platinum & palladium survey 2007 - kitco · – tapping increasingly into peak palladium use of...

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Platinum & Palladium Survey 2007Platinum & Palladium Survey 2007Launch Presentations Launch Presentations –– 2525thth April 2007April 2007

LondonLondon Peter RyanPeter Ryan

JohannesburgJohannesburg Paul WalkerPaul Walker

GFMS gratefully acknowledges the generous GFMS gratefully acknowledges the generous support of the following companies for this year’s support of the following companies for this year’s

Platinum & Palladium SurveyPlatinum & Palladium Survey

Tanaka Precious Metals Group


www.standardbank.com

Norilsk Nickel

Platinum in 2006Platinum in 2006

Palladium in 2006Palladium in 2006

Outlook for 2007Outlook for 2007

Highlights in 2006 Highlights in 2006 -- platinumplatinumHeadline supply up 424,000 Headline supply up 424,000 ozsozs at 7.86m at 7.86m ozsozs (6%)(6%)–– Mine production adds 371,000 Mine production adds 371,000 ozsozs, hits 7m , hits 7m ozsozs for 1for 1stst time.time.–– Further gains in autocatalyst recycling as Europe advances.Further gains in autocatalyst recycling as Europe advances.

Fabrication demand rises 136,000 Fabrication demand rises 136,000 ozsozs to 7.72m to 7.72m ozsozs (2%)(2%)–– Autocatalyst up 7%;Autocatalyst up 7%; gains in diesel outweigh fall in gasoline.gains in diesel outweigh fall in gasoline.–– Jewellery escapes with 8% lossJewellery escapes with 8% loss despite record high prices.despite record high prices.

Platinum moved into surplus for 1Platinum moved into surplus for 1stst time in 8 years time in 8 years –– Surplus of 145,000 Surplus of 145,000 ozsozs in 2006in 2006 (deficit of 142,000 (deficit of 142,000 ozsozs in 2005)in 2005)–– Appears at gross and residual level (stock releases absent).Appears at gross and residual level (stock releases absent).

Net inflows of platinum to Switzerland hit record high.Net inflows of platinum to Switzerland hit record high.

Mine production in 2006 Mine production in 2006 –– platinumplatinumUp 6% to 7m Up 6% to 7m ozsozs

South Africa up 7% to 5.45m South Africa up 7% to 5.45m ozsozs (78% of total)(78% of total)–– AmplatsAmplats added 12%added 12% ((AmandebultAmandebult, Rustenburg, inventory)., Rustenburg, inventory).–– ImplatsImplats down 3%; Impala losses outweigh down 3%; Impala losses outweigh MarulaMarula gainsgains–– LonminLonmin essentially flat as smelter problems impede progress.essentially flat as smelter problems impede progress.–– New minesNew mines; Everest, Two Rivers, rehab of Crocodile River.; Everest, Two Rivers, rehab of Crocodile River.–– Aquarius rises 32% to 304,000 Aquarius rises 32% to 304,000 ozsozs (Everest ramping up).(Everest ramping up).

Production in Russia flat at 961,000 Production in Russia flat at 961,000 ozsozs (14% of total)(14% of total)–– Norilsk largely unchangedNorilsk largely unchanged with output at 752,000 with output at 752,000 ozsozs..

Remaining output up 2% to 600,000 Remaining output up 2% to 600,000 ozsozs (8% of total)(8% of total)–– North America flat; decline at Inco offset by SMC, North America flat; decline at Inco offset by SMC, NAPdNAPd..–– Zimbabwe up 4%; growth envisaged but situation difficult.Zimbabwe up 4%; growth envisaged but situation difficult.

Mine production Mine production -- platinumplatinum

5,084 5,445

960961

358357

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2005 2006

000

ozs Other regions

North AmericaRussiaSouth Africa

2005 2006 Up2005 2006 Up

6,6356,635 7,006 371 (6%)7,006 371 (6%)

Platinum mining Platinum mining -- up 371,000 up 371,000 ozsozs in 2006in 2006

0

50

100

150

200

250

300

Amplats Aquarius Others

000

ozs

Autocatalyst recycling in 2006 Autocatalyst recycling in 2006 -- platinumplatinumRecovery rose by 7% in 2006 to 855,000 Recovery rose by 7% in 2006 to 855,000 ozsozs–– Represents 11% of headline supply.Represents 11% of headline supply.–– Exceeds annual production of world #4 miner, Norilsk.Exceeds annual production of world #4 miner, Norilsk.

