How to Verify Gold Suppliers, Documents & Transactions in Africa
Gold transactions can involve significant financial value, multiple counterparties, international payments, government documentation, secure logistics and cross-border movement.
For this reason, due diligence should come before commitment.
Whether you are considering buying gold from Kenya, Uganda, the Democratic Republic of Congo (DRC), South Sudan or elsewhere in Africa, the purpose of due diligence is not simply to ask whether a company exists.
A professional review should seek to understand:
- Who is offering the gold
- Whether the company can be identified
- Who owns and controls the company
- What role the seller has in the transaction
- Whether the gold actually exists
- Who owns the gold
- Where it originated
- How it entered the current supply chain
- Whether the claimed purity can be verified
- Whether relevant licences and permits appear appropriate
- Whether transaction documents are consistent
- Whether the proposed payment structure makes commercial sense
- Whether the export procedure is credible
- Whether responsible-sourcing risks exist
- Whether there are warning signs requiring further investigation
Due diligence cannot remove every commercial risk.
Its purpose is to give decision-makers better information before they commit money, time or resources.
Do not start by asking, “How cheap is the gold?” Start by asking, “Who is selling it, where did it come from, and what can be independently verified?”
What Is Gold Due Diligence?
Gold due diligence is the process of gathering, reviewing and verifying information about the companies, individuals, products, documents and supply chain involved in a proposed gold transaction.
It can include several different areas.
Corporate Due Diligence
Understanding the legal company behind the transaction.
Counterparty Due Diligence
Identifying the buyer, seller, exporter and other significant parties.
Product Due Diligence
Establishing whether the gold exists and whether its specifications can be verified.
Documentation Due Diligence
Reviewing licences, assay reports, invoices, export documents and supporting records.
Ownership Due Diligence
Understanding who legally owns the gold and how ownership was acquired.
Origin & Provenance Due Diligence
Understanding where the gold came from.
Commercial Due Diligence
Assessing whether the transaction procedure and economics appear reasonable.
Compliance Due Diligence
Considering KYC, AML, sanctions and responsible-sourcing risks.
A complete review looks at how these elements fit together.
Why Gold Due Diligence Matters
Gold is different from many ordinary commercial products.
It combines:
- High value
- Portability
- International liquidity
- Cross-border trade
- Complex supply chains
These characteristics can make gold attractive to legitimate businesses—but they also create opportunities for fraud, document misuse and financial crime.
FATF specifically maintains risk-based guidance for dealers in precious metals and stones, reflecting the importance of understanding financial-crime risks in this sector.
Professional buyers should therefore avoid relying on a single document or statement.
One Document Cannot Prove a Gold Transaction
A common mistake is assuming that one apparently official document proves that an entire transaction is legitimate.
For example:
Company Certificate
May indicate that a company has been incorporated.
It does not prove that the company owns gold.
Mining Licence
May establish certain mineral rights.
It does not automatically prove current gold inventory.
Assay Certificate
May describe a tested sample.
It does not necessarily establish legal ownership or current availability.
Export Permit
May relate to a particular export.
It should not automatically be assumed to apply to unrelated gold or future shipments.
Photograph
May show gold.
It does not establish who owns it or when the image was taken.
The strongest due diligence looks at the complete transaction, not one isolated document.
The Gold Due Diligence Principle
A proposed gold transaction should make sense when viewed across five areas:
1. The Counterparty
Who are you dealing with?
2. The Product
Does the gold exist and what are its specifications?
3. The Origin
Where did the gold come from?
4. The Documentation
Does the available information support the transaction?
5. The Procedure
Does the commercial process make sense?
When these five areas align, the transaction becomes easier to evaluate.
Step 1 – Identify the Actual Seller
The first question should be simple:
Who is actually selling the gold?
The person communicating with the buyer may be:
- Mine owner
- Mining company employee
- Licensed dealer
- Exporter
- Authorized representative
- Consultant
- Broker
- Mandate
- Introducer
These roles are not interchangeable.
