Calculate the effective cash payout from a refinery settlement and distinguish the final payout ratio from a simple payable-metal percentage.
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Effective Payout—
Payable Ratio Before Fees—
Total Deductions—
Net Settlement—
Payout Shortfall—
Effective Payout Formula
Payable Ratio = Payable Value ÷ Gross Value × 100
Net Settlement = Payable Value − Fees
Effective Payout = Net Settlement ÷ Gross Value × 100
Payable Percentage Is Not Net Payout
A refinery can recognize a high percentage of the contained gold while charging fees that reduce the actual cash received. Comparing only payable metal percentage can therefore overstate the economic payout.
Compare Offers on One Basis
When comparing refiners, use the same gold-price reference, assay basis and settlement date where possible. Otherwise the payout percentages can look different simply because the reference values are different.
Actual refinery contracts can include additional deductions not modeled here.
Frequently Asked Questions
What is refinery payout percentage?
Net settlement divided by gross contained-gold value.