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Platinum: Three birds with one stone: Chindia, Energy and Climate - PowerPoint PPT Presentation

Platinum: Three birds with one stone: Chindia, Energy and Climate Change Best Asset Class AG BAC - Best Asset Class AG is a company located in Zug (Switzerland) and founded in 2004 by Bernard Loriol and Csaba Virg. BAC is a niche


  1. “Platinum: Three birds with one stone: Chindia, Energy and Climate Change”

  2. Best Asset Class AG � BAC - Best Asset Class AG is a company located in Zug (Switzerland) and founded in 2004 by Bernard Loriol and Csaba Viràg. � BAC is a niche funds creator, focused on long- term well-selected assets in the platinum, Afria’s natural resources and clean tech sector � BAC has established partnerships with the following companies: � Commodities The Tiberius Group (Zug, Switzerland) � Structured Products � Structured Products Capitalis SA (Zurich, Switzerland) Capitalis SA (Zurich, Switzerland) Exane Derivatives (Geneva, Switzerland) � Natural Resources inv. Craton Capital (Johannesburg, South Africa) � Agriculture inv. Global Cap (Zurich, Switzerland) � Clean Tech Active Niche Funds (Lausanne, Switzerland) � BAC has positioned itself in specific niches where it can develop unique products as part of the Best Asset Class concept; � the BAC Mining Regions Managed Vol. – South Africa (CHF) and � the BAC Africa Natural Resources Fund are the first. 3 BAC Mining Regions Managed Vol.- South Africa (CHF)

  3. Best Asset Class AG, Company Structure MANAGEMENT ADVISORY BOARD CONTROLER MARKETING Dr. Albert Felix Würth Joakim Patrick Natalie Coralie Bernard Loriol Bünzli Jung Gasser Gallati Zuppiger Accounting Controler & Risk Legal Advisor Events Manager Marketing Marketing & Events CEO, CIO President of the management Communications Officer Bushveld Foundation Manager North Europe / Banks Hedge Funds Fund of Funds Due Diligence FINANCIAL BUSINESS DEVELOPMENT Raphael Csaba Virag Cyrill Moity Mark Bosman Irina Jung Alfredo Muñoz Patrick Miguel PARTNER San Juan San Juan Schindelholz East Europe Switzerland (German) Spain Spain Mining analyst Director Middle East South Africa Director Spain Communications Communications South America South America Monaco Monaco Project Project England England South America South America South America South America South America South America IT / BAC Indicies Germany development Legal Advisor INVESTMENT COMMITTEE CONSULTANT BUSINESS PARTNERS Laurent Krull René Hochreiter CACEIS BAC Solar BAC Africa Structured Products LK CONSULT ALLAN & HOCHREITER BAC Hydrogen Natural Resources Risk Control Geology Geology, Mining, Clean Tech Engineering, Finance Urs Gmuer Ch. Audergon Structured Products Commodities BAC Africa DOELFIN SA CROSSINVEST SA Agriculture Technical Bottom up Analysis Analysis 4 BAC Mining Regions Managed Vol.- South Africa (CHF)

  4. Performances: JSE Platinum Index versus Platinum bullion ���� 1700% HUI x 7 1500% 1300% 1100% 900% 700% x 6 500% Au x 4 300% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 JSE Platinum Index (USD without divident) oz Platinum Source : Bloomberg, from 01.1999 to 04.2008 5 BAC Mining Regions Managed Vol.- South Africa (CHF)

  5. Performances of BAC PGM Index in USD BAC PGM Global Index vs BAC PGM Explorers Index �������������������� is a market- weighted index 500 composed of PGM Producers +309.5% 400 & Explorers active in South +267.3% Africa. 300 200 ����������������������� 100 is a market- weighted index composed of only PGM composed of only PGM - - Explorers active in South 01.10.04 01.10.05 01.10.06 01.10.07 Africa. BAC PGM Global Index (USD) BAC PGM Explorer Index (USD) www.platexindex.com BAC PGM Global Index BAC PGM Explorers Index 2004 -10.4% +3.8% 2005 +74.5% +16.2% 2006 +72.3% +86.7% 2007 +42.2% +95.2% Source: www.platexindex.com, YTD -17.5% -16.4% Performances from 1.10.04 to 30.04.08 in USD 6 BAC Mining Regions Managed Vol.- South Africa (CHF)

  6. Middle East Oil reserves vs Platinum reserves in the Bushveld An amazing comparison! United Arab Emirate (UAE) Bushveld Complex • Size: 83,600 km2 • Size: 50,000 km2 • Proven Oil Reserves: USD 8 trn • PGMs estimated resources: � USD 30 trn - 2006 Saudi Arabia � USD 46 trn - 2008 • Size: 1,960,582 km2 • Proven Oil Reserves: USD 20 trn 7 BAC Mining Regions Managed Vol.- South Africa (CHF)