Ask:
Who is the principal seller?
Who will sign the purchase agreement?
Who owns the gold?
Who will issue the commercial invoice?
Who will receive payment?
Who will export the gold?
If these questions produce several different unrelated companies, further clarification may be needed.
Step 2 – Verify the Company
Corporate verification can include reviewing:
- Legal company name
- Registration number
- Date of incorporation
- Registered address
- Directors
- Beneficial owners where appropriate
- Official contacts
- Nature of business
- Physical presence
- Website
- Authorized representative
Information should be compared for consistency.
For example:
Does the company name on the invoice match the company registration?
Does the email domain match the business?
Does the person signing the contract have authority?
Company Registration Is Only the Beginning
A registered company can still present a questionable gold opportunity.
Company registration tells you something about the company.
It does not necessarily tell you:
- Whether the company owns gold
- Whether it is licensed for the proposed mineral activity
- Whether current stock exists
- Whether the documents belong to the current transaction
- Whether the company can legally export the gold
This distinction is fundamental.
Step 3 – Identify Beneficial Ownership
Depending on the transaction and risk profile, it may be appropriate to understand who ultimately owns or controls the company.
Beneficial ownership information can help identify:
- Hidden ownership
- Conflicts of interest
- Sanctions exposure
- Politically exposed persons where applicable
- Related-party relationships
This becomes especially important in complex corporate structures.
Step 4 – Verify the Representative
Someone may claim to represent a mining company, exporter or buyer.
Ask:
- What is the person’s position?
- Are they an employee?
- Are they a consultant?
- Do they hold written authority?
- Can the principal confirm the relationship?
An intermediary may be legitimate, but their role should be clear.
Step 5 – Understand Broker & Mandate Chains
Gold transactions can sometimes contain several layers of intermediaries.
For example:
Seller → Mandate → Broker → Consultant → Buyer Mandate → Buyer
The longer this chain becomes, the greater the potential for:
- Miscommunication
- Conflicting information
- Inflated commissions
- Document circulation
- Changing procedures
Ask whether communication with the principal parties can ultimately be established when commercially appropriate.
Step 6 – Understand the Seller’s Legal Role
The supplier may be:
Mining Company
Produces the gold.
Mineral Dealer
Purchases and trades minerals.
Exporter
Handles international export.
Aggregator
Combines supply from several permitted sources.
Refinery
Processes gold.
The supplier should be able to explain its role clearly.
Step 7 – Review Relevant Mineral Licences
Where licences are relevant, examine questions such as:
- Who is named on the licence?
- What activity does it authorize?
- What mineral does it cover?
- Is it valid?
- What jurisdiction issued it?
- Does the licence correspond with the company making the offer?
Do not assume that a licence for one activity automatically permits every other mineral activity.
Step 8 – Establish Whether the Gold Exists
Product Verification Is Essential
Photographs and videos are useful for preliminary communication but should not be treated as conclusive proof.
Where appropriate and permitted, verification may involve:
- Physical inspection
- Inventory verification
- Bar count
- Weight verification
- Warehouse visit
- Mine visit
- Assay appointment
The method should be proportionate to the transaction.
Step 9 – Verify Gold Ownership
Seeing gold does not automatically prove the seller owns it.
Ask:
Who legally owns the material?
How did the current seller acquire it?
Was it mined by the seller?
Was it purchased from another party?
Are there purchase or ownership records?
Is anyone else claiming rights over the material?
The seller should have a reasonable explanation.
Step 10 – Understand Country of Origin
Origin and Export Location Are Different Concepts
A transaction may involve gold that was:
Produced in DRC
↓
Traded through Uganda
↓
Exported internationally from another location
The international departure point should not automatically be treated as the mine origin.
Understanding provenance can become important for:
- Responsible sourcing
- Refinery compliance
- Customs
- Sanctions analysis
- Supply-chain risk
Step 11 – Map the Supply Chain
A simple gold supply chain might look like:
Mine
↓
Cooperative or Producer
↓
Licensed Dealer
↓
Exporter
↓
Buyer
↓
Refinery
A more complicated transaction could involve several aggregators and cross-border movements.
