GOLDEN MATRIX HOLDINGS ONE STOP GOLD SHOP PRESENTATION

Transcription

1 GOLDEN MATRIX HOLDINGS ONE STOP GOLD SHOP PRESENTATION VERTICALLY INTEGRATED GOLD COMPANY BUSINESS PLAN CREATING A ONE STOP GOLD SHOP Copyright: Golden Matrix Holdings Pty Ltd March 2013

2 MISSION STATEMENT CREATE A ONE STOP GOLD SHOP. Build a Vertically Integrated Gold Company ( VIG ) incorporating:- 1. AuraBa TM Bullion Bar 2. Gold ATM Machine Global Distribution 3. Gold Bank 4. Gold Storage On Line Trading 5. Gold Mining Companies & Operations Copyright: Golden Matrix Holdings Pty Ltd March 2013

3 GOLD BUSINESS POTENTIAL High or hyper inflation anticipated Increasing retail investment demand for bullion investment products US Eagle coins up 3x Sovereign debt & currency crisis risk (,,US$) Return of gold and silver as protectors of wealth Increased central bank demand for gold. Return of gold and silver in banking system to back paper & electronic money? Gold is the only ultimate extinguisher of debt Limited availability (supply) of gold & small bars. Mine production falling and total above ground gold stocks approx 70 times annual production

4 VIG COMPONENTS AURABA TM BULLION BAR BUSINESS Wearable, bullion bars & investment. Generally no sales tax on bars. GOLD ATM GLOBAL DISTRIBUTION Distribution of small gold bars to global retail market, gold storage facility. GOLD & SILVER STORAGE BULLION ACCOUNT BUSINESS Internet access, & mobile phone & travel card prepayment access. GOLD BANKING Full conventional banking & combined bullion account facilities with Credit & debit card, Gold ATM s, internet banking & secured Au lending. GOLD & SILVER MINE INVESTMENT STRATEGY Production off take arrangements & secured gold lending or convert note.

5 ADVANTAGES OF FULLY INTEGRATED GOLD COMPANY Continuity of supply reduces business risk Gold mining production remains in house & no requirement to sell on market into a controlled Comex or Government Central Bank Synergies and efficiencies between up and downstream businesses Sharing common customer base increases divisional turnover Customer Convenience - size and convenience of dealing with one fully integrated gold house will captures larger market share Fully integrated status gives more control better margins, more competitiveness as gold market is a multi small margin business Ability to finance growth strategy via inter divisional funding & lending

6 CORPORATE STRUCTURE VERTICALLY INTEGRATED GOLD COMPANY (VIG) GOLD BANK NEW CORNER STONE INVESTOR Bar / Jewellery Distribution Agreement GOLD ATM S 0-30% Up to 80% 100% Gold Storage GOLD VAULT INVESTORS Gold Lending AURA BA Investment Jewellery Bar Business V I G 100% 100% 20% Plan AIM/ASX listing within 2 years GOLD MINING DIVISION 20% 100% GOLDEN MATRIX HOLDINGS PTY LTD LISTED GOLD PRODUCER(S) GOLD DEVELOPMENT PROJECT(S)

7 AURABA BAR CONCEPT An accredited wearable precious metal pendant bar product in standard size denominations for easy trade in or bartering. AuraBa product is a fancy 999 precious metal bullion investment pendant bar that can be easily carried, stored or worn and can carry personal empowerment statements. The concept is to sell Western style bar product that is an investment but can also be worn, similar to the Indian investment gold jewellery model, that can be sold at higher profit margins than conventional bullion bars as a gift, jewellery or tourist item. Target retail pricing for AuraBa gold pendant bars would be a 25 50% premium over spot for 20 g 2.5 g product. By comparison similarly sized gold coins and conventional bars retail between 4 18% over spot. Silver bars would be target priced at approximately three times this premium to reflect higher % fabrication costs. As they are 999 bars there is generally no sales tax payable on gold bullion bar product in many countries.

