The CPM PGM Yearbook 2017 Ebook

The CPM Platinum Group Metals Yearbook 2017

CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 CPM GROUP

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Printed in the United States of America.
ISBN-978-0-9983478-2-0
ii
CPM GROUP CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
CPM Group’s Platinum Group Metals Yearbook 2017

June 2017
Volume 31, Number 1
CPM Group
168 Seventh Street
Suite 310
Brooklyn, NY 11215
USA
Telephone: 212-785-8320
Telefax: 212-785-8325
E-mail: [email protected]
Website: www.cpmgroup.com
Jeffrey M. Christian, Managing Partner

Doug Sherrod, Managing Director, Investment Banking
Carlos Sanchez, Director of Commodities and Asset Management
Catherine Virga, Director, Investment Banking
Elliot Kalson, Chief Operating Officer
Rohit Savant, Director of Research

Mu Li, Senior Precious Metals Analyst
Yvonne Li, Research Analyst
Bhargava Vaidya, Consultant
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CPM Group provides research and consulting services related to precious, industrial, and
specialty metals, in addition to undertaking research and analysis across all commodities
markets. These range from research studies on individual markets and market segments to
materials management services. In addition to publishing metals and commodities research,
CPM Group produces special reports on metals which have piqued investor interests, such as
molybdenum, manganese, vanadium, chromium, cobalt, and other specialty metals.
The core of CPM Group's product is its consulting services tailored to the special needs of
individual producers, refiners, fabricators, institutional investors, financial institutions, gov-
ernments, central banks, and others. CPM Group provides advisory services related to hedg-
ing production and raw materials requirements, and manages positions for producers, con-
sumers, and accredited investors. CPM Group's financial engineering includes impartial ad-
vice, structuring, placements, and management of hedging and investment positions.
CPM Group also provides corporate finance advisory services to companies producing and
developing commodities.
Annual Research Reports

The CPM Gold Yearbook
The CPM Silver Yearbook
The CPM Platinum Group Metals Yearbook
The CPM Gold Long-Term Outlook: Ten Year Projections
The CPM Silver Long-Term Outlook: Ten Year Projections
The CPM Platinum Group Metals Long-Term Outlook: Ten Year Projections
Monthly Research Reports

Precious Metals Advisory
Base Metals Advisory
Specialized Reports
The Molybdenum Market Outlook
The Tungsten Market Outlook
The Vanadium Industry Outlook
The Chromium Market Outlook
The Manganese Market Outlook
Visit www.cpmgroup.com for additional information.
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Preface
After having fallen from the middle of 2014 through all of 2015, price trends of
platinum and palladium diverged over the course of 2016. Platinum and palladium
both rose in the first half of 2016, as a more positive sentiment toward commodities
raised prices for the entire sector. Platinum, however, faced some headwinds during
the second half of the year as the metal’s weak fundamentals overshadowed any
broader trend in the market. In contrast, palladium prices rose throughout 2016,
albeit in a very volatile fashion, supported primarily by its healthy fundamentals.
Rhodium prices, meanwhile, which have been in a declining trend for nearly five
consecutive years, showed signs of bottoming out in 2016 and moving with a
somewhat upward bias during the last several months of the year.
CPM Group’s surplus/deficit statistics for platinum and to a lesser extent

palladium and rhodium are in variance with those published by others. CPM
Group’s statistics show surpluses in the platinum market, in contrast to the
deficits cited by others. Some market participants continue to discuss the
incongruity of long-term deficits and prices falling to half of what they were a
few years ago, almost in the same breath as they speak of how supply “has to
decline sharply in order to come back in line with demand” before prices will
rise, suggesting they are well aware that there are no deficits in the real
platinum market, only in marketing material. CPM’s platinum surpluses fit
nicely into a model that explains why platinum prices have declined so sharply
over the past several years.
CPM Group’s statistics show a deficit and near deficit for the rhodium and
palladium markets, respectively, which is constructive for the prices of these
markets. This already has been evidenced during the first half of 2017. Inventory
holders of these metals are not expected to liquidate their positions easily, especially
for rhodium, which is only this year beginning to see a revival in prices. Platinum
meanwhile has the weakest fundamentals and its price has now sunk close to parity
with palladium.
The 2017 CPM Platinum Group Metals Yearbook discusses in detail the various
supply and demand fundamentals that have shaped the course of PGM prices over
the past year and a half and the outlook for prices and these fundamentals during the
remainder of 2017.
As always this year’s report would not be possible if it were not for our sponsors, to
whom we are extremely grateful. This year they are: CME Group, Commodities
Now, The Institute of Scrap Recycling Industries, Inc., Kitco Metals Inc.,
Monex Precious Metals, NOAH Capital Markets, Sabin Metal Group of
Companies, Umicore, China Gold Association, China National Gold Group
Corporation, and Jingyi Gold Co Ltd.
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The Following Organizations Assisted in the Preparation of

the 2017 Platinum Group Metals Yearbook
ix
China Gold Association
As a nationwide, non-profit, and self-regulatory organization, China Gold Associa-

tion (hereinafter referred to as CGA) was officially approved and registered by the
Ministry of Civil Affairs of the People’s Republic of China and the former State
Economic and Trade Commission in November 2001 in accordance with the Pro-
posal for Reforming the State Gold Management System defined by the State Coun-
cil. It is the only national-level industrial association in Chinese gold industry. It is
now governed by the State-owned Assets Supervision and Administration Commis-
sion of the State Council.
CGA is comprised of enterprises involving gold exploration, manufacture, circula-

tion, and investment, scientific research institutes, and gold-related public institu-
tions and organizations according to the law and based on the principle of free will.
At present, CGA has gathered influential and powerful backbone enterprises and
well-known enterprises in the upstream and downstream sectors of the gold indus-
try. CGA owns over 500 member units which include not only gold-related enter-
prises involving exploration, mining, smelting, refining, trade, design, processing,
sale, and investment, but also colleges, scientific research institutes, commercial
banks, construction and installation enterprises, mechanical equipment enterprises,
and administrative departments and organizations of the gold industry. CGA covers
over 90% of gold production, 85% of gold processing amount, and 80% of gold re-
tail sales around the country.
In recent years, by taking the “serving the government, serving the industry, serving
enterprises, and serving the society” as its tenet, CGA is giving full play to its role
as a bridge and bond, and is strengthening the overall planning and coordination as
well as the self-discipline in the industry. CGA is striving to solve critical and stra-
tegic problems, having done large amount of fruitful jobs in such aspects as lifting
the industry status, accelerating the formulation and implementation of Chinese
gold strategy, striving for policy support, establishing self-disciplinary mechanisms,
driving resources integration, building green mining industry, advancing the
“revitalization of the gold industry through science and technology”, standardizing
gold markets, promoting gold consumption, harnessing international exchanges,
fulfilling social responsibilities, etc. CGA has become an advisor of the government
in making decisions, a defender of interests of the industry, and a pusher of develop-
ment of related enterprises, recognized and praised by all the member units and re-
lated central ministries and commissions.
Contact Details:
Telephone: +86-10-84117162
Fax: +86-10-84123780
website: http://www.cngold.org.cn/
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China National Gold Group Corporation (hereinafter referred to as China Gold) is the
only central state-owned enterprise in China’s gold industry and chairman member of China
Gold association. It upholds the strategy of centering on gold while developing multiple
metals. China Gold is specialized in precious metals such as gold and silver, non-ferrous
metals such as copper and molybdenum prospection and designing, resources development,
production and sales and engineering procurement construction. Its businesses cover the
whole gold production chain in 26 provinces and overseas regions. It has two public listed
companies: Zhongjin Gold (A Stock), China Gold International (in Toronto and Hong
Kong), and seven major business sectors: Zhongjin Gold, China Gold International, Zhong-
jin Jewelry, Zhongjin Construction, Zhongjin Resources, Zhongjin Irradiation and Zhongjin
Trade.
Since 2007, China Gold has been performing its political, economic, social and party build-
ing duties as a central state-owned enterprise and striving to become a world leading mining
company. It has doubled its major indices including reserve base, total asset, sales revenue
and profits in 4 years. China Gold is developing in a leaping way which suits its own par-
ticular situation. This way characterizes rapid growth, consistent growth momentum and
high qualities. In 2010 and 2011, China Gold was accredited as an A level enterprise for 2
consecutive years in the central state-owned enterprise performance evaluation by Central
State-owned Assets Supervision and Administration Commission of the State Council
(SASAC). In 2013, it won the “Excellent Performing Enterprise Award” in the 2010-2012
term evaluation by SASAC, with the AAA level of comprehensive corporate credit which is
the highest rating grated to an enterprise in the gold industry for the first time.
Under new circumstances when China is deepening reforms, China Gold, as the only central
state-owned enterprise in China’s gold industry, bears in mind its responsibilities and obliga-
tions. It works hard to bolster RMB as a world currency and secure China’s economy and
finance with gold. It makes efforts to fulfill its political, economic, social and party building
duties as a central state-owned enterprise. China Gold constantly optimizes its development
strategies in line with principles in mining industry and accelerates marketization and inter-
nationalization. It strengthens its growth foundation, integrates development advantages and
improves comprehensive competiveness, so as to build a world leading mining company.
China Gold relies on science and technology for growth and dedicates itself to transforming
economic development mode on the strategic level. It realizes enormous corporate growth
both qualitatively and quantitatively through measures including management improvement,
structural adjustment, scientific and technological innovation, environmental protection,
energy saving and emission reduction, and cost cutting and efficiency promoting.
It recognizes innovatory mine management and improves its core competitiveness by opti-
mizing the 5 rates including mining loss rate, ores dilution rate, recovery rate, equipment
utility and productivity. China Gold has 7 major business sectors: Zhongjin Gold, China
Gold International, Zhongjin Jewelry, Zhongjin Construction, Zhongjin Resources, Zhongjin
Irradiation and Zhongjin Trade. Non-mining sectors and mining sectors draw each other’s
strength and unite to work for the foal of becoming the world leading mining company.
Contact Details:
Telephone: +86-10-56353677
Fax: +86-10-56353508
website: http://www.chinagoldgroup.com/
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CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group
(www.cmegroup.com) is where the world comes to manage risk. CME Group ex-
changes offer the widest range of global benchmark products across all major asset
classes, including futures and options on metals including COMEX Gold and Silver.
Around the world, CME Group brings buyers and sellers together through its CME
Globex® electronic trading platform and its exchanges based in Chicago, New York
and London. CME Group also operates one of the world’s leading central counter-
party clearing providers through CME Clearing and CME Clearing Europe, which
offers clearing and settlement services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group’s products and services ensure that busi-
nesses around the world can effectively manage risk and achieve growth.
Contact Details:
CME Group
20 S. Wacker Drive
Chicago, IL 60606
312-930-1000 – Telephone
312-446-4410 – Fax
[email protected]
www.cmegroup.com
xii
Commodities Now
Commodities Now is the online service specializing in the traded commodity

complex… in power and energy, industrial and precious metals, agriculture and
softs, together with renewable energy and emission markets, logistics, legal,
regulatory policy, and specialist technology. Since 1997 we have been developing
our expertise and market connections to provide commodity professionals and the
wider investment community with dedicated research and intelligence on the
commodity markets.
Contact Details:
Guy Isherwood
[email protected]
www.commodities-now.com
xiii
The Institute of Scrap Recycling Industries, Inc.
The Institute of Scrap Recycling Industries, Inc. (ISRI) is the “Voice of the
Recycling Industry.” ISRI represents nearly 1,600 companies in 21 chapters
nationwide that process, broker, and consume scrap commodities, including metals,
paper, plastics, glass, rubber, electronics, and textiles. With headquarters in
Washington, D.C., the Institute provides education, advocacy, and compliance
training, and promotes public awareness of the vital role recycling plays in the U.S.
economy, global trade and environment. For more information about ISRI, please
visit www.ISRI.org.
Contact Details:
Joseph C. Pickard
Chief Economist and Director of Commodities
[email protected]
www.isri.org
xiv
Jingyi Gold Co Ltd.
JingYi gold Co. Ltd. is a comprehensive platform that includes physical gold, in-
vestment, trade, research and training, which is established by J&Y Holdings Group
that integrated Beijing Diamond Jewelry Manufacturing Co. Ltd., Italy New Euro
Jewelry Company, Shanghai JingYi Trade Development Co. Ltd., Shenzhen JingYi
Gold Co. Ltd. and other multi-directional resources. JingYi gold Co. Ltd. is a Gen-
eral Member of Shanghai gold exchange (SGE). J&Y Holdings Group is Vice-
chairman Unit of China Gold Association (CGA). JingYi gold Co. Ltd. has first-
class management and trading talents, who have formal professional training and
rich practical experience, and be placed in the leading domestic level in re-
search of investment in precious metals. The research results are given highly
praised and fully affirmed by the people's Bank of China (PBoC), Shanghai gold
exchange (SGE), Shanghai futures exchange (SHFE), China Gold Association
(CGA), the World Gold Council (WGC), a number of large domestic commercial
banks, mining enterprises and other domestic companies of the same industry.
Contact Details:
Telephone: +86-10-68343377
website: http://www.jy-gold.com/
xv
Kitco Metals Inc.
A Canadian corporation founded in 1977, Kitco Metals Inc. is an international

company that has its headquarters in Montreal and offices in New York and Hong
Kong. Kitco is one of the largest retailers of precious metals in the world and a
specialized supplier of refining services. Being one of few authorized resellers of
products made by some of the most prestigious government mints, the company
provides a vast array of gold, silver, platinum, palladium and rhodium products to
tens of thousands of customers. Considered to be the leading precious metals
reference, Kitco’s website (www.kitco.com) is visited daily by close to a million
people around the world. Kitco has earned a solid reputation for itself as a leading
innovator in the industry, being the first precious metals company to carry out its
activities online and to create real-time market information applications for smart
phones.
Contact Details:
Peter Hug
Global Trading Director
514 670-1372
[email protected]
www.kitco.com
xvi
Monex Precious Metals
For 50 years, Monex has been America's trusted name in gold and other precious
metals. With customer transactions now totaling over $55 billion, Monex Deposit
Company, established in 1987, is today America's premier precious metals bullion
dealer because of our dedication to customer service and satisfaction.
Our success and our reputation have been built from long and fruitful relationships
with our customers. As a result of our customers' trust in Monex, 80% of our
business is from customers doing repeat precious metals business, and about one-
quarter of our new customers are referred to us by existing customers.
Located in Newport Beach, California, Monex Precious Metals is home to a large

and dedicated staff of hard asset professionals committed to serving your precious
metals investment needs and being America's best dealer with a convenient market
and competitive precious metals prices.
Contact Details:
Monex Precious Metals

4910 Birch Street
Newport Beach, CA 92660
Tel: 800-949-4653
www.monex.com
xvii
NOAH Capital Markets
NOAH Capital Markets is a majority black owned and managed South African
institutional equity stock brokerage that provides a unique service to the
institutional investment community. Services offered include tailored execution and
differentiated research.
Our experienced team of investment professionals provides unique services to both

South African and International institutional clients with whom we look to develop
sustainable and mutually beneficial, long term relationships.
Contact Details:
Rubin Renecke
Head of Research Sales
[email protected]
xviii
Sabin Metal Group of Companies

The Sabin Metal Group of companies recovers and refines PGMs (platinum,
palladium, ruthenium, rhodium), rhenium, gold and silver from a wide variety of
materials, specializing in spent hydrocarbon and petroleum processing catalysts
with soluble and insoluble alumina, silica alumina, zeolite, and carbon supports.
The Sabin Metal Group is the largest domestically owned, independent precious
metals refining organization in North America. The company's recovery/refining
facilities and sales/service offices are located in strategic countries around the
world.
The group is composed of four independent organizations:

