THE LBMA GOOD DELIVERY LIST

GDL UPDATE

Neil Harby, LBMA GDL Officer

LBMA Conference

Page 2

RECENT ACCREDITATIONS

New LBMA GD Accreditations

2008-15

Gold Silver

Asia 12 17

Europe 5 3

N. America 3 2

Total20 22

Page 3

GOOD DELIVERY GOLD REFINERS

0

5

10

15

20

25

30

35

40

45

50

1934 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

GDL Refiners

GD List Date

By Region (1934-2014)

Africa

Americas

Asia

Europe

Australia

Europe

Asia

Americas

AustraliaAfrica

Page 4

GOOD DELIVERY SILVER REFINERS

0

10

20

30

40

50

60

1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014

GDL Refiners

GD List Date

By Region (1959-2014)

Africa

Americas

Asia

Europe

Australia

Europe

AfricaAustralia

Americas

Page 5

ACCREDITATION TIMELINE 2008-15

Arrivals Gold Silver

2008 2 1

2009 0 1

2010 4 4

2011 2 2

2012 1 2

2013 4 4

2014 6 5

2015 1 3

Total 20 22

Departures Delistings since 2008

Gold Silver

Fidelity Doe Run

Metalli Preziosi Metalli Preziosi

Korea Zinc

Cendres et Métaux SAKolyma

Nyrstar

Cendres et Métaux SAKolyma

KCM Plovdiv

Page

GOOD DELIVERY ACCREDITATION

Non-technical criteria that must be satisfied before accepting an application for assessment

► Details of Owners and Directors

► In business for 5 years

► Operating History – 3 years

► Tangible net worth - £15 m

► Refined production – 10 tpa for gold (50 tpa for silver)

► Responsible Gold Policy & Audit

Technical Assessment – two parts:

► Assaying test – 24 gold reference samples (10 for silver)

► Bar test - 11 bars inspected in London; 5 bars tested by each of two referees (double blind)

6

Average Application Time: Six Months

Page 7

NON-TECHNICAL APPLICATION CRITERIA

What is their purpose?

► Staying Power

► KYC and Ownership

► Tangible Net Worth

► Track record – Production History

► One size does not fit all – need for flexibility

► Fast-tracking

Page

LBMA GOOD DELIVERY LIST

Non-Technical Data

► Annual collection of Tonnage,

Financial Net worth & RGG Audit

Proactive Monitoring

► Mandatory Testing every three

years or as problems arise

Proficiency Testing

► Voluntary, anonymous annual

testing for assay labs

Certified Reference Materials

► AuRM 1, 2 & 3

► AgRM 3 (potential)8

Proactive Actively Monitored & Developed

Page

SPECIFICATIONS FOR A 1KG 9999 GOLD BAR

9

Endorsed by the LBMA and SGEWeight: 1000g minimum

Dimensions: The kilobar should be rectangular.

The dimensions should fall within the following ranges:

Length: 80 – 120mmWidth: 40 – 60mmHeight: 7 – 14mm

Fineness: The minimum acceptable fineness is 999.9 parts per thousand fine gold.

Marks: Refiner’s Stamp or Logo, Serial Number, Weight (1kg or 1000g), Fineness (to four significant figures)

Certificate of Analysis (COA):

A certificate of Analysis must accompany each kilobar on dispatch from the Refiner and must include the following information: Refiner’s Stamp or Logo, Serial Number, Weight (1kg or 1000g), Fineness (to four significant figures) and Approved Signature.

Notes: Serial numbers must be unique and non-reusable.

Serial numbers must be referenced against inventory lists to provide traceability.

Specifications are for cast bars.

Comments welcomed by other 9999 kilobar markets.

Page

SPECIFICATIONS FOR A 1KG 9950 GOLD BAR

10

DRAFT for Discussion & Possible Endorsement Weight: 1000g minimum

Dimensions: The kilobar should be rectangular.

The dimensions should fall within the following ranges:

Length: 80 – 120mmWidth: 40 – 60mmHeight: 7 – 14mm

Fineness: The minimum acceptable fineness is 995.0 parts per thousand fine gold.

Marks: Refiner’s Stamp or Logo, Serial Number, Weight (1kg or 1000g), Fineness (to four significant figures)

Certificate of Analysis (COA):

A certificate of Analysis must accompany each kilobar on dispatch from the Refiner and must include the following information: Refiner’s Stamp or Logo, Serial Number, Weight (1kg or 1000g), Fineness (to four significant figures) and Approved Signature.

Notes: Serial numbers must be unique and non-reusable.

Serial numbers must be referenced against inventory lists to provide traceability.

Specifications are for cast bars.

Comments welcomed by 9950 kilobar markets.

LBMA Assaying & Refining Conference

8 – 10 March 2015

11

Page

Visual Guide II

12

Page

RESPONSIBLE GOLD GUIDANCE

13

►Successful introduction – system is maturing (V6)

►Now well understood by Gold Refiners

►LBMA Guidance useful for demonstrating compliance

►Best Practices

►Continuous Improvement

Page

LBMA GD LIST – FUTURE DEVELOPMENTS

14

►London and Global

► De facto standard of quality

►Licensing

► Borsa, ICE, TOCOM and CME.

►Kilobars?

► Information collection ≠ Accreditation

►Responses to regulatory changes

►CRMs

►Fees