Platinum-Group Metals Facts and Figures
NON-FERROUS METALLURGY: PLATINUM-GROUP METALS FACTS AND FIGURES
2014
ABOUT THE RUSSIAN DIRECT INVESTMENT FUND
The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
I RUSSIA IN THE GLOBAL PLATINUM-GROUP METALS INDUSTRY RUSSIA IN THE GLOBAL PLATINUM-GROUP METALS INDUSTRY
1.1 PLATINUM AND PALLADIUM RESERVES BY COUNTRY 2013, thousand tonnes*
63.0
1.2 0.9
0.3
0.8
1. South Africa 2. Russia 3. USA 4. Canada Other countries
* Source: USGS data
6 WWW.INVESTINRUSSIA.COM 1.2 PLATINUM-GROUP METALS MINING GLOBALLY Leading countries*, 2013, tonnes
Global platinum mining
140 25 12 7 3.7
1. South Africa 2. Russia 3. Zimbabwe 4. Canada 5. USA
Global palladium mining
82 82 13 12.5 9
1. Russia 2. South Africa 3. Canada 4. USA 5. Zimbabwe
* Source: USGS data
WWW.RDIF.RU 7 RUSSIA IN THE GLOBAL PLATINUM-GROUP METALS INDUSTRY
1.3 PLATINUM INDUSTRY: KEY GLOBAL PLAYERS 2013
Ranking of companies based on platinum production 2013, % of global production
39 24 13 11 4 2
1. Anglo Platinum 2. Impala Platinum 3. Lonmin 4. Norilsk Nickel 5. Northam 6. Vale South Africa South Africa UK Russia South Africa Brazil
Source: Annual Report of Norilsk Nickel, 2013, Company data
8 WWW.INVESTINRUSSIA.COM 1.4 PALLADIUM INDUSTRY: KEY GLOBAL PLAYERS 2013
Ranking of companies based on palladium production 2013, % of global production
41 21 13 6 5 5
1. Norilsk Nickel 2. Anglo Platinum 3. Impala Platinum 4. Stillwater 5. Lonmin 6. Vale Russia South Africa South Africa USA UK Brazil
Source: Annual Report of Norilsk Nickel, 2013, Company data
WWW.RDIF.RU 9 10 WWW.INVESTINRUSSIA.COM II RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS
2.1 PLATINUM MINING
Platinum mining in Russia and globally 2009-2013, tonnes*
181 192 195 183 192 21 25.1 25 24.6 25
2009 2010 2011 2012 2013
11.6 13.1 12.8 13.4 13.0
In Russia Globally Russia’s share of global mining, %
* Source: USGS data
12 WWW.INVESTINRUSSIA.COM 2.2 PALLADIUM MINING
Palladium mining in Russia and globally 2009-2013, tonnes*
215 211 192 202 201 83.2 83.7 86 82.1 82
2009 2010 2011 2012 2013
43.3 41.9 40.0 40.8 38.8
Russia’s share of global mining, % In Russia Globally Russia’s share of global mining, %
* Source: USGS data
WWW.RDIF.RU 13 RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS
2.3 PLATINUM AND PALLADIUM PRODUCTION IN RUSSIA
Platinum production in Russia 2010-2013, tonnes
106.6 101.3 95.6 100.0 30 32 30.6 31 2010 2011 2012 2013
Production in Russia, % change from previous period
Palladium production in Russia 2010-2013., tonnes
100.0 97.8 100.0 94.3 91 89 89 84.0 2010 2011 2012 2013
Production in Russia, % change from previous period
14 WWW.INVESTINRUSSIA.COM 2.4 RUSSIAN EXPORT OF PALLADIUM AND PLATINUM 2013, tonnes, by top importing countries
Germany UK USA Belarus Hong Kong
Japan
7.7 0.3 3.7 0.6 29 10 16 0.4 0.16
Exports of palladium, tonnes Exports of platinum, tonnes
WWW.RDIF.RU 15 16 WWW.INVESTINRUSSIA.COM III GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE
3.1 KEY DEPOSITS OF PLATINUM AND PALLADIUM IN RUSSIA
Krasnoyarsk Krai 1 2 Kamchatsk Krai
Murmansk Region
Republic of Sakha (Yakutia)
Republic of Karelia
3 3
9 9
Permsky Krai
Amur Region
Sverdlovsk Region Khabarovsk Krai 2 Reserves, tonnes: <10 10-100 >100
18 WWW.INVESTINRUSSIA.COM 3.2 RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CORPORATE STRUCTURE
1 Norilsk Nickel
Companies Mines of the Holding Concentrating Metallurgical of the Holding company plants processing enterprises company
