The complete gold path
GFC is designed to maintain an identifiable economic connection to its qualifying share as the form of the gold changes. Circulation belongs to the use of GFC as currency, not to this physical transformation.
01
How GFC Works
Follow the gold.
GFC is designed to enter the economic life of qualifying gold before that gold becomes finished bullion.
It identifies qualifying precious-metal assets, relies on independent verification, acquires a protected contractual participation, provides qualifying financing and follows that participation through development and production until corresponding physical gold can enter the GFC Monetary Reserve.
From the earth to the Reserve.
From the earth
- 01
Independently verified underground gold
- 02
Protected GFC gold interest
- 03
Mine development
- 04
Qualifying production
- 01
Into metal
- 05
GFC physical delivery entitlement
- 06
Doré / payable metal
- 07
Refining & independent reconciliation
- 08
Allocated refined fine gold
- 05
Into the Reserve
- 09
GFC Monetary Reserve
- 09
Gold may change category.
It must not multiply through accounting.
The gold must first qualify.
Gold existing underground is not enough. The relevant asset must be supported by appropriate independent technical work and correctly classified. Golden Fig must not determine its own mineral figures.
No gold without independent verification.
GFC does not simply buy ounces. It seeks a protected participation.
Through a qualifying financing transaction, GFC may acquire a contractually defined percentage participation in qualifying future precious-metal production. The transaction should also establish the protections appropriate to a material financing provider.
Depending on the transaction, these may include contractual rights, security, information rights, monitoring rights, covenants and remedies.
Independently verified gold + contractual gold interest + enforceable protection
The mineral title may remain with the mine owner. Once a qualifying financing transaction has closed and the contractual participation and protections have been established, the gold may remain underground while GFC's protected economic interest in its agreed participation already exists.
A percentage — not merely a fixed number of ounces.
Where commercially and legally appropriate, GFC may seek an agreed percentage of qualifying future physical gold production over the economic life of a mine. The percentage is transaction-specific.
Illustrative only
Qualifying gold base2.0 MozIllustrative only
↓ × 10%
Potential participation200,000 oz
Qualifying gold base3.0 MozIllustrative only
↓ × 10%
Potential participation300,000 oz
Qualifying gold base4.0 MozIllustrative only
↓ × 10%
Potential participation400,000 oz
The participation percentage may remain fixed.
The qualifying gold base may grow.
The GFC issued for the original financing does not.
The mine develops. The GFC interest follows it.
As the mine advances, drilling may expand or improve geological understanding. Resources may increase or move into higher-confidence categories. Reserves may be established or expanded. Permitting, engineering, metallurgy and infrastructure may advance.
Where GFC holds a qualifying life-of-mine participation, successful mine growth may increase the potential quantity of gold associated with that participation.
Mine growth strengthens existing GFC.
It does not by itself authorise new GFC issuance.
Production turns participation into a delivery obligation.
When the mine begins producing qualifying gold, GFC's contractual participation becomes measurable against actual production. The governing transaction documents should define the applicable sustainable operating cash-flow threshold. Once that threshold is reached, the GFC gold stream is intended to begin in accordance with the agreed terms.
Cash flow is the delivery threshold. Gold is the intended return.
Cash flow itself is not an economic return belonging to GFC holders. Production does not mean that all metal immediately enters the Reserve.
GFC must be able to follow and reconcile its gold.
The GFC participation attaches to qualifying gold of the mine — not to one specific processing method. The mine may use its own plant, toll treatment, third-party processing, ore or concentrate sales, doré sales or another appropriate commercial route, provided GFC's agreed participation and delivery rights remain protected and objectively reconcilable.
Independent production records, assay, refinery settlements and reconciliation should support the chain.
Contained gold
Recovered gold
Doré
Payable metal
Refined fine gold
Physical gold is the intended destination.
GFC is not designed merely to receive a cash royalty calculated by reference to gold. Once the applicable contractual conditions are satisfied, the intended destination of GFC's qualifying participation is refined fine precious metal.
Cash is not the intended end product.
Physical gold is.
For website reporting purposes, “physical gold held” should refer to refined fine gold meeting an appropriate recognised investment-grade standard and held in identifiable or allocated form within the protected Reserve architecture. Doré, concentrate, payable metal or gold in refining is not physical gold held in the Reserve.
The vault changes the form of the asset.
Once refined gold has been received and allocated, it is no longer merely an underground interest or future production entitlement. It has become identifiable physical precious metal within the GFC Monetary Reserve.
The gold may change category. It must not multiply.
The same economic interest may move through several stages. When an underground participation progresses into production, refining and eventually allocated physical gold, the prior category must be reduced or reclassified.
The same ounce must not remain simultaneously reported as underground participation, a future-delivery entitlement and physical Reserve gold.
No double counting.
A growing gold foundation does not automatically mean a growing GFC supply.
Mine growth, higher Resources or Reserves, higher gold prices, more production, longer mine life or growth in the Monetary Reserve may strengthen the economic foundation of existing GFC. None alone authorises new issuance.
No new qualifying financing —
no new GFC issuance.
New qualifying capital + additional qualifying gold interest = potential new GFC issuance. Not every new financing qualifies.
Does not create new GFC
- Mine growth
- Gold-price growth
- Production growth
- Resource / Reserve growth
- Reserve growth / income
↓ Strengthens existing GFC
Zero automatic new GFC
May support new GFC
Admission gate
- 1Independently verified?
- 2Qualifying economic right?
- 3Independently economically assessed?
- 4Appropriately protected?
↓ Only then
New qualifying capital
+ additional qualifying precious-metal interest
+ independent verification / economic assessment / protection
Potential new GFC issuance
No new qualifying financing —
no new GFC issuance.
The gold changes form.
GFC's protected participation follows it.
Follow the gold.