Melanie Wells, Metal Registration Ltd, outlines the LBMA Good Delivery List accreditation process.
Metal Registration is an independent consultancy that provides a comprehensive and independent service to help international producers and refiners register their production on global international commodity Exchanges and Markets.
Metal Registration takes out the uncertainty of the application process, taking an applicant through the process one step at a time, using our years of expertise to deliver results. Our knowledge and careful methodology gives applicants a registration process that is thorough, streamlined, efficient and highly cost effective. We have been through the process many times and know how to make sure applicants meet all the criteria first time.
The LBMA’s Good Delivery List is recognised internationally as the definitive register of global precious metals refiners whose large gold and silver bars have been approved for ‘Good Delivery’ within the London Bullion Market. The LBMA’s accreditation process is critical as it upholds the integrity of the physical delivery mechanism within the London Market. It ensures that all buyers and sellers have confidence and certainty that the underlying bars meet the LBMA’s specification requirements.
Refiners seek accreditation because the LBMA’s seal of approval provides the refiner with global brand recognition for quality and acceptability. It also enables the refiner to receive a better price for its approved bars and sell production even during times of uncertain industrial demand.
The LBMA Good Delivery List accreditation process, however, can be difficult and time-consuming for an applicant, especially if it has no historic knowledge or ‘in-house’ expertise to draw upon. The process can take typically anywhere from six months onwards to complete. It depends upon the completeness of the applicant’s application dossier, its assaying capability and the quality (both chemical and physical) of its bars. It is through our detailed knowledge of all these requirements that we add value for the applicant.
A brief outline of the LBMA’s Good Delivery criteria and procedures is as follows :-
An applicant refiner, in order to apply for Good Delivery accreditation, must check, firstly, whether it meets the LBMA’s criteria, which are:-
|Gold – 10 tonnes|
|Silver – 50 tonnes|
|Product Shape: Ingot-shaped|
|Gold 995 minimum||350 – 430 tr oz (10.9 – 13.4 kg)|
|Silver 999 minimum||750 – 1,100 tr oz (23.0 – 34.0 kg)|
|Dimensions*: Gold – L 250mm x W 70mm x H 35mm + Undercut 5° – 25°|
|Silver – L 300mm x W130mm x H 80mm + Undercut 5° – 15°|
|Markings: Logo, Assay, year & serial number – clear and indelible|
|Good Physical Appearance:- Smooth surfaces, no holes or cavities. Easy to handle and stack|
* These dimensions are the centre-points of the permitted ranges
Once the applicant is confident it can meet the LBMA’s criteria, it is necessary to submit an application dossier to the LBMA’s Good Delivery Officer. (Please note that a large amount of information about the company and its products must be included in the application dossier for this to be accepted). Upon review and subject to receiving satisfactory feedback, the application is submitted to the LBMA’s Physical Committee for consideration and approval. Should the Committee grant its approval, the LBMA confirms to the applicant that it can undertake its technical assessment procedures.
The LBMA arranges to send reference samples, varying in chemical composition, to the applicant to undertake an assay test. The applicant receives, in the case of gold, 24 samples of approximately 5 grams, and for silver, 10 samples of approximately 30 grams. Upon receipt of the samples, the applicant, within a short time-frame, has to assay and email its report, in a standard format, direct to the LBMA.
The LBMA, upon receipt, checks the applicant’s results and if a pass has been achieved, advises the applicant accordingly. A recommendation is made to the Physical Committee that the applicant can proceed to the second stage, that is bar testing.
THE SECOND STAGE
The applicant is required to ship 11 bars to an LBMA designated London vault for inspection and subsequent testing. Only one of the bars is marked with the applicant’s brand mark. The other 10 are marked with a code.
The vault, upon receiving the sample bars, check weighs them against the accompanying weight list. It also compares the bars to the photographs and drawings provided within the application dossier. A visual inspection is also undertaken by a panel of vault managers and if all is to be found satisfactory, the 10 unmarked bars are subsequently sent for testing to two of the LBMA’s appointed referees (who are therefore unaware of the applicant’s identity).
The two referees, upon undertaking a visual inspection as well as various sampling and assaying procedures on the bars, each provide the LBMA with a detailed report. These reports are submitted to the Physical Committee for review and consideration. The Physical Committee assesses the complete application and should it approve the applicant, the LBMA Executive informs the applicant accordingly and issues a press release confirming its addition to the LBMA’s Good Delivery List.
For more information, please contact:-
- Metal Registration Ltd 180 Piccadilly LONDON W1J 9HF
- Telephone:- +44 207 917 2740
- Facsimile:- +44 207 917 1740
- Skype:- metalreg1
- Email:- firstname.lastname@example.org
Footnote:- Melanie Wells established Metal Registration Ltd. in 2008 after spending 15 years at the London Metal Exchange. It is recognised as an official facilitator for Good Delivery Applications by the LBMA.