A Global Supply Chain
MetalStream accumulates gold bullion from its trading activities and from forward purchase contracts executed with reputable mining companies around the world. It then issues MSGLD tokens backed by its accumulated bullion.
Gold Sourced From Trading
As gold is delivered, MetalStream issues MSGLD security tokens which are backed by and redeemable for its bullion, stored with accredited, independent custodians
Global above-ground gold supply
Total above-ground stock (end-2019): 197,576 tonnes
- Jewellery: 92,947 tonnes, 47.0%
- Private investment: 42,619 tonnes, 21.6%
- Official Holdings: 33,919 tonnes, 17.2%
- Other: 28,090 tonnes, 14.2%
- Below ground reserves: 54,000 tonnes
Around 197,576 tons of gold has been mined throughout history. If every single gram of this gold were placed next to each other, the resulting cube of pure gold would only measure less than 22 metres on each side.
Gold trading is a highly regulated activity, with government appointed agencies either controlling or overseeing the sale and purchase of gold bullion. In some countries the state has a monopoly, and export or import of unrefined gold and/or refined bullion is illegal by any other party.
Given the regulatory oversight, and the scarcity and value of gold, it is essential to have access to a genuine and reputable supply of both gold and finance. MetalStream has a network of contacts across Africa, Asia, and the Middle-East that allows it to trade legally and safely.
Through licensed partners in various locations, MetalStream has been able to broker various gold trades, which has allowed us to build up our own reserves of bullion purchased at a discount from spot.
These reserves will be used to back the initial issuance of 2.8 million MSGLD available in the private placement and the 5.2 million MSGLD available in the subsequent public offer.
Gold Sourced From Financing Miners
There are an estimated 54,000 tons of global in-ground reserves of gold. MetalStream is issuing MSGLD as part of its mission to build a long term, sustainable mining ecosystem to extract and process these reserves.
Metal Stream Finance Model
MetalStream has created an innovative new financing option for mining developers, that also offers liquidity, safety and value to investors.
MetalStream negotiates forward purchase contracts for gold with mining development companies, and then uses the gold delivered under these contracts to issue MSGLD security tokens backed by and redeemable for gold.
MetalStream buys the gold at a substantial discount to the spot price of gold, and passes on a portion of discount to MSGLD subscribers.
The beauty of the MetalStream model is that it benefits all stakeholders - mine operators get access to an equitable non-dilutive finance option, subscribers get incredible value and the company can secure profitable margins for its shareholders.
MetalStream has executed forward purchase contracts with Canamex Gold Corp for their Bruner project in the United States, Guyana Goldstrike Inc for their Marudi project in Guyana, and Altamira Gold Corp for their Cajueiro Project in Brazil.
MetalStream is in advanced negotiations with companies that have projects located in Australia and Indonesia, and will be making further announcements as these deals are executed.
Bullion Reserves & MSGLD
All bullion held by MetalStream now and in future will have a minimum fineness of 99.5% and will be held with reputable and licensed custodians.
|SOURCE||GOLD (kg)||MSGLD||VALUE USD *||ISSUE DATE|
|Trading activities prior to the Private Placement||2,800||2,800,000||155,400,000||May 2020|
|Trading activities prior to the Public Offer||5,200||5,200,000||288,600,000||October 2020|
|Forward purchase contracts already signed||2,799||2,799,313||155,361,872||As gold delivered|
|Forward purchase contracts in negotiation||13,997||13,996,687||776,816,128||As gold delivered|
|Forward purchase from additional targets||5,204||5,204,000||288,822,000||As gold delivered|
* At spot price of USD 55,500 per kg gold