Abaxx Technologies Inc. (ABXX:CN) is traded on Canada's NEO Stock Exchange.
Abaxx Technologies Inc. is a development stage financial technology business developing software tools which enable commodity traders and finance professionals to communicate, manage risk, and transact faster and more securely.
2. THIS DOCUMENT IS PRIVATE AND CONFIDENTIAL, CONTAINS SENSITIVE BUSINESS INFORMATION OF ABAXX TECHNOLOGIES INC. (“Abaxx” or the “Company”) AND IS
NOT FOR PUBLIC DISTRIBUTION. By your acceptance of this document you acknowledge and agree that this document has been prepared for informational purposes only, is
provided personally to you, may not be copied, reproduced or made available to any person without Abaxx’s consent, and must be returned promptly upon the request of Abaxx. It
contains general information about aspects of the business of Abaxx, and is not, and should not be construed as, an advertisement or public or private offering of securities of Abaxx.
This document contains summary information about Abaxx, does not purport to be complete, and no representations or warranties about such information are made by Abaxx. By
accepting this document you agree to keep its contents strictly confidential, not to copy any portion of this document and to return it to Abaxx promptly upon its request.
This document is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of these securities in Singapore, Canada or the United
States. No securities commission or similar authority in Singapore, Canada, the United States or elsewhere has in any way passed upon the merits of the securities offered hereunder,
and any representation to the contrary is an offence. No person is authorized to give any information or to make any representation not contained in this document and, if given or
made, such representation must not be relied upon. Prospective investors are urged to consult their professional advisors and to carefully consider the risks and challenges typically
encountered by companies that are developing new products and entering new and untested markets.
FORWARD-LOOKING INFORMATION
This document contains forward-looking information within the meaning of applicable Singapore, Canadian securities laws and the United States Private Securities legislation. This
forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, demand for
and marketability of the Company’s products, prevailing regulations, the Company’s future growth plans, the timing and scale of future business plans, results of operations,
expected use of proceeds of the offering and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may”, “would”, “could”,
“estimate”, “forecast”, and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of
management at the date the information is given and on information available to management at such time. Forward-looking statements are provided to assist external stakeholders
in understanding management's expectations and plan relating to the future as of the date of this document and may not be appropriate for other purposes. Forward-looking
information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results
discussed or implied in the forward-looking information. These factors include, among other things, ability to continue as a going concern, the highly speculative nature of an
investment in securities of the Company, no history of revenues or profits, no assurance of commercial success of the Company’s products, changes in market demand for the
Company’s products, the success and ability of investee companies to execute on business plans, requirements for additional financing, protection of intellectual property rights,
competition, potential infringements of intellectual property rights of others, fluctuations in input costs, reliance on key personnel, technological change, blockchain regulation,
permits and licenses, and conflicts of interest, and should be considered carefully. Prospective investors should not place undue reliance on any forward-looking information.
Although the forward-looking information contained in this document is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company
cannot assure subscribers that actual results will be consistent with such forward-looking information as there may be other factors that cause results not to be as anticipated,
estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The
Company does not undertake to and assumes no obligation to update or revise any such forward-looking information to reflect new events or circumstances, except as may be
required by law.
OBLIGATORY CAUTIONARY STATEMENT
2
January2021
3. Quick Summary - Smarter Markets: price benchmarks + tech + ESG
3
January2021
Abaxx is a full-stack financial technology company developing a regulated commodity futures exchange in
Singapore, and new software protocols and applications to enhance trust in electronic markets
Our key mission is to improve price signals in markets for the energy transition. We solve a global problem of
how natural resource commodities can be graded and traded based on their environmental, social, and
governance (ESG) externalities and incentives.