Due diligence should seek to understand the chain to a level appropriate for the transaction risk.
Step 12 – Conduct Responsible-Sourcing Due Diligence
The OECD provides internationally recognized due-diligence guidance for responsible mineral supply chains, including specific considerations for gold originating from conflict-affected and high-risk areas. Its guidance is designed to help companies identify, prevent and mitigate risks while respecting human rights and avoiding contribution to conflict.
Potential risk areas can include:
- Conflict financing
- Serious human-rights abuses
- Illegal mining
- Smuggling
- Bribery
- Corruption
- Money laundering
- Child labour
- Forced labour
Responsible sourcing should be treated as a process rather than a single certificate.
Enhanced Due Diligence for Higher-Risk Supply Chains
Some transactions justify deeper investigation.
Enhanced due diligence may be appropriate when:
- Origin is unclear
- Gold crossed multiple borders
- The supplier is newly established
- Ownership is complex
- Large quantities are offered without supporting evidence
- Payment beneficiaries change
- Documentation conflicts
- The source region presents elevated conflict or sanctions risk
Enhanced review can include more detailed verification of:
- Origin
- Supplier
- Mine
- Ownership
- Chain of custody
- Exporter
- Beneficial ownership
- Sanctions
- Transaction procedure
Step 13 – Verify the Gold Weight
Gold transaction documents should identify the quantity accurately.
Verification can include:
- Number of bars
- Individual weights
- Total gross weight
- Net material weight
- Packaging weight
Record consistency becomes important later.
The weight on:
Assay → Invoice → Packing List → Export Documents → Logistics Records
should make commercial sense.
Step 14 – Verify Gold Purity
Purity directly affects value.
Gold may be presented as:
- 22K
- 23K
- 95%
- 96%
- 97%
- 99.99%
Do not accept purity claims solely based on photographs or seller statements.
Where appropriate, use qualified technical testing.
Step 15 – Arrange Independent Assay
An assay may determine:
- Gold content
- Fineness
- Silver
- Other metals
Professional buyers should understand:
Who selected the laboratory?
What material was sampled?
How was it sampled?
Can the report be linked to the gold currently being offered?
A Genuine Assay Certificate Can Still Be Misused
An assay certificate can be genuine but unrelated to the current shipment.
For example:
A laboratory genuinely tested 20 kilograms six months ago.
The same report is later used to support a completely different 100-kilogram offer.
Therefore, always ask:
Does this assay correspond to this gold?
Step 16 – Review the Commercial Offer
A credible transaction should clearly describe:
- Product
- Quantity
- Purity
- Origin
- Location
- Price
- Assay
- Delivery
- Payment
- Procedure
Vague commercial offers make due diligence harder.
Step 17 – Assess the Gold Price
Gold has a readily observable international value.
An unusually large discount should lead to questions such as:
Why is the seller accepting this price?
Is the material doré requiring refining?
What costs remain?
Does purity explain part of the difference?
Is the discount commercially realistic?
Very attractive pricing should lead to more verification, not less.
Step 18 – Assess the Claimed Quantity
A supplier offering very large quantities should be able to explain where the material comes from.
Ask:
- Current stock?
- Production source?
- Monthly mining output?
- Aggregation network?
- Previous export capability?
Claims such as hundreds of kilograms or tonnes per month should make operational sense.
Step 19 – Review the Sales & Purchase Agreement
The SPA should clearly identify:
- Buyer
- Seller
- Product
- Quantity
- Purity
- Price
- Assay
- Payment
- Export responsibilities
- Insurance
- Delivery
- Final settlement
A contract does not make a bad transaction legitimate, but a professionally drafted agreement can reduce ambiguity.
Qualified legal advisers should review significant contracts.
Step 20 – Review the Payment Procedure
Payment should be evaluated carefully.
Important questions include:
- Who receives funds?
- Is the beneficiary the contracting entity?
