It has agreed to pay $US20.58 an ounce for 680,000 ounces of the white metal to be delivered from December through to June 2012. That compares with a closing price on Friday in New York of $US20.79/oz (although intraday it poked its head above $US21/oz).
The deal is with Jabiru Metals which will bank $14 million upfront under the hedging deal, money it can well use to speed its mine development program. The 680,000oz is 60 per cent of its forecast silver production over the period of the BNP deal, which at least leaves 40 per cent of output exposed to spot prices. But, then, it’s the guy with the money to lend who calls the tune.
And The Wall Street Journal has been taking an interest in silver, beginning one recent report by saying that what it calls “the poor man’s gold” was about to shine.
In fact, silver’s gains are outpacing those of gold these days - up 17 per cent in the past four weeks, up 24 per cent this year. So far. (more)
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