GENEVA, Oct. 23rd 6thPD.pdf · BAC Mining Regions Managed Vol.- South Africa (CHF) Zug, Switzerland 19 Coming events 1th BAC Indaba Natural Resources Day March 31 / April 2 INVESTOR

GENEVA, Oct. 23rd •

by Bernard Loriol, Managing Partner and Fund Manager, BAC Mining Regions Managed Vol.- South Africa (CHF) Zug, Switzerland

“What has happened in the past four months”

BAC Mining Regions Managed Vol.- South Africa (CHF) Zug, Switzerland 3

Best Asset Class AG, Company Structure

BUSINESS DEVELOPMENT

Cyrill Moity

Director Middle EastSouth America

MANAGEMENT

CONTROLLER

SandroBagnatoSwitzerland (TI)Italy

Irina Jung

Switzerland (German)MonacoGermany

Alfredo Muñoz

Director SpainSouth America

NatalieGasserEvents

Dr. AlbertJungLegal AdvisorPresident of theBushveld Foundation

Felix Würth

Accounting

JoakimBünzliControler & Risk managementNorth Europe / BanksHedge FundsFund of FundsDue Diligence

MichaelBuechlerAssistant

EVENTS

INVESTMENT COMMITTEE

Laurent Krull

LK Consult

Geology

ChristianPiquet

Risk Control

Urs Gmuer

Dolefin S.A.

TechnicalAnalysis

ChristopheAudergonCrossinvest S.A.

Bottom-upAnalysis

CONSULTANT

RenéHochreiterAllan & Hochreiter LtdGeologyMiningEngineeringFinance

BUSINESS PARTNERS

Structured ProductsBAC Africa Commodities

Bernard LoriolCEO, CIO

Csaba ViràgPARTNEREast EuropeCommunicationsIT / BAC Indicies

Patrick GallatiMarketingCommunications

MARKETING

PatrickSan JuanSpainSouth America

MiguelSan JuanSpainSouth America

Mark Bosman

Special Project Manager Consultant

BAC SolarBAC Hydrogen

ADVISORY BOARD

STAFF

90%

290%

490%

690%

890%

1090%

1290%

1490%

1690%

01.0

1.19

99

01.0

7.19

99

01.0

1.20

00

01.0

7.20

00

01.0

1.20

01

01.0

7.20

01

01.0

1.20

02

01.0

7.20

02

01.0

1.20

03

01.0

7.20

03

01.0

1.20

04

01.0

7.20

04

01.0

1.20

05

01.0

7.20

05

01.0

1.20

06

01.0

7.20

06

01.0

1.20

07

01.0

7.20

07

01.0

1.20

08

Performances 01.01.1999-29.02.2008


Performances: JSE Platinum Index versus Platinum bullion

u Q1 2008: more than 80% operating margin ?

x 17(HUI x 7)

x 6(Au x 4)

JSE Platinum Index (USD without divident) oz Platinum


Global Indexu 2004 - 22.0 %u 2005 +101.3 %u 2006 +59.23 %u 2007 +31.60 %u YTD + 1.52 %

Performances: www.platexindex.com

BAC Platinum Group Metals Global Index BAC Platinum Group Metals Explorers Index

Explorers Index- 11.0 %+24.72 %+75.67 %+78.97 %- 11.17 %

Performances in CHF


Corporatesu Huge improvement in Anglo Platinum / DME relationu Xstrata / Nkwe dealu Corporate tax reduced by 1% to 28%u Juniors and Explorers supported by Finance Minister

Supply / demandu Explosion of long-term deficit prospects (power, safety, strikes...)u ETF more than 350,000 ozu Car industry silent... but active in the market.

Priceu New record prices for PGMsu New high for the JSE Platinum Index and our Global PGMs Indexu Weak ZAR

What has happened since the 5th BAC Platinum Day(October 22-30, 2007)


u Size: CHF 342 million 5 investors (3 independent asset managers, 2 pension funds) own 1/3 of the assets

u Performance (since move to platinum): 2006: +65.72 %2007: +67.74 %Last 12 months: +32.63 %Last 3 years: +194.58 %YTD: - 8.24 %

u The only fund in the world invested fully in PGMs. 80% of the Fund‘s investments will be presented at the 6th and 7 th BAC Platinum Days in March 2008 and July 2008.

u Swiss, Daily liquidityu Costs:

u TER: 1.92%u Performance fees: 20% after 15% performance (high-water mark)u Sales fees: up to 3% permitted

u Transparency, documented for clients, investment commitee, unique expertise.

u EXIT strategy

THE FUND



0

25000

50000

75000

100000

125000

150000

01.1

0.20

04

01.1

2.20

04

01.0

2.20

05

01.0

4.20

05

01.0

6.20

05

01.0

8.20

05

01.1

0.20

05

01.1

2.20

05

01.0

2.20

06

01.0

4.20

06

01.0

6.20

06

01.0

8.20

06

01.1

0.20

06

01.1

2.20

06

01.0

2.20

07

01.0

4.20

07

01.0

6.20

07

01.0

8.20

07

01.1

0.20

07

01.1

2.20

07

01.0

2.20

08

BAC Mining Regions Managed Vol. South Africa Issued Units



650

950

1250

1550

1850

2150

2450

2750

BAC Mining Regions Managed Vol. South AfricaSince Launch in CHF

-12.1 %


u Easy access to management/transparencyu Core holdings very liquidu Own Research (LK Consult)