- Is an unrelated third party involved?
- When does payment become due?
- What performance triggers release?
- What happens if the transaction fails?
A buyer should understand every payment before sending funds.
Third-Party Payments
Requests to pay an unrelated person or company deserve enhanced scrutiny.
There may occasionally be legitimate commercial explanations.
However, the relationship should be clearly documented and independently understood.
Step 21 – Verify Escrow Arrangements
Escrow can be used as a payment-security mechanism in appropriate transactions.
Due diligence should establish:
- Identity of escrow agent
- Professional standing
- Escrow agreement
- Account ownership
- Release conditions
- Refund conditions
- Dispute procedures
The buyer should independently verify escrow information rather than rely exclusively on details supplied by the seller.
Escrow Does Not Prove Gold Exists
A genuine escrow account only addresses part of transaction risk.
It does not independently prove:
- Gold ownership
- Gold availability
- Purity
- Legal origin
- Exportability
Product due diligence remains necessary.
Step 22 – Review Government Charges
Unexpected requests for payments described as:
- Export taxes
- Royalties
- Certificates
- Customs fees
- Clearance charges
- Government security
- Penalties
should be independently verified.
Ask:
Which authority imposes this charge?
What is its legal basis?
Who must pay it?
Where is the official payment channel?
What receipt is issued?
Step 23 – Verify Export Capability
Before committing to a transaction, understand the seller’s export pathway.
Questions include:
- Who is exporter?
- What authorization is required?
- Who handles customs?
- What documents are required?
- What statutory obligations apply?
- How will the shipment reach the airport?
The gold should have a plausible path from current location to international destination.
Step 24 – Review the Certificate of Origin
Where applicable, origin information should match the real supply chain.
Questions include:
- What country is stated?
- Does this match the declared mine/source?
- Is the document connected to this shipment?
- Did the gold transit another country?
An export country should not automatically be treated as the original source.
Step 25 – Review the Commercial Invoice
Check whether the invoice corresponds with:
- Seller
- Buyer
- Product
- Quantity
- Purity
- Price
- Currency
- Origin
- Destination
Significant inconsistencies should be explained.
Step 26 – Review the Packing List
Check:
- Number of packages
- Number of bars
- Weight
- Bar identifiers where applicable
- Seal details
The packing list should correspond to the physical shipment.
Step 27 – Review Customs Documentation
Customs information should align with:
- Exporter
- Product
- Weight
- Value
- Origin
- Destination
Authorized customs professionals should be used where required.
Step 28 – Assess Logistics
Ask:
- Who collects the gold?
- Who transports it securely?
- Is temporary storage required?
- Which carrier is being used?
- Who handles destination logistics?
- Is the refinery expecting delivery?
A transaction that has no realistic logistics plan may not be export-ready.
Step 29 – Review Cargo Insurance
Where insurance is used, verify:
- Insurer
- Policy holder
- Cargo
- Insured amount
- Route
- Coverage period
- Beneficiary
- Exclusions
Do not treat a generic insurance certificate as automatic evidence of coverage.
Step 30 – Verify the Destination Refinery
If settlement depends on a refinery, establish whether:
- The refinery exists
- The refinery has onboarded the customer
- It accepts the product
- It understands the origin
- Delivery instructions have been provided
A well-known refinery’s name appearing in a document does not prove involvement in the transaction.
Step 31 – Review Final Assay & Settlement Terms
For doré transactions, final refinery assay can determine payable gold.
The contract should explain:
- Which assay is final
- What happens if assays differ
- Benchmark price
- Refinery deductions
- Settlement method
- Settlement timeframe
These terms should be understood before shipment.
Document Consistency Analysis
One of the simplest and most useful due-diligence techniques is comparing the documents side by side.
For example:
SPA
50 kg gold doré.
Invoice
50 kg gold doré.
Assay
Approximately corresponding material and purity.
Packing List
Corresponding bar count and weight.
Export Documentation
Same exporter and shipment.
Logistics Records
Corresponding cargo.
