- Noranda Income Fund (NIF.UN) has reached an agreement with Glencore Canada
- The agreement is on the terms under which zinc concentrate will be purchased and zinc metal will be sold for the period of May 1, 2022, to April 30, 2023
- For the 2022/2023 contractual period, Noranda’s purchases of primary zinc concentrates will be made 60 per cent at a fixed treatment charge
- The purchases will be made 40 per cent at a variable treatment charge that will fluctuate in line with market movements, among other conditions
- Noranda Income Fund is an income trust which owns the electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec
- Noranda Income Fund opened trading at $1.40
Noranda Income Fund (NIF.UN) has reached an agreement with Glencore Canada.
The agreement defines the terms under which zinc concentrate will be purchased and zinc metal sold from May 1, 2022, to April 30, 2023.
For the 2022/2023 contractual period, Noranda’s purchases of primary zinc concentrates will be made 60 per cent at a fixed treatment charge and 40 per cent at a variable treatment charge that will fluctuate in line with market movements, among other conditions.
Noranda and Glencore Canada agreed upon a fixed premium price on zinc metal sales for the same May 1 to April 30 contractual period. Detailed terms are not disclosed as they are considered commercially sensitive and confidential.
In accordance with the agreements in place, Glencore Canada, as principal, supplies Noranda with all of its zinc concentrate requirements and purchases all of Noranda’s zinc metal for the five years ending April 30, 2025.
The terms for each contractual period (beginning May 1 of the respective calendar year) are to be agreed upon annually in line with prevailing market conditions and in consultation with the Independent Trustees’ independent industry consultants.
Noranda does not expect to realize the full impact of these terms until all inventory purchased before May 1, 2022, has been processed. This is likely to occur in the third quarter of 2022.
Noranda Income Fund is an income trust which owns the electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec.
Noranda Income Fund opened trading at $1.40.
