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GRANDMONT GOLD

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Merged with the most powerful business model in the precious metals sector... Imagine an ideal investment ... in every time in history. valued at all times ... – PowerPoint PPT presentation

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Title: GRANDMONT GOLD


1
GRANDMONT GOLD
  • THE FUND THAT PUTS MINES BACK INTO PRODUCTION

2
GOLD THE ONLY TRUE GLOBAL CURRENCY
3
Merged with the most powerful business model in
the precious metals sector
4
Imagine an ideal investment where the capital is
protected while at the same time ensuring profits
that are higher than any other similar
investment. With Grandmont Gold, this ideal
situation has become closer to reality than ever
! Our aim is to let the cash flow centric
business model speak for itself. We put numbers
and facts on the table to tell the story.
5
Grandmont produces the strongest profit model of
today Year 1 10 Year 2 83 Year 3 240
6
REASONS FOR THESE HIGH RETURNS
  • Gold is experiencing prices near 26 year highs
  • Gold rose 22 this past year alone!
  • Gold has risen from an average price of 271 an
    ounce in 2001 to an average of 673 last year
  • Grandmont made its projections in January 2007 at
    650 an ounce and just 5 months later, today it
    is 685 an ounce!
  • Prospects for breaching the 1000 level by the
    end of the year look good.

7
  • Gold is the only form of currency that is
  • known in every country
  • in every time in history
  • valued at all times

8
Gold coins have been used as a form of currency
for over 2,700 years.
One of the first coins ever minted was made Circa
600 BC.
9
  • Throughout history, gold has been valued as a
    tradeable commodity.
  • Gold is unusual in that it is both a commodity
    and a monetary asset.
  • Gold is an important element of global monetary
    reserves.

Central banks and supranational organizations
hold around one fifth of global above-ground
stocks of gold as a reserve asset, a figure that
is decreasing steadily over time.
10
In a fiat money system, money is not backed by a
physical commodity such as gold. Instead, the
only thing that gives the money value is its
relative scarcity and the faith placed in it by
the people that use it. vs
11
  • History has shown that money official money
    printed by the government has been known to
    lose value and become virtually worthless.
    Sometimes overnight.
  • Russian rubles from pre-Revolution days
  • 50-million marks from 1920s Germany
  • Cuban pesos from pre-Castro days
  • In all of these cases, jarring political and
    economic change destroyed currency values
    suddenly, completely, and permanently.

12
A recent example of devalued currency is Iraq.
1st Lt. Sherri Fazzio 01 (business), right, and
a colleague pose with Iraqi currency. As an Army
finance officer, Fazzio was responsible for
securing and accounting for millions in
now-worthless money.
13
Gold is indestructible and has throughout history
been regarded as the ultimate store of value
whatever may happen to the fiat currencies or any
other tradable or exchangeable goods or items.
14
In a fiat monetary system, there is no restrain
on the amount of money that can be created. This
allows unlimited credit creation. Initially,
a rapid growth in the availability of credit is
often mistaken for economic growth, as spending
and business profits grow and frequently there is
a rapid growth in equity prices. In the long
run, however, the economy tends to suffer much
more by the following contraction than it gained
from the expansion in credit.
15
In most cases, a fiat monetary system comes into
existence as a result of excessive public debt.
Current Debt in the US 9,000,000,000,000 In
Canada, the debt is
481,000,000,000 When the government is unable
to repay all its debt in gold, the temptation to
remove physical backing rather than to default
becomes irresistible. However, the unbridled
printing of money expansion of the "IOU
economy" is good news for those who recognize
the potential for gold.
16
Gold is considered an alternative to paper
currency. It is also a hedge against inflation.
17
Gold has replaced every fiat currency for the
past 3000 years.
18
Gold and other precious metals are assets that
are both tangible and liquid (i.e. easily
traded), unlike real estate which is tangible but
not liquid, or company shares and bonds which are
liquid but not tangible.
19
What kinds of events could do the same thing
today and what can you do today to protect your
position strategically?
Invest in Gold
20
Where does Gold come from?
Mines
21
The demand is greater than the supply According
to the World Gold Council, every major gold
mining country reported slumping mine production
in 2006, yet demand reached a record US65
Billion.
22
  • The obvious upward influences on the price of
    gold are
  • continuing demand from the increasingly
    prosperous emerging nations
  • the weakness of the US
  • soaring US deficits
  • rise in the price of oil
  • possibility of an imminent recession driving the
    smart money into gold
  • world wide inflation
  • political and military implications resulting in
    increasing tensions in the Middle East and N.
    Korea

23
  • 73 of the gold mined today goes into 22-carat or
    higher jewelry.
  • About 14 of gold goes into industrial uses cell
    phones, computers, heat shields, medical
    equipment, dentistry.
  • 13 is investment (institutional and individual,
    bars coins).

