This paper casts a light on the sometimes murky world that lies between base metals product out the gate', and money in the bank._x000D_
Whether your base metals are leaving the mine as a refined product, or as an ore or concentrate, the generally accepted method of value determination is a London Metal Exchange price, usually measured at some point after the material has left your control._x000D_
In this paper, the structure and operation, regulation and the reasons for the use of the London Metal Exchange are explored. In addition, the risks and opportunities that terminal market pricing provides to mine managers are explained, with particular reference to hedging._x000D_
The paper also deals with the structure of the sales contract, including management of shipping issues, agreement of delivered quality, documentation and administrative issues. The selection of counterparties, the role of traders in the market and the growing influence of China and India as base metal consumers and competitors are also addressed.