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AppendixFirst Half of the Fiscal Year EndingFirst Half of the Fiscal Year Ending
March 31, 2011 (FY3/11)
ALCONIX CORPORATION
Business Summary
2Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Business range
ALCONIX is a general trading company of non-ferrous metals
ALGeneral trading company CO NI XAL
Leap int
Raw materials
of non-ferrous metals
Alu
m
Cop Z
Magn
Metal
Nic
Tita
Tun
g
Molyb
An
ti
Ind
Rare
CO NI X
to the unknow
ProductsImport, export, domestic sales in Japan
min
um
pper
inc
nesiu
m
silicon
ckel
niu
m
gsten
bdenu
m
mon
y
dium
e earth
Base metals Rare metals
wnsales in Japan
Precious metals
Special characteristic that steel does not haveSteel 1.3 billion tons
95%Non-ferrous metals (metals other than
steel)
5%
3Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Metals
Business fields
Th ALCONIX G i l f t l t di fi th t
End products
The ALCONIX Group is a general non-ferrous metals trading firm that covers all functions from upstream to downstream (final manufacturing).
Ore Ingots Products End productsOre
AutomobilesRo
End user industries
Ingots Products
Minin
Motorcycles
Smelti
olling, repr
Consolidated Subsidiary
Rare m
eta
Raw
ngentities
ngentitie
ocessinge
Advanced Material Japan Corporation
(AMJ)
Bas
als
Aircrafts
Major trading
firms
Raw resource-trading
firmsProduct
-trading firms
s entities
e metals
IT and electronics devices
Consumer electronics
4Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Non-ferrous metal smelters' trading firms
Major general trading firms, etc.
Major general trading firms
Independent and mid-sized non-ferrous trading firms, etc.
Characteristics of the ALCONIX Group
Three main characteristics
Business mix
Character 1
Traditionalbusiness
Stable growth
Light metals & copper products
Construction & industrial materials
Character 1
Uniquebusiness mix
High growth business Electronic & advanced
materials
Non-ferrous metal resources
Composed of our overseas subsidiaries and the overseas sites of Sojitz Corporation, an affiliated general trading company
29 Character 2
through M&A and
Character 3
Firm, close tie-upoverseas network
investees8 overseas sites,
12 locationsBusiness expansion
5Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
gbusiness investments
overseas network
Business mix (traditional business)(As of the end of March 2010)
Businesses Main products Our trading products End products Main business
areas
Light metals
(As of the end of March 2010)
Traditiona
g& copper products
Aluminum products, copper
d t
Sales in Japan; export to, import from, trilateral trades between and local sales in China, Korea, Taiwan,
Aluminum coils
Aircrafts
Vehicles (bodies) Motorcycles (aluminum f t )l bu
siness a
products Korea, Taiwan, Singapore, Malaysia, Middle East nations, etc.
42% of total sales
Sales: ¥45.8bn
Lead frames (for semiconductors)
Air conditioners (copper tubes)
Copper products
frames, etc.)
as stable gr
Construction & industrial materials
Valves, joints, die cast products and other industrial
t
Export, import and domestic sales
semiconductors) (copper tubes)
rowth
base
parts
Construction of metal-made parts for building, apartment;
Construction use in Japan6% of
total sales
Sales: ¥7.0bn
Valves, joints, etc. Vacuum sprinklers
6Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
p ;remodeling, renovation, etc.
ptotal salesTerra cotta products
Aluminum handrails
Business mix (high growth business)
(As of the end of March 2010)
Business Main products Our trading products End products Main business
areas
Titanium and nickel p od cts
Export, import and domestic sales e po t fo
Electronic & advanced materials
products, compound semiconductors, magnetic materials, etc.
sales; export for use in power plants and chemical equipment mainly in China, Europe and USA
Compound semiconductor and
other electronic materials
Titanium coils Vehicles Displays
High
grow
etc. and USA
Titanium sponge, tungsten, molybdenum,
Import from Kazakhstan, China Russia etc
35% of total sales
Sales: ¥37.9bn
Rare metals and rare earths
Rare earths Titanium sponge
Rare earth magnets HDDs (magnets)
wth
busin
ess
rare earths, etc.