North America yielded 517,000 North America yielded 517,000 ozsozs, up 3%, up 3%–– Mature market, represents 60% of global recovery. Mature market, represents 60% of global recovery. –– Modest growth reflects lower platinum use in late 1990s.Modest growth reflects lower platinum use in late 1990s.

Europe advances strongly to 210,000 Europe advances strongly to 210,000 ozsozs, up 21%, up 21%–– Catalyst fitment of Catalyst fitment of ELVsELVs exceeded 50% for 1exceeded 50% for 1stst time.time.–– Up to 5 years before Europe reaches maturity of US market.Up to 5 years before Europe reaches maturity of US market.

Other regions, recovery unchanged at 127,000 Other regions, recovery unchanged at 127,000 ozsozs–– Japan hindered by exports of Japan hindered by exports of ELVsELVs for reuse elsewhere. for reuse elsewhere.

Headline supply Headline supply -- platinumplatinum

Up 5.7%Up 5.7%4244247,8617,8617,4377,437Total supplyTotal supply

5454855855801801Autocatalyst recyclingAutocatalyst recycling

3713717,0067,0066,6356,635Mine productionMine production

+(+(--))2006200620052005‘000‘000 ozsozs

(Excluding supplies from above(Excluding supplies from above--ground stocks)ground stocks)

Demand Demand -- platinumplatinum

Up 6.5%Up 6.5%2562564,1664,1663,9103,910AutocatalystAutocatalyst

54%54%52%52%Share of total demandShare of total demand

+(+(--))2006200620052005‘000‘000 ozsozs

(Excluding the use of industry stocks)(Excluding the use of industry stocks)

Autocatalyst in 2006 Autocatalyst in 2006 -- platinumplatinumNorth America, 3% lower at 661,000 North America, 3% lower at 661,000 ozsozs–– Further attrition in gasolineFurther attrition in gasoline (substitution & thrifting).(substitution & thrifting).–– Gains in HD dieselGains in HD diesel (new standards from January 2007).(new standards from January 2007).

Europe, demand scales 2m Europe, demand scales 2m ozsozs, up 13% at 2.08m , up 13% at 2.08m ozsozs–– Demand growth again driven by diesel applications.Demand growth again driven by diesel applications.–– Diesel = 47% of light vehicle production in 2006.Diesel = 47% of light vehicle production in 2006.–– Production of Production of Euro 4 compliant diesels rose 45%Euro 4 compliant diesels rose 45%–– Fitment of catalysed Fitment of catalysed DPFsDPFs trebled.trebled.–– Further decline of platinum use in gasoline applications.Further decline of platinum use in gasoline applications.

Japan & other regions: 3% higher at 1.43m Japan & other regions: 3% higher at 1.43m ozsozs–– Japan slips 2%, attrition in gasoline cushioned by diesel gains.Japan slips 2%, attrition in gasoline cushioned by diesel gains.–– Elsewhere, 13% rise in LV production & tighter legislation.Elsewhere, 13% rise in LV production & tighter legislation.


22%22%24%24%Share of total demandShare of total demandDown 8%Down 8%

(142)(142)1,7001,7001,8421,842Jewellery fabricationJewellery fabrication

2562564,1664,1663,9103,910AutocatalystAutocatalyst

+(+(--))2006200620052005‘000‘000 ozsozs


Jewellery fabrication Jewellery fabrication –– platinumplatinum

0

500

1,000

1,500

2,000

2,500

3,000

3,50019

99

2000

2001

2002

2003

2004

2005

2006

000 ozs

$200

$400

$600

$800

$1,000

$1,200

OtherEuropeNorth AmericaJapanChinaPrice US$ (rhs)

Jewellery in 2006 Jewellery in 2006 -- platinumplatinumFabrication falls 8% to 1.7m Fabrication falls 8% to 1.7m ozsozs, 4, 4thth year of declineyear of decline–– Escapes relatively lightlyEscapes relatively lightly, given record prices & volatility., given record prices & volatility.

Japan declined by 7% to 432,000 Japan declined by 7% to 432,000 ozsozs–– Retail demand stabilisedRetail demand stabilised but jewellery imports increased.but jewellery imports increased.–– Scrap supply higherScrap supply higher, old jewellery from private sources., old jewellery from private sources.–– Significant downward revision to our historical series.Significant downward revision to our historical series.

