Raw gold bars and nuggets to a buyer’s refinery - Sell your Raw Gold bars and nuggets and deliver to a German refinery.
Miners can now also use trusted shipping services to sell their mined raw gold to qualified buyers and their refineries also in Germany where there are ready buyers also during this crisis. Miners in Africa now can find buyers who smelt gold to determine purity and weight of deliveries, having gold refined to international standards and eventual sale to end buyers. Buyers in Germany are ready to buy raw gold bars from around the globe and use BRINKS and Malca-Amit.

This Company is a buyer of AU Dore Bars and Nuggets but NOT dust. We offer what we believe to be the best possible financial terms other than are available from a direct refinery metals account. This facility is focused on the smaller to medium-sized mine or concession and is designed to provide maximum financial return combined with a total security protocol, utilizing a European Refinery, to eliminate risk to either side. The financial return to sellers is based on LBMA less 4% discount.

This briefing note outlines how we complete business in relation to trial or first consignments ONLY. We hold numerous Metals Account with Refineries in different locations but purchase ALL trial/ first consignments ex our Refinery in Germany following smelt and assay and subject to contract. European Refineries are extremely tightly regulated, and Sellers are actively encouraged to send a representative to accompany any trial consignment and see the process work for themselves. Our trial protocol is based on the following:

• The Seller agrees to a contract with us issued by our Head Office Legal Department in Melbourne.
• Seller provides all required information reference chains of supply KYC/ Compliance where applicable and we obtain Refinery approval.
• delivers the trial consignment direct to the Buyers Refinery in Germany via either Frankfurt or Leipzig airports.
• A Refinery accredited Customs Clearance Agent clears the consignment through German Customs at either airport with all charges to the buyer company account.
• A multinational security/ logistics company – with details identified to the seller – is instructed to provide armored security transport from the airport to the identified Refinery. Cost to the buyer company account.
• The Refinery, upon arrival of the consignment, carries out preliminary testing to confirm that the consignment is as stated in the documentation. Cost to the buyer company account.
• The Refinery smelt and assay the consignment and provide a copy assay report to Buyer and Seller. This is normally completed within 24/ 48 hours of arrival. Cost to the buyer company account.
• Based on the Refinery assay report the buyer company makes a settlement to the sellers nominated bank account as defined within the contract. Settlement on trial/ first consignments is normally based on a discount structure of London Bullion Market Association (LBMA) less 4% (Four percent) plus any commissions - normally circa two to two and one-half percent - which are required to be approved by the buyer company. The settlement is normally completed within 24 hours of receipt of the Refinery report. Daily LBMA second fix/closing prices can be checked via www.lbma.org.uk (see the top of the opening page).
• Trial / first consignments are normally between five and twenty-five kilos only at the seller’s option. Larger volumes are welcome on subsequent deliveries as per contractual agreement.
• Chain of supply KYC (Know Your Customer)/ Compliance “clearance” is insisted upon by Refineries, Banks and Logistical Security Companies. However, assuming a consignment to be of non-criminal origin and not involving child labor, then the process is very straightforward. We have expertise in the correct presentation from most AU producing countries including those historically regarded as problematic. For example, re DRC specifically, we have a situation where our Refinery will work constructively with us to achieve a positive outcome where there may be issues that need to be addressed.
• We do NOT provide a financial instrument on trial / first consignments. This is due to the historically very high level of "drop-outs/ non-performance" by sellers even when a contract has been executed. We are no longer willing to block funds in relation to a financial instrument on any trial consignment. For this reason, our CEO, a respected senior International Lawyer, has agreed and put in place this tried and tested procedure which offers total security to both Sellers and the buyer company alike. This protocol will not be varied for a trial consignment under ANY circumstances. Likewise, we do not fund export charges on trial consignments. A formal Legal Undertaking regarding payment is available and is issued personally by our CEO, in his capacity as a practicing Lawyer, together with confirmation of his status from the Legal Services Board and can be attached to the contract as an Addendum on request.
• To "protect the integrity" of the arrangement it should be noted that at no time does the buyer company have access to or handle the consignment. Our focus is to establish and promote long term business relationships with reliable suppliers. This protocol offers total security to both sides and is committed to in detail within all our contracts.
• Financial Instruments ARE available on subsequent consignments based on a price/discount structure negotiated for individual proposals. Likewise, we are open to considering the pre-funding of export charges where mutually agreed procedures can be put in place. It is possible that such arrangements may involve a requirement for a second trial consignment to replicate procedures through the logistics company that sellers intend to use for ongoing deliveries.
• Whilst Sellers representatives are welcome to travel with their consignment it must be clearly understood that admission to the Refinery is at the discretion of the Refinery Management only. Any representative wishing to accompany a consignment should provide a certified copy passport plus certified local Police Clearance Certificate in good time for us to liaise with the Refinery reference admission.
• In response to the, frequently, lengthy-time it has taken to process visa applications we also suggest that if a Seller has a Europe based family member, friend or business associate who they feel can take their place at our German Refinery then we shall be pleased to facilitate the necessary arrangements with the Refinery on the Sellers behalf. Otherwise, we shall provide full assistance to the application process. We have in place already with many German Embassies in Africa formalized confirmations that our visa application support letters are sufficient for proof of "the purpose of visit".
• It is the Sellers' responsibility to ensure that any traveling representative has the necessary Business Visa for Germany plus any other relevant documentation to include healthcare insurance, please. It is unwise to attempt to travel on a Tourist Visa with even a small hand-carried consignment of AU as ALL metal MUST be declared at German Customs.
• We shall normally be able to arrange for a seller to be met at Frankfurt or Leipzig by our representative and driven to the Refinery - a journey of some two-plus hours or one hour respectively. Additional information re travel/ hotels etc. will be available after the execution of the contract.

