ALPINE
ALPINE is used to show how a qualifying mining project could support an initial GFC financing and how that financing could establish a long-term gold participation. Its identity and location are intentionally not disclosed.
The purpose of ALPINE is to show the intended GFC sequence: independently verified underground gold, disciplined financing, protected life-of-mine participation, development, production, physical gold delivery and eventual allocation within the GFC Monetary Reserve.
The participation percentage remains fixed. The qualifying gold base may grow. That growth benefits existing GFC holders.
Illustrative reference case
Current reference gold Mineral Resource
A current reference Mineral Resource, not a Mineral Reserve.
~2.0 Moz AuIllustrative only
Separate exploration / growth potential
Separate from the current Resource. Not included in the 2.0 Moz figure.
Up to ~6.0 Moz AuIllustrative only
Illustrative gold price
A reference assumption. Not a forecast.
US$3,500/ozIllustrative only
Initial GFC financing
Illustrative financing amount only.
US$200 millionIllustrative only
GFC life-of-mine gold participation
An illustration. Not a universal GFC requirement.
10%Illustrative only
Current reference gold participation
A simple resource-reference measure of 10% of ~2.0 Moz. Not physical gold held.
~200,000 oz AuIllustrative only
Gross reference metal value
Simple arithmetic. Not project valuation, NAV, present value, or a promised return.
~US$700 millionIllustrative only
Simple gross reference relationship
Simple arithmetic only. Not a return, multiple, or price target.
~3.5xIllustrative only
Illustrative initial GFC issue price
A founding issuance assumption only. Not a peg, redemption value, or guaranteed market price.
US$1.00 per GFCIllustrative only
Illustrative initial GFC issuance
Corresponding to US$200 million at US$1.00. Not circulating supply today.
200 million GFCIllustrative only
In the illustrative case, GFC provides US$200 million of initial financing in exchange for a 10% participation in qualifying life-of-mine gold production. At a current reference Resource of approximately 2.0 Moz Au, that participation corresponds to approximately 200,000 oz Au on a simple resource-reference basis.
The central principle is that the participation is not capped at 200,000 oz. The contractual concept is 10% of qualifying life-of-mine gold production. If the qualifying gold base later increases, the existing participation may benefit from that growth without creating new GFC solely because the mine grew.
Mine growth strengthens existing GFC
Qualifying gold base2.0 MozCurrent reference Mineral Resource
↓ × 10%
Potential participation200,000 oz
Qualifying gold base3.0 MozIllustrative larger qualifying gold base
↓ × 10%
Potential participation300,000 oz
Qualifying gold base4.0 MozIllustrative larger qualifying gold base
↓ × 10%
Potential participation400,000 oz
Qualifying gold base6.0 MozExploration / growth potential only unless independently supported and classified
↓ × 10%
Potential participation600,000 oz
Illustrative relationships only. The 6.0 Moz figure remains exploration / growth potential only unless and until supported by appropriate technical work and classification. Resource growth alone does not justify new GFC issuance.
ALPINE financing would be deployed progressively in accordance with budgets and funding requirements prepared by the mining company within the agreed development programme. GFC would not seek to impose rigid spending rules that prevent reasonable project adjustments.
A US$200 million financing at an initial issue price of US$1.00 per GFC would correspond to an issuance of 200 million GFC. The US$1.00 figure is a founding issuance assumption only. It is not a peg, redemption value, guaranteed market price or permanent issuance rule.
If the initial authorised issuance capacity is 1,000,000,000 GFC, an illustrative 200 million GFC founding issuance would leave 800 million GFC authorised but unissued. Authorised capacity is not circulating supply and should not be pre-minted merely because it is authorised.
ALPINE also illustrates a defining monetary rule: mine growth can strengthen existing GFC without automatically increasing the currency supply.
Mine growth strengthens existing GFC. It does not create new GFC.
White Paper 2.0 — 13 · ALPINE: The Illustrative First Tree
