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SME: Current Trends in Mining Finance

SME: Current Trends in Mining Finance. Financing in the Current Market April 30, 2013. Auramet Who We Are. Privately-owned and established in 2004; Located in Fort Lee NJ, Toronto ON, Lima Peru.

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SME: Current Trends in Mining Finance

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  1. SME: Current Trends in Mining Finance Financing in the Current Market April 30, 2013

  2. Auramet Who We Are • Privately-owned and established in 2004; Located in Fort Lee NJ, Toronto ON, Lima Peru. • Auramet Team assembled from the Mining Finance, Corporate Finance, and Physical Metal Trading divisions of Standard Bank New York • Focus on junior and mid-tier precious metals industry • Auramet is a Physcial Metals Merchant – were are not a speculative trading shop • Customer focused, relationship driven, proven track-record 2

  3. Auramet What We Do • Four business segments: • Physical Metal Trading • Purchases refined metal from producers, sells to industrial consumers (totally hedged book at all times) • Metal Merchant Banking • Purchaes unrefined material - dore, concentrate, loaded carbon, spent carbon, precipitate, slags, and recycled industrial scrap • Bridge Loans and other forms of working capital (RIF captive fund) • Advisory Services • Medium/Long Term Debt, M&A, Hedge Advisory, Refining, and Offtake Logistics

  4. A Time to Seek Alternative Financing • Equity markets (currently) are unable to fully accommodate the capital needs of small mining companies • Traditional Mining banks are, in most cases, not lending with the same enthusiasm compared to 2005-2011 • Some lenders who left the space in 2008, have yet to return • Pace of growth in the mining space has not kept up with price appreciation • Non-traditional financing has been possible for some companies, ie metal streams, royalty financings, asset-denominated instruments

  5. When is Debt really Debt? Does it really matter? • How to define Debt Obligations • Collateral • Covenants • Default Provisions • Cash flow a key factor • Why do Lender’s Lend?

  6. Impact of Market Volatility • Bull market created cover for growing capital expenditures and operating costs

  7. Auramet Trading LLC 2 Executive Drive – Suite 645 Fort Lee, NJ 07024 Trading: 201-905-5008 Advisory: 201-905-5004

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