get a grip, page-70

speculator, I said, quite clearly I thought, that the company books the delivery of silver as revenue, but they receive no cash for it as it is taken in lieu of debt.

Technically, under a hedge, CCU is obliged to deliver 180,000 oz of silver to the bank every quarter, for ten quarters.

Practically, the bank don't want 450 bars of metal dumped on their doorstep (although personally i think that would be the sensible option!), so yes, CCU sell the silver and use the proceeds to repay the bank. What I was pointing out is that they don't have the proceeds from that 180,000 oz p/q for operating costs, as the money has been used to repay debt.

Revenue is not the same as cash.