Reference commissions please be aware that any of our approved representatives involved in the introduction MUST be included in any commission arrangement.

* TRADING COMPANIES / INTRODUCERS PLEASE NOTE THAT FULL TRANSPARENCY IS NOW DEMANDED BY BOTH REFINERIES AND THE BANKING SECTOR RE ALL-NEW SUPPLIERS. IT IS THEREFORE OBVIOUSLY NOW A VERY SERIOUS ISSUE FOR ANY TRADING COMPANY. WE ARE ALWAYS WILLING TO PUT IN PLACE FORMAL AGREEMENTS TO PROTECT YOUR FINANCIAL INTERESTS IN RELATION TO END SUPPLIERS. WE DO NOT CIRCUMVENT UNDER ANY CIRCUMSTANCES. IN THE CASE OF TRADING COMPANIES, WE ARE ALWAYS WILLING TO DISCUSS THE STRUCTURE OF ANY PROPOSED ARRANGEMENT AND OFFER AS MUCH FLEXIBILITY AS POSSIBLE BUT FULL TRANSPARENCY IS NOW UNAVOIDABLE.

* COMMISSIONS TO INTRODUCERS ARE NORMALLY PAID THROUGH A TRUSTEE ARRANGEMENT AND LAST FOR THE LIFE OF ANY CONTRACT, TO INCLUDE ANY EXTENSIONS, FOR A MINIMUM PERIOD OF FIVE YEARS SUBJECT TO PERFORMANCE OF THE RELEVANT CONTRACT / SUPPLIER.

* THIS COMPANY ACTIVELY SUPPORTS "THE TEN PRINCIPALS OF THE UNITED NATIONS GLOBAL COMPACT PROGRAMME" WWW.UNGLOBALCOMPACT.ORG IN RELATION TO ALL TRANSACTIONS IN SPECIFIED REGIONS.

Corona impact on procedures for trials
It is our intention to issue updates on the situation and its possible impact on our customers. These assessments will be based on careful consideration of the latest information from authoritative sources in what is a constantly changing situation.

• The plan announced by the European Union Commission is put into effect. The reality is that it is expected to last for a considerable period. This is that entry to all Schengen area countries will be seriously restricted. Only EU citizens will be permitted to enter and if they have come from a country where the virus has occurred then they will be forced to self-isolate. Visitors from other countries will almost certainly be refused entry within this period of time. The stated objective is to do everything possible to prevent further spread of the virus and at the same time make every effort to minimize pressure on the respective health care organizations within Europe.