Sabin Metal Corporation located in Scottsville, New York, is a sophisticated
facility for safely processing precious metal bearing materials. The Scottsville
facility houses the fine metal refinery, which produces market grade precious
metals from the output of all three plants, as well as the corporate settlement
assay laboratory.
Sabin Metal West a specially equipped facility for sampling large lots of precious
metal bearing spent catalysts. This refinery employs electric arc furnace (EAF)
technology, which helps maximize recovery of precious metals, and also
incorporates a unique "low dust" sampling system for accurate sample
derivation and total environmental safety and compliance.
Sabin International Logistics Corp. (SILC) a licensed hazardous waste,
hazardous materials, and general commodities transporter providing global
transportation and logistics for spent precious metal bearing catalysts and other
materials. The company operates its own fleet of trucks, and is also a Permitted
and Licensed Freight Broker.
SMC (Canada) Ltd. at the McAlpine Mill in Cobalt, Ontario, Canada, offers
capabilities and processing technologies to extract highest possible metal values
from residual materials generated in refining, smelting and milling operations.
Sabin's gold, silver, platinum and palladium are accepted on NYMEX/COMEX
(Chicago Mercantile Exchange); Sabin's platinum and palladium are also accepted
for delivery on the London/Zurich market by the London Platinum and Palladium
market (LPPM).
Contact Details:
www.sabinmetal.com
Brad Cook
Vice President
Sales and Marketing
[email protected]
xix
Umicore
Umicore is a global materials technology and recycling group. It focuses on applica-

tion areas where its expertise in materials science, chemistry and metallurgy makes
a real difference. Its activities are centered on three business areas: Catalysis, En-
ergy and Surface Materials and Recycling. Each business area is divided into mar-
ket-focused business units offering materials and solutions that are at the cutting
edge of new technological developments and essential to everyday life.
Umicore generates the majority of its revenues and dedicates most of its R&D ef-
forts to clean technologies, such as emission control catalysts, materials for re-
chargeable batteries and recycling.
Umicore’s overriding goal of sustainable value creation is based on an ambition to

develop, produce and recycle materials in a way that fulfills its mission: materials
for a better life.
The Umicore Group has industrial operations on all continents and our more than
10.000 employees serve a global customer base.
Contact Details:
Dr. Bernhard Fuchs

Senior Vice President
Precious Metals Management
Umicore AG & Co. KG

Rodenbacher Chaussee 4
63457 Hanau-Wolfgang
Germany
Tel: +49 6181 59-4610

Fax: +49 6181 59-4719
[email protected]
www.umicore.de
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Table of Contents
I. Platinum
Review and Outlook

Chart: The Price of Platinum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Chart: Platinum Surplus/Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table: Platinum Statistical Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-7
Chart: Platinum Supply and Demand.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Supply
Chart: Annual Platinum Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Chart: Source of Platinum Mine Supply 2016…….. . . . . . . . . . . . . . . . . 11
Chart: South African Mine Production of Platinum... . . . . . . . . . . . . . . . 12
Table: South African Platinum Mine Production…………….. . . . . . . . . 13
Chart: Russian Production and Exports………………….... . . . . . . . . . . 15
Table: Russian Platinum Production and Exports . . . . . . . . . . . . . . . . . . 16
Chart: Platinum Mine Production in Zimbabwe . . . . . . . . . . . . . . . . . . . .17
Chart: Projected PGM Mine Production Capacity. . . . . . . . . . . . . . . . . . 18
Chart: PGM Producers’ C1 Cash Costs in 2016 . . . . . . . . . . . . . . . . . . .19
Chart: Production Weighted Average PGM C1 Cash Cost and Basket
Price …………………………………….……... . . . . . . . . . . . . . 21
Chart: South African PGM C1 Cash Costs... . . . . . . . . . . . . . . ……... . . 21
Chart: Production-Weighted Average Profit Margin of PGM Mining. . . 22
Chart: Typical PGM Mining Cash Cost Breakdown . . . . . . . . . . . . . . . . 22
Chart: Production Weighted PGM Basket Prices……. . . . . . . ……... . . 23
Table: Platinum Production by Country . . . . . . . . . . . . . . . . . . . . . . . 24-25
Chart: PGM Secondary Supply in 1995 and 2016 . . . . . . . . . . . . . . . . . . 26
Chart: Available Platinum Scrap and Actual Refined Scrap Supply. . . . .27
Chart: Platinum Available for Recovery from Spent Auto Catalysts. . . . 27
Table: Platinum Secondary Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-29
Fabrication Demand
Chart: Annual Platinum Fabrication Demand . . . . . . . . . . . . . . . . . . . . . 30
Chart: Automotive Platinum Demand by Region . . . . . . ……... . . . . . . 31
Table: Annual Platinum Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32-33
Chart: Year-To-Date Commercial Vehicle Sales Growth by Region..…..34
Chart: Monthly Commercial Vehicle Sales…………….... . . . . . . . . . . . 35
Chart: Commercial Vehicle Sales in Major Developed Auto Markets . . 36
Chart: Commercial Vehicle Sales in Major Developing Auto Markets . 36
Chart: Average Engine Size-Europe……………………………………...37
Chart: Diesel Market Share of Major Passenger Car Markets…………… 38
Chart: Hybrid Vehicle, Electric Vehicles and Global Light Duty Vehicle
xxi
Sales……………………………………………………………………..41
Chart: Projections of Future Platinum Use in Fuel Cells……………… 45
Chart: Global Auto Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..47
Chart: Vehicle Sales in Brazil, Russia, India, and China . . . . . . . . . . . . . 48
Chart: Vehicle Sales in North America, Europe, and Japan . . . . . . . . . . 48
Chart: Platinum Jewelry Demand and Prices . . . . . . . . . . . . . . . . . . . . . . 49
Chart: Platinum Demand in Japan, China, and the United States. . . . . . . 50
Chart: Platinum Electronics Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Table: China Platinum Supply and Demand . . . . . . . . . . . . . . . . . . . .52-53
Table: Historical U.S. Platinum Demand . . . . . . . . . . . . . . . . . . . . . . 54-55
Chart: U.S. Projected 2015 Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Table: Japanese Platinum Demand . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 57
Table: Annual European Platinum Use . . . . . . . . . . . . . . . . . . . . . . . . 58-59
Investment Demand
Chart: Platinum Market Surplus/Deficit and Prices . . . . . . . . . . . . . . . . . 60
Table: Reported Platinum Investment Demand by Region. . . . . . . . . . . . 62
Chart: Daily Changes in Combined ETP Holdings by Year . . . . . . . . . . 63
Chart: Year-End Changes to Global Platinum ETP Holdings. . . . . . . . . .64
Chart: Annual Platinum Coin Fabrication . . . . . . . . . . . . . . . . . . . . . . . . 65
Table: Annual Net Additions to Platinum ETP Holdings . . . . . . . . . . . . 67
Chart: Market Value of Precious Metals Coin Sales . . .. . . . . . . .. . . 68
Chart: Market Value of Precious Metals Coin Sales . . .. . . . . . . .. . . 68
Chart: Historical Annual Sales of Perth Mint Platinum Coin Programs .. 69
Chart: Historical Annual Sales of Royal Canadian Mint Platinum Coin
Programs . .. . . . . . . .. . . . .. . . . . . . .. . .. .. . . . . . . .. . .. .. . . . . . .69
Chart: Historical Annual Sales of PBOC Mint Platinum Coin Programs. 70
Chart: U.S. Eagle Platinum Bullion Coin Sales . . . . . . . . . . . . . . . . . . . . 70
Chart: Annual Net Additions to Platinum ETP Holdings . . . . . . . . . . . . 71
Chart: Prices, ETP Holdings and Non-commercial Long Positions . . . . .71
Table: Exchange Traded Products’ Physical Platinum Holdings. . . .. 72-73
Chart: Large Non-Commercial Nymex Platinum Positions . . . . . . . . . . 74
Chart: Disaggregated Gross Positions of Non-Commercials . . . . . . . . . 74
Chart: Investment Platinum Product Trading Volume. . . . . . . . . . . . . . . .75
Chart: Investment Product Trading Volume as a % of Total Platinum
Products Trading Volume. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Markets & Inventories

Chart: Combined Platinum Trading Volumes at Nymex, Tocom, and
SGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Table: Turnover in the Precious Metals Market in 2016 . . . . . . . . . . . . . 77
Chart: Trading Volume in the Futures Market . . . . . . . . . . . . . . . . . . . . . 78
Chart: Open Interest in the Futures Market . . . . . . . . . . . . . . . . . . . . . . . 79
Chart: Nymex Platinum Trading Volume . . . . . . . . . . . . . . . . . . . . . . . . 80
Chart: Nymex Platinum Open Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
xxii
Chart: Tocom Platinum Trading Volume . . . . . . . . . . . . . . . . . . . . . . . . 81

Chart: Tocom Platinum Open Interest . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Chart: Shanghai Gold Exchange Monthly Platinum Trading Volume . . 82
Table: Shanghai Gold Exchange Monthly Platinum Trading Volume . . 82
Table: Nymex Platinum Trading Volume . . . . . . . . . . . . . . . . . . . . . . 83-84
Table: Nymex Platinum Open Interest . . . . . . . . . . . . . . . . . . . . . . . . 85-86
Table: Nymex Platinum Options Trading Volume . . . . . . . . . . . . . . . . . .87
Table: Nymex Platinum Options Open Interest . . . . . . . . . . . . . . . . . . . . 88
Table: Tocom Platinum Open Interest . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Table: Tocom Platinum Trading Volume . . . . . . . . . . . . . . . . . . . . . . . . 90
Chart: Exchange Stocks of Platinum . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Chart: Platinum Prices, Total Open Interest, and Nymex Inventories . . .91
Chart: Total Reported Market Inventories . . . . . . . . . . . . . . . . . . . . . . . . 92
Chart: Nymex Platinum Options Trading Volume . . . . . . . . . . . . . . . . . 92
Table: Reported Market Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . 93-94
Prices
Chart: Real and Nominal Platinum Prices . . . . . . . . . . . . . . . . . . . . . . . . 95
Chart: Daily High, Low, and Settlement Prices . . . . . . . . . . . . . . . . . . . . 96
Chart: Monthly Platinum Price Volatility . . . . . . . . . . . . . . . . . . . . . . . . 97
Chart: Monthly Platinum Price Seasonality . . . . . . . . . . . . . . . . . . . . . . . 98
Chart: Monthly Platinum and Gold Prices . . . . . . . . . . . . . . . . . . . . . . . . 99
Chart: Platinum-Gold Differential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Chart: Platinum/Gold Price Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Chart: Quarterly Real & Nominal Interest Rates and Platinum Price . . .100
Chart: Platinum Contango and Backwardation . . . . . . . . . . . . . . . . . . . 100
Chart: Platinum and U.S. Inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Table: New York Dealer Platinum Prices . . . . . . . . . . . . . . . . . . . . 102-103
II. Palladium
Review and Outlook

Chart: The Price of Palladium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Chart: Annual Palladium Fabrication Demand.. . . . . . . . . . . . . . . . . . .. 107
Chart: Palladium Supply and Demand Balance. . . . . . . . . . . . . . . . . . .. 108
Chart: Palladium Surplus/Deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
` Chart: Annual Palladium Supply…………………….. . . . . . . . . . . . . . 110
Table: Palladium Statistical Position . . . . . . . . . . . . . . . . . . . . . . . .112-113
Supply
Chart: Annual Palladium Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Table: South African Palladium Mine Production . . . . . . . . . . . . . . . . . 116
Chart: Russian Production and Exports . . . . . . . . . . . . . . . . . . . . . . . . 117
Table: Russian Palladium Production and Exports . . . . . . . . . . . . . . . . 118
Chart: Palladium Mine Production in Canada . . . . . . . . . . . . . . . . . …..119
xxiii
Chart: Palladium Mine Production in United States . . . . . . . . . . . . . . . .120

Chart: Palladium Mine Production in Zimbabwe . . . . . . . . . . . . . . . . . .121
Chart: Palladium Secondary Supply in 1995 and 2016. . . . . . . . . . . . . .122
Chart: Available Palladium Scrap and Actual Refined Scrap Supply . . 123
Table: Palladium Production by Country . . . . . . . . . . . . . . . . . . . . 124-125
Table: Palladium Secondary Supply . . . . . . . . . . . . . . . . . . . . . . . . 126-127
Fabrication Demand
Chart: Annual Palladium Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Chart: Automotive Palladium Demand by Region . . . . . . . . . . . . . . . . 129
Chart: U.S. Light-Duty Vehicle Sales . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Chart: Ratio of U.S. Car to Light Truck Sales . . . . . . . . . . . . . . . . . . . . 130
Table: Annual Palladium Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131-132
Chart: Chinese Passenger Car Sales………… . . . . . . . . . . . . . . . . . . . . 133
Chart: Electronics Palladium Demand by Region . . . . . . . . . . . . . . . . . 136
Chart: Palladium Dental Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137
Chart: U.S. Demand by Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Table: Historical U.S. Palladium Demand . . . . . . . . . . . . . . . . . . . 138-139
Table: Japanese Palladium Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Investment Demand
Chart: Palladium Market Surplus/Deficit ………….. . . . . . . . . . . . . . . 141
Chart: Exchange Traded Products’ Physical Palladium Holdings . . . . . 142
Chart: Annual Net Changes to Palladium ETPs . . . . . . . . . . . . . . . . . .143
Chart: Monthly Net Changes to Palladium ETPs. . . . . ………………..143
Table: Palladium ETF Holdings…………………. . . . . . . . . . . . . . . . . .146
Table: Palladium ETF Holdings, as of April 2017 . . . . . . . . . . . . . . . . .147
Table: Palladium ETF Holdings, as of December 2016 . . . . . . . . . . . . .147
Chart: Large Non-Commercial Nymex Palladium Positions . . . . . . . . . 148
Chart: Large Non-Commercial Nymex Palladium Positions, January 2013
Through April 2017 . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . 148
Chart: Disaggregated Gross Positions of Non-Commercials . . . . . . . . .149
Markets & Inventories

Chart: Trading Volume in the Futures Markets . . . . . . . . . . . . . . . . . . . 150
Chart: Open Interest in the Futures Market . . . . . . . . . . . . . . . . . . . . . . 151
Chart: Reported Palladium Inventories . . . . . . . . . . . . . . . . . . . . . . . . . 152
Chart: Nymex Palladium Trading Volume . . . . . . . . . . . . . . . . . . . . . . 153
Chart: Nymex Palladium Open Interest . . . . . . . . . . . . . . . . . . . . . . . . . 153
Chart: Tocom Palladium Trading Volume . . . . . . . . . . . . . . . . . . . . . . . 154
Chart: Tocom Palladium Open Interest . . . . . . . . . . . . . . . . . . . . . . . . 154
Table: Nymex Palladium Open Interest . . . . . . . . . . . . . . . . . . . . . 155-156
Table: Nymex Palladium Trading Volume . . . . . . . . . . . . . . . . . . 157-158
Table: Nymex Palladium Options Trading Volume . . . . . . . . . . . . . . . 159
Table: Nymex Palladium Options Open Interest . . . . . . . . . . . . . . . . . . 160
xxiv
Table: Tocom Palladium Open Interest . . . . . . . . . . . . . . . . . . . . . . . . 161

