Glencore confirms $500m gold & silver hedge

Jon Blogosphere, Gold, Market Commentary, Precious Metals, Silver

Glencore has agreed a $500m gold and silver streaming deal from its Antapaccay mine in Peru to help ease its balance sheet woe, as well as impressing with fourth-quarter production numbers.
The debt-burdened FTSE 100 group, which also posted its 2105 production report, expects to receive the $500m advance payment via its wholly owned Narila subsidiary before the end of the month in return for delivering 630,000 oz of gold, 10m oz of silver.
Analysts said this further insulated Glencore from the potential of a downgrade to its credit rating.
After those amounts are delivered, Narila will supply 30% of gold production and 30% of silver production thereafter in exchange for ongoing payments of 20% of the spot gold and silver price per ounce delivered, increase to 30% of the respective spot prices after 750,000 ounces of gold, and 12,800,000 ounces of silver have been delivered.

This post was published at TruthinGold on February 11, 2016.