• Our assessment is that it is also highly likely that visa applications made to German Embassies overseas are likely to be held in abeyance until there is some clarity re the spread of the virus.

• We have discussed the situation with the German Refinery. They have stated very clearly that they have no plans to close at any point nor do they see any reason why the German Authorities should seek to force them to do so.

• Obviously this has an extremely serious impact on those customers who had arranged to travel with their trial consignments, is in the process of making visa applications or was planning to travel to meet with us.

• The stated intention of ALL Government / European Commission Authorities is to maintain the flow of cargo worldwide. We have spoken to several of the freight forwarders that we are aware of who carry Precious Metals. All agree that they can maintain their services but have made the point that transportation may be slightly slower given that many airlines are canceling a significant proportion of flights on many routes. They are however maintaining a service.

• We cannot see that there is likely to be any impact on banking and the settlement process following smelt and assay. The objective will remain a same-day settlement subject to receiving the refinery report by 1200 hrs Midday. Reports received after this time will normally result in the settlement being effected on the next banking day.

• All contracts that have been executed will receive notices advising of flexibility reference any stated performance time frames.

Our recommendation to Customers involved in a trial consignments are that they seriously consider identifying a reputable freight forwarder to enable their consignment to be transported to the German Refinery. If they experience any difficulty please email us and we shall provide some suggestions to them. Alternatively, if they contact any local Cargo Office for Air France/ KLM, Emirates or Lufthansa these offices may well be willing to offer suggestions.

No one knows how long this situation is going to last. It is going to create serious difficulty for very many people.

Trial Consignment Protocol for delivery to German Refinery via Freight Forwarding
Additional briefing note detailing trial consignment protocol for delivery to our German refinery via freight forwarding companies as a result of the Covid 19 virus situation. This briefing note is intended to provide interested parties comprehensive detail as to how the protocol works.

HOW LONG WILL TRAVEL RESTRICTIONS APPLY
The reality is that no one really knows. Based on the most authoritative information available within Europe it appears that the best estimate is in the region of nine months. However, it could be considerably longer depending upon the spread of the virus and whether or not there is any subsequent wave of infection.

WHY WILL YOU NOT PREFUND ON TRIALS
The brutally honest answer is because we do not have to. We have an ever-expanding customer base who are happy with the enhanced financial returns and with the way in which we do business and the transparency offered.

CHOICE OF FREIGHT FORWARDING COMPANY
The choice of which Company to use is entirely a matter for the Seller. In our experience miners in a particular country will know exactly which companies are reputable and can be relied upon. If in doubt the major airlines' Cargo Manager at a particular location should be able to assist. It is the responsibility of the Freight Forwarding Company to ensure that all export documentation is in place and to provide a copy of the MASTER AIRWAYBILL at the earliest opportunity.

ON ARRIVAL AT FRANKFURT OR LEIPZIG
As soon as the consignment enters Germany it becomes our responsibility and all aspects are dealt with at our cost. Leipzig is the closest airport to the refinery.

CUSTOMS CLEARANCE
This is handled by a Refinery accredited Customs Clearing Agent normally within a few hours of arrival subject to the sellers having pre-advised the relevant flight details. Depending upon the actual arrival time of the flight should it be necessary for the consignment to be stored overnight at the airport then this will be done by German Customs within their high security vault at the airport.

TRANSPORT TO THE REFINERY
This is agreed with by the individual seller. Depending upon consignment weight the normal procedure is that for consignments of 10 KG or under the Refinery accredited Customs Clearing Agent - accompanied by at least one guard - will transport the consignment to the Refinery. For consignments of ten kilos or over then we employ the services of a Multinational Security Logistics Company to provide armored transport to the Refinery.

AT THE REFINERY
Upon arrival at the refinery, every consignment is subjected to a preliminary test to ensure that it conforms to the accompanying documentation. It is then smelted and assayed as quickly as possible - normally within twenty-four hours of arrival. A copy of the smelt and assay report is made available to both Buyer and Sellers by arrangement. In specifically requested cases we are also able to arrange for the Refinery to issue a confirmation of receipt of the consignment.