Table: Tocom Palladium Trading Volume . . . . . . . . . . . . . . . . . . . . . . . 162
Table: Reported Market Inventories . . . . . . . . . . . . . . . . . . . . . . . . 163-166
Prices
Chart: Daily High, Low, and Settlement Prices . . . . . . . . . . . . . . . . . . . 167
Chart: Monthly Palladium Price Volatility. . . . . . . . . . . . . . . . . . . . . . . 169
Chart: Palladium Price Seasonality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Chart: Monthly Palladium and Platinum Prices . . . . . . . . . . . . . . . . . . . 170
Chart: Platinum - Palladium Price Differential . . . . . . . . . . . . . . . . . . . 170
Chart: Platinum/Palladium Price Ratio . . . . . . . . . . . . . . . . . . . . . . . . . 170
Chart: Quarterly Real and Nominal Palladium Prices . . . . . . . . . . . . . . 171
Chart: Palladium and U.S. Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Table: New York Dealer Palladium Prices . . . . . . . . . . . . . . . . . . .172-173
III. Rhodium
Review and Outlook

Chart: The Price of Rhodium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Table: Selected Rhodium Statistics. . . . . . . . . . . . . . . . . . . . . . . . . 178-179
Chart: Rhodium Exchange Traded Product Holdings . . . . . . . . . . . . . . 180
Chart: Rhodium Surplus/Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Supply
Chart: Annual Rhodium Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Chart: South African PGM Production Indexed to 100 . . . . . . . . . . . . . 182
Chart: Russian Rhodium Production and Exports . . . . . . . . . . . . . . . . . 184
Table: South African Rhodium Mine Production . . . . . . . . . . . . . . . . . 186
Table: Russian Production and Exports . . . . . . . . . . . . . . . . . . . . . . . . . 187
Chart: Rhodium Mine Production in Zimbabwe . . . . . . . . . . . . . . . . . . 188
Chart: Available Rhodium Scrap and Actual Refined Scrap Supply. . . 189
Table: Rhodium Secondary Supply . . . . . . . . . . . . . . . ……. . . . . . . . . .190
Fabrication Demand
Chart: Annual Rhodium Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Chart: European Diesel Passenger Vehicles Emissions Standards……...192
Chart: NOx Emissions Reduction from Previous Standard . . . . . . . . . . 193
Table: Emissions Standards……………………………… . . . . . . . . . . 195
Chart: Projected U.S. Demand by Sector in 2016. . . . . . . . . . . . . . . . . . 195
Table: Annual Rhodium Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196-197
Table: Historical U.S. Rhodium Demand . . . . . . . . . . . . . . . . . . . . 198-199
Chart: Annual U.S. Rhodium Demand . . . . . . . . . . . . . . . . . . . . . . . . . 200
Table: Japanese Rhodium Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Chart: Annual Japanese Automotive Demand . . . . . . . . . . . . . . . . . . . . 202
Chart: Automotive Use as a Percent of Total Japanese Demand . . . . . . 202
xxv
V. Minor PGMs
Chart: The Price of Iridium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Chart: The Price of Ruthenium. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 206
Chart: The Price of Osmium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
xxvi
PLATINUM CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
Platinum
1
CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 PLATINUM
2
Review and Outlook fabrication demand remained less than total

supply during the year, however. Total
On an annual average basis platinum prices supply stood at 7.2 million ounces in 2016,
declined for the fifth consecutive year in down 1.6% from 2015, while total
2016. The platinum price, basis the nearby fabrication use of platinum rose to 7.05
active Nymex futures contract, fell to million ounces, up 0.5% from 2015.
average $991.75 last year, down 5.9% from
$1,053.83 averaged in 2015. Platinum Platinum fabrication demand has been hard
prices made lower lows and lower highs in pressed to rise in a robust fashion in recent
2016, compared to 2015. years as changing trends in the auto and
jewelry sector pose headwinds to demand
Relatively softer fabrication demand growth. The declining market share of
coupled with more than sufficient newly diesel vehicles in Europe and India,
refined supply to meet this demand, resulted technological changes including the
in a supply/fabrication demand balance popularity of Selective Catalytic Reduction
surplus of 197,000 ounces in the platinum (SCR), and the substitution of platinum with
market. Some market participants continue palladium in diesel catalysts all reduce
to discuss the incongruity of long-term fabrication demand for platinum from the
deficits and prices half of what they were a auto sector.
few years ago, almost in the same breath
they speak of how supply “has to come back Demand from jewelry, the second largest
in line with demand” for prices to rise, source of platinum demand, has also been
suggesting they are well aware that there are hurting, with demand from China, the
no deficits. largest consumer of the metal in jewelry
form, waning in recent years.
Total supply declined and fabrication
demand rose during 2016. The level of Producers ultimately will need to adjust
Platinum Price 1960-Present

Monthly Average Metals Week New York Dealer Prices, Through May 2017
$/Ounce $/Ounce
2,200 2,200
2,000 2,000
1,800 1,800
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
60 64 68 72 76 80 84 88 92 96 00 04 08 12 16
3
their production levels sharply lower to demand, but investors were increasingly
reflect the new reality of lower fabrication reluctant to add to their holdings. Some
demand, but such adjustments may lie began selling, from 2012 through the first
beyond the coming year. half of 2014. In this way the surpluses of
metal, and investors’ willingness – or not –
Investment demand, and inventory to absorb those surpluses were key to
purchases and sales by producers and users platinum prices.
of these metals are expected to play crucial
roles in determining the course of prices, as Total inventories of refined bullion rose by
they have over the past several years. 197,000 ounces in 2016, although a
The platinum market has been running substantial portion of that metal appears to
surpluses of newly refined metal relative to have been taken up by refiners, fabricators,
fabrication demand for most of the time and market-making dealers. If investors had
since 2001. In the early years of this period been the larger buyers of this surplus metal,
investors were readily willing to mop up platinum prices most likely would not have
such surpluses, in part because PGM prices fallen last year, but rather would have been
were low and fabrication demand, including more likely to have risen. Falling prices
platinum use in automobiles, was rising at during a surplus year suggests that investors
healthy rates. were not willing buyers of surplus metal at
prevailing prices, waiting for lower prices
All of that changed after the Global or some other variable to stimulate their
Financial Crisis and Great Recession. By buying interest, and leaving the surpluses to
2011 the PGM markets still were running be taken up by producers and market
surpluses of new supply over fabrication makers.
Platinum Surplus/Deficit
Annual, Projected Through 2017
Thousand Ounces Thousand Ounces
1,600 1,600
1,400 1,400
Surplus/ Net Additions to Inventories
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
-200 -200
-400 -400
-600 -600
-800 -800
-1,000 -1,000
Deficit/Net Reduction in Inventories
-1,200 -1,200
-1,400 -1,400
-1,600 -1,600
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
4
exploration and expansion spending in the

Going forward, surpluses are projected to past few years has limited growth in mine
remain in the platinum market over the next supply, although these cutbacks allowed
few years. If investors are reluctant to buy mining companies to continue ongoing
large volumes of platinum, this metal’s operations without going out of business. A
price may remain weak for several years, relatively lower price environment in the
before rising later as the long period of low platinum market has also deterred new
prices takes its toll on South African projects from coming online as scheduled.
production and encourages increased use of
this metal. Total platinum mine supply is expected to
be largely flat at 6.0 million ounces in 2017
Supply from the level seen in 2016. Secondary
supply of platinum is expected to decline
Newly refined platinum supply fell in 2016 0.4% to 1.2 million ounces in 2017 as
to 7.2 million ounces, a 1.6% decrease over continued softness in platinum prices may
the previous year, as South African discourage additional recovery of the metal
platinum mine supply declined following a from scrap materials. Total refined
significantly strong year in 2015. platinum supply is expected to remain flat at
7.2 million ounces in 2017 from the
Mine production in South Africa accounted previous year.
for 70.5% of total platinum mine supply for
the year. In 2016 South African platinum The global PGMs industry experienced a
miners churned out 5.2% less platinum than wave of ownership reshuffling last year;
they did in the previous year, however. while ownership changes should not lead to
This more than offset the increases in any swings in future global mine supply, it
platinum mine production in Zimbabwe, will be interesting to watch this
Canada, and the United States. Total development going forward.
platinum mine supply fell 1.9% from 2015
to 6.0 million ounces in 2016. Fabrication Demand
Secondary supply of platinum, on the other Global platinum fabrication demand rose
hand, was largely flat in 2016 from the marginally to 7.05 million ounces in 2016,
previous year. A small increase in auto up 0.5% from 2015. Evolving demand
catalyst scrap supply was largely balanced trends in both the auto market and jewelry
out by a decline in jewelry scrap supply. market over the past several years has hurt
Secondary supply of platinum accounts for demand for the metal. A decline in demand
roughly 17% of total newly refined metal for diesel vehicles in Europe and India,
supplies annually. substitution of platinum with palladium in
European diesel vehicles, and reduced
The decline in refined metal production in platinum jewelry purchases in China have
2016 did not lead to an increase in platinum been the primary changes in demand trends
prices over the course of the year, however, in these two markets that have negatively
partly due to continued liquidation of affected platinum fabrication demand.
platinum inventories during the year which
helped make up for the small drop in refined In spite of these developments, demand has
platinum supply. managed to grow, albeit at a sluggish rate.
This increase has been primarily driven by
In 2017 platinum mine supply growth is strength in the commercial vehicle market.
expected to be muted. A sharp pullback in Going forward, as early as this year, certain
5
Platinum Statistical Position

Thousand Troy Ounces
1977 1979 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Mine Production
South Africa 1,829 1,775 1,950 2,044 2,080 1,626 1,655 2,010 2,300 2,260 2,475 2,475 2,760 2,725 2,785 3,000 3,200 3,260 3,348 3,415 3,691 3,732 3,915 3,808 4,154 4,138
Russia* 693 263 375 334 345 334 302 234 209 317 457 418 500 750 950 750 775 800 1,000 1,000 750 600 300 600 1,030 720
0 0 0 0 2 2 2 1 1 1 1 1 1 1 1 0 0 0 0 10 11 36 46 16 16 73
Canada 198 147 84 174 163 97 71 150 144 153 140 170 180 180 190 175 140 129 179 184 149 181 180 188 230 258
United States 1 1 2 1 1 1 2 3 2 1 25 40 46 58 56 59 68 64 51 59 84 104 103 109 130 146
Other 32 _____
_____ 38 _____
29 31 _____
_____ 30 _____
34 36 _____
_____ 33 _____
38 44 _____
_____ 52 _____
62 79 _____
_____ 103 _____
97 97 _____
_____ 91 _____
93 94 _____
_____ 94 _____
95 54 _____
_____ 70 _____
71 86 _____
_____ 106
Total 2,754 2,225 2,440 2,583 2,621 2,095 2,068 2,430 2,694 2,775 3,150 3,166 3,566 3,816 4,078 4,081 4,274 4,347 4,672 4,763 4,780 4,707 4,614 4,792 5,645 5,440
% Change Year Ago - 18.7% -23.3% 5.9% 1.5% -20.1% -1.3% 17.5% 10.8% 3.0% 13.5% 0.5% 12.6% 7.0% 6.9% 0.1% 4.7% 1.7% 7.5% 1.9% 0.3% -1.5% -2.0% 3.8% 17.8% -3.6%
Secondary Supply
Total 84 110 109 223 273 273 188 206 204 288 347 334 358 301 348 350 365 383 400 515 666 750 811 915 900 1040
% Change Year Ago - 31.0% -0.9% 104.6% 22.4% 0.0% -31.1% 9.6% -1.0% 41.2% 20.5% -3.7% 7.2% -15.9% 15.6% 0.6% 4.3% 4.9% 4.4% 28.8% 29.3% 12.6% 8.1% 12.8% -1.6% 15.6%
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Total Supply 2,838 2,335 2,549 2,806 2,894 2,368 2,256 2,636 2,898 3,063 3,497 3,500 3,924 4,117 4,426 4,431 4,639 4,730 5,072 5,278 5,446 5,457 5,425 5,707 6,545 6,480
% Change Year Ago - 31.0% -0.9% 10.1% 3.1% -18.2% -4.7% 16.9% 9.9% 5.7% 14.1% 0.1% 12.1% 4.9% 7.5% 0.1% 4.7% 2.0% 7.2% 4.1% 3.2% 0.2% -0.6% 5.2% 14.7% -1.0%
Fabrication Demand
Auto 435 727 1,022 740 653 666 699 931 1,033 1,108 1,162 1,185 1,245 1,297 1,390 1,511 1,591 1,796 1,930 2,051 2,011 2,140 2,290 2,460 2,690 2,875
Jewelry 856 856 637 506 663 663 584 664 727 731 900 1,028 1,105 1,198 1,347 1,387 1,481 1,635 1,757 1,823 1,934 1,790 1,656 2,388 2,159 2,157
Other 1,045 _____
_____ 1,354 1,230 _____
_____ 1,378 _____
1,208 _____
885 _____
841 _____
1,009 _____
1,182 _____
818 842 _____
_____ 946 _____
994 _____
1,065 1,008 _____
_____ 1,210 _____
1,241 _____
1,256 1,320 _____
_____ 1,406 _____
1,461 _____
1,425 1,411 _____
_____ 1,578 _____
1,667 _____
1,619
Total Demand 2,336 2,937 2,889 2,624 2,524 2,214 2,125 2,604 2,942 2,656 2,905 3,159 3,344 3,560 3,746 4,109 4,314 4,687 5,007 5,280 5,406 5,355 5,357 6,426 6,515 6,651
% Change Year Ago - 25.7% -1.6% -9.2% -3.8% -12.3% -4.0% 22.6% 13.0% -9.7% 9.4% 8.7% 5.9% 6.4% 5.2% 9.7% 5.0% 8.7% 6.8% 5.5% 2.4% -0.9% 0.0% 20.0% 1.4% 2.1%
Net Surplus
or Deficit 502 -602 -339 182 370 154 131 32 -45 407 592 341 580 558 681 323 325 43 66 -2 40 102 68 -719 30 -170
Coin Fabrication - - - - - - 35 75 105 100 72 430 50 70 150 175 150 85 95 105 135 210 120 60 50 50
Surplus/Deficit Less
Coin Fabrication 502 -602 -339 182 370 154 96 -43 -150 307 520 -89 530 488 531 148 175 -42 -29 -107 -95 -108 -52 -779 -20 -220
Changes in
Market Inventories** -98 -68 -64 187 -57 150 -162 199 -68 108 0 77 -148 -9 -585 617 -165 0 -167 66 -287 22 -35 4 -22 -9
Price Per Ounce