The transaction should tell one consistent story.
Common Gold Due Diligence Red Flags
Extremely Low Price
A major unexplained discount deserves scrutiny.
Pressure to Pay Immediately
Urgency should not replace verification.
Seller Refuses Independent Verification
Understand why.
Conflicting Company Names
Clarify who the actual seller is.
Constant Changes in Procedure
Large unexplained changes indicate increased uncertainty.
Personal Bank Accounts
Payments unrelated to the contracting entity require explanation.
Newly Introduced Beneficiary
Investigate why the beneficiary changed.
Unclear Gold Origin
The supplier should reasonably explain provenance.
Unverified Government Documents
Official appearance is not verification.
Huge Quantities With No Production Evidence
Supply capability should be commercially plausible.
Old Assay Certificate
Confirm whether it relates to current material.
No Clear Exporter
A transaction cannot move internationally without an appropriate export pathway.
No Refinery Confirmation
Do not assume refinery acceptance.
The “Too Good to Be True” Test
Ask yourself:
Would a rational legitimate seller offer this gold under these terms?
If the offer combines:
- Extraordinary discount
- Huge quantity
- Urgent payment
- Limited verification
- Unclear origin
the combination deserves substantially deeper due diligence.
Risk-Based Due Diligence
Not every transaction requires exactly the same level of investigation.
A risk-based approach means allocating more scrutiny where risk is higher.
This principle is consistent with both OECD responsible-minerals guidance and FATF’s approach to precious-metals risk management.
Lower Complexity
Established counterparties, transparent supply chain, verifiable documentation.
Higher Complexity
New company, unclear origin, multiple intermediaries, unusual payment structure.
Enhanced Risk
Conflict-affected origin, sanctions concerns, opaque ownership, unexplained cross-border movement.
The due-diligence effort should increase with the risk.
Due Diligence for Gold From Kenya
When evaluating Kenyan gold opportunities, consider:
- Seller identity
- Applicable mineral authorization
- Source of the product
- Product availability
- Assay
- Export capability
- Customs
- Commercial documentation
Do not assume that company incorporation alone proves mineral-trading authority.
Due Diligence for Gold From Uganda
Where gold is being offered from Uganda, determine:
- Was it mined locally?
- Was it imported?
- Did it originate elsewhere in the region?
- Who acquired it?
- Who currently owns it?
- What is the export pathway?
Regional provenance can be particularly relevant.
Due Diligence for DRC-Origin Gold
The DRC has substantial gold resources, but certain supply chains may require enhanced responsible-sourcing assessment.
Potential focus areas include:
- Mine of origin
- Mining cooperative
- Supplier
- Exporter
- Beneficial ownership
- Chain of custody
- Traceability
- Cross-border movement
- Conflict risk
- Sanctions
- Responsible sourcing
The OECD Gold Supplement provides specific guidance for due diligence involving gold supply chains from conflict-affected and high-risk areas.
Due Diligence for Gold From South Sudan
Transactions involving South Sudan may warrant close review of:
- Source
- Mine location
- Seller
- Legal ownership
- Trading authority
- Export pathway
- Security
- Cross-border movement
- Chain of custody
Where reliable information is unavailable, that uncertainty should form part of the risk assessment.
Due Diligence for International Buyers
Sellers also need to know who they are dealing with.
Buyer verification can include:
- Company identity
- Registration
- Authorized representative
- Business activity
- Buyer website
- Destination
- Refinery relationship
- Commercial requirements
A buyer claiming the ability to purchase very large monthly quantities should be prepared for reasonable counterparty verification.
Buyer Red Flags
Sellers should be cautious when a prospective buyer:
- Refuses to identify the actual purchasing company
- Operates through long intermediary chains
- Requests extensive confidential documents immediately
- Changes buyer identity repeatedly
- Proposes procedures unrelated to local commercial realities
- Makes unrealistic volume claims
Due diligence protects sellers as well as buyers.
How Much Due Diligence Is Enough?
There is no universal answer.