Platinum Producers Platinum Explorers Gold CompaniesNorilsk Nickel Platmin Anglo Gold AshantiAnglo American Platinum Wesizwe Platinum Gold FieldsImpala Platinum Sylvania Resources HarmonyLonmin Platinum Australia DRD GoldAquarius Platinum Platinum Group Metals MvelaphandaNortham Platinum Ridge Mining RandgoldEastern Platinum AIM Resources CenturionAnooraq Resources Jubilee Platinum African Rainbow

Nkwe Platinum JCIBraemore Resources Simmer & JackCaledonia Mining Great Basin GoldConsolidated Puma Minerals AfgoldBeartooth Platinum Witsgold

Investment Universe

In the TOP 10 of the portolio


Investment case: Explorers

u Au producers:u 274 (202) $ |oz in situ

u Au explorers:u 90 (96) $ |oz in situ

u PGM producers:58 (50) $ |oz in situ

u Pt explorers:u 20 (31) $ | oz in situ

...and Pt price is 120% higher than Au

Pt Explorers are cheap Value Curve

Rock-solidfundamentals

managementproximity

follow-up ofprojects

Success with Explorers

1999 AQP IPO 50p

2008 x 40

20/30% Takeover premium ?

xAQP

In brackets, situation 5th BAC Platinum Day (October 22 – 30, 2007)


Current portfolio

1. Anooraq Resources 20.9 %2. Platinum Australia 11.7 %3. Wesizwe 10.5 %4. Sylvania Resources 9.3 %5. Platmin 8.5 %6. Ridge Mining 6.8 %7. Platinum Group Metal 6.4 %8. Braemore Resources 5.6 %9. NkwePlatinum 4.8 %10. Jubilee Platinum 3.9 %

88.4 %

u Fully invested

u No leverage

u No currency hedge


u Souh Africa

u Stock Market Crash Worldwideu 80% margin = shock absorberu Producers pay high dividendsu 60% of the demand forced by more legislative restrictions

u Chinau Olympics 2008u Stock-market correction is over?

u World recessionuThis time is different for PtuFollow Equity Markets

u SubstitutionuAutocatsuFuel cell

Risks

u Zuma?u Power shortageu Economy: but still 4% growthu Current-account deficit: need 3bn ZAR a weeku Poverty: crime – HIV – unemployment

u 1% budget surplus (2007)u Surpluses 2008 / 2009 / 2010u Debt ratio to GDP = 17% in 2010u Company tax rate down 1% to 28%u 2010u Weaker rand

+-

u Another Swiss Franc Surprise


A stunning comparison…

JSE Platinum Index 2003 – to dateNASDAQ100 Index 1991 – January 1998

Performance for both: 400%

Chart prepared by DOLEFIN SA


A stunning comparison…

NEXT ?

JSE Platinum Index 2003 – to dateNASDAQ100 Index 1991 – March 2000

Chart prepared by DOLEFIN SA


Prospects for the coming 7 months (7th BAC Platinum Day)

uMore corporate activities

u Financing despite power shortages

u Explorers outperformingproducers

u High oil price

u Appetite for commodities

u Real rates at historical lows

+

PGMs equities should continue to outperform.

uDownside risks on globalstock markets

uEnd of cycle perception?

uRisk aversion

uDeleveraging and credit crunch

uNegative perception of South Africa

-


Maximum bullish on precious metals sector for the coming 5 years!

u The USD will stay weak (IMF)

u Inflation may develop in five years (A. Greenspan)

u Real rates will stay low

u The public will create excesses by shifting from real estate to precious metals (and some commodities)

Source: ‚Irrational Exuberance‘ 2nd Edition2006 by Robert J. Shiller


Conclusion

Platinum - A strategic metal for the Kings that are all of the three major investment themes for the coming decade:

CHINA ENERGY CLIMATE CHANGE


Coming events

1th BAC Indaba Natural Resources Day March 31 / April 2

INVESTOR TOUR 2 May 24 / 27

7th BAC Platinum Day “Fuel Cells and Autocats” June 30 / July 4

8th BAC Platinum Day “Nanotechnology” October 5 / 11

2nd BAC Indaba Natural Resources Day Oct 20 / Oct 22

INVESTOR TOUR 3 Aug 28 / Sept 2

INVESTOR TOUR 4 Oct 30 / Nov 4


Further Information / Contact

Information: www.bestassetclass.chwww.bacfund.chwww.platexindex.comwww.bushveldfoundation.org

[email protected]+41 (0) 79 473 19 08

Links: www.platinum.matthey.comwww.ballard.comwww.preciousplatinum.comwww.angloplatinum.comwww.implats.comwww.kitco.comwww.platinuminfo.net

“So many excellent properties united in a single metal”Antoine Baumé, Master Apothecary, 1773

Documents

GENEVA, Oct. 23rd 6thPD.pdf · BAC Mining Regions Managed Vol.- South Africa (CHF) Zug, Switzerland 19 Coming events 1th BAC Indaba Natural Resources Day March 31 / April 2 INVESTOR