TREASURY
SUPPLY CHAIN FINANCE
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In the precious metals supply chain which involves multiple movements of the asset, from underground mined to preliminary processing on/off site to refiner, from refiner to fabricator or mint, and on to market/end user or investor. AZGAR TRADING and affiliates offers a variety of financing solutions that allow our customers to optimise their liquidity management.
Our expertise throughout the physical precious metals supply chain, from trading and refining through to the provision of finished bullion, coin product, and jewelry, gives us a unique perspective to better service our institutional customers.
Precious metals doré - AZGAR TRADING offers tailor-made financing solutions to producers and miners.
Pre-payment/Pre-Purchase facilities can be made available based due diligence of the mine site while provisional payments can also be made on arrival at the refinery.
Recycled material - AZGAR TRADING provides financing solutions to recyclers, from the delivery point through to physical delivery of the refined product and back to the customer.
Doré Bars - AZGAR TRADING provides financing solutions to long-term holders of precious metals that need upgrading to LBMA or LPPM standards, covering those transactions from collection to redelivery.
HEDGING
AZGAR TRADING can offer, short-term physical hedging facilities for all precious metals and against a broad range of currencies. The ability to hedge price risk and align that hedge with a physical delivery or order placement provides our customers with a strong advantage in terms of risk management.
Precious metals producers have an ongoing exposure to the underlying metal price that can be covered by a simple transaction securing a forward price, thereby removing risk. Using short-dated forward hedging facilities, producers can take advantage of near-term price movements to maximize their returns against expected deliveries to our refineries.
These facilities can be made available in a variety of currencies tailored to the client’s needs.
Precious metals consumers also can hedge their price exposure from the date of purchase or order of the material through to delivery of the finished goods.
Industrial clients can utilise these facilities to better manage their price exposure, whether using precious metals in process or through generating a physical exposure as a result of a manufacturing process such as concentrators or recyclers.
​FINANCING INVENTORY
AZGAR TRADING offers financing terms for customers placing orders for physical product or taking physical material from our refineries and mints. Stock that is being held at the refinery or mint can be financed through to its eventual delivery, as can stock that has already been moved to a secure location prior to delivery or sale.
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Consignment - Short-term consignments can be made available to customers to run precious metals bar and coin stocks at pre-approved client facilities or at secure third-party premises. Terms are provided based on location, duration, size and product type.
ROYALTY AND STREAMING AGREEMENTS
AZGAR TRADING and Affiliates offers Alternative finance agreements allowing our clients to both participate in the value-supply-chain with financial and physical delivery guarantees.
Streaming as an alternative financing source has several advantages when viewed from a mining company’s perspective. When compared to debt-based deals, streaming-and-royalty deals often have a longer payment period; have no fixed obligations in cash, so they present less risk during periods of lower prices; have limited restrictions on the use of cash; have no debt covenants to maintain; and share production and operational risks across the value chain
Different reasons exist for sellers to enter into streaming and royalty contracts, but these are usually related to market capitalisation and project development status. In the case of large and mid-cap miners, the decision to enter into streaming-and-royalty contracts has historically been driven by the need to improve balance-sheet leverage; for small and junior miners, the decision is usually motivated by the need to fund the development of a specific project.
