Treasury Services
Sales and Purchases of Precious Metal
The AGR Matthey Treasury Division is well placed to provide very competitive facilities for the purchase or sale of metal either;
- in unallocated form, represented by a gold credit in a metals account) or
- in physical form, where the client buys or sells physical metal in the form of doré or value added product).
The AGR Matthey Group has an extensive global network of outlets for its products and is a frequent and competitive buyer of precious metal in all forms and from all locations.
For any requirement to purchase or to sell metal, please email Treasury direct.
Location Swaps
A location swap is the provision of either a metal account credit or physical metal in one location in return for either a metal account debit or physical metal in another location.
For example; a producer with physical gold in Perth, Australia needs to deliver this gold into London where they may have a funding arrangement. Instead of physically transporting the gold AGR Matthey will simply provide the producer with a London account metal credit in return for the physical metal in Perth plus a swap fee.
Consignment Stock, Funding Facilities and Leasing
This type of facility is predominantly used by clients involved in manufacturing (for example jewellers and electronic component manufacturers) or clients involved in the wholesale bullion business.
Approved clients are able to establish Consignment Stock Facilities. These enable the client to borrow precious metal from AGR Matthey that can be utilised in the manufacturing process until such time as the client sells the finished product. A metal lease fee is charged on the facility in addition to security/collateral taken against the facility.
This method of funding for jewellers etc. is, in most cases, significantly cheaper and less risky than buying precious metal outright for use in the production process
Treasury undertakes a leasing program to either lend or borrow precious metal within the terms of a lease agreement between AGR Matthey and approved counter parties.
Price Hedging
Through the use of a wide range of instruments AGR Matthey is in the very favourable position to offer services to tailor forward purchase strategies for precious metal consumers or forward sale strategies for precious metal producers.
- Offers Producers: protection against a decline in the underlying precious metal price.
- Offers Consumers: protection against an increase in the underlying precious metal price.
The majority of hedging programmes offered by bullion banks are on a loco London basis, which AGR Matthey can also offer. However, being located in Perth there is a further advantage of also being able to offer hedging strategies on a loco Perth basis which effectively avoids the need of the local client to become involved in location swaps.
AGR MATTHEY
TREASURY DIVISION
Horrie Miller Drive
Newburn, Western Australia. 6104
Telephone: +618 9479 9999
Fax: +618 9479 9919
Email: admin@agrmatthey.com.au