North America & Europe, total 444,000 North America & Europe, total 444,000 ozsozs (down 8%)(down 8%)–– Europe down 4%, Europe down 4%, resilient bridal & high end marketresilient bridal & high end market..–– N America down 13%, N America down 13%, inventory utilisation & price point issuesinventory utilisation & price point issues..

China down 8% to 789,000 China down 8% to 789,000 ozsozs (not bad considering!)(not bad considering!)–– Auspicious year for weddingsAuspicious year for weddings, 2 spring days in Year of the Dog!, 2 spring days in Year of the Dog!–– Gemset fared quite well, although scrap flows increased.Gemset fared quite well, although scrap flows increased.


5959434434375375–– ElectronicsElectronics

1361367,7157,7157,5797,579Total demandTotal demand

Up 2%Up 2%

(12)(12)965965977977–– Other applicationsOther applications

(25)(25)450450475475–– Glass Glass Other industrialOther industrial

(142)(142)1,7001,7001,8421,842Jewellery Jewellery


+(+(--))2006200620052005‘000 ‘000 ozsozs


Supply & demand Supply & demand -- platinumplatinum

145145(142)(142)Gross surplus (deficit)Gross surplus (deficit)

7,7157,7157,5797,579Demand Demand

7,8617,8617,4377,437Headline supplyHeadline supply

2006200620052005‘000‘000 ozsozs

(Excluding above(Excluding above--ground stocks)ground stocks)

Supply & demand Supply & demand -- platinumplatinum


Stock releasesStock releases

001313US DLAUS DLA

145145(130)(130)Residual surplus (deficit)Residual surplus (deficit)

2006200620052005‘000‘000 ozsozs

PalladiumPalladium

Highlights in 2006 Highlights in 2006 -- palladiumpalladiumHeadline supply rises 458,000 Headline supply rises 458,000 ozsozs to 8.02m to 8.02m ozsozs (6%)(6%)–– Mine production gains 330,000 Mine production gains 330,000 ozsozs, up 5%., up 5%.–– Autocatalyst recycling up 20%Autocatalyst recycling up 20%, adds 128,000 , adds 128,000 ozsozs. .

Fabrication demand up 124,000 Fabrication demand up 124,000 ozsozs at 7.9m at 7.9m ozsozs (2%)(2%)–– First rise in autocatalyst demand since 2000First rise in autocatalyst demand since 2000–– Overall gain for palladium Overall gain for palladium despite 17% fall in jewellerydespite 17% fall in jewellery–– Palladium continues its rehabilitationPalladium continues its rehabilitation

Moved into gross surplus for the 1Moved into gross surplus for the 1stst time since midtime since mid--90s.90s.–– Surplus of 117,000 Surplus of 117,000 ozsozs in 2006in 2006 (deficit in 2005 of 217,000 (deficit in 2005 of 217,000 ozsozs))

However, substantial sales from aboveHowever, substantial sales from above--ground stocks.ground stocks.–– Residual surplus of 1.7m Residual surplus of 1.7m ozsozs (revised 1.6m (revised 1.6m ozsozs in 2005)in 2005)

Mine production in 2006 Mine production in 2006 –– palladiumpalladiumUp 5% to 7.26m Up 5% to 7.26m ozsozs

Russia, output stable at 3.16m Russia, output stable at 3.16m ozsozs, up 1%, up 1%–– World #1 Norilsk accounted for 44% of global productionWorld #1 Norilsk accounted for 44% of global production..

South Africa rises 8% to 2.82m South Africa rises 8% to 2.82m ozsozs, as platinum grows, as platinum grows–– 60% of this gain attributable to 60% of this gain attributable to AmplatsAmplats..–– Platinum expansion continues to drive palladium growth.Platinum expansion continues to drive palladium growth.–– Ratio of palladium to platinum edging higher.Ratio of palladium to platinum edging higher.

North America rebounds by 8% to 1m ouncesNorth America rebounds by 8% to 1m ounces–– Strong recovery at Strong recovery at NAPdNAPd on start of underground mining.on start of underground mining.–– Change in working practices lifted output at Stillwater.Change in working practices lifted output at Stillwater.

Elsewhere, little changed at 269,000 Elsewhere, little changed at 269,000 ozsozs, up 3%, up 3%–– Output from Zimbabwe flat at 135,000 Output from Zimbabwe flat at 135,000 ozsozs. .

