Case Study: Purchase Order Finance for Copper Concentrate from the DRC
A mining offtaker based in Central Africa secured a sales contract for copper concentrate with an Asian smelter. The mine required liquidity at the time of purchase, but the exporter lacked balance sheet strength to prepay. Financely was engaged to arrange a Purchase Order Finance facility
that bridged working capital from mine gate to shipment and enabled the transaction to close.
The transaction involved a $12M copper concentrate cargo sourced in the DRC. Financely structured a purchase order finance facility where funds were advanced against the confirmed export contract. The repayment source was the smelter’s payment on shipment, with banks secured through title transfer and collateral assignment.
The Challenge
The mine demanded upfront payment to release copper concentrate, but the exporter did not have sufficient liquidity. Traditional banks declined to extend credit due to jurisdictional and commodity risk. Without a financing bridge, the exporter risked losing the offtake agreement with its international buyer.
Our Role
Financely structured a purchase order financing line anchored on the confirmed smelter contract. We secured a lender comfortable with commodity-linked repayment and mitigated risk by assigning export proceeds directly to the financing bank. This allowed liquidity to be released in stages aligned with loading and inspection milestones.
Solution Delivered
- Facility Type:
Purchase Order Finance secured by export contract.
- Transaction Size:$12M equivalent in copper concentrate.
- Security:
Assignment of receivables, title transfer, and insurance cover.
- Repayment:
Direct settlement from smelter’s payment at discharge port.
- Jurisdiction:
DRC origin, Asia destination with offshore collection account.
Results
The facility enabled the exporter to prepay the mine, secure release of concentrate, and fulfill the smelter’s contract. The bank received repayment directly from the buyer’s payment, eliminating counterparty default exposure. The exporter completed the trade without tying up its limited liquidity.
This case study is for informational purposes only and does not constitute legal, banking, or investment advice. Each transaction is subject to independent credit approval, compliance checks, and final documentation. Financely does not guarantee funding outcomes and operates strictly on a best-efforts advisory basis.