AU Gold transforms appreciating assets such as gold bullion into collateral for financing opportunities. The length of the financing period is determined by the asset holder, with a range between 5 and 10 years. At the conclusion of the financing term, the asset is released contractually back to the holder. At no point does the physical asset itself change hands.

 

For private gold reserves, our methodology employs a 125% collateralisation formula to support the contributed capital. For example, if a client possesses $125M worth of value in asset holdings, the company would receive $100M in financing. In return, the asset holder would receive up to 20% of the financing amount as an upfront issuance. For this example, the upfront payment would represent 20% of $100M or $20M.

 

In addition, the asset holder would be eligible to receive an additional 3% of the financing amount at the conclusion of each year for the full duration of the term. For this example, this amount would be 3% of $100M or $3M annually.

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For a 5 year program, therefore, the asset holder would receive a total of $35M.