With the volatility of metals prices, jewelry manufacturers are paying even closer attention to their refining returns. If you’re relying on returns for cash flow or counting on the metal you get back for future production, the last thing you want is to fall short of your expectations.

“Due to the higher metal prices, customers have become more sensitive when they compare assay differences to their initial expectations,” says Jack Brill, supply chain manager for Johnson Matthey PGM Refining at the company’s West Deptford, New Jersey, refinery. The sharp jump in metals prices means that a 1 percent difference between what you expected and what the refiner found could translate into tens of thousands of dollars. “The value is so much greater,” Brill adds. “And it points out even clearer that you have to tightly control and collect all precious metal-bearing waste you generate.”

The settlement on a lot is based on results of sample tests conducted before the lot is refined. The better you understand the metals analysis methods used to estimate purity and composition, and the more proactive you are about knowing what actually went into your lot, the more effectively you’ll be able to manage your financial expectations.