BASEL | ZURICH | LAUSANNE | GENEVA | LUGANO | DUBAI | ABU DHABI | MONACO
PLATINUM NEWSA REVIEW OF THE 5TH BAC PLATINUM DAY
PLATINUM: THREE BIRDS WITH ONE STONECHINDIA, ENERGY AND CLIMATE CHANGE
In exclusivity for this review, Mr. Barry Davison, our special guest speaker,answers our questions on Platinum Market:
A 10.6% return for platinum in the last 78 years is better than U.S. T-bills, U.S. bonds and U.S.equity markets... why is investment demand currently not stronger? Platinum’s price performance, taken over a very long period, has been exceptionally good. That is a consequence of its unique properties and therefore ever-increasing demand for industrial applications as well as its appeal for jewelry.In terms of both volume and value, when compared with gold, the market for the physical metal is small.Availability and liquidity are factors which militate against platinum as an investment metal. That is not to saythat investors do not have an appetite for the platinum success story, but that their appetite is accommodatedin the equity and derivative markets.
What is your view about the future of Norilsk Nickel … could the PGMs return to State hands?For some time now, rumors have been circulating that the Russian State would repurchase control of Norilsk. It is an asset of enormous strategic and commercial importance and Russian taxes are flush with oil and gasrevenues. I believe it could happen. Were it to occur, the sale of its base metal and pgm production would presumably revert to State control or, at least, close supervision.
With the tension rising between the "superpowers", how "strategic" is platinum?Platinum, given its broad industrial base in manufacturing processes and products, and in particular its environmental applications, is a very strategic, rare and high-value commodity. It will remain so for the foreseeable future. The fact that supply has been in deficit for several years and that there are no stocks of consequence increases the metal’s sensitivity to global tensions.
5th BAC PLATINUM DAY:A truly sucessful Event
Mr Barry Davison at his presentation in DubaiFormer Executive Chairman, Anglo Platinum
KEY SPEACHES OF THE 5ST BAC PLATINUM DAY Anooraq Resources CorporationTumelo Motsisi, Deputy Chief Executive; Joel Kessler, Investor Relations
Braemore Resources PLC.Hamish Bohannan, Managing Director; David Russel, Director
Silvania ResourcesRichard Rossiter, Non-Executive Chairman; Ed Nealon, Ex-ChairmanTerence M. McConnachie, Chief Executive Officer
Eland Platinum, David Salter, Director
Zurcher KantonalbankTashi Gambatshang, Head of Sales Investment Funds
Guest speakersBarry Davison, Former Executive Chairman of Anglo PlatinumRené Hochreiter, Allan Hochreiter (Pty) Ltd.
Best Asset Class AG (BAC)Bernard Loriol, CEO and CIO
FACTS AND NUMBERS342 Participants
30% Independent Asset Managers
30% Private Bankers
12% Private Investors/Family Offi.
8% Other Financial Institutions
8% Brockers/Analysts
5% Pension Funds Managers
4% Fund Manag. (totalling more than USD2bn assets in the sector)
3% Journalists
Upcoming Events
6th BAC PLATINUM DAY
Helicopter flight over the Western BushveldVisit of SitesSafari & LodgeMine sites and underground visitsTop Executives meetings (Produ., Explo., BEE Partners)
DATES 2008BASEL March 10, Hotel Trois RoisZURICH March 10, Hotel Baur au LacLAUSANNE March 1 1, Hotel Beau-Rivage LausanneGENEVA March 1 1, Hotel des BerguesPARIS March 12, Hotel Prince de GallesMONACO March 13, Hotel MetropoleLUGANO March 14, Hotel SplendideDUBAI March 16, The Grosvenor House/Royal MeridienABU DHABI March 17, Hotel Abu Dhabi Intercontinental
INVESTORS TOURSOUTH AFRICAJANUARY 25th – 29th, 2008
Dubai and Abu Dhabi hasbecome the new financialhubs of the Middle East.
Conference with distinguished speakers fromsome of the world’s leading platinum mining com-panies and investment research boutiques willdeliver insightful and interesting presentations.
BAC Best Asset Class AG in the Middle East
The DGCX (Dubai Gold & Com-modities Exchange) and DMCC(Dubai Multi Commodities Center)have been constantly growing inimportance for African and Asiancommodity trading.
We have noted substantial interestin South African platinum on thepart of the Arab world this year.
The similarity between oil and platinum, which are both extractedfrom the ground, is now taken forgranted in the Middle East, which
Mr Bernard Loriol (CEO, CIO BAC) withparticipants of the BAC Platinum Day in Dubai
Mr Cyrill MoityDirector Middle East BAC Best Asset Class
For more information and registration: www.bestassetclass.ch
is why Best Asset Class decided to hold its first BAC Platinum Day inDubai and Abu Dhabi. More than a hundred people attended to firstedition. That event enabled BestAsset Class both to enhance itspositions on that new financial plat-form and to create associations.
