.... Our strategy is to achieve long-term appreciation in the value of our indium .... 
Our Strategy
We were formed to purchase and stockpile the metal indium. We have and intend to stockpile already mined and processed indium ingots with a minimum purity level of 99.97% known as 3N7 or standard grade. Our strategy is to achieve long-term appreciation in the value of our indium stockpile, and not to actively speculate with regard to short-term fluctuations in indium prices. Our indium is and will be insured and physically stored in third-party facilities. While it is not our current intention to do so in the short term, at our discretion and based on market conditions, we may subsequently lend or sell some or all of our indium stockpile to cover operating expenses. Our shareholders have the ability to invest in a company whose value may be tied to its interest in indium in a manner that does not directly include the risks associated with ownership of companies that explore for, mine and process indium. Our common shares represent an indirect interest in the physical indium we own.
The Manager
All of our indium transactions have been and will be negotiated by Specialty Metals Group Advisors LLC, our Manager. Our Manager will be paid a 2.0% per annum fee based on our NMV as compensation for these services. The per share NMV shall be determined by (x) multiplying the number of kilograms of our indium holdings by the last spot price for indium published by Metal Bulletin posted on Bloomberg L.P. for the month, plus cash and any other assets, less any and all of our outstanding payables, indebtedness and any other liabilities, (y) divided by our total number of outstanding shares of our common stock. Our Manager is entitled to receive the 2.0% management fee regardless of its ability to successfully purchase and stockpile the metal indium.
Our Manager:
- will first and foremost purchase and stockpile indium with a minimum purity level of 99.97% and or higher grade indium ingots on our behalf;
- will negotiate storage arrangements for our indium stockpile in warehouses or third-party facilities located in the United States, Canada, Rotterdam and/or the United Kingdom;
- will make sure the stockpile is fully insured by either the storage facility's insurance policy, a separately purchased insurance policy, or by both;
- will purchase insurance on standard industry terms to insure the indium during its transportation from the supplier to the storage facility;
- will be responsible for conducting limited inspections of the indium delivered to us;
- will not be responsible for conducting any chemical assays or other tests designed to verify that such indium meets the 99.97% purity requirements as established as industry practice and as referred to in our prospectus;
- will rely on the good faith of its suppliers to provide indium that meets our requirements. If indium is purchased from a third-party supplier that is not known to be a regular indium industry supplier, our Manager, at its discretion, may hire, at our expense, an independent lab to perform random assay tests using glow-discharge mass spectrometry (GDMS) to verify the purity of the indium. The Manager will not brand specific companies and assayers. The Manager will deal only with known regular industry suppliers and participants. The Manager will use only reputable assayers recommended by reliable third-party source;
- will lend and/or sell indium from our stockpile, based on market conditions; and
- will not retain a custodian to provide custodial services on our behalf.