Trading

The underlying philosophy of Blackhawk Partners trading approach is to realize the commercial potential of assets in markets where we have a comprehensive understanding of what influences value.

1. For Oil derivative related transactions

   
   When representing buyers:
   • We will not issue LOI, ICPO, or any such paperwork at the outset and require immediate proof of product before going to the banks and after signature of contracts.
   • Our method of payment is a documentary letter of credit. In some cases we would consider a transferable, but will never give a divisible.
   • We do not do bank guarantees or standby letters of credit. If proof of product cannot be given, the seller may have the option of putting up a non operative performance bond first.
   • We do reciprocate with Proof of Funds (POF), but only between principals and will only deal with sellers who are ready to provide documentation as delineated earlier.
   • We have to deal directly with End Seller if you want transactions to close. Last thing we will engage in is talk to somebody who knows somebody as such situations will only result in frustration on both sides and failed deals.
   • Our Modus Operandi is and has always been very simple: Prove the product, send an invoice and we will close it! Very simple.
   
   Hence the only procedures that work for us when trading such commodity are:
   • Seller confirms clear ownership of product. (i.e.: If multiple owners then will require written approval of all owners and or his/their board’s resolution showing authorization to sell the product).
   • Seller sends Pro-Forma Commercial Invoice addressed to buyer for amount of liftable product
   • Buyer signs Pro-Forma Commercial invoice and returns with Purchase Order to Seller
   • Both parties lodge the Pro-Forma invoice at their respective banks
   • Seller sends to end buyer proof of product (POP) (including tank receipts and SGS reports) , confirms Q88 if on vessel, and allows tanks to be dipped
   • Payment by MT-103-23 against all title documents bank to bank, close, lift.
   
   P.S:
   • Buyers will do multiple POs against invoices for liftable product, but only for what is "in-tank" for that day….For spots only.
   • Any spot purchase could easily convert into contract if all goes well.
   • We will also sell under the exact same circumstances. The exception is an unknown buyer to us where we'll have to Swift an RWA to prove financial capability.
   
   When representing sellers:
   • Would be more than happy to show buyers Proof of Product (POP) upfront if we're dealing with a "Major" not some group that's unknown in the market and if in fact we're dealing with a verifiable buyer that we can do due-diligence on. If it is on the other hand somebody that cannot be verified; then they will have to prove financial capability before we proceed.
   • As when representing buyers, end buyer in here has to be disclosed upfront and we must deal direct with that entity as we cannot and will not send Proof of Product (POP) to anyone other than the end buyer
   
   

2. For AU related transactions

   
   

   The only procedures that work for us when trading such commodity are the modified strict "Swiss procedures" defined as below:

   • Seller issues signed Full Corporate Offer (FCO).
   • Buyer returns signed Letter of Intent (LOI) indicating acceptance.
   • Seller issues/delivers to Buyer a signed Purchase and Sale Agreement;
   • Seller supplies to Buyer evidence of legal ownership, current Assay Report, bank statement.
   • Seller provides a letter from their bank indicating that the Seller is ready to commence the contract and that the Bank is ready to transact with full bank responsibility.
   • On successful verification of the documentation identified in clause (d) the Buyer will arrange an acceptable institutional Payment Guarantee for the full contract value as instructed by the Seller.
   • Buyer and Seller lodge contracts with their respective banks.
   • Seller’s bank will SWIFT to Buyer’s bank confirming the existence and transferability of merchandise;
   • Buyer’s bank will respond by SWIFT with confirmation of payment;
   • Transaction is completed electronically with exchange of AU and Funds on a bank-to-bank basis.

   NOTE: Bank-to-bank could be substituted with ledger-to-ledger as the terms of the contract may require.