There are two financial management practices that gold and silver mining companies can and should undertake to enhance their profitability and their attractiveness to investors. Retaining a measured amount of gold and silver as part of a precious metals treasury strategy, and secondly, earning income on some of those ounces. Together, these practices may increase revenue, defer tax liabilities, and increase attractiveness to shareholders, all while preserving cash for operations, capital investment and shareholder distributions.

There are two actions this commentary will discuss.

1. Mining companies can hold gold and silver bullion as treasury assets.
2. Mining companies can lease a portion of this metal to qualified businesses, earning additional income.

Some mining companies in fact do this, at least to a small extent. CPM has worked with companies on some of these tasks since at least the 1990s.

Current historically high gold and silver prices far . . .

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This CPM Group Market Commentary was sponsored by Monetary Metals.

To request a mining-company treasury income analysis, visit www.Monetary-Metals.com/CPM.

Courtesy of the CPM Group