Faqs

Q1 – What kind of gold is purchased through the PPM APDG?

A1 – Fully certificated 24 KT Gold Bullion, with 99.999% purity.

Q2 – What checks are in place on the quality of the gold purchased via the PPM APDG?

A2 – The gold will come with an Assay Certification stating that the gold is 24 KT 99.999% pure.

Q3 – What is an Assay Certification?

A3 – An Assay is a technical analysis designed to measure and test the composition in ore, alloys and precious metals. Specifically, with regards to gold, it is the internationally recognised standard way to make sure that gold meets the correct purity standards and content.

Q4 – Where will gold purchased through the PPM APDG be refined?

A4 – The gold will always be refined at LBMA approved refineries such as Metalor, Umicore, Heraeus, RMC & PAMP.

Q5 – What is the price of the gold purchased through the PPM APDG?

A5 – Gold is purchased through the PPM APDG at the LBMA PM market price at the time of purchase. This is sometimes referred to as
the ‘spot price’.

Q6 – What is the LBMA market (or ‘spot’) price?

A6 – The LBMA publishes a market price for gold twice per day, an AM price and a PM price, which the international gold industry relies on as a benchmark.

Q7 – Who are the LBMA?

A7 – “LBMA” stands for the London Bullion Market Association. The LBMA is the global authority for precious metals, including gold. It sets the standards for the purity, form and provenance of gold bars and the way they are traded.

Q8 – Where will gold purchased through the PPM APDG be mined?

A8 – Currently, in Guinea, West Africa, where PPM own proven mining concessions and are licenced to extract and export gold. Full details including proof of gold reserves can be found in the Due Diligence pack which you should have received.

Q9 – Does PPM have a 43 101 Mining report in place?

A9 – Yes, which is available for inspection in the full Due Diligence pack.

Q10 – What is a Karat?

A10 – A Karat (or KT for short) is the unitary measure of gold purity, with 24KT being the purest form of gold.

Q11 – Who can purchase gold via the PPM APDG?

A11 – Anyone over 18, subject to passing AML (anti money laundering) and identity checks etc. In addition, corporate entities may a lso purchase the PPM APDG.

Q12 – What is the minimum PPM APDG purchase?

A12 – USD/GBP/EURO 25,000 (with 5,000 increments above this figure).

Q13 – Is there a maximum PPM APDG purchase?

A13 – The maximum purchase currently available is USD $2m although this figure may be varied at any point during the lifetime of the APDG.

Q14 – Is there a way of making PPM APDG purchases in any other currency?

A14 – For larger purchases it may be possible to arrange currency hedging solutions in advance, so that purchases may be made in currencies of choice.

Q15 – Is the PPM APDG purchase process online or via paper application forms?

A15 – The purchase process requires paper forms (currently not an online process).

Q16 – Whose job is it to guide Purchasers through the PPM APDG purchase process and forms?

A16 – The Agent that introduced the PPM APDG is there to assist the Purchaser with the application forms and AML/ Identity documents required. The Agent must also check and submit all the completed forms and copy documents to PPM.

Q17 – Why do PPM APDG purchasers have to prove their identity?

A17 – Because this is an anti-money laundering regulatory requirement in the UAE (the primary country where PPM DMCC are located).

Q18 – What identity documents are required at the point of application?

A18 – 1 x copy identity document – typically either passport or photo driving license
1 x copy proof of residence – typically a household utility bill.
Note: Corporate entities will have additional AML requirements.

Q19 – What application forms are needed?

A19 – The PPM ADG Purchase Pack contains all the forms that need to be completed and signed and the Agent / Introducers job is to make sure forms are completed properly.
The PPM ADG Purchase Pack contains:
1. Purchase Form & Sale & Purchase Agreement
2. KYC Form (identity checks)
3. Delivery Schedule
4. Secure vault service provider Account Opening Form

Q20 – What is the submission and purchase process?

A20 – The PPM APDG Purchaser Journey Factsheet is a great summary of the submission and purchase process, but to summarize:
1. Completed Purchaser Pack and supporting AML/Identity documents submitted to PPM
2. AML/identity checks completed
3. Purchase Invoice, Estimated Delivery Schedule and Sale & Purchase Agreement sent to Purchaser
4. Purchaser must send proof of payment of funds (within 24 hours of receiving the delivery Schedule)
5. Upon receipt of funds, PPM issue the Definitive Delivery Schedule
6. Delivery to Purchaser’s personal secure vault service provider account commences 30 days after receipt of funds and monthly thereafter

Q21– Should PPM not be able to delivery any of the gold instalments, how would this be dealt with?

A21 – As confirmed in the terms and conditions, should PPM be unable to deliver any particular gold instalment, they are obligated to repay to the Purchaser the difference between the original purchase and the gold that has already been delivered.

Q22 – How will gold purchased from PPM be transported/ shipped from where it has been mined to where it is refined?

