ARMOS | Physical Commodity Trading and Advisory Group

Our Process

• Risk Management

  It is important to have developed direct relationships with suppliers and buyers alike to be able to create sustainable business. ARMOS has created an maintains an extensive database of buyers and sellers of various natural resources, mined products and other commodities. These relationships have already been pre-qualified and such relationships have been pre-tested within our extensive due diligence criteria. Any new relationships introduced would have meet our standard criteria for qualifying as a viable partner.

  Contracts

  Pre-contractual negotiations are key to achieving a successful transaction. ARMOS has a strong legal and business team with vast experience in dealing with complex legal and business issues that require transactional expertise. Initially, a business case for any transaction will be made including the background of the deal and the nature of the client. The ARMOS team will then increase the risk ratio for any client that have not completely fulfilled our due diligence criteria. The ARMOS team will also consider the nature of the transaction and the risks involved and create a contract accordingly. In the instance the contracts are being issued by a direct supplier/producer or buyer/consumer, our team will independently make an assessment of such agreements and include the necessary provisions to protect our own investors and stakeholders. The ARMOS team recognizes the need to balance risks properly through negotiation and to provide acceptable contracts to all investors, customers and partners. The ARMOS legal and business team negotiates practical contracts to protect all parties from overt exposure to all financial and legal risks. All ARMOS contracts are, in general, FOB(T) / CIF / CNF / DES and all such contracts will incorporate ICC Rules and INCOTERMS 2000.

  For further information regarding contracts, procedures or client onboarding requirements, please email legal@armosventures.com.

  PROSPECTIVE CLIENTS

  • Outlined below are the main areas where business risk will be determined and managed [or risk disseminated] for any client relationship:
    
    1) All prospective clients introduced or referred to ARMOS will have to go through a process of due diligence.
  • 2) Clients should be recognized within the industry and should be able to provide references thereof. Must identify all relevant entities and domiciles.
  • 3) The client should be able to provide acceptable financial statements for a minimum of one year to establish financial viability.
  • 4) A credit report will be obtained for each client.
  • 5) A Dun & Bradstreet report (or equivalent) will be obtained for contracted partners prior to signing of contracts.
  • 6) ARMOS will conduct a physical inspection of client facilities and will always prefer to deal with principals personally.
  • 7) Any client, that appears to be credible on personal inspection of their facilities, yet do not provide financial information, will be subjected to a more rigorous contractual process, including performance bonds.