Price Sharing

Price sharing is standard for metal concentrates. Price sharing is a mechanism for compensating the buyer for increases in the expected price in contracts for materials that are priced based on a commodity. They are normally defined for the main analyte in the material (for example, only copper in copper concentrates), although other analytes can also have price sharing.

Price sharing is a discount on the price that depends linearly by ranges of the price itself.

Example:

• If the copper price is lower than 117 USC/lb, price sharing is 23% of the price.
• From 117 USC/lb to 150 USC/lb, price sharing is 26.91 (23% of 117) plus 15% of the excess price over 117.
• Over 150 USC/lb, price sharing is 31.86 (23% of 117 + 15% of (150-117)) plus 8% of the excess price over 150.

Under these conditions, if the price is 80 USC/lb, the applicable price sharing would be 23% * 80 = 18.40.