China, Russia, etc
Non-ferrous metal
Aluminum secondary ingots for
Titanium products (heat exchangers) Cell phones
Rare earth compounds
s metal resources
ingots for vehicles and consumer electronics; recycle of metal scraps;
Export, import and domestic sales
Sales: ¥18.3bn
Al i ll dV hi l
7Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
sc aps;magnesium ingots and metal silicon
17% of total sales
Metal scraps Aluminum alloy ingots
SemiconductorsVehicles
Milestone: Expansion through M&As and business investments
Business expansion29 investees,
incl. 14 after the MBO
2010
Listed on Tokyo Stock Exchange, Second section
Listed on JASDAQManagement Buy-Out
20062007
20082009
2010 ■Acquired trainding rights of Mitaka Metal Industry Co., Ltd. Transferred the rights to newly established ALCONIX MITAKA CORP.
■Established ALCONIX DIECAST SUZHOU
2004
Foundation of overseas sites
2005
■Acquired trading rights for recycling raw materials of non ferrous metals
Changed company name "ALCONIX CORPORATION"
2006
■Acquired HAYASHI METAL CORP.
■Acquired OHKAWA CORP.
■Established 6 joint ventures in China
2002
■Acquired trading rights of aluminum and copper products from Sanshin Rinkei, embarking on retail business
■Acquired Advanced Material Japan Corporation (AMJ), embarking on rare metal and rare earth business
■Acquired trading rights for recycling raw materials of non-ferrous metals from Sojitz Metals Co., LTD., expanding trading rights
1981
2000■Trading rights of non-ferrous metal products business transferred from Nissho-Iwai Corp.■Merged with Nissho-Iwai Metal Products expanding business domains
2001 ■Established Chenzen Shenzhi Precision Parts Co., Ltd., a joint venture, embarking on manufacturing and marketing aluminum boxes for lithium batteries
■ Established Winton International Industries, a joint venture, embarking on manufacturing and marketing polygon mirrors for LBPs
M&A
8Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Nissho-Iwai Non-Ferrous Metals Corp. founded Business investment
1981Changed company name to Nissho Iwai Alconix Corporation■Merged with Nissho-Iwai Metal Products, expanding business domains M&A
Solid overseas network
With an emphasis on profitability, the ALCONIX Group conducts its business abroad from its subsidiaries and through Sojitz overseas network
8 overseas sites,
12 locations
Dusseldorf
Cairo
Jeddah
Moscow
Vladivostok
Beijing
Shanghai
Shenzhen Dusseldorf
Cleveland
Taipei
●Overseas subsidiaries and liaison offices
12 locations
Sojitz overseas
Jeddah Hong Kong
Dusseldorf
Bangkok
Kuala Lumpur
Taipei
Cleveland, USA: ALCONIX USA., INC.Hong Kong, China: ALCONIX HONGKONG CORP., LTD.Bangkok, Thailand: ALCONIX (THAILAND) LTD.
ALCONIX LOGISTICS (THAILAND) LTD.Shanghai, China: ALCONIX (SHANGHAI) CORP.Beijing China: ALCONIX (SHANGHAI) CORP Liason Office
jnetwork
Beijing, China: ALCONIX (SHANGHAI) CORP, Liason OfficeShenzhen, China: ALCONIX (SHANGHAI )CORP, Shenzhen BranchDusseldorf, Germany: ALCONIX EUROPE GMBHKuala Lumpur, Malaysia: ALCONIX (MALAYSIA) SDN. BHD.Taipei, Taiwan: ALCONIX (TAIWAN) CORPORATIONMoscow Liaison Office (Russia)
Advanced Material Japan Corporation (AMJ)
▲Overseas agentsJeddah Saudi Arabia: Sojitz Corporation Jeddah Branch
9Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Advanced Material Japan Corporation (AMJ)Vladivostok Liaison Office (Russia)
Advanced Material Japan Corporation (AMJ)
Jeddah, Saudi Arabia: Sojitz Corporation, Jeddah BranchCairo, Egypt: Sojitz Corporation, Cairo Liaison Office
Domestic network
OHKAWA CORP
Nagoya Branch・ALCONIX MITAKA CORPORATION,
Nagoya BranchOHKAWA CORP.Fukushima PlantOsaka Branch
Consolidated subsidiaries・HAYASHI METAL CORP.・ALCONIX MITAKA CORPORATION,
Osaka Head Office
Hiroshima Office
ALCONIX CORPORATION, Head Office
Hiroshima Office Minato-ku, TokyoConsolidated subsidiaries・ADVANCED MATERIAL JAPAN CORPORATION・ALCONIX SANSHIN CORPORATION
10Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Hamamatsu Office ・OHKAWA CORP.