High 186.40 384.90 716.00 1,040.10 593.50 389.70 498.70 414.00 356.60 677.70 648.70 628.00 566.20 534.40 418.60 392.00 424.70 430.30 478.50 436.90 473.80 432.00 435.00 630.50 641.00 609.90
Low 145.00 185.00 342.40 482.60 369.60 243.60 377.10 286.10 237.40 341.30 475.30 445.50 469.80 388.50 333.10 330.75 338.20 380.40 397.00 369.10 339.50 332.00 341.00 388.10 401.00 448.20
Average 159.14 261.16 442.35 682.34 445.92 327.42 425.95 358.94 292.94 465.69 558.98 531.40 512.04 471.45 375.95 359.88 375.29 406.89 424.89 400.54 394.40 372.79 372.92 534.80 528.26 538.44
% Change Year Ago - 64.1% 69.4% 54.3% -34.6% -26.6% 30.1% -15.7% -18.4% 59.0% 20.0% -4.9% -3.6% -7.9% -20.3% -4.3% 4.3% 8.4% 4.4% -5.7% -1.5% -5.5% 0.0% 43.4% -1.2% 1.9%
Notes: Excludes transitional economies, except as noted. * Prior to 2003 Russian supply represented platinum exports.
Russian supply represents mine production since 2003 . Secondary production statistics exclude toll-refined material.
Prices are settlement prices for the active nearby contract on the New York Mercantile Exchange
Changes in market inventories are year-end. **Changes in 1997 market inventories exclude U.S.
Industry stocks since the U.S. Bureau of Mines ceased publication of U.S. Industry stock level data in the third quarter of 1997.
As of 2007 Inventories includes changes in ETF holdings. There may be discrepancies due to rounding.
NA -- not available. e -- estimates. p -- projections.
Sources: U.S. Bureau of Mines, Statistics Canada, trade sources, CPM Group.
May 15, 2017
6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Mine Production
4,472 4,532 5,000 5,369 5,039 4,778 4,537 4,670 4,680 4,132 4,436 3,091 4,465 4,234 4,242 South Africa
1,050 990 980 965 935 800 804 837 857 773 757 786 739 739 742 Russia
139 220 160 167 171 181 229 283 342 342 406 403 406 489 460 Zimbabwe
149 251 242 223 206 235 144 96 247 215 222 300 265 289 309 Canada
139 135 131 143 128 119 126 113 122 121 122 120 121 128 131 United States
116
_____ 137
_____ 150
_____ 165
_____ 193
_____ 188
_____ 174
_____ 164
_____ 163
_____ 166
_____ 147
_____ 151
_____ 127
_____ 128
_____ 129
_____ Other
6,065 6,266 6,663 7,031 6,672 6,301 6,014 6,163 6,410 5,748 6,090 4,851 6,122 6,007 6,012 Total
11.5% 3.3% 6.3% 5.5% -5.1% -5.6% -4.6% 2.5% 4.0% -10.3% 5.9% -20.3% 26.2% -1.9% 0.1% % Change Year Ago
Secondary Supply
1130 1180 1230 1280 1315 1,376 1,220 1,525 1,460 1,330 1,322 1,250 1,240 1,237 1,233 Total
8.7% 4.4% 4.2% 4.1% 2.7% 4.6% -11.3% 25.0% -4.3% -8.9% -0.6% -5.4% -0.8% -0.2% -0.4% % Change Year Ago
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
7,195 7,446 7,893 8,311 7,987 7,677 7,234 7,688 7,870 7,078 7,412 6,101 7,362 7,244 7,245 Total Supply
11.0% 3.5% 6.0% 5.3% -3.9% -3.9% -5.8% 6.3% 2.4% -10.1% 4.7% -17.7% 20.7% -1.6% 0.0% % Change Year Ago
Fabrication Demand
3,235 3,690 4,053 4,210 4,195 3,785 2,740 3,081 3,173 3,153 3,234 3,123 3,173 3,236 3,265 Auto
2,006 1,819 1,675 1,690 1,772 1,698 2,283 2,126 2,331 2,502 2,443 2,401 2,346 2,328 2,301 Jewelry
1,601
_____ 1,687
_____ 1,680
_____ 1,822
_____ 1,756
_____ 1,502
_____ 1,394
_____ 1,545
_____ 1,556
_____ 1,522
_____ 1,542
_____ 1,482
_____ 1,491
_____ 1,483
_____ 1,489 Other
_____
6,842 7,196 7,408 7,721 7,723 6,985 6,417 6,751 7,060 7,177 7,219 7,007 7,010 7,047 7,055 Total Demand
2.9% 5.2% 2.9% 4.2% 0.0% -9.6% -8.1% 5.2% 4.6% 1.7% 0.6% -2.9% 0.0% 0.5% 0.1% % Change Year Ago
Net Surplus
353 250 486 590 264 692 816 937 809 -99 193 -906 353 197 191 or Deficit
40 35 30 23 20 45 42 13 37 74 45 56 50 20 20 Coin Fabrication
Surplus/Deficit Less
313 215 456 567 244 647 774 923 773 -174 148 -962 303 177 171 Coin Fabrication
Changes in
3 12 2 3 171 116 488 444 335 188 915 198 -230 70 Market Inventories**
Price Per Ounce

839.80 935.50 1,018.10 1,321.50 1,549.30 2,276.10 1,506.30 1,809.60 1,905.70 1,725.10 1,736.50 1,517.00 1,286.60 1,183.10 1,038.90 High
594.10 763.40 840.70 981.80 1,112.00 787.20 922.20 1,460.00 1,363.40 1,386.40 1,303.70 1,182.10 832.40 819.20 900.90 Low
687.66 845.87 899.96 1,146.94 1,314.46 1,579.31 1,214.50 1,614.22 1,722.39 1,554.30 1,486.59 1,389.01 1,053.83 991.84 967.19 Average
27.7% 23.0% 6.4% 27.4% 14.6% 20.1% -23.1% 32.9% 6.7% -9.8% -4.4% -6.6% -24.1% -5.9% 0.6% % Change Year Ago
7
technological developments are expected to sector has been on a decline in the past few
drive demand for platinum higher from the years. Relatively slower income growth in
electronics sector as well. recent years as a result of a relatively slower
economic growth has weighed on demand
Platinum demand from the auto sector is for luxury items like platinum jewelry. This
estimated to have reached 3.24 million is already beginning to show.
ounces in 2016, up 2.0% from 2015.
Demand from this sector is forecast to rise Investment Demand
during 2017, albeit at a sluggish pace, to
3.26 million ounces, up 0.9% from 2016. For the most part investor interest in
Meanwhile, platinum demand from the platinum remained lackluster during 2016,
electronics sector is forecast to rise to which was reflected in the price of the
202,000 ounces in 2017, up from 192,000 metal. As of the end of 2016 investors were
ounces in 2016. estimated to hold about 7.6 million ounces
of platinum bullion and coins. Roughly 68%
Platinum demand from the jewelry sector of this metal, or 5.2 million ounces, are
continued to decline for the fourth estimated to be held in unreported bullion
consecutive year during 2016, slipping to inventories. While there was continued stale
2.32 million ounces during the year. This -bull liquidation of platinum inventories
was the lowest level of demand from the during 2016, other investors have started to
jewelry sector since 2010. Reduced demand buy platinum, which provided some support
from China is an important factor that has for platinum prices.
been weighing on demand. China is the
largest platinum jewelry market in the On a net basis investors sold 1,434 ounces
world, accounting for approximately 78% of of platinum from their exchange traded
global platinum jewelry demand. That said, products (ETP) holdings in 2016. This was
demand for platinum from the jewelry the second consecutive year in which
Platinum Supply and Demand Balance
Million Ounces Million Ounces

9.0 9.0
8.0 8.0
7.0 7.0
6.0 6.0
Supply
5.0 5.0
4.0 4.0
3.0 3.0
Fabrication Demand
2.0 2.0
1.0 1.0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
8
investors were net sellers of platinum,

although the volume of net sales was
considerably lower than the 250,770 ounces
sold in 2015.
Platinum coin sales are estimated to have

totaled around 105,000 ounces in 2016, up
from around 61,300 ounces in 2015.
Investors remained interested in platinum
coins during 2016, which was helped by
increased offerings and marketing of
platinum coins by mints and dealers.
The platinum investment market is

extremely small, which benefits some
investors, but hurt demand for the metal
when the South African Reserve Bank
rejected the idea of producing a platinum
coin on the basis of such a coin being
commercially and financially unviable due
to the small size of the platinum coin
market.
Markets
The platinum market, in ounces terms,

expanded last year, but in dollar terms
contracted due to the lower annual average
price in 2016 compared to 2015.
The total platinum market, newly refined

physical supply entering the market plus
exchange futures and options trading, was
255.6 million ounces in 2016, up from
249.3 million ounces in 2015. The paper
market accounted for 248.4 million ounces
of the total platinum market in 2016. In
dollar terms, however, the platinum market
actually shrank last year to $254 billion,
down from $263 billion in 2015. Trading
volumes of platinum futures on the Nymex
have not risen back to the levels of just
three to four years ago.
9
Supply largely balanced out by a decline in

jewelry scrap supply. Secondary supply
Newly refined platinum supply fell in of platinum accounts for roughly 17%
2016 to 7.2 million ounces, a 1.6% de- of total newly refined metal supplies
crease over the previous year, as South annually.
African platinum mine supply declined
following a significantly strong year in This decline in refined metal production
2015. last year was expected after it recovered
significantly in 2015 from the strike-
Mine production in South Africa ac- beaten 2014. Limited growth in mine
counted for 70.5% of total platinum capacity in South Africa, due largely to
mine supply for the year. In 2016 South a lack of new projects coming online,
African platinum miners churned out safety stoppages and operational re-
5.2% less platinum than they did in the structuring issues, also were contribut-
previous year, however. This more than ing factors.
offset the increases in platinum mine
production in Zimbabwe, Canada, and The decline in refined metal production
the United States. Total platinum mine in 2016 did not lead to an increase in
supply fell 1.9% from 2015 to 6.0 mil- platinum prices over the course of the
lion ounces in 2016. year, however, partly due to continued
liquidation of platinum inventories dur-
Secondary supply of platinum, on the ing the year which helped make up for
other hand, was largely flat in 2016 the small drop in refined platinum sup-
from the previous year. A small in- ply.
crease in auto catalyst scrap supply was
Annual Platinum Supply

Projected Through 2017
9 9
Russian Supply
8 8
7 7
Secondary Supply
6 6
5 5
Other Mine Production
4 4
3 3
2 2
South African Mine Production
1 1
0 0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
10
In 2017 platinum mine supply growth is The global PGMs industry experienced
expected to be muted. A sharp pullback a wave of ownership reshuffling last
in exploration and expansion spending year; while ownership changes should
in the past few years has limited growth not lead to any swings in future global
in mine supply, although these cutbacks mine supply, it will be interesting to
allowed mining companies to continue watch this development going forward.
ongoing operations without going out of Anglo American Platinum, the world’s
business. A relatively lower price envi- largest PGMs producer, continued its
ronment in the platinum market has also restructuring strategy over the course of
deterred new projects from coming 2016. The Pandora mine, which was a
online as scheduled. Total platinum joint venture between Lonmin and An-
mine supply is expected to be largely glo American Platinum, is now 92.5%
flat at 6.0 million ounces in 2017 from owned by the former after it was an-
the level seen in 2016. Secondary sup- nounced in November 2016 that Lon-
ply of platinum is expected to decline min had agreed to purchase Amplats’
0.4% to 1.2 million ounces in 2017 as 42.5% stake in the mine.
continued softness in platinum prices
may discourage additional recovery of Also in November 2016 Amplats sold
the metal from scrap materials. Total its Rustenburg group of mines to Si-
refined platinum supply is expected to banye, which was in line with the for-
remain flat at 7.2 million ounces in mer’s restructuring strategy. Sibanye
2017 from the previous year. also took over Amplats’ Union mine in
February, although Amplats will con-
Source of Platinum Mine Supply 2016

Total Mine Supply = 6.0 million ounces
Russia, 12.3% Canada, 4.8%
United States,
2.1%
Zimbabwe, 8.1%
Other, 2.1%
South Africa,
70.5%
11
tinue to refine the mine’s PGMs output, Despite experiencing a choppy two-
initially under a concentrate purchase year period between 2014 and 2015,
agreement and thereafter on toll treat- platinum mine production in South
ment terms. Africa has been trending lower since
reaching a peak of 5.4 million ounces
Sibanye Gold, a primary gold producer, in 2006. Platinum mine output in
announced in December 2016 that it 2016 in the country was 21.1% lower
would buy the U.S.-based Stillwater than the 2006 peak.
Mining Company for $2.2 billion. The
transaction was completed in early May The downward trajectory in South Afri-
2017. can mine production over the past dec-
ade reflects a range of issues that has
Mine Production by Major Country plagued the platinum mining industry in
and Company the country, including wage-related la-
bor strikes, mine safety, weak infra-
South Africa structure, and a lack of electricity gen-
eration capacity and water.
Most platinum is mined in South Africa.
After a strong rebound in mine produc- These issues cannot be easily resolved;
tion in 2015 from the months-long labor they can lead to unexpected disruptions
strike in 2014, platinum mine output in to mine and refined metal production
the country fell 5.2% to 4.2 million for a short term or for an extended pe-
ounces last year, accounting for 70.5% riod of time. Meanwhile reduced capi-
of total new mine supply that year. tal expenditures against a backdrop of
South African Mine Production of Platinum

6,000 6,000
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
12
S outh African Platinum Mine Production
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Anglo Platinum 2,467 2,315 2,166 2,250 2,184 2,019 2,066 1,630 2,123 1,958 1,650
% of Total 49.0% 48.5% 47.7% 48.2% 46.7% 48.9% 46.6% 52.7% 47.5% 46.3% 38.9%
% Change -11.9% -6.2% -6.5% 3.9% -2.9% -7.5% 2.3% -21.1% 30.2% -7.7% -15.7%
Impala Platinum 1,197 1,105 1,008 1,084 1,071 776 893 434 816 794 762
% of Total 23.7% 23.1% 22.2% 23.2% 22.9% 18.8% 20.1% 14.0% 18.3% 18.8% 18.0%
% Change 4.4% -7.7% -8.7% 7.5% -1.2% -27.6% 15.1% -51.4% 88.1% -2.7% -4.0%
Lonmin 753 678 635 579 717 672 769 375 790 704 665
% of Total 14.9% 14.2% 14.0% 12.4% 15.3% 16.3% 17.3% 12.1% 17.7% 16.6% 15.7%
% Change -8.2% -9.9% -6.3% -8.9% 23.9% -6.4% 14.4% -51.2% 111% -11% -6%
S ibanye 295 247 202 234 209 153 138 125 146 141 470
% of Total 5.8% 5.2% 4.4% 5.0% 4.5% 3.7% 3.1% 4.0% 3.3% 3.3% 11.1%
% Change 2.0% -16.0% -18.4% 16.1% -10.7% -27.0% -9.9% -9.4% 16.9% -3.5% 233.7%
Northam Platinum 199 189 189 161 171 182 207 180 241 271 271
% of Total 4.0% 3.9% 4.2% 3.4% 3.7% 4.4% 4.7% 5.8% 5.4% 6.4% 6.4%
% Change -10.8% -5.4% 0.4% -15.3% 6.8% 6.1% 13.6% -13.0% 34.2% 12.3% 0.0%
African Rainbow Minerals 58 66 138 145 148 155 168 154 163 167 157
% of Total 1.1% 1.4% 3.1% 3.1% 3.2% 3.8% 3.8% 5.0% 3.7% 3.9% 3.7%
% Change N/M N/M N/M 5.0% 2.0% 4.8% 8.0% -8.3% 6.1% 2.4% -6.3%
Norilsk 5 6 5 7 9 12 19 19 20 15 13
% of Total 0.1% 0.1% 0.1% 0.2% 0.2% 0.3% 0.4% 0.6% 0.4% 0.4% 0.3%
% Change -37.5% 28.6% -25.0% 46.6% 27.2% 34.0% 60.0% -1.5% 5.3% -25.0% -13.3%
S ylvania Resources 14 14 19 27 24 25 31 32 39 32
% of Total 0.3% 0.3% 0.4% 0.6% 0.6% 0.6% 1.0% 0.7% 0.9% 0.8%
% Change -1.4% 37.9% 43.9% -12.4% 5.6% 22.0% 3.6% 20.0% -15.8%
S edibelo Platinum Mines 17 37 38 63 90 93 106 99 98