Following of its success and theworld forum of hydrogen andrenewable energies to be held inAbu Dhabi from January 21 to 23,2008, another BAC Platinum Day2008 will be held in the region.
Bushveld Complex• Size: 50,000 km2• Platinum Group Metals • Estimated Resources: USD 30 trn
United Arab Emirates
United Arab Emirate (UAE)• Size: 83,600 km2• Proven Oil Reserves: USD 8 trn
An Amazing Comparison
Saudi Arabia• Size: 1,960,582 km2• Proven Oil Reserves: USD 20 trn
The Distinguished Speakers of the5th BAC PLATINUM DAY:
Anooraq is engaged in the exploration and development of PGM propertiesin the Bushveld Complex. Its assets include 50 interests in Ga-Phasha, the Boikgantsho JV Project (“Boikgantsho”) and the Kwanda JV Project(“Kwanda”). Anooraq, incorporated in the Province of British Columbia,Canada, is 64.6% owned and controlled by Pelawan. Anooraq has a primary listing on the Toronto Venture Exchange and secondary listings on the American Stock Exchange and the JSE Limited (“JSE”). The proposedacquisition of a 51% controlling interest in Lebowa Platinum Mines fromAnglo Platinum will result in a PGM producing company, controlled byAnooraq, with total reserves and resources of 193.5 million 4E (platinum,palladium, rhodium and gold) oz, the 3rd largest PGM resource base inSouth Africa. Pursuant to the Lebowa Ga-Phasha Transaction, Anooraq will achieve its objective of becoming a significant and independent PGMproducer.
Mr Tumelo MotsisiDeputy Chief ExecutiveOfficer/Mana. Director
www.anooraqresources.com
Braemore Resources Plc is an AIM listed company with projects inPlatinum and Nickel in the Bushveld in South Africa and Nickel inWestern Australia. Braemore is a processing company that, in the caseof the Bushveld treats PGM concentrates to produce PGM’s and BaseMetals, and in Western Australia treats tailings from the BHP mines toproduce Nickel and by product metals. Both projects have successfullycompleted all test programs and are now progressing into full feasibilitystudies prior to committing to construction in twelve to eighteen months.In South Africa Braemore has established a demonstration plant atMintek, which is now treating concentrates to produce a PGM alloy on a small scale, but profitably. Braemore is now at an exciting stage of its development intending to be a Nickel and PGM metal producer in 18 to 24 months.
Mr Hamish BohannanManaging Director
www.braemoreresources.com
Mr Joel KesslerInvestor Relations
Mr David RussellDirector
The world’s best Platinum Analyst answers our questions on thePlatinum market:
Can the 2007 supply-demand deficit be the highest of the decade?It is looking very much like we are going to have the biggest deficit in thedecade in 2007. Johnson Matthey has underestimated the supply shortfall significantly. I expect that the shortfall will be in the region of 700,000 ozs. of platinum this year, by far the biggest this decade. I expect the platinum price to begin moving toward the $2,000/oz. mark within the next year as a result.
How do you see the investment demand developing? I see investment demand developing at a muchfaster rate than in the last few years because the price of platinum is likely to move sharply upwards due to supply disruptions and continuing production problems in South Africa, especially AngloPlats and Lonmininvestment vehicles should see a commensurate increase in interest as platinum prices rise.
Can we expect more production disruptions in the coming 5-6 months? I expect many more production disruptions in the next six months due to the South African government’s policy of shutting downshafts if there is a fatal accident on that shaft. It is likely that the situation will persist for many months to come,putting increased pressure on prices. Bad planning from South African producers (Anglo Platinum and Lonminespecially), is probably an even more important reason for supply disruptions. The foundations of the bad plan-ning, which were laid a number of years ago, are only now becoming apparent and being made public. I see verylittle chance for the mines to rectify the situation of reduced production for at least 4 years, i.e. not before 2011.Mining is a long-term activity with results becoming apparent only 4 to 5 years after decisions have been made.
Your 2007 forecast for the performance of the BAC fund has been 50% based on corporateoperations … what is your 2008 forecast and what should be the triggers? I expect the BAC Fundperformance to be at least 50% in 2008, but the reason this time will be the platinum price performanceespecially, as well as good performances of rhodium, palladium, ruthenium and gold prices. Corporate operations will still play an important part for existing explorers and producers.
Mr René HochreiterThe world’s bestPlatinum Analyst,Allan Hochreiter (Pty) Ltd.
Eland Platinum was listed in Johannesburg in March 2006 with an initialmarket capitalisation of R1.4 billion. The company’s main asset was theElandsfontein Platinum Project, acquired from Anglo Platinum in October2005 for R117 million, which was enlarged by the acquisition of contiguousproperties to a resource base of 22.7 million ounces of 4E PGMs. The Elandsfontein mine was commissioned in October 2007, exactly twoyears after acquiring the project, on time, within budget and without a single disabling injury in some 2 million man hours of development. In August 2007 Xstrata announced an unsolicited, all-cash offer of R7.5 billion for the company. This was accepted by the company’s shareholdersand is expected to be concluded by December 2007.