Polar Division (Norilsky Oktyabrskoe Talnakhskaya Copper Metallurgical Kombinat OJSC) (Krasnoyarsk Krai) Norilskaya Plant Kolskaya GMK OJSC Talnakhskoe Nickel Metallurgical Kombinat Severonikel (Krasnoyarsk Krai) Plant OJSC Norilsk-1 Nadezhdinsky Mining and Metallurgi- (Krasnoyarsk Krai) Metallurgical Plant cal Kombinat Zhdanovskoe Severonikel Kombinat Pechenganikel OJSC (Krasnoyarsk Krai) Zapolyarnoe (Krasnoyarsk Krai) Kotselvaara, Semiletka (Krasnoyarsk Krai)
2 Russian Platinum GC
Companies Mines of the Holding company of the Holding company
Artel Starateley Amur UK OJSC Chernogorskoe Deposit (Krasnoyarsk Krai) Russian Platinum LLC Konder (Khabarovsk Krai) Norilsk-1 (Southern section) (Krasnoyarsk Krai)
WWW.RDIF.RU 19 GEOGRAPHY AND CORPORATE STRUCTURE
3.3 NORILSK NICKEL: NO. 1 IN GLOBAL INDUSTRY TOP – 10 2013, by sales volume and market capitalization
Country Company Sales, Market USD mln capitalization, USD mln
1 Russia Norilsk Nickel 11 121.42 28 642.18
2 USA Southern Copper Corp. 6 669.27 23 369.05
3 UK Antofagasta Plc 6 325.39 10 988.26
4 Canada First Quantum Minerals Ltd. 3 446.50 9 126.63
5 Peru Sociedad Minera Cerro Verde SAA 1 804.65 8 523.86 NORILSK NICKEL NORILSK 6 South Africa Impala Platinum Holdings Ltd 2 728.63 4 582.44
7 China Jilin Jien Nickel Industry Co., Ltd. 391.16 3 721.92
8 Philippines Nickel Asia Corp. 245.54 2 472.43
9 China Chongyi Zhangyuan Tungsten Co., Ltd 322.42 1 362.36
10 Australia Western Areas Ltd 301.93 849.16
Sources: Bloomberg, Reuters
20 WWW.INVESTINRUSSIA.COM NORILSK NICKEL: GLOBAL MARKET LEADER 2013 , share in global metal production
global global nickel palladium producer № № producer 1 14% 1 41% of global nickel of global palladium production production
global global platinum copper producer producer №4 11% №11 2% of global platinum of global copper production production
WWW.RDIF.RU 21 GEOGRAPHY AND CORPORATE STRUCTURE
NORILSK NICKEL MARKET CAPITALIZATION
Capitalization growth Capitalization Nov 2013 - Nov 2014, % USD bln
+20% Norilsk Nickel +20% 28.6 Nov. 14
NORILSK NICKEL NORILSK Rio Tinto -9.3% 23.8 Nov. 13
BHP Billiton -19.3%
VALE -41%
Sources: Bloomberg, Reuters, Company data
22 WWW.INVESTINRUSSIA.COM NORILSK NICKEL: SUSTAINABLE HIGH MARGIN
EBITDA USD bln 56 49 51 42 41 37
5.8 5.8 4.2 4.2 7.2 7.2 4.9 4.2
2008 2009 2010 2011 2012 2013
EBITDA margin, %
Earnings per share Revenues USD USD mln
2013 16.3 2013 11.5
2012 19.2 2012 12.4
2011 23.2 2011 14.5
WWW.RDIF.RU 23 GEOGRAPHY AND CORPORATE STRUCTURE
NORILSK NICKEL: KEY FINANCIAL INDICATORS 2011-2013
Free Cash Flow Net Debt to EBITDA 2013, as % of Revenue 2013
Norilsk Nickel 21 BHP Billiton 0.8x
BHP Billiton 11 Rio Tinto 0.9x NORILSK NICKEL NORILSK VALE 9 Norilsk Nickel 1.1x
Rio Tinto 8 VALE 1.1x
Anglo American 4 Anglo American 1.2x
24 WWW.INVESTINRUSSIA.COM NORILSK NICKEL: DIVERSIFIED GLOBAL PLAYER WITH A FOCUS ON CHINA
Norilsk Nickel Sales structure Norilsk Nickel exports to China 2013, % 2005-2013, nickel, thousand tonnes
Europe 52 70 North America 9
Russia 10 СAGR 30% Asia 29
8.75
2005 2013
WWW.RDIF.RU 25 GEOGRAPHY AND CORPORATE STRUCTURE
NORILSK NICKEL PRODUCTION INDICATORS: PLATINUM AND PALLADIUM 2011-2013, thousand troy ounces
Platinum production
695 683 651
2011 2012 2013 NORILSK NICKEL NORILSK
Palladium production
2,806 2,731 2,661 2011 2012 2013
26 WWW.INVESTINRUSSIA.COM NOTES
WWW.RDIF.RU 27 NOTES
28 WWW.INVESTINRUSSIA.COM NOTES
WWW.RDIF.RU 29 RDIF PRESENTS
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