Key Activities:
● New benchmark contracts for global energy and precious metals, developed in partnership with
respective industry market players
● First Regulatory Approval in Principle Achieved September 2020
(MAS, Singapore: RMO), ACH in progress for 2Q-2021 goal
● Exchange technology completed in partnership with Nasdaq in 2019
● Currently negotiating Founding Member Incentive Agreements; Targeting Summer-2021 Launch
● Executive Management - Former NYMEX/CME, Goldman Sachs, SMX/ICE
● ESG ID: a new market data platform designed to enhance ESG pricing discovery
● 10+ patent applications for commodity market electronic systems, digital identity and digital IP
4. Abaxx’s mission statement and business structure is summarized in our communications phrase,
SmarterMarkets, the 3 dimensions of which are:
Mission and Commercial Segments
Market Structure and Trusted Price Discovery
Abaxx Exchange:
• Energy (LNG to start) and metals (Gold to start)
Technology
Abaxx Tech: ID++ Protocol
• Chat, sign, drive, vault
Environmental, Social and Governance
A trusted global scorekeeper, not player or referee
• Measurement, Verification, Reporting (MVR)
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January2021
5. Price to 2021E Earning by Sector(1)
● Near-term focus is on the Abaxx Exchange
● Exchanges & Marketplaces are some of the
most highly valued sectors in finance; from
traditional equities and derivatives
exchanges, to software-technology enabled
marketplaces (Ex. Google, Uber & AirBnB)
● Exchanges trade at a premium to other
types of financial institutions due to: higher
fee-based and recurring revenues, less
cyclicality and oligopolistic market
dynamics with high entry barriers
● Abaxx’s ultimate model will blend aspects of
other highly-valued sectors including
Market Data Providers, Distributed Ledger
Technologies and Work Automation cos.
companies
Market Segmentation
Source: CapIQ, Company disclosures. Market data as of December 15, 2020.
Price to Earnings ratio is median of comparable company set. Median P/E ratio for Core Market Infrastructure includes all exchanges (cash equity, options, futures, commodities and other derivatives). 5
January2021
6. Immediate Focus:
Liquified Natural Gas and a changing global energy trade that
demands carbon reduction and offsets.
Near Term ESG Opportunity:
We are designing ESG compliant products that
are fundamentally differentiated from
competitors through the use of our technology
console.
Our
Goals
Abaxx Exchange Section
We are a new Commodity Futures Exchange facilitating a more efficient means
for price discovery and price transparency.
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January2021
7. 2003 - 2020:
Internet-based trading changes the
landscape. Technology & new equity
structures shift from traditional floor
trading such as NYMEX to electronic
platforms (ICE & Clearport).
The Opportunity:
Commodity and Exchange Consolidation Timeline
2003
Electronic-Based Exchanges:
Fewer Exchanges
with more product offerings = more
trading volume per Exchange. Still
regionally restricted and high
cross-region friction.
2020
Globally-Minded Platforms:
Abaxx
With products and services that
bring global operational efficiency
and transparency to the cost/value
of implementing sustainable
practices.
2020 onwards:
New technology in digital
transformation, ESG, and
new tools for risk
management to change
the landscape again.
1864
Traditional Exchanges:
Several Exchange
with specialized product
offerings = less trading
volume per Exchange.
GROWTH CONSOLIDATION OPPORTUNITY
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January2021
8. Trading revenues in Energy & Metals derivatives
Significant revenue potential in other Energy & Metal products
& other new benchmarks(2)
Massive value transfers in global commodity trading
Further capture of market share across the spectrum of
commodity trading and ancillary businesses(3)
Long-term LNG annual revenue
Large opportunity in LNG trading which is in nascent
stages(1)
Source: CapIQ, company disclosures and Abaxx exchange industry research. Market data as of December 15, 2020.
LNG Market revenue calculated based on assumptions: Production of 10,000 lots/day x Trading (Notional) of 50x = 500,000 trades/day. Daily revenue of ~US$3-5mm/day. .
Estimate of revenue attributable to Energy and Metal trading revenues from Core Market Infrastructure exchanges (CME, ICE, HKEK (LME), SGX, Deutsche Börse (EEX) & Nasdaq). Full-year
revenue figures per FY19.