% of Total 0.4% 0.8% 0.8% 1.5% 2.0% 3.0% 2.4% 2.3% 2.3%
% Change 112.0% 4.3% 65.7% 41.3% 3.5% 14.0% -6.0% -1.3%
Pan African Resources 0.26 3.47 6.48 7.20 6.02 5.35 5.35
% of Total 0.01% 0.08% 0.1% 0.2% 0.1% 0.1% 0.1%
% Change N/M 86.5% 11.2% -16.5% -11.0% 0.0%
Platinum Group Metals Ltd 39 117

% of Total 2.8%
% Change 204.5%
Wesizwe Platinum
% of Total
% Change
Other 2.0 2.0 3.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0
% Change -86.7% N/M 50.0% -33.3% 0.0% -50.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total
S outh African
Mine Production 5,039 4,778 4,537 4,670 4,680 4,132 4,436 3,091 4,465 4,234 4,242
% Change -6.1% -5.2% -5.1% 2.9% 0.2% -11.7% 7.4% -30.3% 44.4% -5.2% 0.2%
Note: Production is based on calendar year. Production refers to metal output attributable to company ownership.
Exceptions to this include Bafokeng - and 33% Ango Platinum) and Mototolo (50:50 JV between Anglo Platinum
and Gelncore). Production at these mines has been fully attributed in Anglo Platinum.
Rasimone Platinum Mine (owned 67% Royal Bafokeng Platinum Ltd. Aquarius was taken over by S ibanye in 2016.
Anglo Platinum's Rustenberg mines have been included in S ibanye starting 2017.
Figures may not equal sum due to rounding.
S ource: Company Documents, Industry S ources, RMG, and CPM Group
May 2017
13
persistent weaker metal prices are ex- cushion supplies. As of December 2016
pected to limit growth in new mine ca- Anglo American Platinum (Amplats)
pacity coming online in the coming held 440,000 ounces of platinum pipe-
years. line inventories, flat from the level as of
December 2015 and December 2014.
While a three-year wage deal, reached Amplats also held around 130,000
in October 2016 between three major ounces of refined metal inventories at
platinum producers and the AMCU, will the end of 2016, compared to 200,000
help prevent labor related supply dis- ounces at the end of 2015 and 212,000
ruptions in the next three years, labor ounces at the end of 2014.
discontent will remain in the backdrop.
This issue is particularly pertinent these Anglo American Platinum is the larg-
days considering that major mining est platinum producer in the world. It
companies are actively deploying cost- produced a total of 2.1 million ounces
control measures which include reduc- of platinum in 2016, down 7.2% from
tions in employee headcounts. This 2.3 million ounces in 2016. Platinum
could potentially cause short term op- production at its managed mines rose
erational disruptions, even when large year-on-year, helped by output in-
scale strikes may seem contained. creases at Mogalakwena mine,
Amandebult mine and Unki mine. The
Other problems such as safety stop- Twickenham project remained on care
pages and community disruptions also and maintenance during 2016 as Am-
could lead to temporary supply disrup- plats has delayed all expansionary pro-
tions. Platinum production at the Bok- ject decisions until after 2017. The
oni mine, Amplats and Atlatsa’s joint company expects platinum production
venture, fell 21% last year due largely from its managed operations to be simi-
to fatality-related section 54 stoppages lar this year compared to that in 2016.
in May 2016. Implats’ Marula mine
produced 47.0% less platinum in con- Platinum production for Amplats’ joint
centrate in the first quarter of 2017 from venture and associate mines rose mar-
the same period a year ago because op- ginally in 2016 from a year ago, mainly
erations were severely disrupted by due to section 54 stoppages post fatali-
community protest action. ties. The company expects its joint ven-
ture and associate mines to produce
Pending any unexpected disruptions, similar amount of platinum in 2017 as
major mining companies expect their in the previous year.
platinum mine production to be in line
their guidance in 2017. Platinum mine In the first quarter of 2017 platinum
supply in South Africa is expected to be production at Amplats was up 1% from
largely flat at 4.2 million ounces this a year earlier as strong performance at
year from the previous year. While Mogalakwena offset output declines at
short-term supply disruptions are possi- Amandelbult, which was due primarily
ble, a buildup of pipeline stocks at ma- to unusually heavy rainfalls. Amplats
jor platinum mining companies can help kept its 2017 production guidance un-
14
changed at 2.35-2.40 million ounces. 2017, with a medium-term target of

Over the course of 2016 Amplats con- 830,000 ounces of platinum by the fis-
tinued to implement its restructuring cal year that ends on 30 June 2020.
plan. In November 2016 Amplats final-
ized the sale of its Rustenburg mine to Lonmin produced 704,487 ounces of
Sibanye, in line with the former’s strat- platinum in 2016, down 10.8% from
egy of repositioning its portfolios. Am- 790,225 ounces in 2015. Platinum pro-
plats is also in the process of the sale of duction from Lonmin is expected to
its interest in the Bokoni joint venture. decline over the next few years. The
company lowered its sales guidance to
Impala Platinum (Implats) produced 650,000-680,000 ounces in the fiscal
889,500 ounces of platinum at its South year ended 30 September 2017. Sales
African mining operations in 2016. are projected to fall to 650,000 ounces
This was 1.7% lower than the 905,100 in the 2018 fiscal year.
ounces produced in 2015. Implats’ out-
put level in 2016 remained below its Russia
2013 production of around 977,110
ounces. Implats’ platinum production at Russia is the second largest platinum
its South African mine operations is producing country in the world, ac-
expected to decline slightly to 848,000 counting for 12.3% of global mine sup-
ounces in 2017. The company expects ply in 2016. The country produced
its Rustenburg operation to produce 739,000 ounces of platinum in 2016,
700,000 – 710,000 ounces of platinum flat from a year ago. This reflected the
in the fiscal year that ends on 30 June flat rate in platinum mine production
Russian Production and Exports

1,400 1,400
Indicates stockpile withdrawal

1,200 1,200
Production
1,000 1,000
800 800
Residual
600 600
Exports
400 400
200 200
0 0
81 84 86 89 92 94 97 00 02 05 07 09 11 13 15 17p
15
Russian Platinum Production and Exports
Production Exports Residual
Percent of
Exports Production
1970 675 * - - -
1975 739 * - - -
1980 900 * 334 37% 566
1981 900 345 38% 555
1982 900 334 37% 566
1983 900 * 302 34% 598
1984 932 * 234 25% 698
1985 965 * 209 22% 756
1986 965 317 33% 648
1987 973 459 47% 514
1988 981 418 43% 563
1989 986 500 51% 486
1990 990 750 76% 240
1991 1,050 950 90% 100
1992 1,000 750 75% 250
1993 900 775 86% 125
1994 850 800 94% 50
1995 850 1,000 118% -150
1996 893 1,000 112% -108
1997 985 750 76% 235
1998 1,060 600 57% 460
1999 1,079 300 28% 779
2000 1,187 600 51% 587
2001 1,200 1,030 86% 170
2002 1,000 720 72% 280
2003 1,050 1,050 100% 0
2004 990 990 100% 0
2005 980 980 100% 0
2006 965 930 96% 35
2007 935 900 96% 35
2008 800 775 97% 25
2009 804 790 98% 14
2010 837 801 96% 36
2011 857 790 92% 67
2012 773 755 98% 18
2013 757 720 95% 37
2014 786 750 95% 36
2015 739 720 97% 19
2016 739 680 92% 59
2017p 742 680 92% 62
Notes: Asterisks denote data released by the Bank for Foreign Trade in January
1988, published in the S chweizer Handels Zeitung.
S ources: Bank of Foreign Trade, U.S . Bureau of Mines, Central
Intelligence Agency, CPM Group.
May 2017
16
growth at the nickel mining operations A sharp increase in platinum mine pro-
of Norilsk Nickel, which produces the duction at Zimplats was largely respon-
bulk of the metal for the country. sible for the 20.5% year-on-year gain in
Norisk Nickel produced 610,000 ounces the country’s platinum mine production
of platinum last year, above the 542,000 last year. Zimplats, the largest platinum
-586,000 ounce production target it set operation in the country, produced
earlier. The increase of mine output 296,000 ounces in 2016, up 36.1% from
above the production target was attrib- a year earlier. After the safety closure
uted to the processing of work-in- of the company’s Bimha mine in the
progress material released after the second half of 2014, the redevelopment
shutdown of nickel plant. The company of this mine remains on schedule and it
expects to produce 581,000-645,000 is expected to reach full production in
ounces of platinum from its Russian April 2018.
feedstock in 2017.
Zimplats also is finalizing plans to de-
Zimbabwe velop a new shaft, Portal 6. Develop-
ment of this new mine is expected to
Zimbabwe, the world’s third-largest cost around $148 million over the next
platinum producing country, accounted five years, with first production due in
for 8.1% of total mine supply in 2016. 2021. It will replace output from Zim-
The country produced a record amount plats’ oldest mines, which will be ap-
of platinum last year, up 20.5% year-on- proaching depletion.
year to 489,000 ounces.
The Mimosa mine, which is jointly
owned by Implats and Acquarius, pro-
Platinum Mine Production in Zimbabwe

Ounces Ounces
600,000 600,000
500,000 500,000
400,000 400,000
300,000 300,000
200,000 200,000
100,000 100,000
- -
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17p
17
duced 120,600 ounces, an increase of num than they did in 2015. The Lac des
1.9% from a year earlier. Anglo Plati- Iles mine produced 10,230 ounces of
num’s Unki mine produced 717,000 platinum last year, down 16.8% from
ounces o platinum, up 3.3% year-on- the previous year.
year. In 2017 platinum mine production
from Zimbabwe is expected to reach United States
460,000 ounces, a decrease of 6.0%
from a record year in 2016. The United States produced 127,850
ounces of platinum in 2016, up 6.0%
Canada from 120,650 ounces in the previous
year. Stillwater Mining is the main
Canadian platinum mine production PGM producer in the United States, op-
totaled 289,000 ounces in 2016, up erating two mines in Montana. The
9.1% from the previous year. Increases Stillwater Mining mine produced
in mine production at Vale’s Sudbury 76,500 ounces of platinum and the East
and Glencore’s Sudbury and Raglan Boulder mine produced 48,600 ounces
operations more than offset a small de- of platinum last year.
cline in mine production at North
American Palladium’s Lac des Illes. Near Term Mine Capacity Outlook
Vale’s Sudbury produced 166,000
ounces of platinum last year, while the There has been a sharp retreat from ex-
Sudbury & Raglan operations owned by ploration and expansion spending
Glencore produced 18.4% more plati- among mining companies since the
Projected PGM Mine Production Capacity

18.2
Capacity Additions by Year:
18.0
Post 2018 2018
17.8
2017 2016
17.6
17.4
17.2
17.0
16.8
16.6
16.4 Capacity at Old Mines
16.2
Existing 2014 2015 2016 2017 2018 Post 2018
Capacity
Sources: Raw Materials Group, Metals Economics Group, CPM Group
18
global financial crisis in 2008, which tion levels, including safety stoppages,
will result in future supply constraints, labor disputes, and declining ore grades.
although such cutbacks have allowed
mining companies to continue ongoing The Cost of Mining PGMs Declined
operations without going out of busi-
ness. Against suck a backdrop, net ad- The concept of cash costs is a non-
ditions to global PGMs mining capacity GAAP accounting measure that is used
are expected to be muted in the next extensively to analyze production costs,
year or two. both internally by company manage-
ment and externally by those who fol-
There was only one new project that low a particular company or mining
was brought online in 2016 – Platinum sector. The costs included are those as-
Group Metals Ltd’s Maseve mine, sociated with mining and processing of
which has a designed PGMs production the ore. They exclude non-cash items
capacity of 275,000 ounces. It pro- such as depreciation, amortization costs,
duced its first concentrate in February and general corporate overhead. The
2016 although underground develop- cash cost is used as a performance indi-
ment and mining rates have fallen be- cator and is typically compared with the
hind schedule. price of the metal being mined, in es-
sence showing a measure of per-unit
Apart from a lack of new projects com- gross margin. In the case of this report
ing online, there are a range of other we use a platinum group metals (PGMs)
factors that could disrupt PGMs produc- basket price. In order to better encom-
PGM Producers' C1 Cash Costs in 2016

$/Ounce $/Ounce
1,400 1,400
1,200 1,200
1,000 1,000
Annual Average PGM Basket Price - $798.75
800 800
Production-Weighted PGM C1
Cash Cost = $607.45
600 600
400 400
200 200
0 0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cumulative Percent of Production
Notes: The PGM basket price and average cash costs are weighted by production. Production-weighted PGM C1 Cash
Cost curve accounts for 85.7% of world PGM mine production in 2016.
Sources: World Mine Cost Data Exchange, company reports, CPM Group
19
pass the PGM mining sector, this report ued implementing tariffs over the past
has included all PGM mining compa- few years to fund its capacity expansion
nies’ cash costs where PGMs account programs (despite that these programs
for more than 15% of the mine’s or have experienced significant delays),
company’s revenues. The cash cost for although the pace of tariff increase was
each mine is weighted by the proportion slower than those between 2008 and
of its production to total global PGM 2011. Eskom’s annual tariff rate in-
production. creases averaged 10.8% from 2012 to
2016, much lower than the annual aver-
The production-weighted global plati- age of 27% from 2008 to 2011.
num group metals cash cost per ounce
of platinum group metals mined stood at Water also is essential for both mining
$607.45 in 2016, down from $663.17 in and processing of ore. Platinum proc-
2015. This figure reflects costs at 22 essing uses a significant amount of wa-
mining operations that produce PGMs, ter. Mining companies have to pay for
with total output accounting for 85.7% the water that they use. The Department
of global PGMs mine output during the of Water Affairs of South Africa issues
year. mining companies licenses for using
water. Precious metals mines are placed
South Africa and the rest of the world under category A mines, which classi-
continued to diverge in terms of cash fies them as those mining operations
cost during 2016. PGMs producing that will have the most significant im-
mines in Russia and North America re- pact on water resources due to mining
ported the lowest cash costs while most activity. Operating a mine without a
of South African PGMs mines fell in or license can result in stop orders on min-
under the 60th percentile of the cash cost ing activity and fines from the Depart-
curve. The striking difference is mainly ment of Water Affairs of South Africa.
due to the fact that most of the PGMs That said, water accounts for a rela-
that are mined in non-South Africa re- tively small proportion of the total util-
gion are byproducts of nickel, resulting ity cost to PGM mines, with the major-
in significantly lower cash cost. ity of the utilities component comprised
of electricity costs.
Other factors that tend to exert upward
pressure on PGMs cash costs in South Labor costs are the single largest com-
Africa are not easily resolved. One im- ponent of South African PGM mining
portant component in the making of cash costs, accounting for approxi-
PGMs is electricity, which has exposed mately 50% of total operating cash
South Africa to power outages before. costs. In October 2016, South Africa’s
Memories are still fresh when the coun- three largest platinum producers – An-
try experienced serious energy con- glo American Platinum, Impala Plati-
straints in 2008 and again in 2015, and num, and Lonmin – reached an agree-
South Africa’s economic growth was ment with the Association of Mine-
greatly affected by the energy crisis. workers and Construction Union
Eskom, which accounts for 95% of the (AMCU) to raise mining workers’ basic
country’s electricity supply, has contin- salaries by an average 7.3% per annum
20
Production-Weighted Average PGM C1 Cash Cost and Basket Price
$/Troy Ounce
1,400
1,200
Cash Cost
PGM Basket Price
1,000
800
600
400
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sources: World Mine Cost Data Exchange, CPM Group.
South African PGM C1 Cash Costs
$/Troy Ounce $/Troy Ounce

