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Tolling Agreement Metals

Let`s start with acceptance and consider metals and mining like, for example. Mines are difficult and expensive to build from scratch. They are often fraught with delays and cost overruns for all sorts of reasons – technical, regulatory or even weather. This means that they are often looking for extra money to carry out the project. This is where the trader comes in. A trading company can offer the last part of the financing for a mine that is almost complete, but not without getting its pound of meat. In return (in lieu of or in addition to an interest rate), the trader may request a guaranteed option to purchase a certain proportion of the mine`s annual production on pre-agreed (usually favourable) terms. This allows the trader to have some certainty about what their book will look like in the medium term without having to compete with their peers to bid for the mine`s equipment every time, and be sure to sell some material. Ideally, the trader will also take a lower premium than the market price for the material, so he will also set a margin.

Such agreements are common across the entire spectrum of raw materials – metals, oil (refineries) and even cotton. Under the terms of the agreement, EC is responsible for transporting qualified mineral materials to a designated Midas ore platform. Eligible materials must meet certain minimum levels (> 0.3 ounces/tonne) and certain maximum concentrations of undesirable elements (up to 50 ppm mercury, 1% arsenic and 0.25% copper). The joint venture will be paid on a formula that balances moisture and recovery and is subject to a processing fee per tonne. The agreement is attractive to the joint venture because it allows for the processing of certain suitable mineralized “oxidized” materials that are mined or have already been mined at the Radcliff mine (in the west-central part of the Panamint Mountains, in Inyo County, near Ballarate, California). JV expects most of the extracted materials to be processed at the company`s gold facility in Bishop, California: The Bishop plant is being prepared for a return to service in the first quarter of 2017. The agreement with Klondex provides for freedom of choice and immediate access to a processing plant. This is a process that can be defined as the execution of a specific service for a customer`s product. Of course, the company would charge a fee (more commonly known as toll) to provide these services. Typically, a company would provide a manufacturing or processing service in exchange for the customer`s salary. Contract manufacturing companies can prove to be a very beneficial advisor and an ingenious asset for any company or professional. Contract manufacturing companies are highly experienced in processing a wide variety of materials for a wide variety of industries.

They can provide a company with very rich information, including difficulties or extenuating circumstances they might encounter in dealing with a particular type of material. This information is extremely valuable as it can help the customer decide on important details regarding the formulation and process of the material, including moisture content, quality control and size distribution. Payroll processing is also commonly referred to as contract processing, tolls, contract milling, contract conversion, manufacturing to subcontracting, or customer manufacturing. The toll is slightly different – it is a processing plant. Let`s go back to our mining example – our mining company may need capital to build a smelter to process the ore it produces. The trader could now again demand an agreement on the processing of raw materials he obtains outside the mine on favourable terms. In this way, the trader has a stable sales market for the ore/concentrate to be sourced elsewhere and a guaranteed supply of refined metal. Again, a smart trader would make sure that the process secures a margin to guarantee a profit for the entire life of the business. Such agreements are common across the entire spectrum of raw materials – metals, oil (refineries) and even cotton. Contract manufacturing companies can prove to be a very useful consultant and a brilliant asset to any company or company that works to have it under its belt.


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