Based on 2019 notional value of Energy & Metals trading from top 10 exchanges globally (per broker on Hong Kong Exchange (HKEK) from JP Morgan, China Merchant Securities, UBS and
HSBC).
Large Market Opportunity in LNG & Other Commodity Markets
LNG is Abaxx’s Entryway into Global Commodity Markets
~$500mm
Medium-term LNG derivative TAM
~$4.0Bn
Trading revenues in major Energy
and Metal derivative markets
~$70-80T
Notional value of trading in global
Energy & Metal markets
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January2021
9. 9
January2021
Why Singapore
● Singapore is the hub of the Asian energy transition
● Excellent regulatory and governance environment
● Has usurped many traditional European and Asian
financial centers as the defacto center of commodity
finance
● Singapore enthusiastically supportive of Abaxx’s
business segment potential
10. • The Abaxx technology captures and disseminates transparent transaction
information, enabling traders to bring more certainty and to more easily verify
criteria supporting all aspects of ESG transactions.
• Our ESG-ID technology provides the market unique capability to 1. Measure,
2. Verify, and 3. Report compliance with global standards (carbon footprint,
social metrics, fair trade, child labor, conflict zone, etc).
• We are integrating trusted registries with our technology to improve the
distribution of price information, and promote transparency of the value of
the entire ESG chain.
• We are creating new benchmarks for ESG-related commodity markets and
beyond to transition to sustainable practice, and break the stagnation of
status quo.
• The Abaxx ID++ Technology Stack is open and adaptable, compatible with
existing FIX messaging protocols and ISV Bank integrations, as well as
distributed ledgers.
Market-based Solutions for ESG
Abaxx is in a unique position to promote price discovery and transparency for
markets and customers, especially where standards are not yet the norm, but can
be identified and priced.
Our
Commitment
10
January2021
11. Abaxx Exchange Executive TeamExchange Executive Team -
Dan McElduff, President
● Senior Director of Research for NYMEX leading
natural gas and Clearport product development
● Chief Regulatory Officer of ELX Futures
● BS Finance, Marist College
Joe Raia, Chief Commercial Officer
● Global Head of Energy and Metals Futures and
Options, CME/NYMEX
● Managing Director, Global Commodity Futures
Head, Goldman Sachs
● Global Head of Energy, RJ O’Brien
Nancy Seah, Managing Director
● Co-Head of Trading Division, Pavilion Energy
● Managing Director, Head of Commodities Sales
Asia, Goldman Sachs
● Team Head, EnRisk Derivatives Trading, BP
Integrated Supply & Trading EH
Shanmei Lim, VP - Corporate Development
● Mirexa Capital, Director, FX Sales
● Barclays Capital, AVP, FX Derivatives Trader
● BSc Mechanical Engineering, Minor
Computational Finance, Carnegie Mellon University
Josh Crumb, Founder & Director
● Former Executive Director at Goldman Sachs,
Head of Metals Research & Strategy
● Founder of TSX-listed FinTech Goldmoney
● Colorado School of Mines
Prashant Bhatnagar, Head of Exchange Operations
● Manager-Operations & Technology Development,
National Stock Exchange of India Limited (NSEIL)
● AVP-Clearing & Settlement, Singapore Exchange (SGX)
● Vice President-Operations, Singapore Mercantile
Exchange (SMX-later bought over by ICE)
