Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Gold Investing 60% Roi
1. High yield-low risk Investment Opportunity in Pre-
sold Gold commodities trading contracts.
This is by far one of the best investment
opportunities that you will ever see in your
life. Where else can you earn over 50%
annualized return with virtually zero risk to
capital. Unfortunately, availability of these
contracts is limited and total investment is
Company
presently capped at $1,000,000.
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2. Pre-sold Gold commodities contracts involves
Executive Summary:
virtually no risk due to pre-negotiated sell price.
This transaction is arranged by purchasing gold directly from directly through CVG-Minerven (the government agency in
charge of gold exports in Venezuela). Our sister companies in that country have been registered with CVG-Minerven and have
established a very close working relationship with high level officials at CVG. This presents us with the unique opportunity to
obtain “Mining Direct Pricing”. Now in most parts of the world, buying directly from the mine would most typically generate a
discount of approximately 3% to 5% and even at these discounts we could have a viable business model.
However, due to the currency exchange controls that have been imposed by the Chavez government and the existence of a
“Parallel Currency Market” , an economic anomaly exist in the Venezuelan gold market that has enabled us to negotiate prices
that result in discounts as high as 7.5% to 10% below the London Fix pricing on any given day. Combined this with our ability
to “lock in” pre-determined sell prices with our refinery partners (this works like a PUT in stocks) and it is easy to see how this
can become so lucrative. The only other risk factors involved were the quality of the product and the logistics and security of
transporting the gold to the refinery. Both these issues have been overcome by contracting Insured Armored Car Services to
Company
transport the gold. We have also adopted internationally established procedures for Fire Assay Testing and Tamper proof
LOGO
security for the gold which will be explained in greater detail in the remainder of this presentation. The bottom line to keep in
mind is that you as an investor can make over 50% annualized return with virtually no risk.
3. Overview
1.
1. PROCESS MAP
PROCESS MAP
2. QUALITY ASSURANCE PROCEDURES
2. QUALITY ASSURANCE PROCEDURES
3. Step by Step Transaction Details
3. Step by Step Transaction Details
4.
4. FINANCIAL PROJECTIONS
FINANCIAL PROJECTIONS
4. PROCESS MAP
PROCESS MAP
BUY PRICE
IS LOCKED Samples are
SELL PRICE taken for
IS LOCKED Testing & AU
place in
Tamperproof
Bags
INVESTOR
Project Manager will
JOINS CLUB be on-site throughout
GOLD IS
SOURCED
the entire process.
Wiretransfer
payment made
and Security Co.
insures AU until
The refinery delivery to the
Advances 90% refinery.
of the their price
and settles the
other 10% in
5 days.
5. QUALITY ASSURANCE PROCEDURES
Step 1
Step 1 Step 2
Step 2 Step 3
Step 3
If the Fire Assay results are Once the wire-transfer has been
wire-
Miners Gold bars are drilled
satisfactory to the buyer then confirmed the gold then becomes
in random spots to obtain a the seller is to produce the T. the responsibility of the insured
cross section of samples for P.B.’s in which the gold bars
P.B.’ armored car service until the point
the entire batch and are then that were originally sampled that they deliver the gold safely to
placed in tamper proof bags are stored. The buyer will then our refinery they are on the hook for
which are then taken to the inspect all of the bags and the the entire “Full Market Value” of the
Value”
nearest metallurgic laboratory security tape used to determine entire shipment. This means that
to undergo “Fire Assay Test”
Test” if there is any possible evidence if there is any problem whatso-
whatso-
The gold bars are also put in of tampering. Note that the TPB.s ever they will cover, not only our
tamper proof bags and then (Tamper Proof Bags) used where purchase price, but also our profit.
put into a safe which remains especially designed for these types Additional QC procedure imposed
of transactions and that it would be by armored service include placing
in the sellers possession until
impossible for any tampering to be their security seals on TPB’s and a
TPB’
the results of the fire assay is
able to go undetected. Also, this portable lockbox to secure the gold
received and the results are inspection would be done in the during transport. Upon delivery to re
satisfactory to the buyer.
buyer. presence of the security company. -finery, our project manager will walk
the gold through assaying process.
6. Step by Step Transaction Details
1 2 3
Samples are collected
Investor Funds Escrow for Assay testing and the
Account and we tap our Offers are quickly Gold is secured in TPB’s
sources in the field to analyzed to determine if and placed in a vault.
send us offers and an adequate spread is
pricing for various available. We contact
quantities of gold our refinery partners and
negotiate a 5 day “Price
Lock” for the amount we
wish to sell the refinery.
6
5 4
ACS transports the Gold
from POP to POS while Once the result of the fire
fully insuring the value of assay test are verified Fire Assay testing is the
our shipment. Also, they the escrow agent orders most accurate test
will handle all import / final payment to the available for determining
export procedures in both seller and AU the quality of a sample of
countries. ACS has over possession is given to gold. This method is able
$10M liability insurance. ACS (Armored Car Service). to measure purity to
within 2/10,000 of 1%
7. Step by Step Transaction Details
7 8 9
Due to the remote nature of ACS delivers the gold to
The refinery completes an
some of these mines it is our refinery partner. The
initial assay of the gold and
sometimes necessary to elapsed time from the
advances 90% of the
transport the gold by price lock date is
“Locked in Sell price”, at
helicopter. However, the between 48 to 72 hours,
additional cost is outweighed which time we can begin a
This allow us a 40%
by the much lower prices new purchase cycle thus
margin for error on time.
available in those locations. achieving a weekly rollover.
