Rare earth demand drivers

RARE EARTHS, SPECIALITY

& STRATEGIC METALS

INVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MARCH 2012

www.ObjectiveCapitalConferences.com

Rare earth demand drivers

Bill de Lucy – Managing Director, Denver International

Welcome To the World of Real Assets

Financial Crisis

• Protect yourself from the current global financial crisis

• Our current distressing economy

• More money is being printed

Money Becomes Worthless

• In the last 30 years the volume of goods has quadrupled

• The money supply increased forty-fold (Prof. Hamer)

• That means there is too much money for a limited number of goods

• Money becomes worthless!

Could Government Bankruptcies happen?

There were 20 hyperinflations in the 20th century

Year(s) Country Year(s) Country Year(s) Country

1914 China 1988 Nicaragua 1992/98 Russia

1921 Austria 1990 Peru 1994 Angola

1921/45 Hungary 1990 Zaire 1997 Thailand

1923/48 Germany 1990 Mexico 1998 Brazil

1921/89 Poland 1990 Bosnia 1999 Ecuador

1943 Greece 1990 Yugoslavia 2001 Argentina

1985 Bolivia 1992 Georgia Now... Who Next?

Comparing Gold with Silver

U.S. National Debt

Dow vs. Silver

Sample case Indium, Gallium, Hafnium, Bismuth

Positive Strategy of Metal

• These precious and strategically rare

metals are urgently needed for 80% of all

branches of industry and are

indispensable

• Alternatives are in the distant future

Indium IN 49 – Annual world production 600 t (approx)

Indium

Key Industries & Usage

• Engine Bearings

• Flat screens and touch screens

• Medical technology

• Solar technology

• Illuminating diodes

• Displays (Mobile Phone, Navigation Screens)

• Space Industry

Gallium GA 31 – Annual world Production 130 t (approx)

Gallium

Key Industries & Usage

• Illuminating diodes

• LED lights

• Electrical high-frequency components

• Integrated circuits/ computer chips

• Laser

• Solar cell technology used as electricity for satellites

• Low- non-toxic mercury substitute used for filling thermometers

Hafnium HF 72 – Annual world production 52 t (approx)

Hafnium

Key Industries & Usage • Nuclear technology

• New high capacity power plants

• Computer chips - Intel processors

• Flash light bulbs with especially high light efficiency

• Super alloys which allow turbines to operate at higher temperatures making them more efficient

• Plasma torch to cut steel

Bismuth BI 83 – Annual world production 5,700 t (approx)

Bismuth

• Over 500 applications around the world - it is a very widely used element:

• Abdominal therapeutics • X-ray contrast medium • Substitute for lead without toxic

characteristics (e.g. Water pipes) • Optical glass • High quality lacquer/emulsion paint • Plastics and printing ink • Refrigerant for atomic reactors (does

not store radiation) • Antiseptic burn ointment and powder • All electronic devices • Plasma torch to cut steel

Tantalum TA 73 – Annual world production 1,270 t (approx)

Tantalum

Key Industries & Usage • Ultra small capacitors with high

capacity SMD technology • Mobile phones and automobiles • Medical implants, bone nails,

prostheses, maxillary screws, dental and hip replacements

• Super alloys used during the construction of turbines and airplane engines (high temp.)

• Chemical industry • All electronic devices • Plasma torch to cut steel

Tellurium TE 52 – Annual world production 250 t (approx)

Tellurium

Key Industries & Usage • Alloying constituent for steel,

cast iron and copper alloys

• Photodiode and thin layer solar cells

• Optical Memory (DVD-RW, CD, Blue Ray-RW etc.)

• Coloration of glass and ceramics

• Cover for undersea electric cables

• Solar cells

Silver Granulates AG 47 – Annual world production 25,500 t (approx)

Silver Granulates

Key Industries & Usage • Currency • Jewellery and silverware • Dentistry • Photography and electronics • Mirrors and optics • Other industry and

commercial applications • Medical industry • Clothing • Water Filtering /antibacterial

Metals Increase in Value

Monday, 21 May 2007

In May 2007 after years of negotiations in Madrid, Odyssey Marine Exploration received permission to seek the British flagship HMS Sussex, which sank in a storm in 1694 off the southern coast of Spain The wreck itself is the greatest sunken treasure ever found… One million pounds sterling in gold and silver coins with a current value of up to €12 billion

Our Metal selection in daily life

Modern aircraft

Turbines and Engines

Aerospace Industry

High-tech Electronics

Mobile phones & Communication Technology

Medical Techniques

Navigation Systems

Storage Media (CD)

USB Sticks and Hard Drives

Photovoltaic & Solar Technology

LED Lights

Laser Techniques

Colours and Paint

Optic (Glass and Lenses)

Pharmaceuticals

Alloy Components

Metals needed in a mobile phone

Indium

Tantal

Gallium

Silver

• Antimony

• Lead

• Palladium

• Platinum

• Tin

• Lithium

• Gold

• Beryllium

• Copper

• Arsenic

Increasing Demand

• Federal Institute for Geosciences and Natural Resources:

• The trend toward miniaturisation continues so the need for rare metals increases to hundreds of tons per year

Summary

• 100 % Physical ownership

• Protection against inflation and devaluing of currency

Metals - Driving The World