MKS PAMP’s expertise is in physical precious metals. We deal with clients along the precious metals transformation chain from miners and industrials to banks and jewelry manufacturers. Given the various uses of precious metals, whether produced, used, transformed or purchased for investment purposes, we have developed a comprehensive treasury services offer that includes hedging, liquidity and risk management and financing solutions.

We understand that the high value of precious metals can be constraining from a liquidity perspective for our customers. MKS PAMP is present to help them better manage supply chain related cost and risk, by making available a number of financing options.

Financing of Metal in Transit or Process

1 Financing of Metal in Transit or Process


The precious metals supply chain involves multiple movements of the asset, from mine site to refiner, from refiner to fabricator or mint, and on to market. Our group 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 and coin products, gives us a unique perspective to better service our institutional customers.

  1. Precious metals doré - MKS PAMP provides tailor-made financing solutions to reputable producers and miners. Pre-payment facilities can be made available based on initial assay from the mine site while provisional payments can also be made on arrival at the refinery and adjusted on outturn.
     
  2. Recycled material - MKS PAMP provides financing solutions to recyclers, from the delivery point through to physical delivery of the refined product and back to the customer.
     
  3. Bars - MKS PAMP 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

2 Hedging


MKS PAMP 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. 

  1. 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.
     
  2. 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.
     
  3. 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

3 Financing Inventory


MKS PAMP 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.

  1. 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.
     
  2. Secured financing - Short-term financing of physical inventory can be provided against a recognised form of security, including bank guarantees, Stand-By letters of credit (SBLC), or a lien or pledge over an acceptable physical asset.
     
  3. Letter of Credit for physical material payments - MKS PAMP can supply physical precious metals against receipt of an acceptable bank’s letter of credit. This service is available in multiple currencies.
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