【正文】 s average daily volume. Geographic: Appropriate Diversification of Sovereign risk. Appendix AgAu Global Producer Fund I. Mitigating Risks II. AgAu’s Portfolio III. Representative Transactions IV. Australian Financial Services License Mitigating Risks Appendix Risk Protection/Mitigant Metal Price ? Overwhelming physical market demand underpins price. ? Significantly Reduced Official Sales and Producer Hedging ? Futures Market for our portfolio hedging and positioning. ? Derivatives both OTC and ETO. No Gold or Silver Lease exposure permitted. ? Employ both Fundamental and Technical analysis for strategic positioning/Hedging/reweighting. Operation/Project ? Core portfolio production cost at industry standard. Low Cost eg Goldcorp. ? Analysis includes Geology, Underground vrs Open Pit, Production History, Infrastructure, Costs, Experience of Contract miners. ? Production diversity. Single mine panies rate lower than multiple production sites. Liquidity ? Exchange Listed Equities ? No more than 10% FUM exposed to any entity. ? No greater than 5% ownership of mon shares of an entity. ? Exposure no greater than WAV (weekly average volume) for last 12 months. ? OTC derivatives must be a function of either Gold or Silver price. No Exceptions. Management ? Reputation. Know their pedigree. ? Experience. Accountants don’t make good explorers. Geologists don’t make good CEO’S. ? Horses for courses. ? Skin in the game. ? Board Experience, involvement and oversight. Sovereign ? Diversification. ? Multiple production sites offset some of the risk. eg Newmont. ? Continual monitoring via respected independent sources. ? Common Sense. ? Lowest cost Proven and Probable Reserves in the world. ? Significant exploration potential – Gold production since 1873. ? Ghana based production possibly the best sovereign risk in Africa. ? High cost producer. (+$700). ? Difficult orebody now understood and to be profitably exploited. ? Production Cost declines expected ? Exchange Traded Options ? Infrastructure pleted ? Negative market sentiment ? Reserves Calculated at $560 ? Massive undervalue on Peer Comparison basis. Portfolio Composition/Stock Selection Appendix Profile Listing: NYSE, TSE Production . mio Reserves (P+P off US$550) 50 Mio + Mine Life 15 YEARS+ No of Operations 16 Share Price US$ Market Cap 23 Billion US$ Shares issued 731 mio WAV (NYTOR) 18 million shares Resources 25 million + Cost per Oz Reserve. $450 ? Cornerstone investment of the AgAu Portfolio. ? “Bombproof” gold investment. ? The lowestcost and fastest growing multimillion ounce gold producer. ($300) ? Canada/USA production. ? Significant Silver exposure ? Highly liquid ? Exchange Traded Derivatives and Options markets. ? Control one of the worlds most lucrative and underexplored Gold zones. Red Lake. ? Massive exploration upside potential and budget. ? Dividends. ? Debt Free ? Non Hedger. ? Reserves calculated at $550 Goldcorp Inc Golden Star Resources Limited Profile Listing AMEX, TSE Production 300K Reserves (P+P) Mio Mine Life 12+ years No. of Operations 3 Share Price US$ Market Cap US$200 mio Shares Issued 240mio WAV (NYTOR) 15 million shares Resources 2 million ozs Cost per Oz Reserve $80 AgAu Capital selects appropriate Precious Metal equity investments following intensive analysis focussed on maximum leverage to the gold price via proprietary qualitative and quantitative measures. Examples such as : Portfolio Composition/Stock Selection Appendix Silver Standard Resources Inc Profile Listing: NASDAQ, TSE Production . Soon to Commence Reserves (P+P off US$11 ag) 200 Mio + Mine Life 10 YEARS+ No of Projects 15 Share Price US$18 Market Cap Billion US$ Shares issued 67 mio WAV (NYTOR) 8 million shares Resources(ag) 1 Billion + Cost per Oz Reserve Ag. US$6 ? Cornerstone Silver investment. ? Largest inground silver resources in the world. ? Projects in USA, Canada, Australia, Mexico, Peru, Chile and Argentina. ? Control of historic silver producing areas ? Pure Silver Call Option ? High cutoff grades for Reserve and Resource estimates ? Transition to Silver Producer on budget and timetable. ? Exchange Traded Derivatives and Options markets. ? Massive exploration upside potential and budget. ? Debt Free ? Non Hedger. Lihir Gold Limited Profile Listing ASX,TSE, Nasdaq Production 1mio Reserves (P+P) 24 Mio Mine Life 15+ years No. of Operations 3 Share Price US$ Market Cap US$ Billion Shares Issued Billion WAV (ASX) 100 million shares Resources 35 million ozs Cost per Oz Reserve US$180 ? Low cost Proven and Probable Reserves. ? Significant exploration po