NON-FERROUS METALLURGY: PLATINUM-GROUP METALS€¦ · RUSSIAN PLATINUM -GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS 2.1 PLATINUM MINING Platinum mining in Russia and globally

NON-FERROUS METALLURGY: PLATINUM-GROUP METALSFACTS 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.

RUSSIA IN THE GLOBAL PLATINUM-GROUP METALS INDUSTRY

I

6 WWW.INVESTINRUSSIA.COM


PLATINUM AND PALLADIUM RESERVES BY COUNTRY2013, thousand tonnes*

1.1

* Source: USGS data

1. South Africa 2. Russia 3. USA Other countries4. Canada

63.0

1.20.9

0.8

0.3

WWW.RDIF.RU 7

1.2 PLATINUM-GROUP METALS MINING GLOBALLY

Leading countries*, 2013, tonnes

* Source: USGS data

821. Russia

822. South Africa

13

3. Canada

12.5

4. USA

9

5. Zimbabwe

Global platinum mining

Global palladium mining

1401. South Africa

252. Russia

123. Zimbabwe

7

4. Canada

3.7

5. USA


2

6. ValeBrazil


PLATINUM INDUSTRY: KEY GLOBAL PLAYERS2013

1.3

Ranking of companies based on platinum production

2013, % of global production

242. Impala Platinum

South Africa

39 1. Anglo Platinum

South Africa

114. Norilsk Nickel

Russia

133. Lonmin

UK

4

5. NorthamSouth Africa

Source: Annual Report of Norilsk Nickel, 2013, Company data

WWW.RDIF.RU 9

1.4 PALLADIUM INDUSTRY: KEY GLOBAL PLAYERS 2013

Ranking of companies based on palladium production

2013, % of global production

133. Impala Platinum

South Africa

21 2. Anglo Platinum

South Africa

411. Norilsk Nickel

Russia

5

5. LonminUK

5

6. ValeBrazil

6

4. StillwaterUSA

Source: Annual Report of Norilsk Nickel, 2013, Company data


RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS

II



PLATINUM MINING2.1

Platinum mining in Russia and globally2009-2013, tonnes*

2010

13.1

2012

13.4

2013

13.0

2009

11.6

2011

12.8

* Source: USGS data

18121

19225.1

19525

18324.6

19225

In Russia Globally Russia’s share of global mining, %

WWW.RDIF.RU 13

PALLADIUM MINING2.2

Russia’s share of global mining, %

Palladium mining in Russia and globally2009-2013, tonnes*

2010

41.9

2012

40.8

2013

38.8

2009

43.3

2011

40.0

* Source: USGS data

19283.2

20283.7

21586

20182.1

21182

In Russia Globally Russia’s share of global mining, %



PLATINUM AND PALLADIUM PRODUCTION IN RUSSIA2.3

Palladium production in Russia 2010-2013., tonnes

Platinum production in Russia2010-2013, tonnes

100.0

106.695.6 101.3

Production in Russia, % change from previous period

2010 2012 2013

30 32 30.6 31 2011

100.097.8 100.0

94.3

Production in Russia, % change from previous period

2010 2011 2012 2013

91 89 89 84.0

WWW.RDIF.RU 15

2.4 RUSSIAN EXPORT OF PALLADIUM AND PLATINUM2013, tonnes, by top importing countries

USA

Japan

Hong Kong

GermanyUK

Belarus

0.3 3.7 0.6 7.7

0.4

1029

Exports of palladium, tonnes Exports of platinum, tonnes

0.1616

16 WWW.INVESTINRUSSIA.COM16 WWW.INVESTINRUSSIA.COM

GEOGRAPHY AND CORPORATE STRUCTUREIII


3

9

3

9

Krasnoyarsk Krai

GEOGRAPHY AND CORPORATE STRUCTURE

KEY DEPOSITS OF PLATINUM AND PALLADIUM IN RUSSIA

Republic of Karelia

Murmansk Region

Permsky Krai

Sverdlovsk Region

Kamchatsk Krai

Amur Region

Khabarovsk Krai

Republic of Sakha (Yakutia)

1 2

2

Reserves, tonnes: <10 10-100 >100

3.1

WWW.RDIF.RU 19

Russian Platinum GC

Polar Division (Norilsky Kombinat OJSC) Kolskaya GMK OJSC Kombinat Severonikel OJSC Mining and Metallurgi-cal Kombinat Pechenganikel OJSC

Norilsk Nickel

Companies of the Holding company

Mines of the Holding company

Oktyabrskoe (Krasnoyarsk Krai) Talnakhskoe (Krasnoyarsk Krai) Norilsk-1 (Krasnoyarsk Krai) Zhdanovskoe (Krasnoyarsk Krai) Zapolyarnoe (Krasnoyarsk Krai) Kotselvaara, Semiletka (Krasnoyarsk Krai)

