The NatGold Bilateral Bridge is a pivotal technological infrastructure within the NatGold ecosystem, designed by OroEx Corp. to connect the private ledger of the NatGold Digital Vault with the NatGold NatGold Multichain where NatGold coins are actively stored, distributed, and traded globally. This bridge plays a critical role by facilitating the seamless and secure transfer of NatGold coins from their post-tokenization crediting in the Digital Vault to their respective public blockchain addresses.

Essential to both operational oversight and regulatory compliance, the NatGold Bilateral Bridge utilizes advanced technologies such as smart contracts, APIs, and cryptographic security measures. These tools ensure that the transfers and tracking of NatGold coins are conducted securely and efficiently, thereby preserving the integrity and trustworthiness of the digital asset management system. This infrastructure not only supports the smooth functioning of the NatGold ecosystem but also enhances its capacity for strategic decision-making and regulatory adherence.

How is the baseline intrinsic value of NatGold calculated?

The baseline intrinsic value of NatGold is calculated using a global per ounce average profit comparative methodology developed by the International NatGold Council. This method assesses the profit potential of NatGold by comparing the global average cost of gold production, as indicated by the All-In Sustaining Cost (AISC), against the current market price of gold. This approach provides a robust framework for establishing the minimum intrinsic value of NatGold coins, emphasizing their potential profitability in the global market.

Calculating Production Costs: The All-In Sustaining Cost (AISC) is used as a key metric in this comparison. AISC is a global weighted average calculated quarterly by the World Gold Council, based on the reported costs of each publicly reporting mining company for that period. This figure reflects the comprehensive cost faced by publicly reporting gold mining companies to mine, refine, and market one Troy ounce of gold.

Above Ground Market Price Reference: The market price used in this calculation is derived from the latest daily average price for a Troy ounce of gold, as reported by authoritative sources like the London Bullion Market Association and the NYMEX spot gold price.

Intrinsic Price Value Baseline: For example, employing a 90-day AISC of US$1,315 for Q2, 2023, and a hypothetical market price of US$2,000 per ounce, the intrinsic profitability is calculated by subtracting the most recent quarterly global weighted average AISC from the market price. In this instance, the average global profit would be $685 per ounce. This serves as the baseline intrinsic value of gold before the expenditure of US$1,315 to physically extract the gold via traditional mining methods.

NatGold’s approach diverges from traditional practices by focusing exclusively on digital mining certified gold resources in an ESG-friendly way. Essentially, the intrinsic baseline value of an ounce of NatGold is theoretically equal to the average per ounce profit realized by global gold producers, which is calculated by subtracting the average global cost of extraction from the prevailing market price of gold.

This positions NatGold as a sustainable crypto-commodity, capable of attracting a significant ESG premium, potentially even surpassing traditional gold’s market value as global sustainability awareness increases. This valuation transcends conventional production cost-profit analyses, advocating for NatGold’s price to be independently determined by its own merits as a sustainable and innovative financial asset.

The roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in the context of National Instrument 43-101 (NI 43-101) are distinct yet complementary:

1. Canadian Securities Administrators (CSA):

Regulatory Role: The CSA is responsible for regulating securities laws in Canada, including the enforcement of NI 43-101. Its primary function is to ensure compliance with the rules and standards set for the public disclosure of scientific and technical information on mineral projects.

Investor Protection: The CSA aims to protect investors by ensuring that the disclosures about mineral projects are truthful, complete, and comply with the regulations, thus helping investors make informed decisions.

2. Canadian Institute of Mining, Metallurgy, and Petroleum (CIM):

Standards Development: The CIM is instrumental in developing the definitions and standards that are incorporated into NI 43-101. They provide the framework and guidelines used to report on mineral resources and reserves.

Expertise and Guidance: CIM offers guidance based on the expertise of professionals in the mining industry. This includes best practices in documentation and reporting that companies must follow to align with NI 43-101 standards.Essentially, while the CIM provides the technical definitions and standards, the CSA enforces these standards within the legal framework of the Canadian securities market, ensuring that all public disclosures meet these established criteria. This system ensures that both the technical accuracy and regulatory compliance are maintained in the reporting of mineral projects.

The gold resource exchange ratios in the NatGold tokenization model reflect the NatGold Council’s approach to categorizing gold resources based on their certification level: Measured, Indicated, and Inferred. These ratios determine the number of NatGold coins created for each ounce of gold resource, adhering to industry-standard certifications to maintain the integrity and reliability of NatGold as a digital asset:

Measured Resources: With the highest degree of certainty and detail in gold existence estimates, Measured resources are exchanged at a 20% tokenization discount. Thus, one ounce of Measured resources is equivalent to 0.80 of a NatGold coin.

Indicated Resources: Positioned between Measured and Inferred in terms of accuracy, Indicated resources undergo a 60% tokenization discount. This translates each ounce of Indicated resources to 0.40 of a NatGold coin.

Inferred Resources: As the category with the lowest precision, Inferred resources are allocated an 80% discount in tokenization, valuing every ounce at 0.20 of a NatGold coin.

This structured approach ensures that the NatGold tokenization model is grounded in established mining and financial practices, offering a trustworthy and stable digital asset based on gold’s intrinsic value.

An ounce of NatGold is not physically different from a traditional ounce of gold; both are essentially the same element, gold. The distinction lies in their extraction and storage methods. NatGold leverages a digital mining process that is ESG-friendly, allowing the gold to remain securely in the earth. This process unlocks the monetary value of gold without physical extraction, preserving the environmental, social, and economic landscape.

In contrast, a traditional ounce of gold is physically mined, requiring it to be dug out of the ground and brought to the surface. This conventional method captures the value of gold but often comes with significant environmental, social, and financial costs.