1,800 1,800
South African PGM Basket Price
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 CAGR, 2000 - 2016: 9.3% 200
0 0
200020012002200320042005 2006 20072008200920102011 2012 2013201420152016
Notes: Average cash cost and basket price is weighted by production.
Sources: World Mine Cost Data Exchange, CPM Group
21
Production-Weighted Average Profit Margin of PGM Mining Industry
90.0%
World South Africa Other Countries
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note: Profit margin is calculated as (PGM Basket Price - PGM C1 Cash Cost)/PGM Basket Price. Profit
margin is the percentage of gross profit earned for every ounce of PGMs sold. Industry average PGM
basket prices and cash costs are weighted by production.
Sources: World Mine Cost Data Exchange, CPM Group.
Typical PGMs Mining Cash Cost Breakdown

Typical Cash Cost Breakdown
Component Range Typical
Labor 40% - 60% 52%

Utilities 8% - 11% 10%
Parts & S upplies 10% - 15% 12%
Fuel 8% - 10% 9%
Utilities Explosives, Reagents 4% - 8% 5%
10% Other 7% - 11% 12%
Total 100%
Labor Parts &
52% Supplies
12% Notes: Labor costs include permanent
labor and contract labor. Fuel is most
diesel, but also includes petrol/gasoline,
Fuel 9% natural gas, and propane. Utilities include
electricity and water. Parts and Supplies
refers to parts and supplies, structural and
5% rebar steel. Some of the other costs in-
Other cluded in the 'Other' category are transpor-
Explosives, tation cost, exploration costs, royalties,
12% Reagents camp food, and supplies and metal move-
ment costs.
22
over the next three years. This three- these two currencies extremely impor-
year wage deal set the tone for future tant to the margins of South African
wage increases, at least in the couple of PGM producers. The relative strength
years after it expires, that wage inflation in the South African rand, which
will be contained, although one cannot strengthened 12.6% against the dollar
say for certain that labor disputes will over the course of 2016, helped bring
not arise in the near and medium term. down cash costs in dollar terms for
South African miners.
Still, in 2016 South African miners
were able to continue to bring down Going forward PGMs cash costs are
cash costs through ongoing mine con- likely to face continued upward pres-
solidation and restructuring initiatives, sure, although sharp increases in cash
improved operating efficiencies, and a costs seem unlikely. Wage increases
decrease in fuel prices. are likely to be contained in the next
few of years given the three-year wage
The South African rand exchange rate deal between the South African miners
plays an important part in influencing and the labor union. South African
cost fluctuations. South African min- miners also will be careful with laying
ers’ costs are primarily incurred in rand off workers in the future as they do not
while revenues are received in U.S. dol- want to see a repeat of the massive pro-
lars, as commodities are dollar- duction loss that occurred during the
denominated in international markets. months-long labor strike in 2014.
This makes the relationship between
Production-Weighted PGM Basket Prices
$/Troy Ounce $/Troy Ounce

1,800 1,800
World
1,600 1,600
Russia
1,400 1,400
United States
1,200 1,200
Canada
1,000 1,000
South Africa
800 800
600 600
400 400
200 200
- -
2000 2002 2004 2006 2008 2010 2012 2014 2016
23
Platinum Production by Country
Troy Ounces
United
S outh Africa Russia Zimbabwe Canada S tates Australia Colombia
1976 1,675,000 -- NA 600,000 1,000 3,158 16,779
1977 1,829,000 -- NA 693,000 1,297 3,697 17,315
1978 1,775,000 -- NA 263,000 1,258 12,958 13,939
1979 1,950,000 -- NA 375,000 2,036 2,765 12,933
1980 2,044,000 -- NA 334,000 663 2,500 14,345
1981 2,080,000 -- 2,300 345,000 1,240 2,093 14,804
1982 1,626,000 -- 1,704 334,000 1,381 2,388 12,000
1983 1,655,000 -- 1,695 302,000 2,029 1,900 10,303
1984 2,010,000 -- 772 234,000 2,583 2,122 10,106
1985 2,300,000 -- 611 209,000 1,624 3,054 11,650
1986 2,260,000 -- 836 317,000 613 3,697 14,371
1987 2,475,000 -- 579 457,000 25,078 4,180 20,512
1988 2,475,000 418,000 900 170,000 39,867 3,376 26,203
1989 2,760,000 500,000 804 180,000 45,976 3,215 31,283
1990 2,725,000 750,000 675 180,000 58,193 3,215 42,439
1991 2,785,000 950,000 611 190,000 55,621 3,215 51,441
1992 3,000,000 750,000 289 175,000 59,157 3,215 63,016
1993 3,200,000 775,000 129 140,000 68,000 3,215 55,299
1994 3,260,000 800,000 322 129,000 64,302 3,215 57,871
1995 3,348,000 1,000,000 322 178,613 53,000 3,215 57,871
1996 3,415,000 1,000,000 10,322 184,285 61,000 3,215 57,871
1997 3,690,540 750,000 11,077 149,288 84,000 3,215 58,000
1998 3,732,164 600,000 36,116 180,835 112,500 3,215 13,214
1999 3,915,358 300,000 46,139 180,244 103,030 3,215 14,404
2000 3,807,810 600,000 16,080 187,804 108,820 3,215 10,899
2001 4,153,500 1,030,000 16,080 229,610 130,210 3,215 11,253
2002 4,137,544 720,000 72,822 258,200 146,000 8,000 30,000
2003 4,471,558 1,050,000 139,000 149,440 139,000 8,000 30,000
2004 4,532,198 990,000 220,300 251,000 135,000 6,000 35,000
2005 5,000,381 980,000 159,842 241,603 131,000 3,569 34,787
2006 5,368,655 965,000 167,132 222,659 143,000 4,000 46,320
2007 5,039,317 935,000 170,640 206,442 128,000 4,565 49,060
2008 4,778,367 800,000 181,365 234,711 118,500 3,860 44,010
2009 4,536,679 804,000 229,316 143,875 125,751 4,180 29,870
2010 4,669,883 837,310 282,641 95,500 113,420 4,180 32,150
2011 4,679,669 856,570 341,857 246,743 121,590 4,180 39,580
2012 4,132,349 772,530 341,621 214,400 120,590 3,220 39,345
2013 4,436,379 756,600 405,887 221,737 122,400 3,220 19,290
2014 3,090,963 785,600 403,120 300,032 120,200 3,220 22,685
2015 4,464,851 738,600 405,580 265,370 120,650 3,220 22,685
2016 4,233,530 738,600 488,900 289,420 127,850 3,220 22,685
2017p 4,242,140 741,600 459,600 308,854 130,978 3,220 22,685
Notes: *These figures represent Japanese refined recovery of mine output from other countries,
including Australia, Canada, Papua New Guinea, Indonesia, and the Philippines. These figures
appear to include some production listed for Canada.
S ource: U.S . Bureau of Mines; CPM Group.
May 2017
e -- estimates. p-- projections.
24
Serbia &
Montenegro China Poland Finland Ethiopia Botswana Japan* Total
NA -- -- 600 145 -- 8,706 2,305,388 1976
739 -- -- 640 100 -- 9,737 2,555,525 1977
417 -- -- 640 123 -- 10,176 2,077,511 1978
675 -- -- 720 108 -- 12,142 2,356,379 1979
640 -- -- 700 113 -- 12,366 2,409,327 1980
482 -- -- 1,608 125 -- 10,521 2,458,173 1981
418 -- -- 4,147 125 -- 15,411 1,997,574 1982
193 -- -- 2,186 125 -- 21,460 1,996,891 1983
200 -- -- 1,061 125 -- 19,523 2,280,492 1984
250 -- -- 1,125 150 -- 22,216 2,549,680 1985
1,061 -- -- 3,440 64 -- 21,316 2,622,398 1986
772 -- -- 2,218 32 -- 24,209 3,009,580 1987
739 9,002 -- 1,736 32 -- 20,802 3,165,657 1988
739 8,581 -- 2,154 64 -- 33,147 3,565,964 1989
675 7,904 -- 2,315 64 -- 45,976 3,816,456 1990
707 8,130 -- 1,897 32 -- 31,765 4,078,419 1991
610 8,130 -- 1,736 32 -- 20,223 4,081,408 1992
321 8,807 -- 1,640 32 -- 21,252 4,273,695 1993
225 8,456 -- 1,190 32 -- 22,506 4,347,118 1994
192 9,099 -- 1,190 30 -- 22,506 4,674,038 1995
321 8,552 -- 1,993 30 -- 22,506 4,765,095 1996
350 9,002 675 1,252 30 -- 22,506 4,779,935 1997
322 8,788 675 5,000 30 -- 22,506 4,715,365 1998
161 14,468 675 14,178 30 -- 22,506 4,614,408 1999
161 19,505 675 14,178 30 -- 22,506 4,791,683 2000
161 24,113 675 16,397 30 12,000 17,683 5,644,927 2001
-- 21,863 643 16,333 30 12,000 17,000 5,440,434 2002
-- 32,151 643 16,236 30 12,000 17,000 6,065,058 2003
100 41,796 643 16,075 30 15,000 22,500 6,265,642 2004
96 51,441 643 25,721 129 9,645 24,435 6,663,291 2005
64 54,013 643 25,721 161 9,645 24,435 7,031,448 2006
64 64,837 804 25,721 322 22,506 24,756 6,672,034 2007
64 69,054 804 25,721 322 19,290 24,756 6,300,824 2008
64 68,635 804 25,721 257 19,290 25,078 6,013,591 2009
64 67,796 804 16,080 257 18,000 25,078 6,178,342 2010
64 68,481 804 12,860 257 11,900 25,078 6,424,602 2011
64 69,218 804 13,820 257 14,150 25,078 5,718,213 2012
64 69,887 804 13,820 257 14,150 25,078 6,089,572 2013
64 70,553 804 13,820 257 14,150 25,078 4,850,546 2014
64 47,137 804 13,820 257 14,150 25,078 6,122,266 2015
64 48,251 804 13,820 257 14,150 25,078 6,006,628 2016
64 49,248 804 13,820 257 14,150 25,078 6,012,497 2017p
25
While Eskom has in recent years slowed lyst scrap was offset by a decline in
down its annual tariff increases on min- jewelry scrap last year.
ers, near-or medium-term energy con-
straints cannot be ruled out. It is be- Softer steel and platinum prices saw
cause more than 85% of Eskom’s elec- fewer automobiles entering the scrap
tricity output comes from coal-fired yard in the first half of 2016, which led
plants, and South Africa has yet been to low availability of spent catalytic
able to successfully diversify its energy converters especially in Europe and the
mix. The cost of fuel is expected to United States. As steel prices re-
rebound slightly this year alongside an bounded in the second half of the year,
improvement in crude oil prices. The the volumes of catalyst scrap improved;
recovery is expected to be mild, how- increasing amount of platinum-rich die-
ever, and will do little in terms of add- sel catalyst scrap in Europe also helped
ing to costs on a year-on-year basis in pull up the total amount of platinum
the coming years. scrap last year. Persistently lower plati-
num prices hurt jewelry scrap last year,
Platinum Secondary Supply which fell 3.2% to 110,200 ounces.
Secondary supply of platinum fell mar- Secondary supply of platinum is ex-

ginally to 1.237 million ounces in 2016 pected to fall slightly to 1.233 million
from 1.240 million ounces estimated in ounces in 2017.
2015. A moderate increase in auto cata-
PGM Secondary Supply in 1995 PGM Secondary Supply in 2016

Total = 1.71 million ounces Total = 3.9 million ounces
Electronics
12.4%
Jewelry
3.4%
Auto
Catalyst
31.8%
Electronics
64.3%
Auto
Catalyst
85.1%
Jewelry
3.9%
26
Available Platinum Scrap Feedstock and Actual Refined Secondary Platinum Supply
Thousand Troy Ounces Thousand Troy Ounces

1,600 1,600
Electronic Scrap
1,400 1,400
Jewelry Scrap
1,200 1,200
AutoCatalyst Scrap (adjusted for
1,000 refining loss) 1,000
800 800
600 600
Total Secondary Supply
400 400
200 200
0 0
1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015
Note: Bars represent the PGM content of material theoretically available for recycling. Line represents the outturn
from refiners. The spread between PGM content in scrap material and refined metal accounts for refining losses
and inventory drawndown patterns, which are driven by price trends , disposable income trends, and price
Platinum Available for Recovery from Spent Auto Catalysts

1,600
China
1,400
Europe
1,200
Japan
1,000
800 United States
600
400
200
0
1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017p
27
Platinum S econdary S upply

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Platinum Contained in Hypothetically Available S crap Material
S pent Auto Catalysts

United States 359.4 424.6 550.7 630.4 605.1 608.4 609.7 708.5 697.4 679.6
Western Europe 2.6 4.9 9.5 17.2 27.8 42.1 59.5 78.3 106.9 142.2
Japan 81.5 98.1 114.6 144.1 169.2 195.9 228.6 264.3 294.1 332.0
China N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
S ubtotal 443.6 527.6 674.8 791.8 802.0 846.3 897.9 1,051.1 1,098.4 1,153.9
% Change 19.0% 27.9% 17.3% 1.3% 5.5% 6.1% 17.1% 4.5% 5.1%
% of Total 88.2% 89.9% 91.5% 91.7% 90.9% 84.0% 90.8% 91.0% 89.3% 89.3%
Old Jewelry 59.2 59.3 62.9 72.0 80.0 161.5 88.1 98.4 123.7 125.0
% Change 0.1% 6.2% 14.4% 11.0% ###### -45.4% 11.6% 25.7% 1.1%
% of Total 11.8% 10.1% 8.5% 8.3% 9.1% 16.0% 8.9% 8.5% 10.0% 9.7%
EOL Electronics 3.0 5.8 8.4 13.7

