The Refined Option

Ulogo-01.png

What

We buy unrefined gold directly from mines and traders in Africa. We test the purity, purchase the gold, refine it, and sell to pre -known buyers at prices we have  fixed in advance of buying the product. 

 

This means that our trading profits are guaranteed and known to us before we buy and release funds.

 

Why

We buy unrefined gold directly from mines and traders in Africa. We test the purity, purchase the gold, refine it, and sell to pre -known buyers at prices we have  fixed in advance of buying the product. 

 

This means that our trading profits are guaranteed and known to us before we buy and release funds.

 
 
Ulogo-01.png

When

We will start trading after the

setup and preparation period on

01.07.2020

shutterstock_549421879.jpg

Where

Uganda, East Africa

 

Gold Supplies

According to official data, gold worth $514m was shipped out of Uganda last year - over 50 times what the country was exporting a decade ago.

 

Economic Outlook

Uganda has a liberal, market oriented economy, with a record of macro-economic stability, and sustainable debt (39% of GDP in the medium term)

 

Political Outlook

Uganda is a democratic republic with a multi-party system. President Museveni was re-elected in the February 2016 elections. The elections were peaceful but local and international observers were critical of some aspects of the polls. President Museveni’s goal is for Uganda to become a middle income country by 2020. In line with this, his government is prioritising investment in infrastructure and Uganda’s nascent oil industry.

 

How

1.

Feasibility

We have already made the initial investment into an in depth, in-person feasibility study into our primary marketplace of Uganda over a 6 month period. This has resulted in the creation of this opportunity.

2.

Invite the right investors to join us

We are now inviting a select group of investors who will help support the creation of the infrastructure needed to carry out our long term strategy, AND who also will be able to bring other benefits to the company in the future (not necessarily just financial).

3.

Launch

We can launch very quickly and start trading in Uganda within a month of securing the investment required.

4.

Scale trade volume

We will increase the funds available to the trading account as our volume of supply increases.

5.

Diversify

Over time it is envisaged we will diversify into other African regions to buy and sell gold.

 

Structure

 

We are setting up an investment opportunity similar to a Private equity fund structure in that there are two types of investor: 

 

General partners  - initial founders and value-added partners invited to invest in this opprtunity.

 

Limited Partners – investors who are only investing in trading physical gold and are not investing in the equity of the company.

 

Process

The gold is tested in our own testing facility for purity and weight. 

 

We pay for the gold at a discount against spot with our exit price already locked in. This is the arbitrage element of the opportunity.

We deliver to our refinery who assay the gold, and releases to our buyer who takes delivery.  

 

Fund Term

We will trade investors’ funds for 3 years at which point the initial capital investment and profit is returned to the investor.

 

We will either start a new trading programme at that point, or continue trading with the company’s own reserved funds.

 

General Partners therefore continue to make very handsome returns from their initial investment in the the company.

How much

How much investment in?

We are inviting Value Added Partners to invest a total of £200,000 to the setup the infrastructure of the company.

Value Added Partners can invest in tranches of £10,000 in exchange for 1% of class A shares in the company.

How much profit out?

 

Equity Returns 

We forecast that in three years the return on the equity held by the General Partners will be at least 10 times their investment.

Trading Profits 

  • General Partners: receive 1.25% PER TRADE on their own funds used to conduct the trade.

  • Limited partners: receive 1% PER TRADE on their own funds used to conduct the trade.

We forecast we will trade the funds on account between 30 and 40 times a year. This means that: 

  • General Partners can expect a 35%-50% return, 

  • Limited Partners can expect a 30%-40% return,

  • Everybody’s funds are traded as per their weighting in the funds held on account.

 
 

Use of Funds

Testing Equipment

By setting up a testing facility that includes the ability to smelt ore we are able to hugely increase our supplies, by getting to suppliers earlier in the trading process.

 

Working Capital 

General working capital is needed for the operation such as rent for the testing office, and other administrative costs normally associated with running any business. 

Transport

There is an ongoing need for transportation of the product to our refineries in either Entebbe or Dubai.

 

Company & Bank setup

We will be registered in the UK as in the future it is envisaged we may opt to become a fully regulated FCA trading entity.

 

We will also need local company setup as well as bank accounts in Uganda and the UAE.

 

Minerals Licence

It is legal requirement to have a minerals licence to be able to trade in Uganda.

Having this licence also enables us to buy larger supplies of product.

Financial Forecast

Year 1

Volume Traded

Circa 140 kilos 

-----------------------------------------------------------------

Turnover 

$7,100,000

-----------------------------------------------------------------

Profit 

98,000

-----------------------------------------------------------------

Reserves EOY (50% of Profit)

$44,000

-----------------------------------------------------------------

Estimated Fund Size Needed 

50,000 to 400,000

Year 2

Volume Traded

Circa 380 kilos

-----------------------------------------------------------------

Turnover 

$19,000,000

-----------------------------------------------------------------

Profit 

633,000

-----------------------------------------------------------------

Reserves EOY (50% of Profit)

$360,500

-----------------------------------------------------------------

Estimated Fund Size Needed 

400,000 to 650,000

Year 3

Volume Traded

Circa 620 kilos

-----------------------------------------------------------------

Turnover 

$31,000,000

-----------------------------------------------------------------

Profit 

1,182,000

-----------------------------------------------------------------

Reserves EOY (50% of Profit)

$951,500

-----------------------------------------------------------------

Estimated Fund Size Needed 

650,000 to 1,000,000

 

Wh0

Founding partners & Managment

Andrew Murphy

Director, Strategic Growth

  • Trading physical commodities for 15 years

  • International business development and logistics 

 

Key Roles: 

  • Buyer liaison

  • Strategic development of the company’s activities

  • Investor liaison

  • Government relations 

  • Administrative oversight

Kym Harris

Director of Trading, Africa

  • Trading physical commodities for 15 years

  • International business development and logistics 

 

Key Roles: 

  • Buyer liaison

  • Strategic development of the company’s activities

  • Investor liaison

  • Government relations 

  • Administrative oversight

Greg Carroll

Director Fundraising

& Client Liaison

  • Long history in sales and marketing in international markets, including  Europe, The Middle East and South Africa. 

 

Key Roles: 

  • Investor liaison

  • Strategic development of the company’s activities

  • Fund management & administrative oversight

Yohendra Gouti

Global Director of Trading

& Asset Sales

  • Director of a 200 year old family gold business - The Gouti Group in India.

  • Family business purchases 10+ tonnes per year of gold with 1000 gold bullion clients 

 

Key Roles: 

  • Introducing suppliers, globally 

  • Investor liaison, globally 

  • Logistical management of transportation of product internationally

  • Refinery and account opening and negotiation internationally

Ulogo-01.png
 

Our Vision

We envisage the company will grow in the folllowing ways:

It is envisaged that the first fund will close after three years of trading as we will trade with our own reserves. At this point it is likely we will open up new trading opportunities for Limited Partners in other markets.

 

By stockpiling our own gold we will be able to trade and leverage the asset in the future.

 

We will consider opening a “buy and hold’ fund for those investors wishing to speculate on the increasing price of gold in the future.

 

We will expand geographically enabling greater access,increasing volumes of gold.

 

We may invest in our supply chain.

 

Contact Us

Thanks for submitting!