VL on ADFN2 Feb 2018 16:12
vanhelsingjr2 Feb '18 - 15:52 - 10503 of 10504
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QP is not open is fixed on the contract terms normally as the average of a month before or after shipment. You are mixing QP with final liquidation. You can define a qp as +1 mama which means monthly average of one month after shipment and make the liquidation three months later when both parties agree the analysis after a dispute and an arbitration. The problem here with qp is that according with off-take contracts the qp conditios are very favorable for the off takers penalising more than 595 us$ per ton of copper that is going directly to the pockets of off-takers. We had the same problem on 3Q/17.
That means that we are working with negative QP which is unusual because the miner can not protect its position
An we do not know the rest of the commercial conditions in the off-takes such as TC, RC, Premiums and penalties, PP if any, assumed freights...
vanhelsingjr2 Feb '18 - 15:55 - 10504 of 10504
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If Qp is so bad for miner, we can imagine the other commercial conditions.