OUR GERMAN REFINERY
We have an excellent working relationship with this refinery. We would describe it as a top second-tier refinery which, like every other refinery in Europe is very tightly regulated both by national and international authorities. Indeed the level of scrutiny involved is precisely why European Refineries enjoy the reputation that they have for integrity. What sets this particular refinery apart is their willingness to discuss any issues that may arise re chain of supply KYC Compliance and to seek, wherever possible, a positive resolution. In our opinion, this is very unusual, but very welcome, within the refining community.

SETTLEMENT / TRANSFER OF LEGAL TITLE
Our objective is always to try and accomplish settlement on the same working day as receipt of the Refinery smelt and assay report. In reality, this does depend upon exactly what time of the day the report is received. Frequently these are not received until the latter part of the working day and this means that although instructions to the bank may be issued the same day it may well be the following banking day before those instructions are actioned.
Within all of our contracts, there is the clear stipulation that legal title does not pass from the seller to ourselves until settlement has been made.

WHAT SAFEGUARDS ARE IN PLACE
The purpose of this protocol is to provide a new supplier with a level of comfort in relation to a trial consignment. Prior to the COVID 19 situation, a supplier had been able to accompany their trial and see for themselves the refinery and to meet our local representatives. Obviously this is no longer possible and will not be for some considerable time in the future.

We believe that the fact that our CEO is a senior lawyer and is willing to have verification attached to a contract underlines the fact that it is inconceivable that he would be involved in anything that was less than totally straightforward. In addition to the above, we do not handle any consignment at any point. All handling is done by suitably screened and accredited professionals.

WHY SHOULD YOU SELL TO US?
Any seller has the choice of who they sell to and on what basis. We offer the best terms available apart from a direct Refinery Metals Account plus a totally secure consignment protocol.

AND HERE IS A MESSAGE FROM OUR CEO
"These are extraordinary times and serious difficulties are likely to remain for some considerable time to come. Our Customers, especially in the smaller mine, concession or Trading Company sector, make their own choices and we are committed to maintaining their ability to obtain the best possible financial returns for their metal. Our objective is to always establish a sustainable ongoing business relationship which we hope will last for many years".
Gold Buying Procedures and Pricing as of 19 March 2020
You are aware that the World is in “unprecedented times” and so we are slightly bemused that the price of AU/Gold has been dropping. I have shown below the figures and format that we use – however, for someone to take up our option currently we need them to use a reputable freight forwarder. Our side is completely secure at every stage after arrival at the Airport.

We are having strong success with our new Trial protocol and would ask you to consider the information below. This trial is primarily aimed at small to medium Miners and co-operatives. It may not be of interest to Companies with large volumes for sale. Equally, there is a “prestige” that comes with having access to a Metals Account at a European Refinery and hopefully, with our assistance, that should be possible.

You will obtain the LBMA price – of 4% and with circa, 2% commissions ( in certain instances that may be increased, slightly, to 2½% ) by negotiation.
That equates, as at Thursday, 19th March 2020 afternoon settling the price of - $47,397.14
Nett after commissions ( -4% & -2%) = $44,591.23
Please check today's return here - http://www.lbma.org.uk/

You will be aware that this price can and does fluctuate.
You will also understand, we feel sure, that the price is calculated on the 24-carat price achieved after assay at the Refinery. A full assay sheet will be provided.

How does this work?

A. You agree to provide compliant documentation showing that the Au/Gold is NOT from conflict zones and has NOT been mined using child labor. I don’t envisage that being a challenge for your Country, BUT we have to be certain.
B. Either accompany or nominate a representative/relative with a Schengen visa or consign, via your own freight Company, a modest trial of between 5 (minimum) to 25 (maximum for trial) Kgs to either Frankfurt or Leipzig Airports. Where you (or your nominated representative) will be met and accompanied to the Refinery. You will provide the product to either Airport “tax paid.”
The buyer company shall take care of all Importation duty, security, and transportation to the Refinery. Your Freight forwarding Company will be provided with the Refinery address to guarantee safe direct passage. Payment will be made as soon as the successful assay has been completed.

You can download the entire file as a PDF here. An FCO or simple email would be a good starting point, confirming that you are in agreement with the terms outlined to you. If you want to start the process, contact Jerome, Gold Trade & Finance Partner

updatesfrombreakingnewsdubai[@]gmail.com
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