Mine production Mine production –– palladiumpalladium

3,133 3,164

2,601 2,819

9301,004

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2005 2006

000

ozs Others

North AmericaSouth AfricaRussia

2005 2006 Up2005 2006 Up

6,9256,925 7,255 330 (5%)7,255 330 (5%)

Palladium mining Palladium mining -- up 330,000 up 330,000 ozsozs in 2006in 2006

-100

-50

0

50

100

150

Norils

kAmplat

sIm

palaStill

water

Lonmin

NAPdIn

coAquar

iusOthers

000

ozs

Autocatalyst recycling in 2006 Autocatalyst recycling in 2006 -- palladiumpalladiumAnother large gain in 2006, up 20% to 764,000 Another large gain in 2006, up 20% to 764,000 ozsozs–– Now Now represents 10% of headline supplyrepresents 10% of headline supply, exceeds Impala., exceeds Impala.

Recycling in North America topped 500,000 Recycling in North America topped 500,000 ozsozs–– Recovery of 526,000 Recovery of 526,000 ozsozs in 2006, up 21%.in 2006, up 21%.–– Tapping increasingly into Tapping increasingly into peak palladium use of late 1990speak palladium use of late 1990s

European recovery rose 22% to 142,000 European recovery rose 22% to 142,000 ozsozs–– Also driven by high palladium usage from late 1990s.Also driven by high palladium usage from late 1990s.–– >50% of >50% of ELVsELVs catalyst fittedcatalyst fitted, maturity within 5 years., maturity within 5 years.

Recovery in Japan & other regions 96,000 Recovery in Japan & other regions 96,000 ozsozs, up 10%, up 10%–– Japanese exports of Japanese exports of ELVsELVs for reuse, impacts palladium too. for reuse, impacts palladium too.

Autocatalyst recyclingAutocatalyst recyclingsubtitle: approaching the icebergsubtitle: approaching the iceberg

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.019

82

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

annu

al u

sage

m o

zs

0%

2%

4%

6%

8%

10%

12%

Platinum

Palladium

ELV age profile (ELV age profile (rhsrhs))

20062006 20112011

Headline supply Headline supply -- palladiumpalladium


Up 6%Up 6%

128128764764636636Autocatalyst recyclingAutocatalyst recycling

3303307,2557,2556,9256,925Mine productionMine production

+(+(--))2006200620052005‘000‘000 ozsozs

(Excluding supplies from above(Excluding supplies from above--ground stocks)ground stocks)

Demand Demand -- palladiumpalladium

Up 8%Up 8%3213214,4564,4564,1354,135AutocatalystAutocatalyst

56%56%53%53%Share of total demandShare of total demand

+(+(--))2006200620052005‘000‘000 ozsozs


First increase in six years !First increase in six years !

Autocatalyst in 2006 Autocatalyst in 2006 -- palladiumpalladiumNorth America improves by 5% to 1.56m North America improves by 5% to 1.56m ozsozs–– Consumption rose despite 6% fall in gasoline LV production. Consumption rose despite 6% fall in gasoline LV production. –– Substitution gainsSubstitution gains versus platinum and versus platinum and Tier 2 benefitsTier 2 benefits..

Europe rose by 3% to 1.22m Europe rose by 3% to 1.22m ozs ozs –– After multiAfter multi--year decline, year decline, small rise in gasoline LV productionsmall rise in gasoline LV production–– Euro 4 compliance up 21% in gasolineEuro 4 compliance up 21% in gasoline (diesel up 45%).(diesel up 45%).–– Further substitution gainsFurther substitution gains in gasoline, process started in diesel.in gasoline, process started in diesel.

Japan, palladium demand up 16% at 871,000 Japan, palladium demand up 16% at 871,000 ozsozs–– Gasoline LV production up 4% on rising exports.Gasoline LV production up 4% on rising exports.–– Substitution process gathering paceSubstitution process gathering pace after slower start.after slower start.

Other regions gain 14% to 811,000 Other regions gain 14% to 811,000 ozsozs–– LV output 29.1m units, up 13%LV output 29.1m units, up 13% (80% gasoline).(80% gasoline).–– Included strong gains in China (29%) & Latin America (15%).Included strong gains in China (29%) & Latin America (15%).–– Tighter legislation e.g. Tighter legislation e.g. Euro 3 compliance in China 57%.Euro 3 compliance in China 57%.


