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NORILSK NICKEL A leader in platinum group metals. Peter Holodny, President Norimet Limited London, May 22, 2003. NORILSK NICKEL. NORILSK NICKEL NORIMET LTD. Background – Norimet Limited. Incorporated March 13, 1997 100 % subsidiary of Norilsk Nickel
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NORILSK NICKEL A leader in platinum group metals Peter Holodny, President Norimet Limited London, May 22, 2003
NORILSK NICKEL NORILSK NICKEL NORIMET LTD
Background – Norimet Limited • Incorporated March 13, 1997 • 100 % subsidiary of Norilsk Nickel • Exclusive sales and marketing arm of Norilsk Nickel’s base metals • Since May 2002 – exclusive sales and marketing arm of Norilsk Nickel’s PGM’s
Periodic Table of Elements Market Share 13% 18% 3% Metal >40% 16% 1%
Norilsk Anglo Impala Stillwater Lonmin Nickel Platinum Platinum A Leading World Producer of Palladium Largest primary palladium producers in 2002(Estimated share of world production) 50% >40% 40% 30% 19% 20% 11% 8% 10% 6% 0% Source: HSBC market research
ALeading World Producer of Platinum Largest primary platinum producers in 2002(Estimated share of world production) 50% 38% 40% 30% 22% 20% 13% 12% 10% 3% 0% Anglo Impala Lonmin Norilsk Inco Platinum Platinum Nickel Source: HSBC market research
PGMs Sales Strategy • Independence in marketing of palladium and other PGMs • Focus on relations with end-users • Establish long-term contracts with end- users • Sales to intermediaries for distribution to end-users
One Year PGMs • Signed contracts with end-users of palladium and other PGM’s in various industries: car manufacturers, dental alloys producers, chemical, pharmaceuticals and electronics companies • Over 75 per cent of what the market believes is Norilsk Nickel annual production of palladium is contracted with end-users
Breakdown of Pd Customers by Industries • Auto Industry – 34 % • Dental Industry – 30 % • Electronics Industry – 19 % • Chemical Industry – 10 % • Jewellery and others – 7 %
2003 Objectives – PGM’s • Further expansion of client base of palladium and other PGM’s users • Continued palladium supply reliability • Promotion of use of palladium as an efficient technical precious metal among traditional consumers of the metal
2003 Objectives – PGM’s (continued) • Promotion of use of palladium in new industries • Expansion of marketing effort in gold • Completion of acquisition of Stillwater Mining Company