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January2021
Over 100 years of experience in exchanges, commodity markets and risk management
12. Ryan Ingram, Chief Risk Officer
● HKEX, Group Regulatory Analytics, Risk Policy &
Strategy
● Goldman Sachs, Regulatory Analytics & CCP, Credit
Risk Management & Advisory
● ISDA, Risk & Capital, Risk & Margin Reg. Committee
● CME Group, Risk Policy, CME Clearing
Tan Tock Siong, Chief Regulatory Officer
● Chief Regulatory Officer, Asia Pacific Exchange and
Singapore Mercantile Exchange/ICE Singapore
● Singapore country head of compliance, Bank of China,
State Bank of India, Bank of Nova Scotia
● Deputy Director/Lead Policy Analyst, Monetary
Authority of Singapore
Gus Hadidi, LNG Contract Advisor
● Managing Partner- Enerleb Ventures
● Fortress Investment Group, Energy Private Equity
● Poten & Partners, LNG & Natural Gas
● Masters in Energy Economics, Chemical Engineering
- Cornell University
Wade Brennan, Gold Contract Advisor
● CEO of Kilo Capital, Precious Metals Trading and
Finance Specialist
● Former Head of Precious Metals Sales for Europe,
Mid-East and Africa at ScotiaMocatta
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January2021
Singapore Executive Team -
13. Why Now? LNG market in transition.
Spot Trade: 1-12 months
13
Supply of Spot Market is Growing Rapidly...
...while Demand Marches Higher...
...and Market Transitions from Long to Short Term & Spot Contracts.
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January2021
14. LNG is the last unbenchmarked global* energy market. Abaxx is solving this.
What is the Price of LNG ?
1414
January2021
15. 2017 Energy
Outlook BP p.l.c
2017
The market needs a price, and a buyer/seller of last resort to
address increasing spot-market complexity.
2017 Energy
Outlook BP
p.l.c 2017
Import
Export
Gulf of Mexico FOB
(Free On Board)
North Pacific DAP
(Delivery At Place)
Projected net LNG Exports & Imports 2020 (Bcf/d)
7
2
7
2
10
5
44
11
15
January2021
16. Abaxx is partnering with LNG and Carbon market participants to execute the first global Carbon Offset Physical
LNG trade cleared and settled from a futures contract. We are developing a working group with market leading
participants in both LNG and Carbon/Environmental markets.
● This will be a transaction focused inaugural trade that would provide an opportunity to become a leader in new
ESG related commodity markets.
● This project will help us shape the future of commodity and socially-responsible markets.
Objectives are to:
● Lead the way by completing the market’s first Carbon
Neutral LNG Futures trade.
● Demonstrate our organization's commitment to ESG goals.
● Forge the future with encrypted technology and secure
transactions, transforming Carbon and LNG trading.
Carbon Offset LNG-Cargo Pilot Transaction
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January2021
17. • New digitization tools for spot market clearing
and settlement
• New tools for metals markets to meet
developing criteria and methods for ESG
standards
• Risk management tools
The Gold Problem:
Limited ability to discover price and manage
price risk
• Miners and end users have limited choice, being price
takers where price may not reflect local market
fundamentals.
• Hedge effectiveness is lower when forward/ futures
markets don’t converge with spot.
• No real time access to prevailing bid:ask for spot.
• Limited ability to find non-LBMA counterparts that
might have complementary needs.
• Global pressure to embrace and adopt new ESG
standards and criteria in all metals markets.
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January2021
New Gold Product
Solution:
18. • The potential to provide greater transparency, price discovery, & liquidity to
global markets during this generational transition to embracing all aspects
of the ESG value chain.
• The ability to integrate trusted registries to meet developing market criteria
and methods for ESG standards and greater global responsibility.
• New ways to provide an intelligent and socially responsible approach to
commodity benchmarks.
We are Bringing Meaningful Change to New and Existing Markets
Our
Commitment
EMERGING:
• Physical LNG Markets - meaningful
and measurable carbon neutral
benchmarks
• Environmental Markets - utilizing
trusted registries with certifiable
criteria
• Energy Metals - address the social
governance issues surrounding
metals and mining with relevant
registries.
MATURE:
• Precious Metals - enabling
existing market participants the
means to transact in reliable
and relevant registries.