The appropriate review depends on:
- Transaction value
- Jurisdiction
- Counterparty history
- Gold origin
- Payment structure
- Supply-chain complexity
- Regulatory risk
Due diligence should be proportionate to risk.
Preliminary Due Diligence
Useful before serious negotiation.
May consider:
- Company identity
- Seller role
- Initial documents
- Product claims
- Obvious red flags
Enhanced Due Diligence
Useful where transaction risk is greater.
May include:
- Ownership
- Beneficial ownership
- Physical verification
- Origin
- Product verification
- Licence checks
- Payment analysis
- Supply-chain review
Transaction Due Diligence
Performed around an actual proposed purchase.
Can examine:
- Final counterparties
- Gold
- Assay
- Documentation
- Export
- Payment structure
- Logistics
- Refinery
Ongoing Due Diligence
Due diligence should not end when the SPA is signed.
New information can arise during:
- Assay
- Export processing
- Customs
- Logistics
- Destination delivery
Therefore, transaction monitoring may remain appropriate throughout performance.
Due Diligence Is Not a “Pass Certificate”
No legitimate review should suggest that a supplier is permanently “100% verified.”
Due diligence reflects:
- Information available
- Checks performed
- Date of review
- Scope
- Limitations
Companies, licences, inventories and circumstances can change.
Create a Due Diligence File
Maintain a structured file containing relevant transaction information.
Section A – Seller
Corporate and KYC records.
Section B – Buyer
Buyer identification and relevant KYC.
Section C – Gold
Product, weight, purity and assay.
Section D – Ownership & Origin
Source and chain-of-title information.
Section E – Licences & Export
Applicable mineral and export documentation.
Section F – Commercial
SPA, invoice and pricing.
Section G – Payments
Payment instructions and security arrangements.
Section H – Logistics
Transport, insurance and shipment records.
Section I – Refinery
Onboarding, assay and settlement.
This creates a clear transaction audit trail.
Gold Due Diligence Checklist
Before committing significant funds, consider whether you have satisfactorily assessed:
Counterparty
- Seller identified
- Buyer identified
- Authorized representatives understood
- Beneficial ownership considered where necessary
Product
- Gold existence assessed
- Weight verified
- Purity tested
- Assay linked to current material
Origin
- Country of origin understood
- Supplier/source understood
- Cross-border movement understood where relevant
Ownership
- Current owner identified
- Seller’s authority understood
Licensing
- Relevant mineral authorization assessed
- Export pathway considered
Documentation
- Company documents
- Assay
- Commercial invoice
- Packing list
- Export documents
- Origin information
Commercial Terms
- Price
- Quantity
- Assay
- Payment
- Delivery
Payment
- Beneficiary verified
- Escrow verified where applicable
- Release conditions understood
Export
- Exporter identified
- Customs path understood
- Costs clarified
Logistics
- Secure logistics planned
- Insurance understood
- Destination prepared
Refinery
- Refinery identified
- Onboarding addressed
- Final assay process agreed
Unresolved issues should be investigated before commitment.
Questions to Ask a Gold Supplier
A useful first discussion can include:
What is your full legal company name?
What role do you have in the gold supply chain?
Are you the owner, dealer or exporter?
Where is the gold currently located?
Where was it originally produced?
What quantity is currently available?
How was purity established?
Can independent testing be arranged?
What documents support ownership and export?
Who will sign the SPA?
Who receives payment?
Who will export the gold?
Where will final assay occur?
Consistent answers help build a clearer picture.
Questions to Ask Yourself Before Sending Money
Before making a payment, ask:
Do I know exactly who receives the money?
Have I independently verified that party?
What contractual event requires this payment?
Can the charge be independently verified?
What happens if the transaction does not proceed?
Is the payment proportionate to the stage of the transaction?
Would my lawyer, compliance officer or financial adviser understand the reason for this payment?
If you cannot answer these questions clearly, further review may be appropriate.
Common Due Diligence Mistakes
Falling in Love With the Price
An attractive discount can make buyers overlook warning signs.
