Eyeing cash up front, Peru's zinc, lead miners tap traders for millions in prepays

It has not been an easy year so far for Peru's zinc and lead mining companies after the coronavirus pandemic swept through South America, with operations facing lengthy shutdowns as well as multi-year low prices for their products.

Mining companies are turning to traders to obtain big blocks of cash amid live concerns over future earnings and with banks at their most cautious in a decade
Known as prepay agreements, the deals involve parties paying miners large sums of money up front for long-term supply contracts, with that cash payment amortized over time as cargoes are delivered, Fastmarkets understands.
While the structures are not uncommon, a recent triage of deals highlights a particular moment in time for Peru's mining companies, their finances and concerns over the future of mining operations.

"From a Peru perspective, we...

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