% Change N/M 45.9% 62.2%
% of Total 0.3% 0.5% 0.7% 1.1%
Total 502.8 586.9 737.7 863.8 882.0 1,007.8 988.9 1,155.2 1,230.5 1,292.5
% Change 16.7% 25.7% 17.1% 2.1% 14.3% -1.9% 16.8% 6.5% 5.0%
Total Refined Platinum
from S econdary S ources 455.0 515.0 666.0 750.0 811.0 915.0 900.0 1,040.0 1,130.0 1,180.0
% Change 13.2% 29.3% 12.6% 8.1% 12.8% -1.6% 15.6% 8.7% 4.4%
Notes: Differences in the volume of platinum contained in hypothetically available scrap

material and actual refined secondary supply of platinum are due to factors that influence
the hoarding and/or release of scrap inventories by collectors. These factors relate mostly
to price and economic trends. Additionally, refined supply accounts for refining losses.
N/M - Not Meaningful
S ource: CPM Group
May 2017
28
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
705.2 680.6 678.5 638.2 589.4 539.9 489.3 430.0 373.4 321.4 327.9 332.1 325.5
183.8 233.1 300.1 378.7 528.0 573.4 606.3 625.2 631.1 631.9 646.4 652.8 662.6
329.1 318.6 301.7 298.9 274.2 249.0 223.0 196.9 171.1 148.8 132.4 122.2 116.0
0.1 0.1 0.2 0.2 0.3 0.6 0.8 1.1 1.4 2.1 3.1 4.3 5.9
1,218.2 1,232.4 1,280.4 1,316.0 1,391.9 1,362.9 1,319.5 1,253.2 1,177.0 1,104.1 1,109.7 1,111.4 1,110.0
5.6% 1.2% 3.9% 2.8% 5.8% -2.1% -3.2% -5.0% -6.1% -6.2% 0.5% 0.2% -0.1%
90.0% 88.4% 88.8% 88.4% 90.5% 86.5% 87.4% 87.4% 86.6% 86.4% 87.2% 87.2% 87.5%
116.3 138.6 134.4 139.9 111.3 175.2 149.8 138.6 137.1 126.8 113.9 114.9 105.0
-6.9% 19.2% -3.1% 4.1% -20.4% 57.4% -14.5% -7.5% -1.1% -7.5% -10.2% 0.9% -8.6%
8.6% 9.9% 9.3% 9.4% 7.2% 11.1% 9.9% 9.7% 10.1% 9.9% 8.9% 9.0% 8.3%
18.6 23.2 27.6 32.0 34.1 37.4 39.7 42.2 45.0 47.5 49.7 49.0 53.1
36.2% 24.5% 19.3% 15.8% 6.5% 9.8% 6.1% 6.2% 6.7% 5.6% 4.6% -1.4% 8.4%
1.4% 1.7% 1.9% 2.2% 2.2% 2.4% 2.6% 2.9% 3.3% 3.7% 3.9% 3.8% 4.2%
1,353.1 1,394.2 1,442.4 1,487.9 1,537.3 1,575.5 1,509.0 1,434.0 1,359.0 1,278.4 1,273.3 1,275.3 1,268.1
4.7% 3.0% 3.5% 3.2% 3.3% 2.5% -4.2% -5.0% -5.2% -5.9% -0.4% 0.2% -0.6%
1,230.0 1,280.0 1,315.0 1,376.0 1,220.0 1,525.0 1,460.0 1,330.0 1,322.0 1,250.4 1,262.9 1,275.6 1,232.9
4.2% 4.1% 2.7% 4.6% -11.3% 25.0% -4.3% -8.9% -0.6% -5.4% 1.0% 1.0% -3.3%
29
Fabrication Demand trend as the Chinese, who account for

around 78% of global platinum jewelry
Global platinum fabrication demand demand, have reduced their purchases.
rose slightly during 2016 to 7.05 million While these factors have been the major
ounces, up 0.5% from 2015. Platinum drags on platinum fabrication demand,
fabrication demand has struggled to rise there have been pockets of strength in
strongly in recent years as changing the market as well. Much of this
demand trends for vehicles and jewelry strength has been centered around
around the world have hurt demand. demand for commercial vehicles. The
generally healthy state of the global
Diesel passenger vehicles, which use economy, especially in 2016, helped to
platinum intensive catalysts, have fallen drive higher demand for commercial
out of favor in Europe which was the vehicles. These vehicles are primarily
largest market for such vehicles. At the powered by diesel and therefore have
same time, India which was a growing platinum intensive catalyst.
market for diesel cars also saw a shift in Furthermore, the larger engine size of
demand to gasoline vehicles when the these vehicles demands a larger catalyst.
Indian government took away the Both of these factors have been
subsidies on diesel fuel. To make supportive of platinum fabrication
matters worse, there has been an demand and have to a large extent been
ongoing substitution of platinum with able to offset the weakness in demand
palladium in diesel auto catalysts. from the diesel passenger vehicle and
Jewelry demand has been in a declining jewelry market.
Annual Platinum Fabrication Demand

Through 2017
9 9
8 8
Other Countries Other Uses
7 7
Dental Petrochemical
6 6
Electronics
5 5
Jewelry
4 4
3 3
2 2
1 Automotive 1
0 0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
30
Platinum demand from the electronics strong bounce during 2016. Passenger
sector also is expected to benefit going vehicle sales also rose in Europe,
forward as a greater amount of platinum however, market share for diesel
is used in place of ruthenium for coating vehicles, which are more important to
hard disks. The strength in demand platinum demand, declined during the
from these two sectors is expected to year. Platinum fabrication demand in
help prevent platinum fabrication Europe reached 1.2 million ounces in
demand from declining in 2017. 2016, up 8% from 2015. North America
is the second largest source of platinum
Platinum Automotive fabrication demand for the auto sector.
The North American commercial
Platinum demand from the auto sector is vehicle market is the largest in world,
estimated to have reached 3.24 million however, around 95% of its passenger
ounces in 2016, up 2.0% from 2015. vehicles are powered by gasoline,
Healthy demand for commercial making this part of the vehicle market
vehicles was the primary driver of this less relevant to platinum fabrication
increase in platinum fabrication demand demand.
during the year. Platinum demand from
the auto sector rose in North America, North American platinum fabrication
Europe, and the ‘other’ category, but demand rose to 750,000 ounces in 2016,
declined in Japan. up 1% from 2015. The decline in
demand for commercial vehicles in
The most important auto market for the Japan during 2016 was the primary
platinum sector is Europe, where factor reducing platinum demand from
demand for commercial vehicles got a the auto sector, with Japanese demand
Automotive Platinum Demand By Region

4,500 4,500
4,000 4,000
Other Japan Europe United States
3,500 3,500
3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
31
Annual Platinum Use

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Auto
United States 517 447 478 508 722 811 789 700 675 690 620 579 630 731 880 1,000 1,100 1,050 1,100 1,175
Japan 209 193 170 167 167 174 248 295 325 340 355 400 306 240 246 235 219 225 218 225
Europe 14 13 18 24 42 48 71 167 185 215 322 411 475 500 540 560 582 581 622 640
China
Other Countries --
____ ____-- --
____ --
____ --
____ --
____ --
____ --
____ --
_____ --
_____ --
_____ --
_____ 100
_____ 120
_____ 130
_____ 135
_____ 150
_____ 155
_____ 200
_____ 250
_____
Subtotal 740 653 666 699 931 1,033 1,108 1,162 1,185 1,245 1,297 1,390 1,511 1,591 1,796 1,930 2,051 2,011 2,140 2,290
% of Total 28.7% 25.9% 30.1% 32.9% 35.8% 35.1% 41.7% 40.0% 37.5% 37.2% 36.4% 37.1% 36.8% 36.9% 37.5% 37.4% 37.1% 34.6% 35.7% 37.1%
% Change Year Ago - -11.8% 2.0% 5.0% 33.2% 11.0% 7.3% 4.9% 2.0% 5.1% 4.2% 7.2% 8.7% 5.3% 12.9% 7.5% 6.3% -2.0% 6.4% 7.0%
Jewelry
Japan 440 624 630 553 624 675 691 868 987 1,061 1,150 1,290 1,318 1,400 1,547 1,641 1,700 1,775 1,590 1,431
United States 51 28 16 10 9 16 12 6 12 13 14 17 19 31 34 63 70 100 140 150
Germany 7 3 10 17 26 31 24 23 24 26 29 35 45 45 49 48 48 48 48 55
United Kingdom 5 5 4 2 2 2 1 1 2 2 2 2 2 2 2 2 2 6 6 10
France 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 3 5 6 10
China
Other ____ ____ ____ ____ ____ ____ ____ ____ _____ _____ _____ _____ _____ _____ 103
_____ 160
_____ 251
_____ 407
_____ 643
_____ 823
_____
Subtotal 506 663 663 584 664 727 731 900 1,028 1,105 1,198 1,347 1,387 1,481 1,738 1,917 2,074 2,341 2,433 2,479
% of Total 19.6% 26.3% 30.0% 27.5% 25.5% 24.7% 27.5% 31.0% 32.5% 33.0% 33.7% 36.0% 33.8% 34.3% 36.3% 37.1% 37.5% 40.3% 40.6% 40.1%
% Change Year Ago - 30.9% 0.1% -11.9% 13.7% 9.4% 0.5% 23.2% 14.2% 7.5% 8.4% 12.5% 3.0% 6.7% 17.4% 10.3% 8.2% 12.9% 3.9% 1.9%
Electronics
United States 150 112 90 75 99 116 104 108 112 125 126 127 126 129 139 145 146 159 167 175
Japan 16 16 19 16 29 39 42 42 48 50 50 52 43 55 57 53 53 55 57 95
Germany 16 20 7 6 9 6 6 14 16 18 18 26 29 26 28 32 26 22 22 25
United Kingdom 18 16 10 9 10 9 10 12 12 12 12 12 11 11 12 12 12 14 14 14
France 1 1 1 1 1 1 1 * * * * * * * * * * * * *
China
Other -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____ -____
Subtotal 201 165 127 107 148 170 162 176 188 205 206 217 209 221 236 242 237 250 260 309
% of Total 7.8% 6.5% 5.7% 5.0% 5.7% 5.8% 6.1% 6.1% 6.0% 6.1% 5.8% 5.8% 5.1% 5.1% 4.9% 4.7% 4.3% 4.3% 4.3% 5.0%
% Change Year Ago - -18.1% -22.8% -16.1% 38.5% 15.3% -4.8% 8.6% 6.9% 9.0% 0.2% 5.5% -3.7% 5.8% 6.8% 2.5% -2.1% 5.5% 4.0% 18.8%
Chemical/Petroleum
Refining
U.S. Petroleum 144 88 22 38 28 29 31 24 34 92 105 127 105 100 106 110 113 109 109 113
U.S. Chemical 119 78 64 75 80 95 97 81 122 97 86 48 75 81 63 75 88 92 94 96
Japanese Petroleum 0 - - - - - - - - - - - - - - - - - - -
Japanese Chemical 10 10 10 10 16 16 16 16 19 20 20 20 15 20 22 20 32 38 37 38
China Petroleum
China Chemical ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
Subtotal 273 176 95 123 124 140 144 121 175 209 211 195 195 201 191 205 233 239 240 247
% of Total 10.6% 7.0% 4.3% 5.8% 4.8% 4.8% 5.4% 4.2% 5.6% 6.2% 5.9% 5.2% 4.7% 4.7% 4.0% 4.0% 4.2% 4.1% 4.0% 4.0%
% Change Year Ago - -35.4% -46.1% 29.3% 0.8% 12.7% 2.7% -15.9% 45.3% 19.1% 1.1% -7.7% 0.0% 3.1% -5.0% 7.3% 13.7% 2.6% 0.4% 2.9%
Dental/Medical
United States 26 19 23 17 19 25 23 15 19 20 22 20 21 24 25 25 25 27 29 30
Germany 62 66 48 28 30 27 22 21 29 16 17 20 19 23 24 24 23 22 20 20
United Kingdom 3 3 2 2 2 2 2 1 1 1 1 - - - - - - - - -
France ___2 2
___ 2
___ ___1 ___1 1
___ 1
___ ___1 ___1 ___1 ___1 ___- ___- ___- ___- ___- ___- ___- ___- ___-
Subtotal 93 90 75 48 52 55 48 38 50 38 41 40 40 47 49 49 48 49 49 50
% of Total 3.6% 3.6% 3.4% 2.2% 2.0% 1.9% 1.8% 1.3% 1.6% 1.1% 1.2% 1.1% 1.0% 1.1% 1.0% 0.9% 0.9% 0.8% 0.8% 0.8%
% Change Year Ago - -3.3% -16.6% -36.2% 8.2% 5.6% -12.6% -19.4% 29.4% -22.9% 7.2% -3.9% 0.2% 17.5% 5.4% 0.0% -2.0% 2.1% 0.0% 2.0%
Other Uses
United States 111 101 88 90 94 146 126 74 118 171 174 129 142 113 108 127 132 147 157 164
Japan 257 345 245 210 345 406 61 135 98 50 100 100 90 105 107 105 151 160 168 100
Western Europe 295 241 167 179 164 178 192 203 216 220 223 228 235 231 235 257 270 281 281 291
China ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
Subtotal 663 687 500 479 603 730 379 412 432 442 497 457 467 449 450 489 553 588 606 555
% of Total 25.7% 27.2% 22.6% 22.5% 23.2% 24.8% 14.3% 14.2% 13.7% 13.2% 14.0% 12.2% 11.4% 10.4% 9.4% 9.5% 10.0% 10.1% 10.1% 9.0%
% Change Year Ago - 3.7% -27.2% -4.3% 26.0% 21.0% -48.0% 8.7% 4.9% 2.2% 12.5% -8.0% 2.1% -3.8% 0.2% 8.6% 13.2% 6.3% 3.1% -8.4%
Other Countries 100 90 87 85 82 88 85 95 100 100 110 100 300 324 330 335 335 335 270 250
% of Total 3.9% 3.6% 3.9% 4.0% 3.1% 3.0% 3.2% 3.3% 3.2% 3.0% 3.1% 2.7% 7.3% 7.5% 6.9% 6.5% 6.1% 5.8% 4.5% 4.0%
% Change Year Ago - -10.0% -3.3% -2.3% -3.5% 7.3% -3.4% 11.8% 5.3% 0.0% 10.0% -9.1% 200.0% 8.0% 1.9% 1.5% 0.0% 0.0% -19.4% -7.4%
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
Total 2,576 2,524 2,214 2,125 2,604 2,942 2,656 2,905 3,159 3,344 3,560 3,746 4,109 4,314 4,790 5,166 5,531 5,813 5,998 6,180
% Change Year Ago - -2.0% -12.3% -4.0% 22.6% 13.0% -9.7% 9.4% 8.7% 5.9% 6.4% 5.2% 9.7% 5.0% 11.1% 7.9% 7.1% 5.1% 3.2% 3.0%
Notes: The subtotals for individual uses presented here are the sums of the countries for which data are available; other countries may
consume relatively small amounts of platinum for these uses, but estimates are not available. Other uses in Western Europe includes
consumption by major end-using industries in European countries, as well and smaller using industries throughout Western Europe.
Japanese petroleum industry demand is included in chemical industry statistics beginning in 1981. Totals may not equal the sums of
categories due to rounding. * -- less than 500 ounces. p - projections.
Chinese demand is broken out beginning 2000
Source: CPM Group.
May 3, 2017
32
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Auto
1,200 1,100 1,000 975 1,000 1,010 920 850 620 420 475 546 590 637 675 743 750 754 United States
290 340 430 510 615 618 625 595 590 470 555 499 574 580 615 587 578 584 Japan
670 900 1,045 1,300 1,600 1,925 2,125 2,150 1,950 1,100 1,166 1,189 1,023 1,002 1,073 1,158 1,216 1,228 Europe
32 40 53 74 107 90 123 162 186 256 359 367 369 408 388 363 386 375 China
268
_____ 310
_____ 347
_____ 376
_____ 368
_____ 410
_____ 417
_____ 438
_____ 439
_____ 494
_____ 526
_____ 571
_____ 597
_____ 607
_____ 373
_____ 321
_____ 306
_____ 324 Other Countries
_____
2,460 2,690 2,875 3,235 3,690 4,053 4,210 4,195 3,785 2,740 3,081 3,173 3,153 3,234 3,123 3,173 3,236 3,265 Subtotal
38.3% 41.9% 43.9% 48.0% 52.0% 54.7% 54.5% 54.3% 54.2% 43% 46% 45% 44% 45% 45% 45% 46% 46% % of Total
7.4% 9.3% 6.9% 12.5% 14.1% 9.8% 3.9% -0.4% -9.8% -27.6% 12.4% 3.0% -0.6% 2.6% -3.4% 1.6% 2.0% 0.9% % Change Year Ago
Jewelry
1,060 750 780 665 560 510 500 490 450 350 310 290 292 280 269 279 283 274 Japan
200 120 130 120 100 80 75 62 59 60 65 60 62 60 61 68 72 72 United States
52 50 48 45 40 38 35 30 27 30 30 27 26 22 22 22 23 23 Germany
36 39 40 37 33 32 30 25 22 23 22 21 22 17 17 17 17 17 United Kingdom
11 10 10 8 7 6 5 3 2 3 3 3 2 2 2 2 2 2 France
949 1,105 1,059 1,031 964 889 935 1,062 1,058 1,752 1,616 1,840 1,988 1,940 1,901 1,825 1,780 1,762 China
_____80 _____85 _____90 100
_____ 115
_____ 120
_____ 110
_____ 100
_____ _____80 _____65 _____80 _____90 110
_____ 122
_____ 130
_____ 133
_____ 152
_____ 150 Other
_____
2,388 2,159 2,157 2,006 1,819 1,675 1,690 1,772 1,698 2,283 2,126 2,331 2,502 2,443 2,401 2,346 2,328 2,301 Subtotal
37.2% 33.6% 32.9% 29.8% 25.6% 22.6% 21.9% 22.9% 24.3% 35.6% 31.5% 33.0% 34.9% 33.8% 34.3% 33.5% 33.0% 32.6% % of Total
-3.7% -9.6% -0.1% -7.0% -9.3% -7.9% 0.9% 4.9% -4.2% 34.5% -6.9% 9.7% 7.3% -2.3% -1.7% -2.3% -0.8% -1.2% % Change Year Ago
Electronics
140 108 95 90 85 85 85 80 60 45 35 36 37 36 35 35 34 36 United States
87 80 55 60 50 64 75 65 58 40 38 20 21 19 19 20 22 25 Japan
24 18 14 12 12 12 12 11 10 9 9 8 8 8 8 9 9 9 Germany
14 10 7 6 6 6 6 5 4 6 4 5 3 2 2 2 2 4 United Kingdom
* * * * * * * * * * * * * * * * * * France
48 51 53 55 56 56 58 61 65 64 64 64 62 63 63 63 63 63 China
-____ -
____ -
____ -
____ ____16 ____19 ____22 ____29 20
____ ____40 ____50 ____65 ____60 ____62 ____62 ____63 ____63 ____65 Other
313 267 224 223 225 242 258 251 217 204 200 198 191 189 189 192 192 202 Subtotal
4.9% 4.2% 3.4% 3.3% 3.2% 3.3% 3.3% 3.3% 3.1% 3.2% 3.0% 2.8% 2.7% 2.6% 2.7% 2.7% 2.7% 2.9% % of Total
1.3% -14.8% -16.0% -0.6% 1.0% 7.6% 6.6% -2.7% -13.5% -6.0% -2.0% -0.7% -3.5% -1.1% -0.2% 1.8% 0.1% 5.0% % Change Year Ago
Chemical/Petroleum
Refining
117 115 120 122 125 130 132 135 150 135 140 145 147 147 149 145 138 138 U.S. Petroleum
100 80 100 103 107 110 112 115 125 112 130 135 136 136 138 140 135 135 U.S. Chemical
0 0 5 5 5 5 5 10 16 14 15 12 15 14 14 13 12 11 Japanese Petroleum
39 25 30 40 40 50 50 55 55 52 53 46 52 51 51 52 50 49 Japanese Chemical
79 81 83 88 89 92 100 107 113 131 144 152 157 161 165 170 170 171 China Petroleum
46
____ ____49 ____50 ____52 ____54 ____58 ____66 ____73 83
____ ____76 ____98 102
____ 109
____ 115
____ 125
____ 128
____ 129
____ 130 China Chemical
____
381 350 388 409 421 445 465 496 542 520 579 592 616 624 642 647 634 635 Subtotal
5.9% 5.5% 5.9% 6.1% 5.9% 6.0% 6.0% 6.4% 7.8% 8.1% 8.6% 8.4% 8.6% 8.6% 9.2% 9.2% 9.0% 9.0% % of Total
54.2% -8.1% 10.8% 5.6% 2.8% 5.7% 4.6% 6.6% 9.3% -4.1% 11.4% 2.2% 4.0% 1.4% 2.9% 0.7% -2.0% 0.1% % Change Year Ago
Dental/Medical
31 32 32 32 33 33 34 35 36 32 31 28 25 25 24 24 23 23 United States
21 20 20 20 21 22 25 25 23 22 22 18 18 15 14 13 13 13 Germany
- - - - - - - - - - - - - - - - - - United Kingdom
___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- France
52 52 52 52 54 55 59 60 59 54 53 46 43 40 38 37 36 36 Subtotal
0.8% 0.8% 0.8% 0.8% 0.8% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.7% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% % of Total
4.0% 0.0% 0.0% 0.0% 3.8% 1.9% 7.3% 1.7% -2.1% -8.1% -1.9% -13.2% -6.5% -7.0% -5.0% -3.9% -2.1% 0.7% % Change Year Ago
Other Uses
175 155 155 153 162 175 173 154 156 148 154 160 161 160 159 159 160 157 United States
100 125 115 105 130 135 140 100 105 95 100 93 98 90 88 89 89 88 Japan
300 298 310 315 319 337 335 302 290 265 266 240 225 208 206 205 206 208 Western Europe
25
____ ____30 ____36 ____40 ____45 ____51 ____58 ____62 72
____ ____70 ____78 ____82 ____79 ____81 ____83 ____85 ____87 ____89 China
600 608 616 613 656 698 706 617 623 578 598 575 563 539 536 538 541 541 Subtotal
9.3% 9.5% 9.4% 9.1% 9.2% 9.4% 9.1% 8.0% 8.9% 9.0% 8.9% 8.1% 7.8% 7.5% 7.6% 7.7% 7.7% 7.7% % of Total
8.1% 1.3% 1.3% -0.5% 7.1% 6.5% 1.1% -12.6% 1.0% -7.3% 3.5% -3.9% -2.0% -4.3% -0.6% 0.4% 0.7% 0.1% % Change Year Ago
232 290 239 204 232 240 333 332 61 38 115 145 109 149 77 77 79 75 Other Countries
3.6% 4.5% 3.6% 3.0% 3.3% 3.2% 4.3% 4.3% 0.9% 0.6% 1.7% 2.1% 1.5% 2.1% 1.1% 1.1% 1.1% 1.1% % of Total
-7.0% 24.8% -17.7% -14.5% 13.4% 3.6% 39.0% -0.4% -81.5% -37.2% 198.8% 26.1% -24.8% 36.7% -48.3% 0.0% 2.6% -5.1% % Change Year Ago
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
6,426 6,415 6,551 6,742 7,096 7,408 7,721 7,723 6,985 6,417 6,751 7,060 7,177 7,219 7,007 7,010 7,047 7,055 Total
4.0% -0.2% 2.1% 2.9% 5.3% 4.4% 4.2% 0.0% -9.6% -8.1% 5.2% 4.6% 1.7% 0.6% -2.9% 0.0% 0.5% 0.1% % Change Year Ago
33
coming in at an estimated 578,000 crisis. Europe, a laggard in the

