Copper cathode - Spot the Fraud

1. 914mm x 914mm x 12mm cathodes are not produced by any refinery on this planet

2. The DRC does not produce 99.99% cathodes

3. The DRC only produces 500mt a month through Somika and Gecamine. These facts are openly available on the internet

4. Copper cathodes are never sold in ports

5. Tanzania does not produce copper

6. Pictures of copper should reveal the white paint markings. This leads you back to the producer. A simple email to the security wing of the mine will tell you who the copper really belongs to

7. Copper is never sold at fixed prices

8. Copper is not sold at discounts from Africa. The real price is LME + $160 CIF

9. No copper is sold FOB

10. No Copper is sold FOB port.

11. Mines sell copper CIF as the responsibility is on them to deliver

12 No mines offer performance bonds. There are no mining contract on this planet that offer this brokers and scammers ploy

13. SGS do not do cathode inspections in any African port

14. Inspection in port- You will see MCM and KCM copper being loaded on a ship and end up paying your BG or TT for nothing

15. Unless your name is Samsung, LG or Pirelli you are not going to get a contract for anything over 1500mt a month.

16. Chinese buyers will not buy cathodes when their SME subsidises local copper sales. The SME copper is less than the LME price, so why would they buy premium price copper?

17. Brokers.....and you are all brokers and not sellers or mandates. There is not a mine on this planet that sells copper through brokers and pays them commissions.

18. If you are offered a commission to sell copper you are being offered a commission to participate in a scam. If it is a scam, do you think they are going to pay you a commission having such scruples?

19. Mines accept offers for their copper. They do not issue soft offers and full corporate offers.

20. Non LME copper is 99.96% and less and referred to as B Grade or PQ grade. The difference in price ranges from 2 - 7 % and not $3000 as these scammers have you beli

21. Country of origin - Africa = Fraud

22. Country of Origin DRC/Zambia = fraud

23. Country of Origin Tanzania = fraud

24. Transferable LC = Fraud
They will attempt to use the LC as a financial instrument and draw against it

25. BG = fraud
They will attempt to encash the BG while you are running around a port chasing non-existent copper and not in direct contact with your bank.
A Singapore "seller" tried this three times

26 All mines encourage the contract to be signed at the mine. Once you have signed a NCND insist on signing the final contract at the mine headquarters and not a legal office on another continent

27. Mines encourage buyers to view the stocks they have at the refinery. They discourage you from viewing stocks in ports. Mine visits are imperative to good business

28. Offers of anything over 1000mt. New contracts issued by mines are always cautious.
The mine is not going to forsake its major clients and customers for some unknown buyer off the internet

29 Mines will only sell free copper to known end users. This means that brokers and traders are precluded
The reason for this is mines have major clients in copper consuming regions and the last thing they need is a conflict of interest arising
This effectively is an arrow in the heart of people who believe that they can sell cathodes on the internet.
If you get an offer to buy, ask the person if they are the end user. You will get a response saying " No , I am the buyer's mandate" or some foolish response which typifies a broker

You want the truth. Read this carefully. 99% of the offers are fake and criminal. The brokers that make such offers are ignorant of copper sales and do not in fact know the name of the mine they represent and will use the NCND to hide behind this fact.

You will be conned if you do not heed this advice.

You will not buy copper

You will not sell copper

This is a fact