Gold trading


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Gold trading

  1. 1. Location: Nairobi, Kenya to the UnitedStates, Nigeria or other nations – dependingon the deal proposition.We will play the roll of the buyer initially inpartnership with lead contact. It ismandatory to have a valid license to importgold or minerals in this trading transaction.We will execute an exchange meeting theseller’s negotiated price, requirements, andexecution plan agreed by both parties.This project is an initial deal that will launcha long term plan; so the parties perceptionmust be long term given all goes well. Usingthe highest discretion and confidentiality isa priority.
  2. 2.  Origin of the Deal - Background Parties involved in the Proposed Transaction Execution Plan & System – Time Sensitive Proposed share to Partnership Sensitivity of time (Urgent) and Next steps…
  3. 3. Mr. David and Mr. Stephane Kapuadi brought to us a time sensitive yetlucrative deal. Mr. David has been operating on the ground in Kenyafor over 10 years. He is informed about the political events in theregion, economical status of Kenya, operational and logisticalcalculations of this proposed deal. He leads a very small team on theground (Kenya) and also operates business in Europe.Lead partner will be the beneficiary of this deal. Their role will be bothbuyer and seller in this initial transaction. The buyer we will betransacting with will be the last party involved (i.e. selected CentralBank).The Execution Plan is a system which us and Mr. David will carry on, ifagreed, for months to come in hopes to maximize return on investmentand establish a continuity in mining business.
  4. 4. Gold is safely stored in Nairobi where Mr. David and partners are seeking abuyer (lead partner). As agreed by contract in the wholesale price ($28k-$30k per kilogram), stored gold amounting to 400 kilograms will be movedto Nairobi refinery to refine and bring purity concentration of gold to 99.5,the minimum allowed in gold delivery of gold bars. Current gold purity is75.5. After refinement, a private jet will land in Nairobi to pick up as muchgold as possible for delivery in US or Nigeria or other nations’ securelocation; whereby lead partner, as agreed by contract in percentage share,will sell the gold above wholesale price for an extraordinary gain. Keep inmind, Mr. David is looking for the buyer to pay initial export taxableamount which is equivalent to the retained gold as a collateral for exporttax obligations. (See next slide)Explanation: 400 kg at 75.5 purity will be refined to 99.5 purity. This willreduce the total sum of gold available. After refinement, total kilogram maybe 330 kg at 99.5 purity. This plays a huge role on how money will becalculated based on quantity and quality of gold by all parties. As quickly as possible, lead partner must decide to move forward inexecuting this initial transaction due to its sensitivity. This initial system ifsuccessful will ease gold trading operations between the parties involvedfor future trading.
  5. 5.  Proposed wholesale purchase price: $28,000 per kilogram (kg) to Mr. David & his team Initial purchase quantity is 375kg = $10,500,000.00 (375kg * $28,000) This amount ($10,500,000.00) is changeable depending on refinement purity; meaning after refinement to intensify purity of gold from 75.5 to 99.5, total quantity of gold purchased will change from say 375kg to 300kg. In this instance, we pay Mr. David on refined quantity purity (300kg * $28,000 = $8,400,000) This amount ($10,500,000.00 subject to change to refined quantity) is transferrable to seller after refinement verification and certification. 25 kilogram will be held in escrow as a reserve by us as collateral and guarantee = (25kg*$28k= $700,000) $700,000 will be to total sum to pay for all taxable amount payments to export out of Nairobi, Kenya. (See next slide)
  6. 6.  Lead partner must understand that initial costs associated with this operation will be paid for by buyer (partner) such as: Buyer’s Expenses:  Legal fees: contract drafting  Import of gold license fees  Refinery expenses  Private jet cost  Security Team/Company  If US, tax on imported gold???  Contingency expense Taxable Amount Payment to export out of Nairobi: (In order of simultaneous priority)  Change of ownership title = $5,800 (fixed price)  Annual License to Export of Kenya – transit = $108,000 (fixed price)*****  Storage fees = $10,000/day (over 35 days already YTD)*****  1% (percent) insurance for exportation: 1% of the wholesale price’s total value  Agency Fees = $8,000 (negotiable where you pay half now & half later)  Contingency Fees ***** represents one of the reasons why we must act fast to take advantage of the deal
  7. 7. This initial deal is a very sensitive project and operation that execution in confidentiality must be exercised. The next steps are as follows:1. Agreement with lead partner – contracting percentage share and relationship2. Agreement with Mr. David – contracting a guarantee to cover taxes and fees and wholesale purchase price3. Lead partner prepare operational budget – cover expenses4. Buyer’s side: get import of gold license. Sources say all central banks have one handy. Therefore buyer negotiating and structuring a deal with central bank will facilitate and speed up things.5. Set up an escrow account6. Arrange transportation and security logistics ASAP7. Identify 1 or 2 priority buyer to cash out – determine selling price, suggest over $35,000.00 per kilogram.Estimated time to move gold to refinery and get refinery purity to 99.5, 1 full week.Estimated time to arrange and send plane to Nairobi, 1 week.Estimated time to sell or store gold at bank, 3 days to 2 weeks. Total = 1 month