Breakthrough Technologies with Impact for Commodities: Fuel cells June 2016 · 2016-06-03 · Junior Mining Indaba 2016 THE PGM MARKET We remain bullish on long-term ... (Direct Methanol

Junior Mining IndabaBreakthrough Technologies with Impact for

Commodities: Fuel cellsJune 2016

Junior Mining Indaba 2016

Overview

Current PGM Market Environment

What are Fuel Cells?

Impact and Opportunities of Fuel Cells on commodities

South African Fuel Cell Industrial Hub

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Current PGM Market Environment



South African Drivers

Unique drivers to those of the world: Over 75% of platinum group metal

reserves Socio-economic benefits from value-

addition of mineralsRevised mining charter requirementsDriving downstream beneficiation

4

Platinum Group Metals: 2016 World Market Review and Forecast, mcgroup


Autocatalysts39%

Jewelery35%

Industrial23%

Investment3%

2015 Demand 8,54m ozs

PLATINUM SUPPLY AND DEMAND

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South Africa55%

Zimbabwe5%

Russia9%

North America4%

Recycling26%

Other1%

2015 Supply 7,70m ozs


THE PGM MARKET

We remain bullish on long-term fundamentals for our major metals Increased PGM demand from ever stricter

emissions control Rising middle classes in emerging markets:Low vehicle ownership ratesIncreased spending power on jewellery Capacity increases in chemical,

agrochemical and oil production Continued supply challenges in South

Africa Steady reduction of available stockpiles Fuel Cell Industry start - up

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0 200 400 600 800 1 000 1 200

Philippines

India

Egypt

Indonesia

Thailand

China

Brazil

World

South Africa

Argentina

Iran

Taiwan

Mexico

E. Europe

Korea

Malaysia

Japan

W. Europe

Australia

Canada

USA

World personal vehicle ownership (per '000 driving population)

2015 20202030

Still below mature markets


THE PGM MARKET

However, in the short-term PGM prices will continue to be negatively impacted by: Fragile global economic growth Negative investor sentiment towards

commodities Anticipated South African supply return

during 2015 and 2016 Excess metal stocks available to end users

Metal prices will remain lower until fundamentals overtake sentiment

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11 000

11 500

12 000

12 500

13 000

13 500

14 000

14 500

15 000

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Platinum price vs industry cost of production

Centiles represent the cost of mine production on a total cash cost bexcluding CAPEX

50th centile

80th centile

90th centile

ZAR/Eq. Pt oz

Fuel CellsJunior Mining Indaba 2016

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What is a Fuel Cell

What are Fuel Cells?

Efficiently converts hydrogen-containing gas to usable power with minimal or no emissions

Electro-chemical rather than combustion

Fuel Cell stack contains a Pt based catalyst

Spent Pt Catalyst can be recycled

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Four different platinum based Fuel Cell technologies: Low temperature PEM (Proton Exchange

Membrane) High temperature PEM PAFC (Phosphoric Acid – stationary) DMFC (Direct Methanol – mobile)

Applicable markets Back up / extended back up Primary power Niche mobile Niche stationary Portable UPS/APU Oxygen depletion for fire suppression

Stationary Fuel Cell – LT Platinum Industry Saviour?


Fuel Cell Applications in more detail

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$-

$20 000

$40 000

$60 000

$80 000

$100 000

$-

$2 000

$4 000

$6 000

$8 000

$10 000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Aver

age

Uni

t Pric

e

Annu

al S

ales

-M

illio

n $

Annual Sales - Stationary Average Unit Price

http://www.navigantresearch.com/newsroom/more-than-350000-stationary-fuel-cells-will-be-shipped-annually-by-2022

http://www.businesswire.com/news/home/20130506005278/en/Stationary-Fuel-Cell-Market-Reach-9-Billion

Impact and Opportunities of Fuel Cells on Commodities

Junior Mining Indaba

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Stationary Fuel Cells – Pt Loadings

FC technology Platinum Loadings:

Low temperature PEM – < 1g/KW

High temperature PEM - > 6g/KW

PAFC - > 5g/KW

DMFC - > 13g/KW


South African Opportunity?

1000 MW stationary fuel cells PAFC (Minister Rob Davies – June 2015)

Contains 2.5kg Pt and 100 g Rh per 400 kW PAFC system

equivalent to 160 000 oz of new platinum demand

2000 underground trackless fleet component conversions result in 16 000 oz of new metal demand

FC Forklift market untapped in South Africa

Metal Hydride contains Ni, Cu, Co, Rare Earth, etc

FC penetration of vehicles drives the market

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FC Forklift and H2 re-fuelling station at Impala Refineries, Launched March 2016

Proposed 8MW Doosan Facility

Load Haul Dumper(LHD)


Mobile Fuel Cell - Pt demand

Pt content per vehicle Fuel Cell Light Duty Vehicle penetration

grams ounces 1% 2% 5% 10%

50 1.55 25% 49% 124% 247%

40 1.24 20% 40% 99% 198%

30 0.93 15% 30% 74% 148%

20 0.62 10% 20% 49% 99%

10 0.31 5% 10% 25% 49%

Additional Proportion of World Pt Supply Consumption vs Vehicle FC Penetration

South African Fuel Cell Industrial Hub


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A Fuel Cell Special Economic Zone (SEZ)?

Provision of serviced land for the SEZ Guarantee of platinum metal supply Closed looping of platinum Promotion of industrialization Potential to enhance overall

competitiveness Potential to significantly grow knowledge -

based jobs Provision of new opportunities for other

key industry sectors A platform to grow high value exports Opportunity for South Africa to:reducing global greenhouse emissions diminishing urban pollutants improved quality of life

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Implats Fuel Cell Roadmap

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Certain statements contained in this presentation other than the statements of historical fact contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implats’ operations, including the completion and commencement of commercial operations of certain of Implats’ exploration and production projects, its liquidity and capital resources and expenditure, and the outcome and consequences of any pending litigation or enforcement proceedings. Although Implats believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices and exchange rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the company’s Annual Report. Implats is not obliged to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the dates of the Annual Report or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to Implats or any person acting on its behalf are qualified by the cautionary statements herein.

Forward-looking statement


Thank you

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Breakthrough Technologies with Impact for Commodities: Fuel cells June 2016 · 2016-06-03 · Junior Mining Indaba 2016 THE PGM MARKET We remain bullish on long-term ... (Direct Methanol