INTERNATIONAL TRADE & COMMODITIES

METALS & MINING

01 INTERNATIONAL TRADE & COMMODITIES
METALS & MINING

Cles Fonctionnel works alongside some of the

world’s largest and most advanced resource
companies in the metals and mining sector. With
diversified interests in miners, mills, shipping
and logistics, trading, financing, and integrated
distribution channels, we offer unparalleled
synergies to our partners and clients.

Cles Fonctionnel was established in the city of Toronto

in 2007 as a mining supply company. The group made
an immediate impact in the metals and mining space
by being one of the first mining support firms to focus
on optimizing transport schematics by way of
orchestrating two-way transport. Cles Fonctionnel
synched the transport modality on both the import
and export routes to a refinery site.

Cles offered both supply of raw material consumables

for a miners refinement needs, while also off-taking
the refined production of the respective metals or
materials allowing the company to use the same
transport vehicle from the refinery to the port.

By strategically matching the quantities of imported

consumables and exported production, it allowed our
clients to use the same transport vehicle, container or
bulk vessel, effectively creating a two-way transport
system enabling cost savings translating directly to the
miner’s bottom line. In the transport industry this
triangulation of materials is what is commonly referred
to as a ‘back-haul’ rate.
01 INTERNATIONAL TRADE & COMMODITIES
METALS & MINING

Broadly speaking, the work we do for our clients in

the metals and mining industry falls into two
groups;

First is the “consumables side”. We work closely with

process engineers at our client’s ore processing facilities
to understand their needs, we then facilitate those needs
by sourcing and delivering the highest quality grade of
chemical reagents for the purpose of increasing refinery
output. The company strives to create a system of
seamless logistics and inventory management so that
our client’s refineries, smelters and furnaces can run
uninterrupted.

Second is our ‘off-take’ agreement’s which allow

mining companies to focus on what they do best,
operate their mine and exploit their discovered
resource. We guarantee the purchase of a mines full
material production with assured payment made
irrevocably via a strong portfolio of top 25 world
banks. Payments are guaranteed to be made in full and
on time.

Our metals team works tirelessly to assure our clients

they are receiving the best price for their production.

To this day the head office of Cles Fonctionnel remains

located in Toronto, Ontario, Canada, home to the TSX
(Toronto Stock Exchange) and the TSXV (Toronto Venture
Exchange) which is the world's number one listing venue
for mining companies. As of 2017, the exchange listed
more than half of the world's public mining companies,
committing to its position as the global leader in
supporting the growth of global mining and resource
companies of all sizes. This is a natural platform for Cles
Fonctionnel to develop its global reach and offer its
services. Since inception, the company has now
expanded its presence around the world with contact
points and offices in over 20 countries, with 4 main
global offices located in strategic commodity hubs
(London, Hong Kong, Johannesburg and Lima). The
nature of the work we do, and the clients we act for has
resulted in the company accumulating expertise in
international trade economics for metals, intermediary
refined materials and raw ores which remains
unrivalled even amongst our closest competitors.
 INTERNATIONAL TRADE & COMMODITIES
SHIPPING AND LOGISTICS

02 INTERNATIONAL TRADE & COMMODITIES

02 INTERNATIONAL TRADE & COMMODITIES
SHIPPING AND LOGISTICS

Cles Fonctionnel’s Maritime Logistics team arranges

shipping and freight services to our various
commodity trading arms and active mine
investments. It operates as a separate service
provider securing competitive and reliable freight
for our in-house energy, metals, mineral and
agricultural trade routes.

Our freight trade teams are experienced in organizing

lease time-chartered vessels and negotiating spot fixings
to manage physical freight positions for our clients and
partners. Our global presence gives us strong insight
into freight and commodity market trends. We manage
risk using bunker swaps and Forward Freight
Agreements (FFAs).

Our commodity purchase and sales teams rely on real-

time freight pricing to structure transactions for our
clients. Freight specialists are embedded in our trading
teams and understand the demands of a competitive
supply chain. Our freight professionals are in constant
dialogue with various trading desks. Knowledge of
traders’ requirements helps shape freight trading
strategy and capacity planning.

Cles Fonctionnel’s trading and freight activities also

combine to extend Cles Fonctionnel’s services to clients.
Our clients can elect to buy commodities and freight
together, on Cost, Insurance and Freight (CIF) instead of
a Free On Board (FOB) incoterm. They can also elect to
buy commodities on many of the different incoterms
which involve multi-modal transport bookings.

Geographically, there is nowhere on earth that Cles

Fonctionnel’s freight team is inexperienced or unable to
ship. From the middle of Africa, to upstream the Amazon
river, to some of the busiest ports in China, the freight
team has developed relationships with third party
logistics providers who are both reliable and cost
effective.

All commercial shipping and chartering activities are

managed out of Cles Fonctionnel’s key regional offices.
All post-fixture operations, which include issuing voyage
orders, completing stowage plans, negotiating with port
agents and handling demurrage claims are managed
centrally from our London office.
INTERNATIONAL TRADE & COMMODITIES
AGRICULTURE AND SOFT COMMODITIES
 03 INTERNATIONAL TRADE & COMMODITIES
AGRICULTURE AND SOFT COMMODITIES

At Cles Fonctionnel we understand the fundamental role

which a company can play in the procurement and delivery
of consumable natural resources. It is our belief that with
current global population growth, demand can only
intensify for the most common foodstuffs such as wheat,
sugar, vegetable oils, nuts, spices and grains, and also the
fertilizer inputs which facilitate their yields.