12%12%15%15%Share of demand Share of demand Down 17%Down 17%

(197)(197)9819811,1781,178Jewellery fabricationJewellery fabrication


+(+(--))2006200620052005‘000‘000 ozsozs


Jewellery in 2006 Jewellery in 2006 -- palladiumpalladium

Fabrication demand fell by 17% to a net 981,000 Fabrication demand fell by 17% to a net 981,000 ozsozs–– 2006 average 2006 average price up 60%, volatility highest everprice up 60%, volatility highest ever at 31%at 31%

China stalled then fell, down 27% to 657,000 China stalled then fell, down 27% to 657,000 ozsozs–– Spectacular 2005 included sizeable inventory build.Spectacular 2005 included sizeable inventory build.–– Higher use of scrap (incl. replacement of plain Pd950 by Pd990).Higher use of scrap (incl. replacement of plain Pd950 by Pd990).–– VAT & price transparency issues (palladium not traded on SGE).VAT & price transparency issues (palladium not traded on SGE).

Elsewhere, fabrication up 18% at 324,000 Elsewhere, fabrication up 18% at 324,000 ozsozs–– North America 76,000 North America 76,000 ozsozs, up 43% (due to palladium jewellery)., up 43% (due to palladium jewellery).–– Europe unchanged, palladium jewellery offset lower white gold.Europe unchanged, palladium jewellery offset lower white gold.–– Japan down 4% to 78,000 Japan down 4% to 78,000 ozsozs (lower use in platinum alloys). (lower use in platinum alloys).


1241247,9027,9027,7787,778Total demandTotal demand

Up 2%Up 2%


(197)(197)9819811,1781,178Jewellery Jewellery

Other industrialOther industrial

(99)(99)1,2451,2451,3441,344–– other sectorsother sectors98981,2191,2191,1211,121–– electronics electronics

+(+(--))2006200620052005‘000‘000 ozsozs


Supply & demand Supply & demand -- palladiumpalladium


7,9027,9027,7787,778Demand Demand


2006200620052005‘000‘000 ozsozs

(Excluding above(Excluding above--ground stocks)ground stocks)

Supply & demand Supply & demand -- palladiumpalladium

1,6131,6131,8581,858Total stock releasesTotal stock releases

6363439439Stillwater inventoryStillwater inventory

001919US DLA salesUS DLA sales

117117(217)(217)Gross surplus (deficit) Gross surplus (deficit) ****

1,5501,5501,4001,400Russian state salesRussian state sales

1,7311,7311,6411,641Residual surplus (deficit)Residual surplus (deficit)

2006200620052005000000 ozsozs

** Global stocks increased by a net 117,000 ounces in 2006** Global stocks increased by a net 117,000 ounces in 2006Otherwise, stocks changed hands e.g. Russia to investorsOtherwise, stocks changed hands e.g. Russia to investors

Outlook for 2007Outlook for 2007

Platinum in 2007Platinum in 2007Expected to remain in surplusExpected to remain in surplus

Headline supply expected to rise ~380,000 Headline supply expected to rise ~380,000 ozsozs (5%)(5%)–– South African mine production will again be the feature.South African mine production will again be the feature.

Demand growth limited by substitution & high prices Demand growth limited by substitution & high prices –– Autocatalyst: further gains in the diesel sectorAutocatalyst: further gains in the diesel sector

Increasing fitment of particulate filters…Increasing fitment of particulate filters…butbutPalladium penetration in diesels becoming material.Palladium penetration in diesels becoming material.US heavy duty, 1US heavy duty, 1stst full year full year butbut production to fall sharply.production to fall sharply.Further contraction of platinum’s use in gasoline systems.Further contraction of platinum’s use in gasoline systems.

–– Jewellery: further losses seem inevitable.Jewellery: further losses seem inevitable.Impact across the board but China to suffer the brunt.Impact across the board but China to suffer the brunt.Scrap flows and physical disinvestment to increase.Scrap flows and physical disinvestment to increase.

Supply increase to outweigh growth in demandSupply increase to outweigh growth in demand

The case for platinumThe case for platinum

Fundamentals remain positive despite return to surplusFundamentals remain positive despite return to surplus–– 98% of supply in 2006 was absorbed by fabrication.98% of supply in 2006 was absorbed by fabrication.–– “Essential” applications comprised 78% of demand. “Essential” applications comprised 78% of demand. –– With decline of jewellery, demand is now less flexible.With decline of jewellery, demand is now less flexible.–– SupplySupply--side sensitivities are correspondingly greater.side sensitivities are correspondingly greater.

