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Santacruz Silver Mining Ltd V.SCZ

Alternate Symbol(s):  SCZMF

Santacruz Silver Mining Ltd. is a Canada-based company. It is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America. The Bolivian operations are comprised of the Bolivar, Porco and the Caballo Blanco Group, which consists of the Tres Amigos, Reserva and Colquechaquita mines. The Soracaya exploration project and San Lucas ore sourcing and trading business are also in Bolivia. Bolivar Mine is located in the state of Oruro in Bolivia, and municipality of Antequera. Caballo Blanco mine consists of three separate mines and one process plant operating as one to produce Zinc and Lead concentrates. Porco mine is located in the Porco Municipality of the Antonio Quijarro Province, in the Potosi Department, Bolivia. Zimapan mine consist of 34 mining concessions covering an area of 5,139 hectares, including the prospective 337-hectare Santa Gorgonia one concession. It is seven kilometers from the municipality of Zimapan in Hidalgo State, Mexico.


TSXV:SCZ - Post by User

Comment by Blazesbon Dec 03, 2020 3:19pm
110 Views
Post# 32030347

RE:Produced v. Sold - What gives?

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. 


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