Relying on One Document
No single certificate proves the entire transaction.
Skipping Independent Assay
Product claims should be verified appropriately.
Ignoring Gold Origin
Provenance can affect responsible sourcing and refinery acceptance.
Trusting Official-Looking PDFs
Appearance is not verification.
Ignoring Payment Beneficiaries
Know who receives money.
Waiting Until Shipment to Check Documentation
Due diligence should begin much earlier.
Assuming a Famous Refinery Is Involved
Verify refinery acceptance independently.
Responsible Sourcing Is Part of Due Diligence
Professional mineral due diligence increasingly extends beyond simple legal ownership.
OECD guidance describes a framework for companies to identify, prevent and mitigate risks associated with mineral supply chains, particularly those linked to conflict-affected and high-risk areas.
For professional buyers, this can mean understanding more about:
- Origin
- Supplier
- Chain of custody
- Conflict risk
- Human-rights risk
- Corruption risk
The objective is to build supply chains that can withstand reasonable scrutiny.
Due Diligence Before Price Negotiation
A useful mindset is:
First
Is the opportunity credible enough to investigate?
Second
Can the supplier and gold be reasonably verified?
Third
Can the transaction be executed lawfully?
Fourth
What is the commercial price?
There is little value negotiating the perfect price for a transaction that cannot perform.
How Lumia Gold & Minerals Supports Due Diligence
Lumia Gold and Minerals assists qualified buyers and industry participants with gold transaction assessment across selected African markets.
Depending on the engagement, support can include:
Supplier Verification
Understanding who is behind the transaction.
Corporate Checks
Reviewing available company information.
Gold Verification Coordination
Helping arrange appropriate physical or technical verification.
Documentation Review
Examining transaction-document consistency.
Origin & Provenance Assessment
Understanding the declared supply chain.
Assay Coordination
Connecting product verification with qualified technical facilities.
Export Readiness
Assessing whether the proposed transaction has a plausible export pathway.
Transaction Assessment
Reviewing commercial procedure and identifying questions requiring clarification.
Due Diligence vs. Gold Sourcing
These services are related but different.
Gold Sourcing
Identifies potential supply opportunities.
Due Diligence
Evaluates whether those opportunities warrant further commercial consideration.
Professional sourcing should be followed by appropriate verification rather than assuming that an introduction itself proves the transaction.
Due Diligence vs. Assay
Due Diligence
Evaluates the wider transaction.
Assay
Evaluates technical characteristics of the gold.
A successful assay does not automatically establish:
- Ownership
- Origin
- Export authority
- Seller credibility
Both processes can be necessary.
Due Diligence vs. Documentation
Having documents and conducting due diligence are not the same thing.
Documentation provides information.
Due diligence asks whether that information:
- Is relevant
- Is consistent
- Can be verified
- Corresponds with the real transaction
Frequently Asked Questions About Gold Due Diligence
How Do I Verify a Gold Supplier in Africa?
Start by identifying the legal company and principal seller, then assess relevant corporate information, product availability, gold origin, ownership, applicable licences, assay information and the proposed transaction structure.
The scope should reflect the size and risk of the proposed deal.
Is a Registered Gold Company Automatically Safe?
No.
Company registration confirms incorporation, not the legitimacy of every transaction conducted in the company’s name.
Can a Mining Licence Be Fake?
Documents can be forged, altered, expired or misused.
Important licences should be independently verified through appropriate authoritative channels where possible.
Does an Assay Certificate Prove the Gold Is Real?
It can provide technical information about the material tested.
It does not necessarily prove ownership, legal origin or current availability.
Can Gold Photos Be Verified?
Photographs provide limited information.
They should not be treated as conclusive proof of ownership, quantity, purity or current availability.
How Can I Check Gold Purity?
Appropriate testing through a qualified assayer, laboratory or refinery can help establish purity.
How Can I Verify a Gold Export Permit?
Where possible, verify important permits with the competent issuing authority or an appropriate authoritative source.
How Can I Verify Gold Origin?
