Materials Management
CPM Group advises on the purchase and sale of physical commodities, inventory management, and refining programs. We also assist clients on the leasing, financing, and monetization of commodities inventories, including in-product metals. We can provide clients with confidentiality and anonymity for consumers or suppliers, leveraging our network and experience in the commodities markets to be budget effective and efficient in the physical materials management process.
Precious Metals
Investors, manufacturers, governments, and central banks have relied upon CPM Group to advise them on the physical management of gold, silver, platinum, and palladium. More than three decades of experience along with longstanding in-depth research and contacts in these markets differentiates CPM Group and enhances our services to clients.
Specialty Metals
CPM has managed the acquisition, storage, scrap processing, movement, and disposal of some of the largest stocks of specialty metals for clients without moving markets and achieving significantly better prices than budgeted expectations. Our materials management advisory has played positive key roles for clients in illiquid and opaque markets that CPM has actually researched and followed for decades
Examples:
- CPM Group has created Treasury operations with both gold mining companies and silver mining companies in which the companies held some of their treasury reserves in bullion rather than U.S. or Canadian dollars. CPM Group provided information on the mechanics of buying, storing, and selling bullion; helped the companies significantly reduce the costs of storage and acquisition costs from the prices offered them by bullion dealers; and provided overall consulting services, including presenting the programs to the Boards of Directors.
- One program involved a company that needed several thousand ounces of palladium for an industrial catalyst. It retained CPM Group to evaluate the best approach and to assist in securing the metal, through a lease or purchase. CPM Group began by assisting in developing a corporation wide metals materials management program, through which it was discovered that one of the company’s plants was storing un-needed palladium sufficient to meet the other factory’s needs.
- A manufacturer was building a major plant that would use rhodium as a catalyst. Between the time when the plant construction was approved and funded by the board and when it was time to purchase the rhodium for the catalyst, the price rose several-fold. CPM Group provided a comprehensive consulting package on rhodium market trends and conditions. It advised the company on rhodium purchasing, leasing, and options opportunities, and assisted it in determine a suitable approach to its rhodium procurement and inventory management program.
- A manufacturer retained CPM Group to manage and liquidate a large ruthenium inventory it no longer required for its processes. The company previously had worked with a major precious metals refiner and semi-fabricator, and had suffered large unnecessary costs as a result. CPM took control of the material, and by removing it from the pool account of the refiner immediately saw the ruthenium price rise. CPM anonymously liquidated the entire position in a short period of time, during which the market price of ruthenium rose sharply.