieter. It's a little late

[ZincDink]

Well, if they can keep the plant running at todays TC, they should make almost enough money to finance the project alone. This grift sounds like they want government and other shareholders to upgrade the plant for them

[rjb1954]

I am optimistic because I don't think GC will kill off its Golden Goose. In this case it is a goose which lays zinc eggs. To make the project economic, GC just has to relax its hold on TCs a bit. If the new assets have an economic life of 10 years (correct me if this is wrong), then the operation needs to finance roughly $10MM per year. At a production rate of 250k tons per year, this works