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January2021
19. Additional exchange revenue streams currently in pricing evaluation
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January2021
.A fresh approach to traditional revenue streams and opportunities:
- Data services are not yet treated in our financial model
- Revenue generated from non-futures transaction services
- EFP
- Spot services
- SaaS ID++ chat with video and regulatory compliant transcription,
contract execution, document transfer
- Execution of orders, execution of documents with multiple
counterparties
20. Abaxx Exchange Status and MilestonesAbaxx Exchange and Abaxx Clearing: 2019 to Current
Jan 2019 – Mar 2019
Initial Staff on boarding
Technology delivery from
Cinnober (NASDAQ)
Apr 2019 – Jun 2019
Abaxx Exchange staff onboarding
Completion of User Acceptance
Testing (UAT)
Mock Trading and Clearing runs
Team cross training
Regulatory documentation
(i.e. Rules and Policies) review
Jul 2019-Sep 2019
Cross Training and Mock
Runs continue
Regulatory documentation
(i.e. Rules and Policies)
review
Oct 2019 – Dec 2019
Cross Training and Mock
Runs continue
Regulatory documentation
(i.e. Rules and Policies)
review
Jan 2020 – Mar 2020
Regulatory review
Management Meeting
Initiation of discussion with Settlement
Bank (SCB)
Clearing Testing Scenarios build up
System Demonstration to Tech Team
RMO checklist to MAS
Apr 2020-Jun 2020
Regulatory documentation (i.e. Rules
and Policies) review
GARCH System build, testing and sign
off
System Demonstration to Tech Team
SOP and Manual updates
ISV Interaction
RMO Checklist to MAS
Jul 2020 to Sep 2020
AIP for RMO
System operations(hands-on)
demonstration to Tech Team
Regulatory documentation (i.e.
Rules and Policies) review
Ops Presentations to MAS
Risk Presentation to MAS
Oct 2020 to Dec 2020
Ops Presentations to MAS
Risk Presentation to MAS
On boarding of Manager
(Clearing Ops)
Regulatory documentation (i.e.
Rules and Policies) review
Trading & Clearing Procedures-
In Progress 20
January2021
21. 1980s - PC
1970s - Minicomputers
1960s - Mainframe
1990s - Client-Server
2000s - Cloud
2010s - Mobile
EMERGING - Distributed
+ Decentralized
Business Transformation #1: PC + Internet
● Spreadsheets, Word Processing, Powerpoint Presentations
● Email & Instant Messaging
● Online markets; just-in-time globalization
Identity + Decentralized Data Stores
● Trusted Digital Identity
● Trustworthy Computing & Secure Data Stores
● Digital Documents Superior to Paper
(new markets / businesses emerge)
Abaxx New Technology Stack: Technological Generations
Commoditization
of PCs
Business Transformation #2: Cloud + Mobile
● Cloud Software & Storage, Big Data
● Social Networks, Cloud CRM/HRM/Etc
● Mobile Platform Markets (Uber/AirBnB)
Commoditization
of NETWORKS
Commoditization
of TRUST™
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January2021
22. The applications built on the protocol are
modular and fundamentally improve productivity
in financial services and potentially a myriad of
additional industries.
The platform is built on our proprietary ID++ protocol
22
January2021
23. Abaxx Global Mesh Network - Optimized for a modern global exchange
23
January2021
24. Abaxx Technologies Executive Team
Andrew Fedak, Founder & Chief Strategy Officer
● Growth Executive, Seed to Scale
● 25 years as an entrepreneur commercializing concepts in
technology and resource industries
● Multiple start ups, multiple successful exits, as Founder,
Executive, Director and or Advisor
● Economics, Western University, Canada
John Dutchak, Director of Engineering and
Technology
● Full stack developer and security engineer with
30+ years experience developing enterprise
solutions
● Emerging technology, including smart contracts,
dapps, wallets and mobile institutional apps and
integrations
Josh Crumb, Founder & CEO
● Former Executive Director at Goldman Sachs,
Head of Metals Research & Strategy
● Founder of TSX-listed FinTech Goldmoney
● Colorado School of Mines
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January2021
25. Margot Naudie, CFA, Lead Independent Director
● Former Senior Portfolio Manager at TD Asset
Management, Marret Asset Management and Canada
Pension Plan Investments
● Director on public and private company boards
● B.A. McGill, MBA Ivey School of Business
Josh Crumb, Founder & CEO
● Former Executive Director at Goldman Sachs,
Head of Metals Research & Strategy
● Founder of TSX-listed FinTech Goldmoney
● Colorado School of Mines
Thom McMahon, Founder & Director
● Former CEO of the Singapore Mercantile Exchange
● Former President, Hong Kong Mercantile Exchange
● Director for NYMEX, natural gas committee leading
Henry Hub futures development
Catherine Flax, ESG-EFP Lead, Independent Corporate
Director
● Senior Finance Executive and Commodity Specialist
● Former Managing Director, Head of Commodity
Derivatives, Foreign Exchange and Local Markets Americas,
BNP Paribas; Chief Marketing Officer, J.P.Morgan; CEO
of JP Morgan Commodities, EMEA.
