Sigrafi was established to address the limited access to credit faced by Micro, Small, and Medium-sized Enterprise (MSME) gold producers seeking growth CAPEX. It provides secured loans to credit-approved unrefined gold (doré) producers to scale production. SigraFi provides liquidity to existing gold producers and production scale-ups. It does not finance start-ups or exploration.

In return, SigraFi receives a fixed-term doré supply agreement at a fixed percentage discount to the LBMA gold spot price. This discount functions as an alternative to charging interest on the loans. The doré is refined into 24ct gold bullion and sold to SigraFi’s contracted offtakers. 

The Opportunity: Global banks have stepped back from MSME gold producers, leaving an annual multi-billion-dollar financing and CAPEX shortfall in this production segment. Maturing onchain private credit markets present a unique opportunity to efficiently raise and deploy capital into this ‘golden gap’.