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Concentrate Sale Settlements
6 Months Ended
Jun. 30, 2015
Concentrate Sale Settlements  
Concentrate Sale Settlements

 

13. Concentrate Sale Settlements

 

The Company records adjustments to sales of metals concentrate that result from final settlement of provisional invoices in the period that the final invoice settlement occurs. The Company also compares assays taken at the mine site on its concentrate shipments, upon which the Company’s provisional invoices are based, to assays obtained from samples taken at the buyer’s warehouse prior to final settlement, upon which the final invoices are in part based, to assess whether an adjustment to sales is required prior to final invoice settlement. These adjustments resulted in an increase to sales of $0.2 million and a decrease to sales of $0.1 million for the three and six months ended June 30, 2015, respectively, and a decrease to sales of $1.8 million and $2.5 million for the three and six months ended June 30, 2014, respectively.

 

In addition to the final settlement adjustments on provisional invoices, the Company records a sales adjustment to mark-to-market outstanding provisional invoices at the end of each reporting period. These adjustments resulted in a decrease to sales of nil and $0.1 million for the three and six months June 30, 2015 respectively, and a decrease to sales of $0.9 million and $2.1 million for the three and six months ended June 30, 2014, respectively.

 

Sales of metal concentrates are recorded net of smelter refining fees, treatment charges and penalties. Total charges for these items totaled $3.1 million and  $5.8 million for the three and months ended June 30, 2015, and $3.2 million and $6.1 million for the three and six months ended June 30, 2014, respectively.