Talnakhskaya Norilskaya

Copper Metallurgical Plant Nickel Metallurgical Plant Nadezhdinsky Metallurgical Plant Severonikel Kombinat

Metallurgical processing enterprises

Concentrating plants

1

2

RUSSIAN PLATINUM-GROUP METALS INDUSTRY: CORPORATE STRUCTURE

3.2

Artel Starateley Amur UK OJSC Russian Platinum LLC

Companies of the Holding company

Mines of the Holding company

Chernogorskoe Deposit (Krasnoyarsk Krai) Konder (Khabarovsk Krai) Norilsk-1 (Southern section) (Krasnoyarsk Krai)


Russia

USA

UK

Canada

Peru

South Africa

China

Philippines

China

Australia

Norilsk Nickel

Southern Copper Corp.

Antofagasta Plc

First Quantum Minerals Ltd.

Sociedad Minera Cerro Verde SAA

Impala Platinum Holdings Ltd

Jilin Jien Nickel Industry Co., Ltd.

Nickel Asia Corp.

Chongyi Zhangyuan Tungsten Co., Ltd

Western Areas Ltd

11 121.42

6 669.27

6 325.39

3 446.50

1 804.65

2 728.63

391.16

245.54

322.42

301.93

28 642.18

23 369.05

10 988.26

9 126.63

8 523.86

4 582.44

3 721.92

2 472.43

1 362.36

849.16

Market capitalization, USD mln

Sales, USD mln

CompanyCountry

NORILSK NICKEL: NO. 1 IN GLOBAL INDUSTRY TOP – 102013, by sales volume and market capitalization


1

2

3

4

5

6

7

8

9

10

Sources: Bloomberg, Reuters

3.3

N

OR

ILSK

NIC

KEL

WWW.RDIF.RU 21

NORILSK NICKEL: GLOBAL MARKET LEADER 2013 , share in global metal production

№1global nickel producer

№1global palladium producer

№4global platinumproducer

№11global copperproducer

14% of global nickel

production

41% of global palladium

production

11% of global platinum

production

2% of global copper

production



NORILSK NICKEL MARKET CAPITALIZATION

Norilsk Nickel

Rio Tinto

BHP Billiton

VALE

Capitalization growthNov 2013 - Nov 2014, %

Sources: Bloomberg, Reuters, Company data

+20%

-9.3%

-19.3%

-41%

28.6Nov. 14

+20%

CapitalizationUSD bln

23.8Nov. 13

N

OR

ILSK

NIC

KEL

WWW.RDIF.RU 23

4.25.8

EBITDA USD bln

4251

4137

5.8 4.2 7.2 7.2 4.9 4.2 2008 2009 2010 2011 2012 2013

4956

EBITDA margin, %

RevenuesUSD mln

Earnings per shareUSD

2013

2012

2011

16.3

19.2

23.2

2013

2012

2011

11.5

12.4

14.5

NORILSK NICKEL: SUSTAINABLE HIGH MARGIN


NORILSK NICKEL: KEY FINANCIAL INDICATORS 2011-2013


Net Debt to EBITDA2013

Free Cash Flow2013, as % of Revenue

Norilsk Nickel

BHP Billiton

VALE

Rio Tinto

Anglo American

21

11

9

8

4

BHP Billiton

Rio Tinto

Norilsk Nickel

VALE

Anglo American

0.8x

0.9x

1.1x

1.1x

1.2x

N

OR

ILSK

NIC

KEL

WWW.RDIF.RU 25

С

AGR

30%

Europe 52

NORILSK NICKEL: DIVERSIFIED GLOBAL PLAYER WITH A FOCUS ON CHINA

Norilsk Nickel exports to China2005-2013, nickel, thousand tonnes

Norilsk Nickel Sales structure2013, %

North America 9

Asia 29

Russia 10

2005 2013

70

8.75



NORILSK NICKEL PRODUCTION INDICATORS: PLATINUM AND PALLADIUM2011-2013, thousand troy ounces

2012 2013

695 683 651 2011

Platinum production

Palladium production

2012 2013

2,806 2,731 2,661 2011

N

OR

ILSK

NIC

KEL

WWW.RDIF.RU 27

NOTES


NOTES

WWW.RDIF.RU 29

NOTES


RDIF PRESENTS

PLATFORMINVEST IN RUSSIA

INVESTIN RUSSIA

WWW.RDIF.RU 31

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Documents

NON-FERROUS METALLURGY: PLATINUM-GROUP METALS€¦ · RUSSIAN PLATINUM -GROUP METALS INDUSTRY: CURRENT ISSUES AND TRENDS 2.1 PLATINUM MINING Platinum mining in Russia and globally