Daniel P. Owen, Independent Director,
Nominating & Governance Committee
● Chairman and CEO of Private Investment and
Wealth Management Company
● Experienced Senior Executive and Director of
numerous Canadian publicly listed companies
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January2021
Board of Directors
W. Scott Leckie, Independent Director, Audit
Committee Chair
● Principal and Portfolio Manager of Takota Asset
Management Inc.
● Director of Acerus Pharmaceuticals Corp, Sterling
Maple Corp.
● Former Director of New Millenium Iron Ore
26. 26
January2021
Developer and sponsor of the Smarter Markets Podcast
www.smartermarketspod.com
Abaxx goals include:
stakeholder awareness
and brand building;
discussing the hard
issues in developing
new market structures;
a platform for the
resource industry in
ESG investing
27. Smarter Markets Infrastructure
Market Structure and
Trusted Price Discovery
Abaxx Exchange:
• Energy (LNG to start)
• Metals (Gold to start)
Technology
Abaxx Tech: ID++ Protocol
• Chat, sign, drive, vault
Environmental, Social and
Governance
A trusted global scorekeeper,
not player or referee
• Measurement, Verification,
Reporting (MVR)
27
January2021
LNG/Transition Energy
Exchange
Self-Sovereign ID ++
Applications
Trustless Ledgers &
Settlement
Digital Identity
& Messaging
Smart Contracts &
Decentralized Storage /
Custody
Abaxx Financial
Console & Workflow
Abaxx Protocols:
Abaxx Projects:
Enterprise Value:
Equity + Royalty
84% + 2% 100% 100%
28. Ownership
Source: CapIQ. Market data as of December 15, 2020. Figures may be slightly off due to rounding. All figures reflect closing of RTO Transaction with New Millennium Iron Corp. (TSX:NML) on December 14, 2020.
Share Price based on last trade of NML’s common shares on the TSX (C$0.34). Cash estimate based on estimated pro-forma cash position net of transaction costs as estimated in NML’s Management Information Circular dated
October 15, 2020 plus
Pro-Forma Ownership based on ~63.1mm shares outstanding.
Units C$
Share Price C$ $3.90
S/O mm 64.1
Market Cap C$mm ~$255.0
(-) Pro-forma
Cash/Investment
C$mm ~$13.0
(+) Payables C$mm ~$2.5
Enterprise Value C$mm ~$240.0
● Significant insider ownership – Abaxx
management team and board of
directors own +20% of shares
outstanding
● Strong shareholder base –
Angel-shareholders include Robert
Friedland, Kyle Bass, Erik Townsend
(+10% of shares) + institutional funds
● Liquid market for shares –
+5,000 shareholders, +1mm average
daily volume in December (CAN + US)
● Listed on – NEO Exchange
● Ticker – ABXX (US OTC: ABXXF)
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January2021
Abaxx Shareholders
NML RTO-Shareholders
Josh Crumb, CEO
Robert Friedland
29. Market Comparable Company Overview
29
Source: CapIQ, Company disclosures. Market data as of December 15, 2020. All figures in US$ unless otherwise stated.
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January2021