A22 – By armoured secure vault service provider road transport, then by secure fully insured air freight.

Q23– How will gold purchased from PPM be transported/ shipped from where it is refined to gold vault?

A23 – By secure, fully insured air freight or by armoured secure vault service provider road transport, depending on how close the refinery is to t he gold vault.

Q24 – Will all gold purchased from PPM be insured whilst being transported/shipped?

A24 – Yes, fully insured at all stages of transportation / shipping. Full details can be found in the Due Diligence pack you should have received.

Q25 – Do Purchasers have to pay anything towards insurance costs related to transportation / shipping of gold?

A25 – No. Insurance costs for the transportation of purchased gold are all covered by PPM on behalf of purchasers.

Q26 – Do Purchasers have to pay anything towards the cost of transporting / shipping the gold?

A26 – No. PPM are responsible for all transportation / shipping costs as a normal cost of their business model.

Q27 – Where will gold purchased from PPM be stored?

A27 – At a designated secure vault service provider vault in Zurich, Switzerland.

Q28 – Will all gold purchased from PPM be insured whilst in storage?

A28 – Yes, secure vault service provider hold substantial insurance cover and all gold bullion sourced through PPM is fully insured. Full details can be found in the Due Diligence pack you should have received.

Q29 – Who provides the insurance for the transport /shipment and storage?

A29 – All gold is insured during transport and storage via a fully comprehensive policy issued through a renowned global insurer.

Q30 – Do Purchasers have to pay anything towards the cost of storing the gold?

A30 – No, during the initial purchase period of 24 months PPM are responsible for all storage costs.

Q31 – Do Purchasers have to pay anything towards the cost of insuring the gold in storage?

A31 – No, during the initial purchase period of 24 months PPM and secure vault service provider are responsible for all insurance costs.

Q32 – After the expiry of the initial purchase period, would there be any ongoing gold storage and insurance costs?

A32 – Yes, after the expiry of the initial purchase period of 24 months, storage costs (inclusive of insurance) will become payable at the prevailing rate indicated by secure vault service provider.

Q33 – Should Purchasers wish to move their stored gold to another vault or another location, can they?

A33 – Yes of course, simply notify secure vault service provider and agree appropriate arrangements with them.

Q34 – Are Purchasers able inspect their stored gold ?

A34 – Yes, by prior arrangement with secure vault service provider.

Q35 – How can Purchasers check how much gold they have stored in the secure vault service provider vault?

A35 – Secure vault service provider supplies Purchasers with monthly statements showing gold quantity /balance stored in vault etc. Purchasers are also able to contact and communicate with secure vault service provider, using the details supplied on the said statements.

Q36 – Can PPM sell stored gold on a Purchasers behalf?

A36 – Yes, of course. PPM carries out a large volume of gold trading daily.

Q37 – What are PPM’s charges for selling stored gold on a purchaser’s behalf?

A37 – PPM charge a fixed competitive fee of 1.5% of the sale price achieved. The “PPM stored gold sales process” Factsheet provides more details.

Q38 – How will Purchaser’s know that the sale price achieved by PPM will be fair one?

A38 – The sale price obtained will always be the London Bullion Market Association (LBMA) market price, commonly referred too as the “spot price”.

Q39 – What process do Purchasers need to follow in order to instruct PPM to sell stored gold on their behalf?

A39 – The “PPM stored gold sales process” Factsheet sets out the details, but in a nutshell:

Stage 1: Purchaser informs PPM via an online portal that they wish to sell an amount of stored gold. The instructions will be immediately confirmed by PPM and a sale price will be locked in, based on that day’s published LBMA market / spot price, less PPM’s standard 1.5% fee.

Stage 2: Purchaser must then send instructions by email to secure vault service provider, authorizing them to transfer (from the purchasers secure vault service provider account to PPM’s secure vault service provider Account) the required amount of gold bullion.

Q40 – Where are sale proceeds (net of charges) sent, once PPM have sold stored gold on behalf of a Purchaser?

A40 – Net sale proceeds will be sent to the Purchasers designated bank account by secure vault service provider / PPM.

Q41 – What currency will Purchasers receive their Net Sales Proceeds in?

A41 – Once the sale process is complete, the net sale proceeds will be sent to the Purchasers designated bank account either in $USD or in the same currency that the original purchase was made in (purchaser’s choice).

Q42– What is the usual time frame from instructing PPM to sell stored gold to the Purchaser receiving net sale proceeds into their designated bank account?

A42 – PPM and secure vault service provider work to very strict service levels on sale instructions received. If the sale request is received by PPM (and transfer instructions by secure vault service provider) during business hours on a UAE working day (Sunday – Thursday), the sale will be completed on that same day.

Funds representing the net proceeds of sale (sale price less the fixed 1.5% fee) will be sent to the Seller’s designated bank account during the working day.