Origin verification can involve reviewing the supplier, mine or producer, ownership trail, chain of custody, cross-border movements and relevant supporting documentation.
Why Does DRC Gold Require More Due Diligence?
Certain DRC supply chains can intersect with conflict-affected and high-risk areas, making enhanced responsible-sourcing checks relevant. OECD guidance contains specific gold-supply-chain due-diligence recommendations for these situations.
Is Escrow Enough to Protect a Gold Buyer?
No.
Escrow may help address payment risk, but product, counterparty, origin, documentation and export risks still require separate assessment.
Should I Pay a Government Fee Requested by a Seller?
Verify the exact charge and payment instructions through the competent authority or qualified professional before paying.
How Long Does Gold Due Diligence Take?
There is no universal timeframe.
The amount of work depends on the transaction, country, counterparties, available records and level of verification required.
Can Due Diligence Guarantee a Gold Transaction?
No.
Due diligence reduces uncertainty and identifies risk; it cannot guarantee future performance.
Before You Commit: Remember the Five V’s
A simple way to remember gold due diligence is:
Verify the Vendor
Who is selling?
Verify the Value
Does the pricing make commercial sense?
Verify the Volume
Does the claimed quantity exist?
Verify the Validity
Are important documents and authorities appropriate?
Verify the Voyage
Can the gold realistically move from source to final destination?
If one of these remains unclear, investigate further.
Due Diligence Is Cheaper Than a Failed Transaction
International gold deals can involve substantial value.
The cost of asking questions, reviewing information and obtaining independent verification is generally small compared with the consequences of:
- Paying the wrong party
- Purchasing non-existent product
- Discovering document problems after shipment
- Finding that a refinery will not accept the material
- Entering a transaction that cannot lawfully perform
The right question is therefore not:
“Can we skip due diligence to move faster?”
It is:
“What should we verify before moving to the next commercial stage?”
Request a Gold Due Diligence Assessment
Already received a gold offer from Africa?
Before committing significant resources, you can request an assessment of the proposed supplier and transaction.
Supplier Information
Company Name
Country
Website
Contact Person
Seller Role
Mine / Dealer / Exporter / Representative / Other
Gold Information
Product
Gold Doré / Refined Gold / Nuggets / Other
Quantity
Purity
Current Location
Declared Country of Origin
Documents Available
- Company Documents
- Mining Licence
- Mineral Trading Licence
- Assay Certificate
- Export Permit
- Certificate of Origin
- Commercial Invoice
- SPA
- Other
Due Diligence Required
- Company Verification
- Supplier Verification
- Licence Review
- Product Verification
- Document Review
- Gold-Origin Assessment
- Export-Readiness Review
- Transaction Procedure Review
- Full Gold Due Diligence Assessment
Verify Before You Commit
Request a Due Diligence Review →
Verify First. Transact Second.
Gold due diligence is not about approaching every African gold opportunity with suspicion.
It is about applying professional commercial discipline.
A credible seller should benefit from verification because it helps distinguish legitimate business from unverifiable offers.
A professional buyer benefits because the transaction becomes easier to understand.
And long-term relationships benefit because both sides enter the transaction with clearer expectations.
The goal of gold due diligence is not to eliminate every risk. It is to identify the risks you can see, investigate what can be verified and make informed decisions about what remains.
Gold Due Diligence Resources for African Transactions
Whether you are assessing a potential transaction involving Kenya, Uganda, DRC, South Sudan or another African gold market, begin with verification before commitment.
Know the company. Know the gold. Know the origin. Know the transaction.
Need Professional Assistance?
Speak to Lumia Gold & Minerals About Gold Due Diligence →
This guide is provided for general educational and commercial information. It does not constitute legal, financial, tax, investment, sanctions or regulatory advice and does not guarantee the legitimacy or performance of any transaction. Due-diligence requirements vary according to the parties, origin, jurisdiction and risk involved. Buyers and sellers should engage appropriately qualified legal, compliance, financial, assay, customs and other professionals where required.