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e www.platinum.matthey.com DISCLAIMER Johnson Matthey PLC - - PowerPoint PPT Presentation

e www.platinum.matthey.com DISCLAIMER Johnson Matthey PLC endeavours to ensure the accuracy of the information and materials contained within this presentation, but makes no warranty as to accuracy, completeness or suitability for any


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DISCLAIMER

Johnson Matthey PLC endeavours to ensure the accuracy of the information and materials contained within this presentation, but makes no warranty as to accuracy, completeness or suitability for any particular purpose. Johnson Matthey PLC accepts no liability whatsoever in respect of reliance placed by the user on information and materials contained in this presentation, which are utilised expressly at the user’s own risk. In particular, this presentation and the information and materials in this presentation are not, and should not be construed as, an offer to buy or sell or solicitation of an offer to buy or sell, any regulated precious metal related products or any other regulated products, securities or investments, or making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of, any regulated precious metal related products or any

  • ther regulated products, securities or investments including, without limitation, any advice to

the effect that any precious metal related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated precious metal related products or any other regulated products, securities or investments should not be made in reliance on any of the information or materials in this

  • presentation. Before making any investment decision, prospective investors should seek

advice from their financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decisions. This presentation does not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated precious metal related products or any other regulated products, securities or investments.

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Platinum

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Platinum in 2012

  • Platinum market in deficit of 375,000 oz
  • Lowest primary supply for 12 years
  • Marginal increase in autocatalyst demand
  • Glass and electrical demand sharply down
  • Strongly rising jewellery demand from China
  • Lower prices retard autocatalyst recycling
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Platinum supplies

1 2 3 4 5 6 7 2008 2009 2010 2011 2012 South Africa Russia North America Others million oz

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Platinum supplies

‘000 oz 2011 2012 % change South Africa Russia North America Zimbabwe Others Total 4,860 835 350 340 100 6,485 4,095 800 295 340 110 5,640 (15.7)

  • 4.2
  • 15.7

0.0 10.0

  • 13.0
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South African net supply change 2011-2012

4,860 + 100

  • 500
  • 175
  • 55
  • 135

4,095

3,500 4,000 4,500 5,000 5,500 2011 supply Safety stoppages Strikes Stock movements Mine closures Other 2012 supply ‘000 oz

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Platinum supplies

‘000 oz 2011 2012 % change South Africa Russia North America Zimbabwe Others Total 4,860 835 350 340 100 6,485 4,095 800 295 340 110 5,640 (15.7) (4.2) (15.7) 0.0 10.0 (13.0)

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Platinum demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 6,050 3,185 1,755 2,420 655 7,905 (1,830) (25) 6,480 3,240 2,050 2,480 460 8.905 (2,045) 430 7.1 1.7 16.8 2.5 (29.8) 2.4 11.7

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Gross platinum autocatalyst demand

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2008 2009 2010 2011 2012 Europe Japan North America China ROW million oz

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World light duty diesel vehicle production

2011 2012 million units 1 2 3 4 5 2008 2009 2010 2011 2012

Pt demand in emissions control catalysts

NRMM HDV LDD LDG million oz

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Platinum demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Investment Gross Demand Recycling Stock Movement 6,050 3,185 1,975 2,420 655 7,905 (1,830) (25) 6,480 3,240 1,570 2,480 460 8.905 (2,045) 430 7.1 1.7 (20.5) 2.5 (29.8) 2.4 11.7

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Platinum industrial demand

0.0 0.5 1.0 1.5 2.0 2008 2009 2010 2011 2012 Chemical Electrical Glass Petroleum Medical & other million oz

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Platinum demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 6,050 3,185 1,975 2,475 655 7,905 (1,830) (25) 6,480 3,240 1,570 2,780 460 8.905 (2,045) 430 7.1 1.7 (20.5) 12.3 (29.8) 2.4 11.7

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Gross platinum jewellery demand

0.0 0.5 1.0 1.5 2.0 2.5 3.0 2008 2009 2010 2011 2012 Europe Japan North America China ROW million oz

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Platinum demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 6,050 3,185 1,975 2,475 460 7,905 (1,830) (25) 6,480 3,240 1,570 2,780 455 8.905 (2,045) 430 7.1 1.7 (20.5) 12.3 (1.1) 2.4 11.7

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Platinum investment demand

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Platinum ETF investment demand

1,200 1,400 1,600 1,800 2,000 1.0 1.2 1.4 1.6 1.8 Platinum ETF holdings Platinum price million oz $/oz 2011 2012

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Platinum supply and demand

‘000 oz 2011 2012 % change Supplies Gross demand Recycling Stock Movement 6,485 8,095 (2,060) (25) 5,640 8,045 (2,030) 430 (13.0) (0.6) (1.5)