Mr David SalterDirector
www.elandplatinum.com
Best Asset Class AG (BAC) is managing the world's first platinum equityfund. BAC focuses on the long-term best-selected asset classes and collaborates with leading financial institutions in distributing its productsto professional clients. BAC was founded in 2004 by Bernard Loriol andis located in Baar ZG, Switzerland.
Mr Bernard LoriolCEO, CIO
www.bestassetclass.ch
Sylvania Resources Limited is listed on the Australian Stock Exchange(ASX:SLV) and on the Alternative Investment Market of the LondonStock Exchange (AIM:SLV). Sylvania is currently involved in three PGMprojects on the Bushveld Igneous Complex of South Africa. The first of these is fully operational, the second is at an advanced stage ofdevelopment and the third is at the feasibility study stage. The first projectis a 25% interest in the CTRP consortium which is led by AquariusPlatinum Limited and has been in production since January 2005. Thesecond project involves the recovery of chromite and PGM from the tailings of Samancor’s chrome mines. The third, the Everest North UG2project is located on the farm Vygenhoek, on the Eastern Limb of theBushveld Complex. Sylvania is conducting exploration drilling as the initial part of a feasibility study regarding the development of mining and processing facilities for UG2 ore.
Mr Terence M. McConnachieChief Executive Officer
www.sylvaniaresources.com
Mr Ed NealonEx-Chairman
Mr Richard RossiterNon-Executive Chairman
Zürcher Kantonalbank is the leading universal bank in the Zurich region,focusing on both national and international markets. With total assets of CHF 95.2 billion, it is the third largest bank in Switzerland. Building onits extensive expertise credit businesses, it has developed very suc-cessfully into an investment bank. ZKB is today one of the largest assetmanagers in Switzerland, with client assets of CHF 116 billion. As anindependent institution incorporated under public law in Zurich, its activitiesare protected by government guarantee. Both S & P's and Moody'sgive ZKB's bonds and medium-term notes a top rating of AAA.
Mr Tashi GambatshangHead of Sales Invest. Funds
www.zkb.com
* From 01.01.04 to 30.11.07 - Source: Platexindex
* From 31.03.06 to 30.11.07 - Source: Johanesburg Stock Exchange
* From 1.10.04 to 30.11.07 - Source: BAC
The Distinguished Speakers of the5th BAC PLATINUM DAY:
The Organisers: BAC Best Asset Class AG
Felix Würth- Accounting
Dr. Albert Jung- Legal Advisor- President of the
Bushveld Foundation
Joakim Bünzli- Compliance Officer- N. Europe/Banks- Hedge Funds- Fund of Funds- Due Diligence
Michael BuechlerAssistant
STAFF
Csaba ViragPARTNER- East Europe- Germany- Communications- IT/BAC Indicies
Cyrill Moity- Director
Middle East- South America- Media Support- Weekly Newslet.
Patrick Gallati- Marketing- Communications- Newsletter
Sandro Bagnato- South Europe- Insurances- New Funds
Irina Jung- Platinum Days
Miguel San Juan- Platinum Night
Natalie Gasser- Platinum Night
BUSINESS DEVELOPMENT EVENTS
BUSHVELD FOUNDATION
BernardLoriolCEO, CIO
MANAGEMENT
BAC Best Asset Class AG is a company based in Zug (Switzerland). BAC isfocused on long term well-selected assets and has positioned itself in certainmarket niches, where it can develop unique products as part of the BestAsset Class concept. BAC Mining Regions Managed Vol.- South africa (CHF),is the only mutual fund worldwide investing in platinum equities. It is a Swissmutual fund with daily liquiditiy.
BAC Best Asset Class AG | Sihlbruggstrasse 140 | PO Box 2259 | 6342 Baar | Switzerland
Phone +41 848 48 00 00 | Fax +41 41 766 90 19 | bestassetclass.ch | platexindex.com
The Bushveld Foundation was created in 2006by Bernard Loriol, and is registered in Zug,Switzerland.The Foundation provides medicalsupplies and treatment for AIDS orphans in the Bushveld region of South Africa, and alsothe funds required for their primary schooland, later, University education. Currently,more than twenty AIDS orphans are cared for by our Project Assistant, Lydia, who is aretired teacher. The goal of the Foundation,however, is to increase the number of thoseorphans benefiting up to one thousand by the end of 2008. Initial capital investment hasbeen met by Best Asset Class AG in Zug, with the current assets of the Foundationexceeding five million Swiss Francs.www.bushveldfoundation.org
VhutshiloBethuel- New
Project Manager