60% Annualized
12 ROI 11 10
Within 48 hours of the
At any point prior to STEP 9 final payment the
the investor may notify the investors receive their The refining process is
company of their intent to portions of profits which completed within 5
withdraw their funds from the will be like having your business days at which
program. If the investor has money giving you a time we receive our final
participated for less than1 weekly paycheck. from the refinery.
month that shall forfeit any
profit for the current cycle.
8. FINANCIAL PROJECTIONS
FINANCIAL PROJECTIONS
PROJECTED PROFITABILITY ANALYSIS - 90 Days
Phase 1
PARTICULARS Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12
No. of Kilos of Au available 30 35 40 45 50 55 60 65 70 70 70 70
Price Per Kilo of AU $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275 $21,275
Total Cost of Gold $638,250 $744,625 $851,000 $957,375 $1,063,750 $1,170,125 $1,276,500 $1,382,875 $1,489,250 $1,489,250 $1,489,250 $1,489,250
PROJECTED TOTAL INCOME
Sale of Refined Gold $682,928 $796,749 $910,570 $1,024,391 $1,138,213 $1,252,034 $1,365,855 $1,479,676 $1,593,498 $1,593,498 $1,593,498 $1,593,498
TOTAL INCOME $682,928 $796,749 $910,570 $1,024,391 $1,138,213 $1,252,034 $1,365,855 $1,479,676 $1,593,498 $1,593,498 $1,593,498 $1,593,498
PROJECTED OPERATING EXPENSES
Variable of Insurance (.5%) & Refining (1%) = 1.5% total $9,574 $11,169 $12,765 $14,361 $15,956 $17,552 $19,148 $20,743 $22,339 $22,339 $22,339 $22,339
Transportation and Security Cost $10,300 $10,350 $10,400 $10,450 $10,500 $10,550 $10,600 $10,650 $10,700 $10,700 $10,700 $10,700
Travel and Misc. Expenses. $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750
Government Duty Taxes / Export Permits 1.5% $9,574 $11,169 $12,765 $14,361 $15,956 $17,552 $19,148 $20,743 $22,339 $22,339 $22,339 $22,339
TOTAL OPERATING EXPENSES $32,198 $35,439 $38,680 $41,921 $45,163 $48,404 $51,645 $54,886 $58,128 $58,128 $58,128 $58,128
NET INCOME $12,480 $16,685 $20,890 $25,095 $29,300 $33,505 $37,710 $41,915 $46,120 $46,120 $46,120 $46,120
MONTHLY ROI CALCULATIONS MONTH 1 MONTH 2 MONTH 3
TOTAL INCOME $75,150 $142,430 $180,275
INVESTOR SHARE @ 60% ROI $39,891 $61,166 $74,463
INVESTOR SHARE AT 25% OF PROFITS $18,788 $35,608 $45,069
BROKER COMMISSIONS 10% OF GROSS PROFITS $7,515 $14,243 $18,028
Company Gross before Venezuela Payouts $27,744 $67,021 $87,785
9. FINANCIAL PROJECTIONS
FINANCIAL PROJECTIONS
Assumptions
•Our suppliers will consistently be able to deliver gold to us with a margin of no less than 7% FOB Mining Operation.
•Insurance for Shipments will be billed at .5% of Value.
•Transport cost from POP (Point Of Purchase) to POS (Point Of Sale) will average $10,000 in worse case helicopter scenario + $10 per
Kilo.
•Available quantities will be limited to 30 Kilos per week for the first 30 days then rising to 50 Kilos for 30 days then topping off at 70
Kilos per week.
•Margin account at the refinery must have at least 10% of the amount we wish to negotiate quot;Price Lockquot; for, (only valid for up to contract
weight amount. )
•Refinery will pay 99% of SPOT PRICE based on the second London fixed for the 5 business day period following the lock-in.
•The investor will receive no compensation for monies deposited into the escrow account unless a transaction is consummated.
•Assay test can verify purity to 99.997% and pricing will be based on 99.9% to be safe.
•Elapsed time from Price Lock to delivery should not exceed 72 hours.
•In the event that unforeseen delays cause us to loose a lock price, the company would any profits to first cover expenses, then pay
investors prior to receiving any retained earnings.
•With the current logistical plan we should be able to turn the escrow account over a minimum over once per week.
•Investors will be paid the greater of 25% of the profits according to their pro-rata share of the investment or a 60% Annualized ROI.
•Company shall be responsible for all incidental expenses if a deal does not close.
•ACHIEVING A 15 DAY ROLLOVER STILL GENERATES MORE THAN 30% ANNUALIZED ROI!