8 AURABA GOLD

9 AURABA SILVER

10 AURABA BARS

11 AURABA BAR WITH DESIGNS

14 AURABA BULLION BAR PRODUCT Fabricated or Minted 999 Investment Bullion Bars Size 2.5g, 5g, 10g, 20g, 1oz, 2oz, PENDANTS (Plain, Design Symbols, ID) BRACELETS (Plain, Design Symbols ID) TALISMANS (Personal Goals, Good Fortune, Empowerment Statements) PENDANT BARS SET WITH PRECIOUS GEMS HEALING PENDANT BARS

15 AURABA TM BULLION BAR INVESTMENT NICHE Fills market gap between investment coins and bars and jewellery Portable, wearable investment bars Tax advantages for bars no VAT, GST, sales tax in many countries Accredited wearable investment bar in standard size denominations for easy trade in or bartering New innovative product that responds to increased retail demand and higher premiums for small bars and coins Responds to supply limitations for small bars & coins Provides business platform to sell higher margin jewellery & accessories such as chains, straps etc from volume business.

16 FORECAST AURABA MARGINS GOLD 2.5 g 2 oz Bars Manufacturing Cost $35 - $65 (7% - 5% of metal price) Wholesale Selling Price 15% 9% over metal price Retail Selling Price 20-15% over metal price Gross Retail Margin 9% - 5% over metal price SILVER 2.5 g 2 oz Bars Manufacturing Cost $3 - $7 (100% 10% of metal price) Wholesale Selling Price 75% - 20% over metal price Retail Selling Price 130% - 40% over metal price Gross Retail Margin 55% - 20% over metal price

17 REVENUE PROJECTIONS Product Type Units Metal oz Retail Margin $m Wholesale Margin $m Silver /oz U$ Gold /oz U$ TOTAL

18 LONG TERM WHOLESALE POTENTIAL Ag 1% of population buys10g bar with $5 margin (35%). Au 0.1% of population buys10 g bar with $35 margin (7.5%) Country Population Margin Potential Silver $m Margin Potential Gold $m UK AUSTRALASIA EUROPE NORTH AMERICA INDIA CHINA ASIA TOTAL WORLD TOTAL

19 GOLD ATM DIVISION Retail Distribution of gold and silver bars, coins bullion pendants and investment jewellery, size 1g 50 g Secure 20% Investment in Mother company $4m - $6m Roll out 100 ATM s Globally in 2 years - Capex $25m Geographic focus UK, Asia, Mena, Europe, N America Locations Duty Free Airports, Department stores Shopping centres, Post Offices, Railways, Supermarkets Projected profit margins 7% on bars, 35% on investment jewellery pendant bars. Gold loan instrument paying 1-2% pa gold yield to fund gold stock in machines

20 GOLD ATM STATISTICS ATM Fill oz Gold 10 product lines,12 tubes, 32 products per tube, maximum capacity 384 items. 75% sales less than 0.5 oz Au in size Profit Margins bars - 7%, fancy bars - 35% 1 ATM projected annual sales oz Au Cost per Machine US$65,000 Gold Fill Working Capital US$130000

21 GOLD ATM PROFIT FORECASTS 100 GOLD ATM MODEL WORLDWIDE Turnover pa US$100m Cost Sales pa US$80m oz Au Profit Margin ATM US$20m Operating Costs US$7.5m Head Office Costs US$1.5m Gold Loan Cost US$0.5m oz Au Marketing US$0.5m Pre Tax Profit pa US$10m

22 GOLD STORAGE BUSINESS Build or Acquire an Online Gold Bullion Vaulted Storage Business utilising global Gold ATM network as a storage facility. Offering clients online bullion (Au, Ag) trading facilities & accounts Fully backed by physical metal held in house or on account with leading LBMA clearing members Online platform provides easy buying and selling & competitive spreads Prepayment bullion purchase options also available through travel card & mobile phone accounts Typical margins charged by Gold Bullion Vault Storage Division would be 1% per transaction for gold and 2% for silver. Nil fee in Gold ATM Option for physical delivery of conventional bullion bars via Gold ATM s