M&A, business investment and overseas network
M&As: 7 cases
Proactively consider M&As regardless of any stage from upstream, middle
st eam to do nst eam
Investments in metal parts fabrication business in Asian and other regionsInvestments for the purpose of securing
Business investments: 29 cases
stream to downstream natural resources such as rare metals
■Acquisition of OHKAWA CORP.
■Acquisition of HAYASHI METAL CORP.
■Acquisition of trading rights for recycling raw materials of
■Manufacturing and sale of polygon mirrors for LBPs (in China)
■Manufacturing and sale of aluminum boxes for lithium batteries
(in China)non-ferrous metals from Sojitz Metals Co., Ltd.
■Acquisition of trading rights of aluminum and copper
products from Sanshin Rinkei.
■Acquisition of Advanced Material Japan Corporation
■Mergered with Nissho-Iwai Metal & Products Corp and
( )
■Manufacturing and sale of non-ferrous metal parts (in China)
■Manufacturing and sale of rare earth alloy for magnetic
materials (in China)
■Manufacturing and sale of magnesium ingots (in China)
■M f t d l f d h d (i Chi )■Mergered with Nissho Iwai Metal & Products Corp. and
acquisition of the trading rights from Nissho Iwai Corp.
■Acquisition of copper product business for electric
materials from Mitaka Metal Industry Co., Ltd.
■Manufacture and sales of road headers (in China)
■Recycle of end-of-life vehicles and consumer electronics
(in China)
■Manufacturing and sale of cast metal products (in China)
■Manufacturing and sale of cold forging products (in China)g g g p ( )
■Manufacturing and sale of aluminum die cast products
(in China)
and others
11Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Main subsidiary: Advanced Material Japan Corporation (AMJ)
Specialized in rare metal and rare earth business
Specialized trading company with a quarter-century history of expertise in rare metal and rare earth.
Features Explores mines, develops a network for processing.Holds an almost 100% share in the import market of titanium sponge for pure titanium to Japan.Acts as agent in Japan of UK-TMK, one of the five major titanium sponge mills in Kazakhstan.Plays an important part in securing supplies to IT and steel industries in Japan.
3 visions
Specialized in the domains of rare metals, rare earths and new materials.Operates mainly in China, Russia and Central Asia.Increases value of operations through outsourcing/receiving processing.
Generally trades in rare metals such as titanium, tungsten, molybdenum, nickel, indium, antimony, cobalt, tantalum, etc. and rare earths
Main trading
d t
Capital stock: 46 million yen (Shares held by: ALCONIX CORPORATION 91 04% Board of Directors of AMJ 8 96%)
products
12Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
(Shares held by: ALCONIX CORPORATION 91.04%, Board of Directors of AMJ 8.96%)URL:www.amjc.co.jp
Business Model
13Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Features of business model and profit structure
■Market price rise expansion of client demand. Market price drop restraint in client demand.
■Relatively small impact of market volatility on our transactions.
●Some "Intermediary" and "Inventory-2" transactions are directly impacted by the market.
●"Inventory-2" transactions account for only 5% of total transactions This limits the direct impact● Inventory 2 transactions account for only 5% of total transactions. This limits the direct impact of market volatility on our profits.
Business style Business flow Inventory Profitability Profit
Market price rise
Amount of profit Profit iAmount of profit margin
Intermediary
■Alconix concludes each contract with clients or supplier individually■Alconix facilitates and control distribution
No inventory
■No inventory risk■Profitability tends to be relatively high
Margin / commission ○(Eager to purchase) ○
■C t t diti ( i d li Commission (fixed
Direct
■Contract condition (price, delivery date, amount) are concluded between our client and supplier■Supplier deliver directly to our client
No inventory
■No inventory risk■Profitability tends to be low
Commission (fixed amount)Commission (market price×fixed rate)Commission (processing costs×fixed rate)
○(Eager to purchase)○(Eager to purchase)○(Eager to purchase)
Slightly △-
Slightly △
Inventory 1 ■Alconix takes an order from specific ■No inventory riskInventory-1 (Already contracted)
■Alconix takes an order from specific client, holds inventory and delivers just in time.
