Jeff Rhodes Macro Overview of Global Precious Metals & the Importance of Asia

Jeffrey Rhodes | Global Head of Precious Metals

& CEO INTL Commodities DMCC

Investing in Asian Mining Indaba,

October 29th, Singapore

” Macro Overview of Global Precious Metals & The Importance of Asia "

Disclaimer

Commodity trading involves risks, and you should fully understand those risks prior to trading. FCStone Group, Inc., INTL FCStone, Inc., and their affiliates assume no liability for the use of any information contained herein. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures, options on futures contracts, or OTC products.

Past financial results are not necessarily indicative of future performance. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples.

References to and discussions of exchange traded products are made solely on behalf of FCStone, LLC. References to and discussions of OTC products are made solely on behalf of INTL Hanley, LLC, and OTC products are only available to eligible counterparties.

Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice. Reproduction or use in any format without authorization is forbidden. All rights reserved.

Agenda

Macro Overview of Precious Metals

o Total Supply Versus Fabrication Demand

o Top 5 Producers and Consumers

o Precious Metals Prices 2001 – 2011

Focus On Gold – The Yellow Metal Dominates The Precious Metals Sector

o Global Gold Prices 2001 – 2011

o Gold – A Major Supply Versus Demand Surplus

The Importance Of Asia In The Global Gold Market

o Percentage Share Of Supply

o Percentage Share of Demand

o The Major Markets Of Asia

The Outlook For Precious Metals Prices in 2012

Q & A

4

Total Supply Versus Fabrication Demand

Gold (tonnes) 2010 2011

Total Physical Supply 4,350 4,424

Total Fabrication Demand 2,784 2,771

Supply Versus Demand Surplus/Deficit 1,566 1,653

Average Gold Price USD $1,224.08 $1,571.64

USD Value of Surplus/Deficit Mio $61,341 $83,133

Silver (Mio ounces) 2010 2011

Total Physical Supply 968 1,019

Total Fabrication Demand 879 914

Supply Versus Demand Surplus/Deficit 89 105

Average Silver Price USD $20.1219 $30.4200


Data Source: Thompson Reuters GFMS

5


Platinum ('000 ounces) 2010 2011




Average Platinum Price USD $1,608.98 $1,721.86


Palladium ('000 ounces) 2010 2011




Average Palladium Price USD $525.51 $733.30

USD Value of Surplus/Deficit Mio $313 $334

Data Source: Thompson Reuters GFMS & Johnson Mathey Review

6


USD Value of Deficit/Surplus Mio 2010 2011

Gold $61,341 $83,133

Silver $1,791 $3,194

Platinum $1,078 $1,223

Palladium $313 $334

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Gold Silver Platinum Palladium

2010

2011

7

Top 5 Global Producers & Consumers

8

Top 5 Global Producers & Consumers

Precious Metals Prices 2001 – 2011


-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Gold

Silver

Platinum

Palladium

Annual Average % Change 2001 - 2011

Global Gold Prices 2001 – 2011

2001 2005 2010 2011 2011 v 2001 2011 v 2010

Average Gold Price USD/oz $271.04 $444.45 $1,224.52 $1,571.64 480% 28%

Average Gold Price Euro/kg € 9,737 € 11,521 € 29,739 € 36,358 273% 22%

Average Gold Price Yen/g ¥1,058 ¥1,577 ¥3,444 ¥4,018 280% 17%

Average Gold Price Yuan/g ￥72.13 ￥117.09 ￥266.15 ￥326.61 353% 23%

Average Gold Price Rs/10g Rs4,462 Rs6,454 Rs18,304 Rs23,899 436% 31%


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Average Gold Price USD

11

Gold – A Major Supply Versus Demand Surplus

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

TotalPhysicalGold Supply(tonnes)

Gold SupplyVersusDemand(tonnes)

TotalFabricationDemand(tonnes)

12

$100 Billion Needed to Sustain The Bull Market

($10,000,000)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

USD Value of Deficit/Surplus Mio

Asia’s Importance In The Global Gold Market


0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Asia VersusGlobal Supply%

Asia Is Crucial To Global Gold Demand


56.00%

58.00%

60.00%

62.00%

64.00%

66.00%

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Asia VersusGlobalFabricationDemand %

The Major Gold Markets Of Asia


0

50

100

150

200

250

300

350

400

450

500

550

Mine Supply

Scrap Flows

Total Supply

Asia - Top Ten Gold Supply Markets (tonnes) 2011

The Major Gold Demand Markets Of Asia


0

100

200

300

400

500

600

700

800

India China Japan Turkey SouthKorea

Iran Malaysia SaudiArabia &Yemen

Indonesia Egypt

Asia - Top Ten Gold Offtake Markets (tonnes) 2011

The Outlook For Precious Metals Prices in 2012 LBMA Survey Outlook 2012 5th January 2012


AM Fixing on 5th January $1,614.50 $28.92 $1,624.00 $735.00

Predicted Average Price 2012 $1,766.00 $33.98 $1,624.00 $735.00

Actual Average Price 2011 $1,572.00 $35.11 $1,720.00 $733.00

Change USD 2012 v 2011 $194.00 ($1.13) ($96.00) $2.00

Change % 2012 v 2011 12.34% -3.22% -5.58% 0.27%

High High Predcition 2012 $2,500.00 $53.00 $2,120.00 $1,050.00

Average High Prediction 2012 $2,055.00 $44.49 $1,875.00 $879.00

Low Low Predcition 2012 $1,200.00 $19.20 $1,250.00 $450.00

Average Low Prediction 2012 $1,443.00 $24.06 $1,313.00 $549.00

YTD Actual As At End September 2012

Average Price 2012 $1,650.12 $30.619 $1,534.98 $640.36

High 2012 $1,791.75 $37.230 $1,729.00 $722.00

4-Oct-12 29-Feb-12 23-Feb-12 29-Feb-12

Low 2012 $1,537.50 $26.670 $1,390.00 $564.00

16-May-12 12-Jul-12 3-Aug-12 24-Jul-12


Jeff Rhodes / Glyn Stevens High $1,975 $50.25 $1,940 $920.00

INTL/FCStone Low $1,465 $22.25 $1,305 $565.00

Average $1,727 $36.25 $1,735 $765.00

Global Precious Metals

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Jeff Rhodes Macro Overview of Global Precious Metals & the Importance of Asia

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