23 GOLD BANK ACTIVITIES Full Conventional Banking Facilities Bullion Trading Investment and Storage Bullion & Currency Lending & Borrowing Gold ATM s offering physical delivery option Strategic Alliance with Gold ETF & Gold Mining Companies to Pay Gold Dividends

24 GOLD BANK & TREASURY Introduce gold credit & debit card linked to Bullion Vaulted gold account using gold ATM s as Storage. Full service conventional bank facilities with cheque account, internet banking Full service Forex facility & currency deposit accounts available in 5 major currencies (US$,,,, CHF) Raise profile and establish prestige presence image. Minimum investment $100,000. Increase existing VIG profit margins by low risk gold Treasury trading & account lending operations Introduce margin lending facility for > $200,000 bullion accounts with 60% margin draw limit VIG uses customers remaining unused 40% bullion account deposit for gold lending activities

25 GOLD & SILVER MINING Build production base by Acquisition of gold mining operations Target advanced gold resource projects with good exploration potential and mines with treatment plants on care and maintenance for maximum capital return Entry to be achieved by providing conventional gold lending or a convertible gold note secured against the projects mining assets & gold ore reserves or direct equity investment As condition of loan long term gold production off take arrangement is negotiated with an option to buy stock or convert loan to equity in miner Target distressed sale situations that can be acquired below asset value Development projects acquired at ultra low cost that require paradigm shifts to be viable

26 PARTICIPATION OPPORTUNITY Seeking Business Partner(s) sharing vision to provide funding & operational management Gold Mining Company Bullion Merchant On Line Bullion Vault Precious Metals Refinery Jewellery Retailing or Manufacturing Investor Deal Concept Investment Range $1m - $10m AuraBa Equity Investment Partner up to 30% - $1m VIG & Gold ATM Cornerstone Investor to 80% - $10m

27 WHY INVEST IN GOLD Gold has been the central foundation of our banking and money systems since early records of human civilization Only recently and for a short period of time (approx 40 years) has gold been demonetarised and replaced by Fiat paper currencies, debt & electronic currency Gold has a tradition as a protector of wealth during times of financial banking crisis, stock market collapse, high inflationary and recessionary & depressionary times Asian cultures maintain a strong belief and investment level in precious metals. The quantity and value of paper currencies are controlled by governments and large financial organizations at their will and are subject to considerable political manipulation Paper currencies can depreciate in value rapidly (inflation) and loose relative value Gold & silver are the ultimate extinguishers of debt The quantity of available gold within the system is finite and determined by total available mined supply (approx 175,000 t) which is over 70 times current annual gold production (2500t). Official Central Banks holdings are some 12 times annual production Recent global financial system shocks and bank crisis highlight the vulnerability and instability of our current money and banking system. Future possible shocks or banking crisis could lead to currency crisis, devaluations, major inflationary pressures or a recessionary / depressionary global economic crisis which is likely to herald the return of gold and silver to back monetary instruments

28 SUMMARY AuraBa TM Bullion Bar Investment Jewellery Niche, Innovative, Unique Tax advantages no sales tax as bullion bar product Low start up capex cost, no apparent barriers to entry Low end financial risk and bullion stock can be financed Rapidly growing market in retail bullion Good margin potential 35% on gold compared to 7% on conventional bars Huge Global growth potential Bright outlook for Gold Inflation, banking, currency risks US Mint Eagle Coin Demand up 3 4 times in three years Vertically Integrated Gold Company Gold Mining Operations, Gold Bar production, Gold ATM s, Gold Bank Client overlap repeat & inter divisional business synergies More control of market takes gold product from mine to retail consumer Secured supply, off take and lending arrangements

29 CONTACT