Hold inventory
■No inventory risk■Profitability tends to be average
Margin / commission ○(Eager to purchase) -
Inventory-2 (No sales contract)
■Alconix controls, and holds inventory regardless of any clients order
Hold inventory
■Existence of inventory risk■Profitability tends to be high
Margin ○(Eager to purchase) ○
14Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
) be high
○: Positive △: Negative - : Neutral
M&A, business investment, and overseas network: Profit contribution model
fCategory Target
Treatment on consolidated
financial resultsProfit from business investments
Profit from
tradingSynergy Initial term of contribution to
consolidated results
M&A Direct contribution to consolidated profit
Consolidated (or equity method)
Add to consolidated results (excluding minority interests in income)
- ◎
Profit contribution in the first FY after absorbing goodwill expenses amortized equally over five years
Business investment
Trading profits from new or expanded business with investee
Non consolidated, non equity-method
Dividends income + royalties + interest income – investment and interest expenses (+ impairment loss) – legal fees for establishment of business
Profit from
trading with
investee
○
Profit from business investment: full-scale contribution from third FY; trading profits: contribution from first FY.
Overseas
Bolstering of overseas network, reduction of Add to consolidated results (minor
Purpose: secure and expand "trading profits" through trading rights, and expand business channelsFuture: expand size of business, ratio of investment
◆ Profit/loss of business investment
P fi f b i i
Overseas network outsourcing expenses,
improvement of marketing and services
Consolidated Add to consolidated results (minor effect)
- ○ First FY after investment
p ,direct contribution to consolidated profits
Profit/loss of joint ventureAchieve a profit in second year after establishment (or as early as the first year in some cases).Pay dividends in third or fourth year after establishment
Profit from business investmentProfit from tradingTotal amount
Pay dividends in third or fourth year after establishment.
Some business investment profit contributions from joint venture from third year.
15Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Trading profits from joint venture to contribute from first year, and fully from third year.
1st FY 2nd FY 3rd FY 4th FY 5th FY 6th FY
Corporate Data
16Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Main shareholders
Category Number of shares held
Shareholding ratios
Financial institutions 1,044,100 19.59%
Securities companies 45,593 0.85%
Oth J titi 2 288 400 42 90%
Name of shareholders Number of shares held
Shareholding ratios
Sojitz Corporation 834,000 15.64%
Kobe Steel Ltd 426 800 8 00%Other Japanese entities 2,288,400 42.90%
Overseas entities 330,500 6.20%
Individual investors, others 1,624,173 30.46%
Treasury stock 34 0.00%
(T t l) 5 332 800 100 00%
Kobe Steel, Ltd. 426,800 8.00%
Mizuho Bank, Ltd. 198,000 3.71%
Japan Trustee Services Bank, Ltd. (Trust Account) 194,500 3.65%
(Total) 5,332,800 100.00%The Sumitomo Trust & Banking Co., Ltd. 186,000 3.49%
KITZ Corporation 140,600 2.64%
Th B k f T k Mit bi hi UFJ
Sojitz
Kobe SteelOthers
The Bank of Tokyo-Mitsubishi UFJ, Ltd. 130,000 2.44%
ALCONIX Employees' Stock Ownership Plan 113,600 2.13%
Mizuho Bank
Japan Trustee Services Bank (Trust Account)
Eiitsu Masaki
JAPAN PURE CHEMICAL CO., LTD. 100,000 1.88%
Eiitsu Masaki 80,200 1.50%
Others 2,929,100 54.92%
The Sumitomo Trust & Banking
KITZThe Bank of Tokyo-Mitsubishi UFJ
ALCONIX Employees’ Stock Ownership Plan
JAPAN PURE CHEMICAL
17Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
(Total) 5,332,800 100.00%
Main financial indicators
FY3/06(listed on JASDAQ)
FY3/07FY3/08
(listed on TSE 2nd sec.)
