RE:Produced v. Sold - What gives?I'm no authority but I'll give it a try. 'Repricing' is what it's called.
Commodity metals production is sent to the refinery, from there to the warehouse from which it is distributed. Refined metals entering the warehouse are priced daily (see footnote). However 10% (more or less--it could be different with each metal) of payment is withheld.
That ten percent of 'repriced' metal is settled in the next quarter. If prices are higher then the company is paid the average price of the previous quarter. If prices are lower then the company must remit the difference between the prior quarters average price and the price of the current quarter.
This smooths out the pricing and prevents, somewhat, large players from slamming massive tonnage in and out of official warehouses to take advantage of, and manipulate the spot price. Also production, and grade of orr varies day to day, week/week, month/month. Again repricing smooths this out.
Of course large players do speculate at a remove in rising and falling prices in the commodities futures markets. This is by design, a deliberate distance from production and refining.
Thirty percent of SCZ production in Q3 has not gone missing. It is likely tied up awaiting repriciing.
And I'll emphasize again, I'm no authority on this. Much of what i've said is from an experience figuring out what the hell was going on with inventory and payments of a zinc miner i was invested in.
I hope a more knowledgeable poster can be more specific.
Footnote: Frankly i may be wrong about daily pricing. It's confusing. I do believe i've got the general idea right.