Some time ago and at the start of the precious metal bull run,...

Some time ago and at the start of the precious metal bull run, both PEM and CBH decided in their far-reaching wisdom to forward sell their SILVER production to Couer D'Alene for around USD 5 bucks an ounce ...... I guess to provide some needy funding for their expansion requirements at the time. Irrespective of what they may have been drinking under the influence of what full moon at the time, it all seemed good then (?)

But what I would ask now if I was a shareholder (which I aint) is how was that forward sale structured. Is it possible that share price deterioration from the highs may in some way be associated with that deal? Did they commit to a forward supply schedule based est metals production program (of which silver is a byproduct) whereby any disruptions to production / supply would mean they might have to buy at spot market (20 bucks/oz) to cover their forward commitments (5 bucks/oz)?

I dont know the details of the SILVER deal structure but reckon you would all want to know in a hurry cos it may explain lotsa motives etc and may be a major toxic hurdle to overcome. PURE SPECULATION on my part but seems there is more driving the share price atm than may first meet the eye.

I point out such possibilities cos have memories of a certain gold producer not so long ago which the "experts" were calling a buy at 670 when its hedge book in a rising gold market had a NEGATIVE net value ...... which everybody ignored until the administrators were called in a total surprise.

These are your companies and you need to know if there are any potentially toxic pills waiting to swallow.

Again ..... havent begun to look cos not interested in companies which cant read broader global trends (wrt Silver at the time) .... but that was the obvious Q which first crossed my mind when I couldnt see any reason for the shareprice crunch even in this kinda market mood.

Love to see an answer for curiosity's sake.

IMBOOC