PLATINUM QUARTERLY, Q Paul Wilson 4 th December 2014

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1 PLATINUM QUARTERLY, Q Paul Wilson

2 AGENDA World Platinum Investment Council Purpose, rationale and approach Platinum s investment credentials The Platinum Quarterly Paul Wilson CEO, WPIC Balances Above ground stocks Supply Demand Beresford Clarke MD and Head of Research, SFA (Oxford)

3 WORLD PLATINUM INVESTMENT COUNCIL We exist to develop the global market for platinum investment Founded in November 2014 Members: Anglo American, Aquarius, Impala, Lonmin, Northam, RB Plats Long-term commitment to provide platinum investors worldwide with objective and reliable platinum market data and insights Mission to stimulate investor demand for physical platinum globally through actionable insight and targeted development RESEARCH Supply and demand Stocks Investment research Investment market research MARKET DEVELOPMENT Understand markets Pursue top 10 opportunities Work with financial institutions Fill market gaps

4 PLATINUM S INVESTMENT CREDENTIALS Platinum is a strong investment asset. somewhat underappreciated We will provide objective analysis to examine and test the investment case for platinum. This will include benefits to investment portfolios.

5 TODAY - PLATINUM QUARTERLY Analysis of the global platinum market: Supply, demand, deficit and above ground stocks: 2013 and 2014f Supply, demand, surplus: Q Significant event for WPIC but also for the platinum market: Independent analysis - SFA (Oxford) Freely available - on WPIC website Produced every quarter update of annual forecast and new quarterly data Published above ground stock estimate first point in data series Commissioned SFA (Oxford) Outstanding platinum and PGM experience Quality research house Beresford Clarke MD and Head of Research

6 ABOVE GROUND STOCKS Above ground stocks are a key aspect of market insight New data points shed light on the past

7 INDEPENDENT RESEARCH ON PLATINUM Beresford Clarke, Head of Research and MD, SFA (Oxford) Ltd

8 STOCK MOVEMENTS DRAWDOWN IN 2014; SURPLUS IN Q3 Supply-demand balance, koz f Q3, 2014 Source: SFA (Oxford)

9 ABOVE GROUND STOCKS REDUCING koz Above ground stocks 4,500 4,000 3,500 4,140 ETFs South Africa 3,445 Mine strike South Africa 3,000 2,500 2,000 1,500 1, Largely built up since financial crisis 2,560 0 Source: SFA (Oxford) f

10 ABOVE GROUND STOCKS METHODOLOGY Definition: The year-end estimate of the cumulative platinum holdings not associated with: exchange traded funds, metal held by exchanges or working inventories of: mining producers, refiners, fabricators or end-users. Typically, unpublished vaulted metal holdings from which a supply/demand shortfall can be readily supplied or to which a supply/demand surplus can readily flow. Above ground stock methodology Above ground stock All industry working inventories & measured investment holdings Source: SFA (Oxford)

11 Producer stock intake 4,730 Producer stock sales 5,100 6,070 5,855 MINE SUPPLY DOWN 13% ON 2013 koz Total mining supply summary 7, f 6,000 5, ,000 3,000 2, ,000 1,000 0 Refined Producer Production sales Total Mining Supply South Africa Zimbabwe North America Russia Other Refined Producer Production sales Total Mining Supply Source: SFA (Oxford)

12 8,010 8,535 PLATINUM DEMAND: 2014 VS DOWN 6%; AUTOS AND JEWELLERY +VE koz 9,000 Changes in demand by category, 2014f Vs , ,000 6,000 5,000 Source: SFA (Oxford) 2013 Automotive Jewellery Chemical Petroleum Electrical Glass Medical and Biomedical Investment 2014f

13 PLATINUM DEMAND: 2014 VS INVESTMENT LOSES MARKET SHARE 3% 1% 3% 2% 2% 2% Demand end use shares, 2014f Vs Chemical 8% % 2013 Automotive 37% 2014 Automotive 41% 2013 Chemical 7% 2014 Jewellery 38% Demand 2013 Jewellery 34% Petroleum Electrical Glass Medical and Biomedical Investment Other Source: SFA (Oxford)

14 SUMMARY DATA Platinum Supply-Demand Balance, (koz) f Growth % Q SUPPLY Refined Production 6,070 4,730-22% 1,275 Total Mining Supply 5,855 5,100-13% 1,290 Recycling 1,985 2,025 2% 560 Total Supply 7,840 7,125-9% 1,850 DEMAND Automotive 3,140 3,285 5% 770 Jewellery 2,945 3,060 4% 745 Industrial 1,525 1,500-2% 380 Investment % -200 Total Demand 8,535 8,010-6% 1,695 Balance % 155 Above ground stocks 4,140* 3,445 2,560-26% Source: SFA (Oxford), *as of 31 st December 2012

15 COPYRIGHT AND DISCLAIMER Copyright This document is subject to the terms and conditions on the World Platinum Investment Council website SFA Copyright reserved. All copyright and other intellectual property rights in the data and commentary contained in this report remain the property of SFA, and no person other than SFA shall be entitled to register any intellectual property rights in the information, or data herein. No part of this report may be reproduced or distributed in any manner without attribution to the authors. Disclaimer This disclaimer governs the use of this document and by reviewing this document, you accept this disclaimer in full. SFA has made all reasonable efforts to ensure that the sources of the information provided in this document are reliable, and the data reproduced are accurate at the time of writing. The analysis and opinions set out in the document constitute SFA s judgment as of the date of the document and are subject to change without notice. Therefore, SFA cannot warrant the accuracy and completeness of the data, and analysis, contained in this document. SFA cannot be held responsible for any inadvertent occasional error, or lack of accuracy or correctness. SFA accepts no liability for any direct, special, indirect, or consequential losses or damages, or any other losses or damages of whatsoever kind, resulting from whatever cause through the use of, or reliance on, any information contained in the report. The material contained herein has no regard to the specific investment objectives, financial situation or particular need of any specific recipient or organisation. It is not to be construed as a solicitation, or an offer to buy or sell any commodities, securities or related financial instruments. The recipient acknowledges that SFA is not authorised by the Financial Conduct Authority to give investment advice. The report is not to be construed as advice to the recipient or any other person as to the merits of entering into any particular investment. In taking any decision as to whether or not to make investments, the recipient and/or any other person must have regard to all sources of information available to him. This document is provided for general information purposes only and the use of and reliance of the content of the report is entirely at your own risk.