FY3/09 FY3/10
Net asset per share (cons.) (Yen) 1,625.51 2,144.54 2,640.70 2,671.02 3,346.9p ( )
Net income per share (cons.) (Yen) 271.76 448.50 585.69 68.28 675.21
Dividend per share (Yen) 50.00 65.00 85.00 85.00 85.00
(of which interim dividend) (0.00) (0.00) (0.00) (0.00) (0.00)
Number of shares outstanding (Shares) 2,174,000 2,421,000 2,663,700 2,664,100 2,666,400
Return on Equity (cons.) (%) 39.5% 44.0% 40.1% 22.3% 17.5%
Return on Asset (cons ) (%) 3 6% 4 4% 4 7% 3 4% 3 5%Return on Asset (cons.) (%) 3.6% 4.4% 4.7% 3.4% 3.5%
Equity ratio (cons.) (%) 9.6% 10.4% 13.0% 18.2% 22.2%
Number of employees (cons.) 211 223 240 247 361
・Net income per share: Not considered potential stock・Return on Asset = Ordinary income / (Average assets from the beginning to end of FY)・Return on Equity = Ordinary income / (Average assets from the beginning to end of FY, excluding minority interests and subscription rights to share)・Number of employees: Includes temporary employees, seconded employees dispatched from the Company and another companies, and excludes directors and employees dispatched from temporary agencies. All figures are based on the Yukashoken Hokokusho.
18Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Market Chart
19Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Demand forecast for base metals
World consumption and shipment of aluminum are trending to grow
Aluminum world demand outlook (2010 to 2020)(Unit: thousand tons)
1,000Estimated additional consumption in 2020
1,000 Estimated consumption i 2010in 2010
20Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
(Note) 1. Source: Japan Aluminum Association2. The rest of Asia represents ASEAN members and Korea.
Japan China India Rest of Asia
Asia in total
USA Europe Brazil Others World in total
Demand forecast for rare metals
◆ Import of rare earth◆ Titanium sponge world demand outlook
(thousand tons)(tons)
Y2O3Cerium salt
CeO2La2O3Rare earth metalRare earth salt
General industry/consumer use
Civil aviation
Military use
Source: Trade statistics of JapanSource: Toho Titanium Co., Ltd.
2006 2007 2008 2009 2010 2011 2012 20131999
20142000 2001 2002 2003 2004 2006 20072005 2008 2009
21Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Market position
Main products Share Specification
Light metals & copper products
Aluminum sheet 4%- of total export of Japan Aluminum plate, sheet, strip (exceed a thickness of 0.2cm)
Copper strip 5%+ of total export of Japan Copper plate, sheet, strip (exceed a thickness of 0.15mm)
Electronic & advanced materials
Metal titanium 50%+ of total export of JapanInclude titanium sponge or its ingot as the resource of titanium products
Nickel powder 70%+ of total export of Japan Nickel powder or its flake
Tungsten compound 30%- of total export of JapanTungsten intermediate compound (not include metal tungsten)
Titanium products 20%- of total export of Japan -
Non-ferrous materials
Magnesium ingot 20%- of total export of JapanMagnesium ingot of 99.8% purity by weight costing 670 yen or less per kilogram
22Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Aluminum scrap 4%- of total export of Japan Aluminum alloy
Market trends (main non-ferrous metals: aluminum, copper and nickel)
Rebounded in January 2009, and have thereafter been on an uptrendAluminum / Copper Nickel($/MT) ($/BT)
* Based on London Metal Exchange (LME)
25
30
7,000
8,000
9,000
銅(3ヶ月先物)アルミニウム(3ヶ月先物)ニッケル(cash)
Copper (3 months)Copper (3 months)Aluminum (3 months)Nickel (Cash)
15
20
5,000
6,000
,
Nickel (Cash)
10
2,000
3,000
4,000
Aluminum (3 months)
0
5
0
1,000
4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7
23Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
FY2010FY2006 FY2007 FY2008 FY2009
Market trends (magnesium)
Plunged in 2H of FY2008 and remains depressed since thenUSD/t
4 500
5,000
5,500
6,000
6,500
中国欧州日本輸入中国
ChinaEurope
Japan's imports
2,500
3,000
3,500
4,000
4,500
0
500
1,000
1,500
2,000
04 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7
FY2010FY2006 FY2007 FY2008 FY2009
24Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Market trends (rare metal)
Plunged in 2H of FY2008 and gradually recoveringTitanium sponge/Tungsten/Molybdenum IndiumYen/KG Yen/KG
7,000
8,000
9,000
100,000
120,000チタンスポンジ
タングステン
モリブデン
インジウム
/ /
Titanium spongeTungstenMolybdenumIndium
4,000
5,000
6,000
60,000
80,000
1,000
2,000
3,000
20,000
40,000
04 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7
0
FY2010FY2006 FY2007 FY2008 FY2009
25Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
What are rare metals
R l f 47 l i l di 17 hRare metals are a group of 47 elements including 17 rare earths
FeaturesDeposits are small and unbalanced geographically.
