RE:RE:Let the good times rollThey did not say but it makes sense
The main playing card that the smelters had during the negotiations was a lower price for refined zinc. This would have allowed them to negotiate a lower base price as part of the benchmark and then set escalators once the price went up.
Now we know that there are no escalators for this year but until now this has been the sticky point in nailing the negotiations.
Even if there are no escalators a higher price will benefit both miners as well as smelters. Smelters benfit since they participate in profit sharing base on the free metal that they receive from miners.
See page 16 in Nyrstar presentation for description on free metal:
https://www.nyrstar.com/investors/en/Investors%20Materials/English/Modeling%20Nyrstar.pdf
aaaaaargh wrote: namehij wrote: Mgmt. indicated stockpile declines should hasten once the TC's were finalized.
Let's see.
Did they say why that would be the case?