ARGOR-HERAEUS Group The golden link The precious metals industry - - PowerPoint PPT Presentation

ARGOR-HERAEUS Group

The golden link

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The precious metals industry

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Contents The precious metals industry

• Overview of the industry
• Organization
• Sensitive issues

38 The precious metals industry

Overview of the industry Sensitive issues Organization

Overview of the industry

Overview of supply The production of silver (in tonnes) far surpasses that of other precious metals.

Source: Gold field mineral services, 2014 data

171 133 24'891 3'133 56 45 4'791 1'125

Palladium Platinum Silver Gold

Mine Scrap Net government sale

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Overview of the industry Sensitive issues Organization

Overview of the industry

Overview of demand 84% of the value of the precious metals market is based on gold, with much smaller percentages of other metals.

The precious metals industry

Palladium 3% Platinum 4% Silver 9% Gold 84%

Source: Gold field mineral services, 2014 data

Industrial fabrication 31% Coins and bars 10% Silverware 3% Physical demand 56% 40

Overview of the industry Sensitive issues Organization

Overview of the industry

The precious metals industry

Demand for gold and silver

Jewellery 54% Technology 10% Investment 26% Central banks 10%

Demand for gold in % Demand for silver in %

Source: Gold field mineral services, 2014 data

Autocatalyst 69% Jewellery 5% Dental 5% Chemical 4% Electronics 16% Retail investment 0.5% Other 1% 41

Overview of the industry Sensitive issues Organization

Overview of the industry

Demand for platinum and palladium

The precious metals industry

Demand for platinum in % Demand for palladium in %

Autocatalyst 41% Jewellery 35% Chemical 8% Electronics 2% Glass 0% Petroleum 2% Retail investment 2% Other 10%

Source: Gold field mineral services, 2014 data

Overview of the industry

Organization

Sensitive issues

Organization

The precious metals industry is governed by a variety of authorities, associations and rules. Overview

The precious metals industry

Responsible Jewellery Council

* EICC – Electronic Industry Citizenship Coalition GeSI – Global e-Sustainability Initiative

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For many years, we have worked with principal industry representatives to make all players on the chain more responsible.

Responsible Jewellery Council

Flow of precious metals Flow of money/ counter value

Mines

(LSM, SSM, ASM)

Commerce

Refining and Transformation

Banks Sales Traders Banks Scrap Old jewellery Manufacturing sector Commerce

Organization

The precious metals industry

The chain For many years, we have worked with principal industry representatives to make all players on the chain more responsible.

Overview of the industry

Organization

Sensitive issues

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Responsible Jewellery Council

Flow of precious metals Flow of money / counter value

Mines

(LSM, SSM, ASM)

Commerce

Refining and Transformation

Banks

Sales

Traders Banks Scrap Old jewellery Manufacturing sector Commerce

Organization

The precious metals industry

Identification of risks along the chain Due to our central role on the chain, we pay special attention to all potential risks.

Overview of the industry

Organization

Sensitive issues

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Overview of the industry Organization del settore

Sensitive issues

Sensitive issues

The value chain is characterised by a series of potentially critical factors. We work actively with the industry to improve these aspects. Overview of issues

The precious metals industry Reliability of business partners Traceability of metals Fight against financing of illegal activities Respect for workers, human rights, and the environment Employee safety Safety of metal

SOURCE DISTRIBUTION

Industry Banks Jewellery and Watches ARGOR-HERAEUS SA

REFINING TRANSFORMATION

Mines

(LSM, SSM, ASM)

Good Delivery

(Grandfathered, Non-Grandfathered)

Scrap

(Industrial and old jewellery) Taxation and royalties Fight against corruption