The conclusion of a raw materials sales contract can potentially have considerable advantages over traditional forms of equity financing and debt: in many countries around the world, the purchase and sale of gold lingoe and gold lingoté may be tax-exempt. We have justice and control of several mining sites in Tanzania with good gold talents. The development and extraction of gold at such mining sites allows the delivery of gold. Companies and their businesses must be properly informed, due diligence must be exchanged and the gold production process at the mine site fully understood. Toronto, Ontario—- (Newsfile Corp. – January 15, 2019) – IAMGOLD Corporation (TSX: IMG) (“IAMGOLD” or “Company”) announced today, That it has entered into a gold sale agreement with financial institutions, in which the company will receive an advance of $170 million in exchange for the delivery of 150,000 ounces in 2022, with a gold ground price of $1,300 per ounce and a price capped at $1,500 per ounce. This prepaid gold arrangement (“Prepay”) is supported by a consortium of banks such as citibank N.A. and National Bank of Canada. The terms of the prepay are shown below: Hudbay Minerals Inc. entered into a gold sale and prepayment agreement to obtain $115 million in advance, in exchange for the delivery of a total of 79,954 ounces of gold in 2022 and 2023, on average approximately $1,682 per ounce. If you would like the French version of this press release, please see the www.iamgold.com/French/accueil/default.aspx. Contracts that are excluded from IAS 39 for these reasons are commonly referred to as “self-use contracts” and counted as performance contracts.
Gold is considered easily convertible into cash, which is why management believes that the advance agreement on gold (“the agreement”), which is not a written option, will be settled by the delivery of the gold, in accordance with the normal sales and use requirements of the business. A prepaid futures agreement is a possibility by which a buyer agrees to purchase a certain quality and quantity of a product from a producer for prepayment. In short, the buyer acts as a lender in the sense that he provides money in advance in exchange for future productions. Customers should check the delivery and can also sell the gold immediately to the local bank or the gold merchant. The contract is paid in advance and the term of the contract is one year. The expected delivery time of 1 to 2 kilograms of gold is 6 months. In the next transaction, the expected delivery time is 3 months. OceanaGold signed a forward sale agreement with its partner banks to secure a down payment of $78.5 million in exchange for the delivery of 48,000 gold balances between September and December of this year. In addition, it is likely that the buyer will require, as a precondition for closure, that the seller enter into and maintain agreements on the goods produced to ensure that the quality of the goods meets its standards. On Tuesday, gold was trading at $1,292 an ounce, not far from a six-month high.
The prepaid gold agreement is supported by a consortium of banks such as Citibank N.A. and National Bank of Canada. According to the press release are the terms of the down payment: The prepayment is unconditional and will be paid on May 11, and the company will provide 3,331 ounces of gold per month from January 2022 to December 2023. Forward Looking Statement This press release contains forward-looking statements. All statements, with a fact other than the historical fact, concerning the activities, future expected or expected events or developments (including statements on planned, estimated or expected gold production, cash costs, margin expansion, capital and exploration expenditures, mineral resource estimates, exploration results, potential minerals, potential mineral resources and mineral reserves) are forward-looking statements.