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