LCM Alternative Investments Review March 2013

The LCM Alternative Investment News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the alternative investment markets.

2013

March 2013 London Commodity Markets

3/26/2013

Page | 2

Osborne abolishes stamp duty on Alternative Investments

The government will abolish stamp tax on shares for companies listed on growth markets,

including the London Stock Exchange’s Alternative Investment Market and the ISDX Growth

Market, from April 2014.

In scrapping the Aim stamp duty tax,

Chancellor George Osborne said in his Budget

today (20 March) he is aiming to help smaller

quoted UK firms by lowering their cost capital,

helping to promote jobs and growth across the

country.

Mr Osborne said: “Many medium sized firms

and start-ups use the Alternative Investment

Market to raise funds to help them grow.

Many observers of the British tax system complain that it has long biased debt financing over

equity investment.”

He added: “In parts of Europe they’re introducing a financial transaction tax. Here in Britain,

we’re getting rid of one.”

On 13 March 2013 the Government launched a consultation on extending individual savings

account (ISA) eligibility to include a wider range of small company shares.

Source: www.ftadviser.com

The Chancellor also announced proposals to introduce a new tax incentive to encourage

further investment in the exploration and extraction of shale gas industry, which will

effectively reduce the tax rate for some shale gas production from 62% to 30%.

FSA Releases Alternative Investment Fund Managers Directive

(AIFMD) Regulatory Survey

Last week, the UK Financial Services Authority (FSA) published a survey for UK-based

alternative investment fund managers (AIFMs) to help AIFMs comply with the requirements of

the Alternative Investment Fund Managers Directive (AIFMD). The deadline for transposition

of the AIFMD into UK law—and the laws of all other member states of the European Economic

Area (EEA)—is 22 July 2013, and the UK government and FSA fully intend to meet that

deadline. Read more: www.natlawreview.com

Page | 3

Insurance Company Increases Agricultural Investments

US insurance company MetLife Inc indicated that it increased its agricultural investment

business by more than 7% in 2012 compared to the previous year. With an agricultural

mortgage loan portfolio of approximately $13 billion at the end of 2012, MetLife contends it

remains a top lender to agriculture.

Agricultural mortgages provide MetLife with investment opportunities that match the long-

term liabilities the company writes through its insurance products, explained Robert Merck,

global head of agricultural investments for MetLife.

The company’s portfolio consists of farm and ranch, food and agribusiness and timberland

mortgages. “We think 2013 will offer substantial opportunities for agricultural mortgage

lending. Our 96-year track record of investing in the agricultural sector and our commitment to

superior customer service will help drive our success this year and beyond,” said Merck.

Through its subsidiaries and affiliates, MetLife holds market positions in the United States,

Japan, Latin America, Asia, Europe and the Middle East.

Source: www.agprofessional.com/news

Precious metals: Silver’s versatility adds to its attractions

Spread betters have turned to silver in recent

months in the hope that “the poor man’s

gold” will experience a price rise soon.

Capital Spreads said that the percentage of

buy positions placed on silver far outweighed

those placed in gold. “Our clients believe that

silver is the one to bet on,” says Angus

Campbell, head of market analysis at Capital

Spreads. “Clients are seeing far more

potential upside from the minor relation.”

Experts believe the renewed interest in silver is partly due to the fact that the precious metal

has many industrial purposes, alongside the fact that it is yet to really catch up with gold.

Read more: www.ft.com

“We are seeing a tremendous impact on investor interest on precious metals”

Philip Klapwijk, Global Head of Metals Analytics for Thomson Reuters GFMS in London,

November 2011

Page | 4

New Venture Offers Unique Opportunity in Diamond Investments

Pink Iguana PLC, a new venture specialising in the trade of certificated diamonds with a strong

market value, has been founded by Jan Maarten Asscher, a member of one of the most

famous diamond families in history, and Mark Walker, a leading diamond and jewellery expert.

The company represents a unique opportunity for

investors to participate in realising the significant

potential returns achieved by trading in diamonds.

The Company will trade in polished, certificated

diamonds and will operate its business under the

guidance of diamond trading experts, supplying

diamonds to a wide variety of UK and international

customers.

Investors will benefit from an asset class which has

limited supply and increasing global demand.

Polished diamond prices have increased by at least 100% since 2004 and this looks set to

continue.

Sources: www.sourcewire.com/news

Rare Earth Metals Junior with a Bright Future Peak Resources, an Australia-based firm focused on fast tracking the development of its 100-

percent-owned Ngualla rare earth elements project in Tanzania, has attracted increased

investor attention of late. Peak’s strategy for growth is to rapidly develop Ngualla into

production via lower capital costs and to establish itself as a lower-cost quartile, long-term

producer of clean, high-purity rare earth products.

Bill Aimed at Securing Rare Earth Supply Reintroduced to

Congress The Resource Assessment of Rare Earths (RARE) Act of 2013, a bill aimed at securing rare earth

supplies and reducing China’s monopoly on the market, has been reintroduced to US Congress

by Representative Hank Johnson. The Act directs the US Geological Survey (USGS) to conduct a

three-year global mineral assessment of rare earth elements (REEs).

“Like President Obama, I am committed to a future powered by clean energy,” said Johnson in

a statement. “Without secure access to rare earth elements, we will be unable to lead the

world in cleantech. The RARE Act will dramatically advance our ability to access rare earths

worldwide.”

Sources: http://rareearthinvestingnews.com

Page | 5

About London Commodity Markets

With over a century of combined experience in the rare earth elements and alternative investments

market, our team at London Commodity Markets have a proven track history of delivering excellent

consultation as well as an unrivalled service to all our clients.

As a result of this unrivalled standard of service, quality advice and ethical approach to the

marketplace, London Commodity Markets have become the globe’s fastest growing rare earth

elements and alternative investments company.

http://londoncommoditymarkets.com/

HEAD OFFICE

Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ

Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001

Email: info@londoncommoditymarkets.com

Home Counties Office

Suite 1A, Park Street, Maidenhead, Berkshire SL6 1SL

T: 00 44 (0) 203 393 3176

Disclaimer:

This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potential

project and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to be

construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or

purchase of securities. This document does not take into account the recipient’s particular investment objectives or financial situation. Before making any investment

decision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London Commodity

Markets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing and

projections will be available to the recipient.

London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare Earth

Elements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) or

Financial Services Compensation Scheme (FSCS).

The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service.

London Commodity Markets, directors or any of its staff, agents, creators and administrators of londoncommoditymarkets.com website shall not be liable for any errors or

delays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternative

investments and such should be regarded as high risk.

LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.