Gold Investment Symposium 2012 - James Gardiner - MKS Capital
Transcript of Gold Investment Symposium 2012 - James Gardiner - MKS Capital
INTEGRATED INTERNATIONAL PRECIOUS METALS ORGANISATION
How Gold Producers can maximise
the Revenue Side of their business
MKS’ position in the Gold Market
INTEGRATED INTERNATIONAL PRECIOUS METALS ORGANISATION
MKS (Geneva) PAMP Refinery
MMTC-PAMP Refinery
MKS (Sydney)
Precious Metal Trader Precious Metal Refiner Physical Precious Metal Products
Gold Trader Gold Refiner Physical Gold Products
That is what we do.
Just Geography
What is the fundamental difference with MKS?
What is different about MKS?
What is MKS’ true position in the market place?
Physical Gold Supply
Physical Gold Demand
Trading Network
360 Degree View of the Market
Physical Supply
Hedge Funds
Central Banks
Commercial Banks
Physical Demand
Speculators
Unallocated traders Trading Desks
Commodity
Exchanges
Information is king
Puts MKS at the Forefront of the Gold Market
“It is our job to know who is doing what to whom and when”
Unique Position in the Gold Market
• Creates opportunities
• Leads to innovation
Maximising the Revenue Side for Gold Producers
Focus for producers:
• Cost side of the equation
• Operational efficiencies
Revenue is capped...? Yes & No
• Exploration & development & production
Revenue treated as Production Disposal
What are the Traditional Revenue options for Gold Producers?
• Sell on outturn
• Risk Management Point of View
PRICE TAKER
Forward sale type strategies
MKS Benchmark
2. We sell at a True spot average daily pricing
3. Daily publically listed independent Bloomberg price
1. Producer allocates their production to us for X amount of time
MKS BENCHMARK True Average Pricing
True average better than basket of ASX average
Gold sold on outturn date
True average price
January December
MKS Benchmark
• We manage the position
• We share the profits 50/50
Traditional Model
REVENUE Gold Price at Some Point
REVENUE Average True Spot Price
MKS Benchmark Bonus??
MKS Benchmark Model
(Price Taker) (Managed Position)
MKS Benchmark
MKS Benchmark Summary
• 50/50 split of trading margins above this true average
• A free call option
• We manage the risk
• Guaranteed to receive the True Average Gold Price
A PACKAGE DEAL
• MKS manages the material from Mine-Site to Final Settlement
• Logistics
• Refining
• Revenue Side
Cocktail drinks at 6pm in the exhibition area
MKS Exhibition Booth
Thank you