The Gold & Silver Tree
A Tree is one protected participation in one qualifying mine. Independently verified underground gold becomes contractual participation, then production, then allocated metal in the GFC Monetary Reserve.
The Forest is the other page. Many separately identifiable Trees may support one GFC. This page explains one Tree.
GOLD & SILVER TREE = the economic anatomy of one qualifying mining relationship.
FOREST = multiple separately identifiable Trees supporting one GFC currency.
Each Tree keeps its own technical, economic and legal identity. The mines are not blended as though all underground ounces were economically identical.
01
Roots
Only qualifying underground precious-metal interests enter the system. Exploration potential, Mineral Resource, Mineral Reserve and physical gold remain distinct.
02
Trunk
Verification establishes the mineral facts. Contract establishes GFC's economic participation. Security protects that interest. GFC finances the mine. It does not operate it.
03
Branches
The participation percentage may remain fixed while the qualifying gold base may grow. Mine growth strengthens existing GFC. It does not create new GFC.
04
Fruit
Production converts an underground economic interest into a delivery obligation. Cash flow is the delivery threshold. Gold is the intended return.
05
Harvest
Refined allocated fine gold changes the form of the asset. It must not remain counted as underground participation as well.
06
Continuing economic life
The vault need not end the gold's economic contribution. Net Reserve economic value remains in the Reserve for GFC holders. It is sought, not guaranteed.
GFC issued for the original financing remains unchanged.
The roots are independently verified underground precious-metal interests. Gold does not become physically real when it is mined. It can be identified and measured while it remains in the earth.
Not every indication of gold enters the system. Only qualifying precious-metal interests meeting the applicable technical, economic, legal and security standards may do so.
Exploration potential ≠ Mineral Resource ≠ Mineral Reserve ≠ production ≠ physical bullion.
Independent verification establishes the mineral facts. Contract establishes GFC's economic participation. Security protects that interest.
Depending on the qualifying transaction, GFC may provide capital in return for a defined percentage of qualifying future physical production over the economic life of the mine. GFC finances the mine. It does not operate it.
Verified gold + contractual gold interest + enforceable security
On this page, branches are the growth of one mine: drilling, Resource and Reserve evolution, permitting, engineering, mine-life extension. Other mines are other Trees. They belong to the Forest.
A contractual participation percentage may remain fixed while the qualifying gold base may grow. An increase in Mineral Resources does not mean those ounces will necessarily be mined or delivered.
Mine growth strengthens existing GFC.
It does not create new GFC.
Production converts an underground economic interest into a delivery obligation. The governing documents should define an objective sustainable operating cash-flow threshold. Once that threshold is reached, the GFC gold stream is intended to begin.
Cash flow is the delivery threshold. Gold is the intended return.
Refined allocated fine gold is no longer underground participation or a future-delivery entitlement. It has become identifiable physical precious metal within the protected Reserve.
The same economic interest must not remain counted in both forms.
The vault need not end the gold's economic contribution. Subject to the Monetary Constitution and the applicable Reserve Management Policy, authorised Reserve assets may be professionally managed.
Net Reserve economic value remains in the Reserve for GFC holders. It is sought, not guaranteed.
Over the life of one Tree, the foundation supporting the GFC already issued for that financing may strengthen in four ways. None of them, by itself, authorises new GFC.
01
Acquire early
Qualifying participation before finished bullion — at a discount where commercially achievable.
02
Participate in growth
The participation percentage may stay fixed while the qualifying gold base may grow.
An increase in Mineral Resources does not mean those ounces will necessarily be mined or delivered.
03
Receive physical gold
Value may rise or fall with the gold price. Not controlled or guaranteed.
The gold price may move positively or negatively.
04
Manage the Reserve prudently
Authorised Reserve assets may be professionally managed. Value is sought, not guaranteed.
Reserve management seeks additional economic value. It does not guarantee it.
Growth strengthens existing GFC.
Growth does not create new GFC.
Acquire participation before finished bullion where commercially achievable. Participate if the mine grows. Receive physical gold as production is delivered. Permit professional Reserve management after harvest.
GFC should not seek a gold percentage so burdensome that it destroys the mine that must produce the gold. The interests of GFC and the mining company should remain economically aligned.
GFC issued for the original financing remains unchanged.
White Paper 2.0 — 05 · The GFC Gold & Silver Tree