The trends to which emerging markets such as China, India and

Sub-Saharan Africa are contributing to food demand is
compounding the scale of trade, which fuels our corporate goal
of increasing exposure to soft commodities helping clients
meet the increasing necessities placed on farmers, food
transport providers, consumers and fertilizer manufacturers
alike.

We actively trade in phosphate, urea and potash as well as other

raw material inputs in the fertilizer manufacturing chain. By
providing Agri-Inputs in the fertilizer sector, we understand the
economic cycle and how it relates to the harvest cycles of
different producers, which is important in finding the right
timely support for our farmers and farm distributor’s needs.

Our current output relies on the initiatives to form creditable

partnerships with farmers and cooperatives by supporting their
capabilities to continuously produce relevant quantities of their
respective goods. For example, by managing inventories of
commodities that can be stored safely and preventing
perishable items from deteriorating, we can more evenly
distribute produce year-round which allows for a more even
pricing model for farmers, distributors and consumers.

Cles Fonctionnel monitors the annual and monthly global price

trends of a selection of soft commodities to forecast future
price activity, mitigate risk and identify opportunities. Our
trading and supply-chain management operations have been
carefully structured at every level including a strong capital &
equity base, conservative risk management and diligent
corporate governance.

Cles Fonctionnel positions itself as a reliable and credible

counterparty, additionally reinforced by its trade-financing
relationships with first-class Canadian and UK financial
institutions that effectively provide us a support in fulfilling our
market-making & price transformation functions.

We are committed to the development of long-term strategic

partnerships and creating successful synergies for the benefit
of our valued clients and suppliers.
 04 INTERNATIONAL TRADE & COMMODITIES
OIL AND ENERGY

INTERNATIONAL TRADE & COMMODITIES

OIL AND ENERGY

Cles Fonctionnel has a has a proven track record of supplying & marketing Crude Oil and refined distillates. Though
we source feedstock from all over the World, our oil trading business is primarily bolstered by strategic alliances with
producers and national oil companies in North Africa, Europe, North America and Middle Eastern regions.

Strategically, these partnerships give us unprecedented access to a wider range of products at exclusive rates pegged below
market benchmarks. Inherently, the benefits of our corporate alliances underscore the competitiveness of the prices we offer
our customers and underpin our commitment to creating additional end-to-end value for all of our stakeholders.

Cles Fonctionnel is focused on closing the divide between suppliers and end users in some of the most remote communities
in the World. We provide new stimulus for sustainable growth for consumers, organizations and nations alike.

At Cles Fonctionnel, we pride ourselves on providing our customers with an incomparable all-encompassing procurement
experience at distinctly competitive prices. Our integrated trans-regional supply network enables us to deliver shipments of
premium quality Oil & refined products, on-spec & on-schedule to some of the most remote parts of the World.

Free from the structural constraints which hinder our more unwieldy competitors; being independent allows us to gain access
to a broader range of products blended specifically to meet the regulator standards of each nation we service. It also affords
us the ability to adapt rapidly to sudden changes in market dynamics caused by inevitable geostrategic risks.

Two products which are sourced directly from our oil refining partners and delivered to both our hard commodities and soft
commodities sectors are Bitumen and Sulphur.

Sulphur is a pale yellow, odourless, brittle solid, which is insoluble in water but soluble in carbon disulphide. Most of the
sulfur that is produced is used in the manufacture of sulfuric acid (H2SO4). Large amounts of sulfuric acid, nearly 40 million
tons, are used each year to make fertilizers, lead-acid batteries, and in many other industrial processes. Sulphuric acid is also
used in the first steps of metals refining by acting as a leaching agent, effectively separating base metals contained in ore
bodies from the other silicate materials.

Bitumen is a product of Crude oil Distillation. It is a semi-solid hydrocarbon product produced by removing the lighter
fractions (such as liquid petroleum gas, petrol and diesel) from heavy crude oil during the refining process. As such, it is
correctly known as refined bitumen. Bitumen is commonly known as “asphalt cement” or “asphalt”. While elsewhere, “asphalt”
is the term used for a mixture of small stones, sand, filler and bitumen, which is used as a road paving material. The asphalt
mixture contains approximately 5% bitumen. At ambient temperatures bitumen is a stable, semi-solid substance.
 INTERNATIONAL TRADE & COMMODITIES
CLIENTS AND REFERENCES

Our credentials are a matter of record and since inception, we have successfully transacted with some of the world’s largest
resource companies in over 35 countries crossing 5 continents. Some groups we have previously, currently and actively
worked with are as listed below;

Energy

Shell (LSE; NYSE)

TOTAL (Euronet; NYSE)

Marathon Oil Corporation (NYSE)

Gazprom

Extraction & Commodities

Glencore PLC (LSE)

First Quantum Minerals Ltd (TSE)

Agnico Eagle Mines Ltd (TSE)

Jiangxi Copper (SHA)

Rio Tinto Group (LSE)

China Minmetals Corporation

INTERNATIONAL TRADE & COMMODITIES
INTERNATIONAL OFFICES AND A GLOBAL PRESENCE

Registered Office
Suite 1718, 2 Carlton St, Toronto, Ontario
Canada, Postal Code: M5B 1J3

Europe: Cles Fonctionnel Ltd.

3 More London Riverside, London, England, Africa: Cles Fonctionnel SA (Pty) Ltd.
United Kingdom, SE1 2RE West Tower, Nelson Mandela Sq, Maude St,
Sandton, 2146, Johannesburg, South Africa

Asia: Key Functional Commodities Ltd. South America: Clave Funcional

Unit 905, 9/F Kowloon CTR 33 Calle Marques de Torre Tagle 253,
Miraflores, Lima, Peru
Ashley Rd, TST KLN, Hong Kong