Supply heavily concentrated, geographic & corporate.Supply heavily concentrated, geographic & corporate.–– Deficits have depleted stocks by almost ~5m Deficits have depleted stocks by almost ~5m ozsozs since 1999.since 1999.–– Perception that remaining abovePerception that remaining above--ground stocks are limited.ground stocks are limited.

We agree, but stocks are somewhat larger than many believe.We agree, but stocks are somewhat larger than many believe.

These continue to underpin positive investor sentimentThese continue to underpin positive investor sentiment–– Plus HD diesel potential & prospects in the US for LD diesel.Plus HD diesel potential & prospects in the US for LD diesel.

Price outlook (to end 2007) Price outlook (to end 2007) -- platinumplatinum

$750

$900

$1,050

$1,200

$1,350

$1,500Ja

n-05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

$1,450$1,450

$1,150$1,150

Palladium in 2007Palladium in 2007Smaller gross surplus but heavy stock sales likelySmaller gross surplus but heavy stock sales likely

Headline supply expected to rise ~300,000 Headline supply expected to rise ~300,000 ozsozs (4%)(4%)–– South African mine production + autocatalyst recyclingSouth African mine production + autocatalyst recycling

Demand gains likely aided by rebound in jewelleryDemand gains likely aided by rebound in jewellery–– Autocatalyst: demand has finally turned the cornerAutocatalyst: demand has finally turned the corner

Gasoline: substitution gains, thrifting less pronounced. Gasoline: substitution gains, thrifting less pronounced. Diesel: palladium penetration becoming material.Diesel: palladium penetration becoming material.

–– Jewellery: palladium price higher but advantage remainsJewellery: palladium price higher but advantage remainsChina: 2006 effects of inventory & Pd950 recycling removed. China: 2006 effects of inventory & Pd950 recycling removed. Price transparency & VAT are remaining issues.Price transparency & VAT are remaining issues.

Gross surplus may reduce but heavy stock sales likelyGross surplus may reduce but heavy stock sales likely

The case for palladiumThe case for palladiumOvershadowed by substantial aboveOvershadowed by substantial above--ground stocksground stocks–– Barring stocks, fundamentals are broadly similar to platinum’s.Barring stocks, fundamentals are broadly similar to platinum’s.–– 98% of headline supply in 2006 was absorbed by fabrication.98% of headline supply in 2006 was absorbed by fabrication.–– “Essential” applications form 78% of demand (same as Pt). “Essential” applications form 78% of demand (same as Pt). –– Demand inflexibility & supplyDemand inflexibility & supply--side risks are just as real.side risks are just as real.

But these issues masked by large aboveBut these issues masked by large above--ground stocks.ground stocks.–– Perception: historic surpluses mean rising abovePerception: historic surpluses mean rising above--ground stocks.ground stocks.

Reality: global stocks have been cut by ~11m Reality: global stocks have been cut by ~11m ozsozs since 1999.since 1999.–– Stocks large but ownership changing (from Russia to investors).Stocks large but ownership changing (from Russia to investors).

Investors may already know this! Also tunedInvestors may already know this! Also tuned--in to:in to:–– Palladium’s substitution opportunities (value play versus Pt).Palladium’s substitution opportunities (value play versus Pt).–– Long term prospects for palladium jewellery.Long term prospects for palladium jewellery.

Price outlook (to end 2007) Price outlook (to end 2007) -- palladiumpalladium

$150

$200

$250

$300

$350

$400

$450

$500Ja

n-05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

$420$420

$320$320

41

DisclaimerThe information and opinions contained in this presentation havebeen obtained from sources believed to be reliable, but no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. This presentation does not purport to make any recommendation or provide investment advice to the effect that any precious metal related transaction is appropriate for all investment objectives, financial situations or particular needs.Prior to making any investment decisions investors should seek advice from their advisers on whether any part of this presentation is appropriate to their specific circumstances. This presentation is not, and should not be construed as, an offer or solicitation to buy or sell precious metals or any precious metal related products. Expressions of opinion are those of GFMS Ltd only and are subject to change without notice.

GFMS gratefully acknowledges the generous GFMS gratefully acknowledges the generous support of the following companies for this year’s support of the following companies for this year’s

Platinum & Palladium SurveyPlatinum & Palladium Survey


www.standardbank.com

Norilsk Nickel

platinum & palladium survey 2007 - kitco · – tapping increasingly into peak palladium use of...

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