  7. What has happened in the last 12 months Corporates � Substantial increase in producers margins � Xstrata / Eland take-over � Corporate tax reduced by 1% to 28% in South Africa � Juniors and Explorers supported by Finance Minister Supply / demand � Explosion of long-term deficit prospects (power, safety, strikes...) � ETF more than 350,000 oz � Car industry silent... but active in the market. Price � New record prices for PGMs � New high for the JSE Platinum Index and our Global PGMs Index � Weak ZAR 8 BAC Mining Regions Managed Vol.- South Africa (CHF)

  8. THE purchase of the year? Gold Junior & Explorers / bullion ratio Pt Explorers / oz ratio 1.50 3 1.40 1.30 2.5 1.20 1.10 2 1.00 0.90 1.5 0.80 0.80 0.70 1 0.60 0.50 0.5 2002 2004 2006 2008 2004 2005 2006 2007 2008 S&P TSX VENTURE USD/ GOLD OZ USD BAC PGM Explorer Index USD / PT oz USD Source: Infotech, data as of 30.04.08 Gold Junior & Explorers have never been so cheap in this cycle… And Platinum? 9 BAC Mining Regions Managed Vol.- South Africa (CHF)

  9. Investment case: value in PGM Explorers Value Curve Pt Explorers are cheap Success with Explorers 20/30% Takeover premium ? Rock-solid fundamentals � Au producers: � 300 $ |oz in situ xAQP � Au explorers: management � 80 $ |oz in situ proximity � PGM producers: 60 $ |oz in situ follow-up of projects � Pt explorers: � 20 $ | oz in situ ...and Pt price is 200% higher than Au 1999 2008 x 40 AQP IPO 50p 10 BAC Mining Regions Managed Vol.- South Africa (CHF)

  10. TOP 10 Positions: A GREAT POTENTIAL! Historical high 5.6 1639 3.1 530 169 158 131 1.3 4.8 24.3 100% 50% Current price* 3.1 870 2.4 349 130 101 83 0.9 2.5 2.7 0% Anooraq Wesizwe Platinum Platmin Ridge Sylvania Jubileee Nkwe Platinum Breamore Resources Platinum Australia Mining Resources Platinum Platinum Group Resources Metals 19.1 11.1 11.0 8.9 8.7 8.4 5.4 5.2 5 4.4 % in the Fund � Fully invested � No leverage � No currency hedge *Source: www.Infotech, value as of 08.05.08 11 BAC Mining Regions Managed Vol.- South Africa (CHF)

  11. Risks - + � Souh Africa � � Zuma? 1% budget surplus (2007) � Power shortage � Surpluses 2008 / 2009 / 2010 � Economy: but still 4% growth � Debt ratio to GDP = 17% in 2010 � Current-account deficit: need 3bn ZAR a week � Company tax rate down 1% to 28% � � Poverty: crime – HIV – unemployment 2010 � Weaker rand � Another Swiss Franc Surprise � Stock Market Crash Worldwide � 80% margin = shock absorber � Producers pay high dividends � 60% of the demand forced by more legislative restrictions � 60% of the demand forced by more legislative restrictions � China � Olympics 2008 � Stock-market correction is over? � World recession � This time is different for Pt � Follow Equity Markets � Substitution � Autocats � Fuel cell 12 BAC Mining Regions Managed Vol.- South Africa (CHF)

  12. Prospects for the coming 12 months + - � More corporate activities � Downside risks on global stock markets � Financing despite power shortages � End of cycle perception? � Explorers outperforming � Explorers outperforming � Risk aversion � Risk aversion producers � Deleveraging and credit � High oil price crunch � Appetite for commodities � Negative perception of South Africa � Real rates at historical lows PGMS EQUITIES SHOULD CONTINUE TO OUTPERFORM. 13 BAC Mining Regions Managed Vol.- South Africa (CHF)

  13. Maximum bullish on precious metals sector for the coming 5 years! � The USD will stay weak (IMF) � Inflation may develop in five years (A. Greenspan) � Real rates will stay low � The public will create excesses by shifting from real estate to precious metals (and some commodities) Source: ‚Irrational Exuberance‘ 2nd Edition 2006 by Robert J. Shiller 14 BAC Mining Regions Managed Vol.- South Africa (CHF)

  14. Conclusion ��"#����"�������#�$� �����%����&��'��#���&��� ������� �! $�(�����&���&���� �)�����(��� �����&� ���%��� �&��$� ��#���$��� ����� ������ �������������� This fuel cell alone This fuel cell alone contains 60g of Pt! contains 2oz of Pt! 15 BAC Mining Regions Managed Vol.- South Africa (CHF)

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