2013-12-05 BULLIONROCK 2

METALOR TECHNOLOGIES

GOLD IS ldquoHOT STUFFrdquo

PRECIOUS METALS

Definition of ldquoPRECIOUS ldquo

Dictionary Definition hellip hellip hellip

OF GREAT VALUE OR WORTH

THE PRECIOUS METALS

Gold

Silver

Platinum

Palladium

Rhodium

Ruthenium

Iridium

Osmium

Rhenium

Gold Ores come from

PanningDredgingSluicing

Hard Rock Mining

By Product Mining

Time taken to obtain the significant quantities can vary from days to weeks to months

Hazardous amp Costly

GOLD ndash THE ORES

WHERE DOES THE GOLD COME FROM

1) 75 of the gold annual output comes from the top twenty gold producing countries

2) South Africa Australia Canada South American countries

3) At 14 though China is now the worldrsquos largest producer as well as the worldrsquos largest consumer

4) But if China supplies 371 tonnes (14 only) of the output from mines then this total world output is adequate for the JE market only

5) So where does the rest come from

6) SEE LATER hellip hellip hellip hellip hellip hellip hellip hellip

Dore bars are semi-finished semi-pure ingots of gold and silver usually created at the site of the mine These are then supplied to a refiner such as Metalor for purification The proportions of gold amp silver can vary widely Bars can weigh up to 25kg

Employees 151

Products bars investment bars bullion crystal powders

Marin (CH)REFINERY

The semi-pure bars are treated with Borax or Soda ash to remove the less precious and non-precious metals

They can then be cast into the ldquogoodrdquo delivery bars

PRECIOUS METALS

LMBA ndash GOOD DELIVERY BAR STATUS

1) To get LBMA status Must be established for three years

2) To get LBMA status Be able to refine a minimum of 10 tonnes gold and 50 tonnes of silver per annum

3) There are stringent criteria of assaying standards

4) Assaying abilities and standards are checked constantlyperiodically by the LBMA

5) A GDB (good delivery bar for gold will be a minimum 995 and weigh 11-13kg normally

6) Therefore a GDB is a refined dore bar that would be further refined to 999 9999 (four nines ndash fine gold) will be a HIGHLY refined bar

CAST SIZE OPTIONS

1kg to 100g

Different options can be offered regarding9999 (ldquofour ninesrdquo) otherwise know as fine gold and in jewellery terms 24 carat gold

Bigger is cheaperhellip hellip hellip hellip hellip hellip hellip scale

WAFERS AND STAMPED INGOTS

The initial stage is rolling an ingot into a form that can be stamped

INTERESTING FACTS ABOUT GOLD

1) Chemical symbol Au from the Latin Aurum meaning ldquoshining dawnrdquo

2) Density 193gcc Most malleable metal I gram can be beaten into a sheet 1 sq metre

3) Gold leaf can be so thin to be transparent

4) Dissolves into mercury at room temperature to produce amalgam

5) Good conductor of heat and electricity Reflects infrared radiation

6) Unaffected by air moisture and most corrosive reagent

7) For these reasons above gold has many applications in such markets as Jewellery Industrial Chemical amp Electronics

8) As do others Precious Metals such as Silver Platinum amp Palladium

9) ALL can also be ldquoInvestment MaterialsProducts

CONSUMPTIONThe consumption of gold produced in the world is approximately 50 in jewellery 40 in investments and 10 in industry

India is the worlds largest single consumer of gold as Indians buy about 25 of the worlds gold purchasing approximately 800 tonnes of gold every year mostly for jewellery India is also the largest importer of gold

Jewellery 2009 2010 2011 2012India 44237 7457 9863 864China 37696 428 9215 8175USA 15028 12861 1995 161Turkey 7516 7407 143 118Saudi Arabia 7775 7295 691 585Russia 6012 675 767 819UAE 676 6337 609 581Egypt 5668 5343 36 478Indonesia 41 3275 55 523UK 3175 2735 226 211Other Gulf Countries 241 2197 22 199Japan 2185 185 minus301 76South Korea 1883 1587 155 121Vietnam 1508 1436 1008 77Thailand 733 628 1074 809Total 15087 18056 30971 27701Others 2516 254 3904 3935World Total 17603 20596 34875 31636

Of all the precious metals gold is the most popular as an investment

Investors generally buy gold as a hedge or harbour against economic political or social fiat currency crises (including investment market declines burgeoning national debt currency failure inflation war and social unrest)

The gold market is subject to speculation as are other markets especially through the use of future contracts futures and derivatives Gold price has shown a long term correlation with the price of crude oil

This suggests a reason why gold is sold off during economic weakness

GOLD PRICING

GOLD ACCOUNTS

Many types of gold accounts are available Different accounts impose varying types of intermediation between the client and their gold One of the most important differences between accounts is whether the gold is held on an allocated (fully reserved) or unallocated (pooled) basis

Unallocated gold accounts are a form of fractional reserve banking and do not guarantee an equal exchange for metal in the event of a run on the issuers gold on deposit Another major difference is the strength of the account holders claim on the gold in the event that the account administrator faces gold-denominated liabilities such as bankruptcy

COMPLIANCE

RJC - Responsible Jewellery Council

WGC - World Gold Council

EICC - Electronic Industry Citizenship Coalition

The Responsible Jewellery Council the World Gold Council and the Electronics Industry Citizenship Coalition are developing known origin compliance systems which take account of the specific complexities of the gold supply chain

Metalor as a leading gold refiner is actively participating in these initiatives and is fully commixed to support its customers suppliers and agents in being Dodd-Frank DRC Count1048576Conflict-Free compliant by implementing appropriate known origin systems

CONTACT

STEVEN BURLING FIMF

stevenburlingmetalorcom