Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
extended durations can be agreed. For gold and silver, the QP may have a similar range, but it is
more likely that buyers will look for an early Quotational Period to allow them to earn contango.
19.4.8 Payment Terms
Standard industry terms allow for a first provisional payment by the buyer for 90% of the value of
the concentrates at a fixed date ‘X’ days after vessel departure from the load port or ‘Y’ days after
vessel arrival at the discharge port, with final payment due when all final information (prices,
assays, weights, etc.) is known. In several instances, a second provisional payment may also be
provided as an interim payment prior to when all final details (weights, assays and prices) are
available.
Most traders will offer some form of financing with many frequently offering to pay for
concentrates as they are delivered to them at the port or in their warehouses. While most will
offer this service for ‘free’, some will look to charge extra for this although rates tend to be
relatively reasonable and below most miners’ cost of capital (e.g. LIBOR +2 to 3%).
For purposes of the Feasibility Study, it is recommended that the following payment terms be
used:
Direct Smelter Sale
First Provisional
Final Payment
90% of invoice value 4 , 15 days after vessel arrival at discharge
port.
100% of the invoice value, less the value of the first
provisional, on final settlement (assume 100 days after vessel
arrival)
Trader Sale
First Provisional:
90% of invoice value, 5 days after the end of the month of delivery of each monthly quota
of concentrates.
Second Provisional:
100% of invoice value, less the value of the first provisional payment, 45 days after the
date of the first provisional payment.
Final Payment :
100% of the invoice value, less the value of the first and second provisionals, on final
settlement (assume 120 days after the end of the month of delivery of the monthly quota).
4 The invoice value equals the net value of the payable metals less all charges (treatment charge, refining charges, escalators/deescalators
(if any), penalties, freight allowance (if any))
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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