24
The two largest populated countries in the world,
India and China are experiencing their largest
economic growth in history. In these enormous
populations, often the first thing they acquire
is gold jewelry. It is their cultural
tradition. Gold is viewed as an investment.
25
  • Explaining Indias appetite for gold
  • India is the world's largest consumer of gold and
    accounts for 20 percent of annual global demand
    for gold, devouring 800 tons of the metal
    annually, mostly as jewelry.
  • With around ten million brides getting married
    every year in India, many festooned with gold,
    it's no wonder that India ranks as the number 1
    gold consumer.
  • As the Indian economy steams ahead by more than
    eight percent annually in the past four years, an
    ever increasing stream of money is going into
    gold purchases.
  • Over generations, Indian households have
    accumulated an estimated 15,000 tons of gold
    worth 320 billion -- 40 times the amount of gold
    held by the country's central bank and nearly
    double the amount held by the U.S. central bank.

26
  • A growth in demand for Gold means a growth in the
    mines that produce it.
  • Large scale mining operations are owned by major
    corporations and termed Majors.
  • Majors have access to large amounts of funding.
  • Majors take from 6 to 8 years to explore and
    prepare for production.
  • There is a long term before gold is brought out
    of the ground and profits are made for investors.

27
  • Today about one-quarter of the world gold output
    is estimated to originate from small scale
    mining.
  • Small scale mines are termed Junior mines or
    Micro mines
  • Junior mines can be up and running quickly and
    producing gold in a short time
  • Junior mines produce gold with less environmental
    problems
  • However, Junior or Micro mines have greater
    difficulty finding production funding
  • There are no banks that fund mining production,
    especially at the Junior level

28
  • Enter Grandmont Gold, the fund that puts mines
    back into production.
  • Real acceleration in the monetary worth of a mine
    begins when gold is being harvested and revenues
    are being made.
  • The strategy of Grandmont Gold is to shorten the
    time to profitability by financing properties
    that are beyond the exploration phase and can be
    brought into production within less than one
    year.
  • Near-production mines offer the greatest
    opportunity for an increase in value and will be
    the focus of the Grandmont Gold fund.

29
  • In order to be chosen to receive production
    investment from the Grandmont Gold fund, each
    mine must have the following
  • Ability to rapidly be put into production
  • Significant long term production capabilities
  • Economies of scale in production methodologies
  • Adherence to environmental standards and issues
  • Improved production technologies for greater
    efficiency resulting in more profit
  • Grandmont will fund production, not exploration
  • Due diligence from Grandmonts own geologists and
    engineers

30
Gold Grandmonts exceptional business
model Profits
31
Grandmont Gold Revenue Model Grandmont will
receive revenue from the loans to the mines in
the form of
  • Interest
  • Gold
  • Equity

32
Rates to the Mines
  • Interest will be prime 3
  • 50 of the net gold production yield until the
    loan is repaid
  • 10 equity in the mine for the life of the
    property

33
Rates to Investors
Cumulative ROI using pro-rated capital figures
with updated Gold prices of 685.30 Year 1
10 Year 2 85 Year 3 246
34
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35
  • Benefits of the Grandmont Gold business model
  • Funding several mines instead of a single
    property risk is spread
  • Junior or Micro mines are an underserved sector
  • Micro mines offer better environmental controls
    than major mining projects
  • The fund invests in advanced stage
    near-production stage mines only
  • The unique cash-flow centric business strategy
    shortens the time to profitability
  • Mines will repay the loan quickly as the net gold
    yield will be split with Grandmont until the loan
    has been repaid
  • Grandmont will securitize the loan with assets
    from the mine
  • Grandmont will continually grow the asset base of
    the fund by retaining a 10 equity position in
    every mine that has gone through its program

36
The excitement of the Grandmont model elevates
the return from junior mining and brings about a
change of market dynamic resulting in greater
security and higher profits for investors.
37
Invest in Grandmont and reap the benefits of the
greatest rise in gold in 26 years by leveraging a
strategy that reduces risk and increases profits.
38
Thank you for viewing this presentation about
Grandmont Gold
39
  • Sources
  • IMF
  • World Gold Council
  • US Global Investors
  • National Museum of American History
  • Canadian Business
  • Northern Miner
  • Reuters

40
Disclaimer This report is prepared by Grandmont
Gold, Inc. for use by Grandmont Gold, Inc. The
material contained herein is for information
purposes only. Estimates and projections
contained herein, whether or not our own, are
based on assumptions that believed to be
reasonable. The information presented, while
obtained from sources we believe reliable, is
checked but not guaranteed against errors or
omissions. Neither Grandmont Gold, Inc. nor any
of their affiliates, or their respective
officers, directors, agents and employees
recommends or solicits any investment, financial
services or the purchase of securities nor an
offer of securities. Figures shown are estimated
projections. Readers should not rely upon this
data to make an investment decision. There is no
warranty, express or implied regarding this
information.
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