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Platinum recycling

400 800 1,200 1,600 2,000 0.0 0.5 1.0 1.5 2.0 2.5 2008 2009 2010 2011 2012 Autocatalyst Electrical Jewellery Pt average price million oz $/oz

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Platinum supply and demand

‘000 oz 2011 2012 % change Supplies Gross demand Recycling Net demand Stock movement 6,485 8,095 (2,060) 6,035 450 5,640 8,045 (2,030) 6,015 (375) (13.0) (0.6) (1.5) (0.3)

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Palladium

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Palladium in 2012

  • Palladium swung into deficit of 1.07 million oz
  • Lower primary and secondary supplies
  • Russian state stock sales down by two-thirds
  • Autocatalyst demand at an all-time high
  • Weaker industrial and jewellery demand
  • Net investment changed by over 1 million oz
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Palladium supplies

1 2 3 4 5 6 7 8 2008 2009 2010 2011 2012 South Africa Russia North America Others million oz

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Palladium supplies

‘000 oz 2011 2012 % change South Africa Russia primary Russia stocks North America Zimbabwe Others Total 2,560 2,705 775 900 265 155 7,360 2,330 2,630 250 905 265 165 6,545 (9.0) (2.8) (67.7) 0.6 0.0 6.5 (11.1)

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Palladium demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 7,355 6,155 2,465 595 1,095 9,735 (1,850) (530) 7,360 6,615 2,480 505 (565) 8,450 (2,345) 1,255 0.1 7.5 (0.6) (15.1) (151.6) (13.2) 26.8

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Gross palladium autocatalyst demand

1 2 3 4 5 6 7 2008 2009 2010 2011 2012 Europe Japan North America China ROW million oz

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Palladium demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 7,355 6,155 2,465 595 1,095 9,735 (1,850) (530) 7,360 6,615 2,365 505 (565) 8,450 (2,345) 1,255 0.1 7.5 (4.1) (15.1) (151.6) (13.2) 26.8

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Palladium demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 7,355 6,155 2,465 505 1,095 9,735 (1,850) (530) 7,360 6,615 2,365 445 (565) 8,450 (2,345) 1,255 0.1 7.5 ((4.1) (11.9) (151.6) (13.2) 26.8

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Gross palladium jewellery demand

0.0 0.2 0.4 0.6 0.8 1.0 1.2 2008 2009 2010 2011 2012 Europe Japan North America China ROW million oz

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Palladium demand

‘000 oz 2011 2012 % change Supplies Autocatalyst Industrial Jewellery Investment Gross Demand Recycling Stock Movement 7,355 6,155 2,465 505 (565) 9,735 (1,850) (530) 7,360 6,615 2,365 445 470 8,450 (2,345) 1,255 0.1 7.5 (4.1)(((4.1) (11.9)

  • (13.2)

26.8

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Palladium ETF investment demand

400 500 600 700 800 900 1.6 1.8 2.0 2.2 2.4 2.6 Palladium ETF holdings Palladium price million oz $/oz 2011 2012

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Palladium supply and demand

‘000 oz 2011 2012 % change Supplies Gross demand Recycling Stock Movement 7,360 8,560 (2,385) (530) 6,545 9,895 (2,280) 1,255 (11.1) 15.6 (4.4)

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Palladium recycling

200 400 600 800 0.0 0.8 1.6 2.4 3.2 2008 2009 2010 2011 2012 Autocatalyst Electrical Jewellery Pd average price million oz $/oz

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Palladium supply and demand

‘000 oz 2011 2012 % change Supplies Gross demand Recycling Net demand Stock movement 7,360 8,560 (2,385) (6,175 1,185 6,545 9,895 (2,280) 7,615 (1,070) (11.1) 15.6 (4.4) 23.3

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Rhodium

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Rhodium supply and demand

‘000 oz 2011 2012 % change Supplies Gross demand Recycling Net demand Stock movement 765 908 (277) (631 134 722 966 (259) 707 15 (5.6) 6.4 (6.5) 12.0

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Outlook

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Platinum outlook

  • Primary supply may be a little higher this year
  • Gross autocatalyst demand unlikely to grow in 2013
  • Jewellery demand not quite as strong as last year
  • Industrial demand expected to rebound
  • Autocatalyst recycling is likely to increase
  • Market balance sensitive to investment demand
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e 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 $/oz 2011 2012 2013 High: $1,710 Avg: $1,570 Low: $1,415

Platinum price forecast: the next six months

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Palladium outlook

  • Supplies are likely to fall again in 2013
  • Russian state stock sales to diminish further
  • Autocat demand to grow with higher vehicle output
  • Industrial demand to be no more than stable
  • Market undersupply to persist, supports investment
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e 400 500 600 700 800 900 1,000 $/oz 2011 2012 2013 High: $830 Avg: $740 Low: $635

Palladium price forecast: the next six months

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