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The LBMA Good Delivery List Accreditation Process Melanie R Wells Director Metal Registration Ltd

Metal Registration is an

independent consultancy

that provides a

comprehensive and independent

service to help international

producers and refiners register their

production on global international

commodity Exchanges and Markets

Metal Registration takes out the

uncertainty of the application

process taking an applicant through

the process one step at a time using

our years of expertise to deliver

results Our knowledge and careful

methodology gives applicants a

registration process that is thorough

streamlined efficient and highly cost

effective We have been through the

process many times and know how

to make sure applicants meet all the

criteria first time

Refi ers seek accreditation because the LBMAs seal of approval provides the refiner with global brand recognition for quality

and acceptabifity It also enables the refiner to receive a better price for its approved bars and sell production even during

times 0 uncertain industrial demand

~~

The LBMAs Good Delivery List is

recognised internationally as the

definitive register of global precious

metals refiners whose large gold

and silver bars have been approved

for Good Delivery within the

London Bullion Market The LBMAs

accreditation process is critical as it

upholds the integrity of the physical

delivery mechanism within the

London Market It ensures that all

buyers and sellers have confidence

and certainty that the underlying

bars meet the LBMAs specification

requirements

Refiners seek accreditation because

the LBMAs seal of approval

provides the refiner with global

brand recognition for quality and

acceptability It also enables the

refiner to receive a better price for

its approved bars and sell production

THE CRITERIA

even during times of uncertain

industrial demand

The LBMA Good Delivery List

accreditation process however can

be difficult and time-consuming for

an applicant especially if it has no

historic knowledge or in-house

expertise to draw upon The process

can take typically anywhere from

six months onwards to complete It

depends upon the completeness of

the applicants application dossier

its assaying capability and the quality

(both chemical and physical) of

its bars It is through our detailed

knowledge of all these requirements

that we add value for the applicant

A brief outline of the LBMAs Good

Delivery criteria and procedures is as

followsshy

An applicant refiner in order to apply for Good Delivery accreditation must

check firstly whether it meets the LBMAs criteria which areshy

INon-Technical Criteriashy

bull In existence for not less than five years

bull Has refined the metal for which it is applying for not less than three years prior to application

bull Has an annual refining production of not less thanshyGold - 10 tonnes Silver - 50 tonnes

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bull Meet Know Your Customer controls practised in the London Market

bull Tangible Net Worth of not less than pound15 million or equivalent subject to change

bull In the case of gold applicants meet the LBMAs Responsible Gold Guidance (RGG) requirements

ITechnical CriteriashySpecifications

Product Shape Ingot-shaped

Fineness Bar Weight

Gold 995 minimum 350 - 430 tr oz (109 - 134 kg)

Silver 999 minimum 750 - 1100 tr oz (230 - 340 kg)

Dimensions Gold - L 250mm x W 70mm x H 35mm + Undercut 5deg-25deg

Silver - L 300mm x W130mm x H 80mm + Undercut 5deg-15deg

Markings Logo Assay year amp serial number - clear and indelible

Good Physical Appearance- Smooth surfaces no holes or cavities Easy to handle and stack

These dimensions are the centre-points of the permitted ranges

THE PROCESS gold 24 samples of approximately Once the applicant is confident it 5 grams and for silver 10 samples can meet the LBMAs criteria it is of approximately 30 grams Upon necessary to submit an application receipt of the samples the applicant dossier to the LBMAs Good Delivery within a short time-frame has to Officer (Please note that a large assay and email its report in a amount of information about the standard format direct to the LBMA company and its products must be

included in the application dossier The LBMA upon receipt checks the for this to be accepted) Upon applicants results and if a pass has review and subject to receiving been achieved advises the applicant satisfactory feedback the application accordingly A recommendation is is submitted to the LBMAs Physical made to the Physical Committee that Committee for consideration and the applicant can proceed to the approval Should the Committee second stage which is bar testing grant its approval the LBMA

confirms to the applicant that it can THE SECOND STAGE undertake its technical assessment The applicant is required to ship 11 procedures bars to an LBMA designated London

vault for inspection and subsequent

TECHNICAL ASSESSMENT testing Only one of the bars is marked

The LBMA arranges to send with the applicants brand mark The

reference samples varying in other 10 are marked with a code

chemical composition to the

applicant to undertake an assay test The vault upon receiving the sample

The applicant receives in the case of bars check weighs them against the

~lt-s 23 0 (J e 5 1Issue 31 March 2015

accompanying weight list It also

compares the bars to the photographs

and drawings provided within the

application dossier A visual inspection

is also undertaken by a panel of vault

managers and if all is to be found

satisfactory the 10 unmarked bars

are subsequently sent for testing to

two of the LBMAs appointed referees

(who are therefore unaware of the

applicants identity)

The two referees upon undertaking

a visual inspection as well as various

sampling and assaying procedures

on the bars each provide the

LBMA with a detailed report

These reports are submitted to

the Physical Committee for review

and consideration The Physical

Committee assesses the complete

application and should it approve

the applicant the LBMA Executive

informs the applicant accordingly

and issues a press release confirming

its addition to the LBMAs Good

Delivery List

Melanie Wells established Metal Registration Ltd in 2007 after spending 15 years at the London Metal Exchange It is recognised as an official facilitator for Good

Delivery Applications by the LBMA

Disclaimer Views are personal and not

the views of the publisher