Extraction, which requires sophisticated technologies, is difficult.
Supplies can be impacted by the politics of the supply country.
Typical rare metals
Ore Features Mainstay applications (examples of familiar end products) Major producing regions
Tungsten Solid, strong for heat Special steel (automobile, drill) China
Molybdenum Strong for acid and heat Stainless (for sink unit) China
Vanadium Used to give steel higher strength Special steel (automobile) China/Russia/South Africa
Indium Easy to transmit electricity and light Transparent electrode (LCD TV) China/France
Antimony Hard to burn Plastics (semiconductor, digital consumer electronics) China
Cobalt Possible to use for a pole of battery. Also strong to heat or rubbing
Secondary battery, steel for mold (cell phone, digital camera, PC) Canada/South Africa
Manganese Effective for deoxidation and desulfurization Special steel, battery (automobile, PC) South
Africa/China/Australiadesulfurization Africa/China/Australia
Nickel Solid, rust inhibitor when added to steel. Used in batteries. Stainless, battery (sink unit, digital camera) Indonesia/Australia
Tantalum Possible to accumulate enormous electricity at the moment Condenser (PC, digital camera) Australia/Brazil
Strong magnetic factor and
26Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Rare earth Strong magnetic factor and characteristic of fluorescence Hard disk, illumination, abrasive (PC, mobile music player) China
(Note 1) ALCONIX focuses on the highlighted areas.Source: Based on the Nikkei Sangyo Shimbun, Aug 24, 2005
Rare metals: Resource nationalism
S i l i i f J i dSecuring rare metals is a pressing issue for Japanese industryCurrent status
Deposits are small and unbalanced geographically.Extraction, which requires
Rare metal consumption in Japan
R t l World Japan's J ' hMajor d i
, qsophisticated technologies, is difficult.Supplies can be impacted by the politics of the supply country.
Rare metals World consumption
Japan s consumption Japan's share producing
countries
Nickel (2007) 1,420,000 tons
1,960,000 tons
2nd largest with a 14% share
Russia(19%)
Tungsten (2007 estimate) 65,000 tons 7,000 tons 4th largest with a
11% shareChina(86%)
Policies of resource countries
Russia,
(2007 estimate) , , 11% share (86%)
Cobalt(2007 estimate) 57,000 tons 14,000 tons 1st largest with a
25% shareCongo(36%)
Molybdenum (2007) 180,000 tons 39,000 tons 2nd largest with a
22% shareUSA
(32%)
Pressing issue for Japanese
Supply restraint,
China Manganese (2007) 19,060,000 tons
1,200,000 tons
4th largest with a 6% share
South Africa(20%)
Vanadium(2007 estimate) 101,000 tons 10,000 tons 4th largest with a
10% shareSouth Africa
(39%)
Indium 13 400 000 11 460 000 1st largest with a Chinag pindustry
Securing rare metals
Indium (2007 estimate)
13,400,000 tons
11,460,000 tons
1st largest with a 86% share
China(49%)
Rare earth(2006 estimate)
1,420,000 tons
1,960,000 tons
2nd largest with a 14% share
Russia(19%)
27Copyright ©2010 ALCONIX CORPORATION All Rights Reserved
Source: Indium: Mineral Resources Report by JOGMEGOthers: Rare Metal Stockpiling Data by JOGMEG and other sources Major producing countries: Ministry of Economy, Trade and Industry of Japan (2007)
l i
Non-ferrous Metal Expert
Material Value Explorer
www.alconix.com
These materials were prepared to help investors understand ALCONIX and were not intended as a solicitation for investment in ALCONIX. These materials were prepared carefully for accuracy, but the completeness of these materials cannot be guaranteed. ALCONIX will not be heldmaterials were prepared carefully for accuracy, but the completeness of these materials cannot be guaranteed. ALCONIX will not be held responsible for any problems or damages that result from the information provided in these materials. Earnings forecasts and other future forecasts in these materials were made based on the judgment of ALCONIX using information available at the time these materials were prepared. These forecasts embody latent risk and uncertainty. Please understand that actual earnings may differ from these forecasts due to changes in the business environment and other factors.