Q43 – How frequently may Purchasers sell stored gold?

A43 – Purchasers are in full control of their secure vault service provider accounts and can sell their stored gold at any point.

Q44 – Is there a minimum amount (of gold) applied to the PPM sale process?

A44 – There is currently no minimum amount of gold that can be sold although it is always subject to the minimum transaction charge of 1.5%.

Q45 – Are purchasers forced to use the services of PPM to sell their stored gold?

A45 – No, not at all. Purchaser’s own their secure vault service provider vault stored gold and are free to sell their gold themselves by whatever method suits them best or via whatever broker / trader they wish to appoint.

Q46 – Are PPM able to advise Purchasers as to when stored gold should / should not be sold.

A46 – PPM are unable to give any advice in this respect. Purchasers should always take advice from an appropriate expert or adviser in respect of the timing of any selling decision.

Q47 – Can PPM advise Purchasers as to issues of (or the effect of) taxation in respect of the net sales proceeds received following a sale of stored gold.

A47 – PPM are unable to give any tax advice. Purchasers should always take tax advice pertaining to the sale or proposed sale of stored gold.

Q48 – Where are Phoenix Precious Metals (PPM) based?

A48 – Phoenix Precious Metals DMCC is based in the Dubai Multi Commodity Centre, an international hub for global commodities trade.

Q49 – Is PPM part of a wider organization / group of companies?

A49 – Yes, PPM DMCC is part of the PPM/MSS Group of companies. There are 21 companies in the PPM/MSS group worldwide. The full group structure can be found in the full Due Diligence pack. MSS (a PPM group company) is a key, trusted partner of secure vault service provider, a global leader in security and logistics, and is responsible for secure shipments in excess of $6bn annually on behalf of secure vault service provider in West Africa.

Q50 – Who owns PPM?

A50 – Yacoub Sidya is the sole shareholder of PPM DMCC and all other PPM/MSS Group Companies.

Q51 – What is Yacoub Sidya’s background?

A51 – You can find Yacoub’s full profile in the Due Diligence pack which you should have received.

Q52 – Who is in place at a senior level at PPM to support Yacoub Sidya in terms of day to day operations?

A52 – PPM have an excellent, experienced team of executives in place to fully support Yacoub Sidya in the day to day operations of PPM DMCC, including Aslam Sooltangos (Finance), Asif Sooltangos (Legal) and Norman Baillie (Mining). Permissions are in place for this level of executives to continue to run the business on a day to day basis should Yacoub be absent for any reason.
In addition, the PPM DMCC Head Office in Dubai has a full Administration, Accounts and Operations team.

Q53 – What is the current value of the main PPM mine in operation?

A53 – The current value of the mine, on a discounted cashflow basis, sits at circa USD 81,000,000.

Q54 – How will APDG purchaser funds be used by PPM?

A54 – Purchaser funds will be used by PPM to expand its mining operations into further proprietary sites where mining reserves are proven and licenses to mine are in place. This includes exploration, testing, geology, equipment & staffing.

Q55 – With USD 450m of audited revenue in 2018, why does PPM choose to raise funds from purchasers via the APDG?

A55 – The APDG represents excellent value for PPM. Not only is the cost of money very attractive but it also allows PPM to continue to build its name in the market amongst future buyers and potential corporate investors for larger projects.

Q56 – What further, more detailed information on PPM as a company is available?

A56 – The Full Due Diligence Pack contains a vast depth of information relating to PPM including Audited Accounts, Key Personnel CV’s, Incorporation documents, Gold Reserve reports, Mining reports, Mining Licenses and references from Lawyers and from key blue-chip international partners such as secure vault service provider. Further information can be found on www.phoenixprecious.com

Q57 – Who are PPM’s auditors?

A57 – PPM DMCC’s Auditors are Al Maqtari Auditing.
More information can be found at https://www.almaqtari-auditing.com/

Q58– Can purchasers see copies of PPM’s audited accounts?

A58 – Yes, copies of PPM DMCC’s audited accounts (for 2016 – 2018) can be found in the full Due Diligence Pack. The audited accounts for 2019 are expected to be available in May 2020, at which point they will be added the Due Diligence Pack.

DISCLAIMER

The contents of this document are indicative and are subject to change without notice. This document should not be relied upon for making any decision in relation to the purchase of gold through the DGO structure Please read the terms and conditions carefully before you purchase. Before purchasing gold through the DGO structure you should ensure that you fully understand and accept the risks relating to the transaction. You should seek professional independent advice from a qualified advisor.

All information provided is believed to be accurate and reliable at the time of issue. We will make changes, updates and deletions as required and make every effort to ensure the accuracy of the quality of information provided. Phoenix Precious Metals DMCC (the Seller) does not assume any responsibility for any errors and are not liable for any damages of any kind resulting form the use of, or reliance on the information contained herein. You may use information from this document for your personal non-commercial use only.

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