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July 12 th, 2015 WSF – TRADE COMMISSION DEALMAKING PROCESS.

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Presentation on theme: "July 12 th, 2015 WSF – TRADE COMMISSION DEALMAKING PROCESS."— Presentation transcript:

1 July 12 th, 2015 WSF – TRADE COMMISSION DEALMAKING PROCESS

2 COMMODITY BUYERS STAKEHOLDERS COMMODITY SELLERS WSF DEALMAKERS

3 WSF - VALUE CREATION Lowering risk through a network of qualified buyers and sellers (cost-reduction) Bringing commodities-to-market faster (cost-reduction) Access to regional and global opportunities (market reach) Ensure “Fair Market Price” between parties (high ethical standards) Funding local WSF sustainable, cost-efficiency development projects Potentially partner with a refinery to split marginal costs

4 5-STEP DEALMAKING PROCESS Due Diligence Develop Proposal Negotiation Full Proposal Close Check company registration with “Chamber of Commerce” Check company letterhead e.g. company name, tax ID Attain supplementary business documentation e.g. annual financial reports, sales invoices, tax documents Signage of Non-Disclosure Agreement (NDA)/Non—Compete Agreement (NCA) Dealing directly with the seller and not-reseller

5 5-STEP DEALMAKING PROCESS Due Diligence Develop Proposal Negotiation Full Proposal Close Complete Letter of Intent (LOI) summary documenting each parties interest in entering into a trade agreement as a buyer or seller Soft Corporate Offer (SCO) not a legal document. more detailed document specifications of the commodity type, purity initial volume, monthly volume, trade duration, cost, insurance & freight (CIF) of initial volume 2 nd LBMA sale price initial seller percentage initial buyer percentage WSF percentage

6 5-STEP DEALMAKING PROCESS Due Diligence Develop Proposal Negotiation Full Proposal Close PM or 2nd *LBMA market price on day of ^assay report negotiation of Buyer price percentage negotiation of Seller price percentage negotiation of WSF price percentage negotiation of WSF conditions negotiation of export and delivery costs *http://www.lbma.org.uk/pricing-and-statistics ^post-refinement report

7 5-STEP DEALMAKING PROCESS Due Diligence Develop Proposal Negotiation Full Proposal Close *Full Corporate Offer (FCO) transference of legal ownership from seller to buyer banking information from buyer to seller, buyer to WSF complete commodity specifications cost, Insurance, Freight (CIF) to buyer destination and delivery details Supplementary documentation. e.g. certificate of ownership, export permit, Flight number, date of arrival, weight, declaration product is free and clear first shipment validation and assay report LBMA price and percentages duration (e.g. 12 to 60 months) electronic signature from buyer and seller * Review Jamop Company Limited (FCO) template agreement in Dropbox – WSF TC * ETS. RKJ Metals Trading Exports (FCO) template agreement in Dropbox - WSF TC

8 5-STEP DEALMAKING PROCESS Due Diligence Develop Proposal Negotiation Full Proposal Close WSF will energize the end-to-end deal-making negotiation process WSF will own and store the legal documentation in “Dropbox – WSF TC” WSF will create an excel dashboard detailing an up-to-date process pipeline WSF dashboard will serve as a database detailing strategic account information WSF account management will nurture long-term relationships with preferred partners WSF will monitor receipt of buyer wire transfer to WSF fund

9 Thank you Contact Jason Wong WSF - Trade Commission Manager jason@ worldsustainabilityfund.nl


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