Sourcing gold is a global business with operations on every continent and it is extracted from mines of widely varying types and scale.
Mines and gold mining operations have become increasingly geographically diverse, far removed from the concentrated supply of four decades or so ago when the vast majority of the world’s gold came from South Africa.
AgaBullion have been sourcing gold from various mining countries and our logistics procedures and processes have proven to be effective in ensuring fast and secure transport of material to partner refineries and smelters. Responsible sourcing practices are a key part of our corporate culture and we comply with the requirements of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. No gold can be traded by AgaBullion until it is proven that it is responsibly produced. As well as supplying from mining industry, we are committed to increasing our sourcing of gold from recycled and secondary sources. We set targets for increasing the use of these recycle sources.
Offtake Agreement
AgaBullion is a specialized trader in offtake agreements between a producer of a resource and a buyer to purchase or sell portions of the mining companies’ future production.
Offtake agreements are normally negotiated with the miner companies prior to the construction of a plant such as mine, to secure a market for the future output of the facility. With the arrangement of our offtake agreements, the mining companies can show their lenders that there is a purchaser of its production, which makes it easier to obtain financing to construct the facility.
Our offtake agreements are frequently used in natural resource development, in which the capital costs to extract the resource is significant and the mining company wants a guarantee that some of its product will be sold in the market.
We legally binding in our offtake agreements. The agreements are reached prior to the actual gold being produced. There are certain benefits of our offtake agreement to the production company such as;
Gold Streaming
Precious metals streaming between mining companies and streaming companies in order to purchase all or part of the production at a predetermined discounted price to which both parties agree,in return of upfront financing for mining companies looking for capital.
Gold Procurement