ounces, down 1.5% from 2016. Demand economic recovery post the Great
was a mixed bag in the ‘other’ category. Recession, is showing signs of
China, which is the largest of these economic strength. The United States
markets, showed an increase in demand, on many economic fronts is at or above
as did India. However, weakness in levels seen prior to the recession, China
vehicle demand from most other is showing signs of stability, and India
countries in this category, weighed on too has been able to eke out healthy
platinum demand from the auto sector. growth despite some domestic
Demand for platinum from this sector is challenges. Japan’s gross domestic
forecast to continue rising, however, the product (GDP) grew for all four
pace of growth is expected to slow quarters of 2016, which was the first
significantly. Platinum demand from the time this has happened since 2005. This
auto sector is forecast at 3.26 million group of countries accounts for around
ounces in 2017, up 0.9% from 2016. 72% of global GDP.
After years of accommodative monetary This improvement in economic

policies by most central banks around growth bodes well for commercial
the world, the major countries and vehicle demand as business
regions of the global economy have for investment in these vehicles is closely
once shown signs of improving in tied with an improvement in
unison, unlike the pattern of rolling sentiment driven by real economic
recessions since the global financial growth. Growth for commercial
YTD Commercial Vehicle Sales Growth by Region
Data for February 2017
8% 8%
6% 6%
4% 4%
2% 2%
0% 0%
U.S. Europe Japan India Brazil
Note: Commercial vehicle sales growth in China was excluded from 2017 YTD calculation. The
strength in data skewed the chart. Commercial vehicle sales grew 27.7% during the first two
months of 2017.
34
vehicles has been growing over the past demand for commercial vehicles,
several years, which has overall been a weighing on demand for platinum.
positive for platinum fabrication
demand. Commercial vehicles, which Among the passenger vehicle markets,
are primarily diesel engines, have the most important one for platinum
platinum intensive catalysts. fabrication demand is Europe. This is
Furthermore these catalysts are due to the large diesel passenger car
significantly larger than those fitted on market in this region. That said, diesel’s
passenger vehicles which help boost market share in Europe has been on the
platinum demand further. Cumulative decline since 2011 when it peaked at
commercial vehicle sales in the U.S., 55.7% of new passenger car sales in
China, Europe, Japan, India, and Brazil Western Europe. In 2016, diesel
stood at 18.7 million in 2016, up from accounted for 49.5% of total passenger
17.6 million in 2015 and 16.3 million in vehicle sales. Diesel has been not only
2013. This group of countries accounts losing market share to gasoline but also
for around 75% of global commercial to the increase in demand for hybrid,
vehicle demand. electric, and alternative fuels such as
LPG and natural gas vehicles. In 2016,
While it is CPM Group’s expectation gasoline accounted for 45.8% of market
that economic growth will continue share, meanwhile, the remaining 4.8%
globally during 2017, there is a was taken up by alternative fuels and
heightened possibility that a political newer technologies.
disaster in some corner of the world
could disrupt growth. If this were to The recovery in European economic
occur and global economic growth was growth during 2016 helped boost
to slow, it could adversely affect passenger vehicle sales to 15.1 million
Monthly Commercial Vehicle Sales
Thous Units
2,000
2013 2014 2015 2016 2017
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
J F M A M J J A S O N D
Notes: Countries/regions included in this data series are China, US, Europe, Japan, India, and Brazil. These
countries/regions account for 75% of global annual sales.
Sources: national auto associations, OICA, Bloomberg
35
Commercial Vehicle Sales in Major Developed Auto Markets
Y-o-Y % Chg. Y-o-Y % Chg.

40% 25.0%
USA Europe Japan 20.0%

30%
15.0%
20%
10.0%
10%
5.0%
0% 0.0%
-10% -5.0%
-10.0%
-20%
-15.0%
-30% -20.0%
-40% -25.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Commercial Vehicle Sales in Major Developing Auto Markets

Y-o-Y % Chg. Y-o-Y % Chg.
60% 60%
China Brazil India
40% 40%
20% 20%
0% 0%
-20% -20%
-40% -40%
-60% -60%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
36
during the year, up from 14.1 million in in developed countries is becoming

2015. The recovery, as mentioned increasingly difficult with traditional
above, is expected to continue into 2017 catalysts. The SCR catalyst system is
and has been reflected in the healthy more efficient at reducing toxins. It is a
sales during the first two months of the more expensive catalyst system,
year. Total vehicle sales, passenger however, which has made it more
vehicles as well as commercial vehicle popular in large commercial vehicles
sales, during this period reached 2.6 such as trucks and buses and high end
million, up from 2.45 million vehicles cars. The SCR catalyst itself does not
during the corresponding period in contain any PGMs, with PGMs used
2016. Economic growth could slow in only in the downstream catalysts to
the latter half of the year as there are ensure that emissions remain low even
several risks to not only European when exhaust temperatures drop. The
economic growth but to global growth impact of SCR catalysts is an overall
as well. reduction in the use of PGMs per
vehicle.
A relatively new development that is
hurting the use of PGMs in catalysts is Europe
the growing popularity of Selective
Catalytic Reduction (SCR) systems that Engine Sizes: Getting Smaller
are being fitted to a variety of vehicles
but primarily to platinum intensive The average engine size of cars being
large commercial vehicles. These sold in Western Europe began declining
catalysts, using urea, have been used in at a rapid rate after 2007. The average
stationery site catalysts since the 1980s. cubic capacity of a new registered car
Meeting tightening emissions standards went from 1,740 cm3 in 2007 to 1,625
Average Engine Size - Europe
Engine Size (CC) Engine Size (CC)

1,750 1,750
1,700 1,700
1,650 1,650
1,600 1,600
1,550 1,550
1,500 1,500
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: ACEA. CPM Group
37
cm3 in 2009. There was a brief period have a smaller surface area to coat with
during which average engine capacity PGMs.
increased again to 1,647 cm3. The
average engine size resumed its Evolving Trends In Diesel - Gasoline
downward trend in 2013 and in 2016 Engine Market Share
the average engine size was down to
1,600 cm3 the lowest it has been since Among the major auto markets of the
1990. world, Europe has been the largest
source of demand for diesel passenger
The decline in engine size is not vehicles. The 1990s and 2000s saw a
expected to reverse over the next ten growth in positive consumer sentiment
years, at least not in any meaningful toward diesel vehicles as a solution to
way. The move toward more fuel the problem of global warming. Diesel
efficient cars in developed economies is vehicles emit lower levels of
expected to be an ongoing shift in greenhouse gasses and also were seen as
demand. being more fuel efficient than their
gasoline counterparts. This positive
Furthermore, and more importantly, sentiment toward diesel was further
Europe has generally tended to favor supported by European governments
smaller cars, especially relative to the that reduced taxes on diesel fuel,
North American market. Holdings all making it cheaper for consumers
factors that influence PGM loadings in relative to gasoline. This resulted in
auto catalyst constant, smaller vehicles diesel’s share of Western Europe’s
typically require smaller catalyst and passenger car market rising from around
Diesel's Market Share of Major Passenger Car Markets
60%
Western Europe
50% India
United States
Japan
40%
30%
20%
10%
0%
1990 1993 1996 1999 2002 2005 2008 2011 2014
Note: Japanese data is diesels as a percent of cars in use. U.S. data is estimated for 1990 through 2001.
Sources: Historical data-JAMA, ACEA, CAAM,news articles. Projections & estimated data-CPM Group
38
14% in 1990 to a peak of 55.7% in reductions in the tax subsidies for diesel
2011. fuel sold in the region it would
dramatically reduce the amount of
This positive European attitude toward diesel passenger cars sold in Europe. It
diesel has been reversing since 2011. is important to note that diesel vehicle
Instead, negative sentiment and popularity in Europe is a relatively
attitudes toward diesel have been recent construct, since the 1990s, and
growing in Europe. It has become was the result of government subsidies
apparent to the public that while there a n d p r o - d i e s e l p r o g r a ms . T h e
are benefits to diesel over gasoline in preference for diesel vehicles was not
emitting relatively lower green house deeply ingrained in European consumer
gases these benefits were beginning to psyches, was heavily influenced by
be outweighed by problems such as an government subsidies, and even at their
increase in the level of nitrogen oxide peak market penetration in 2011 only
emissions and particulate matter. The accounted for 55.7% of the European
decline in diesels’ market share in the small vehicle market. Nearly half of the
passenger vehicle market has been passenger vehicles in Europe remained
gradual to date, however, 2016 marked petrol based.
the first year when diesel vehicles
accounted for less than the majority of The decision to completely remove
passenger cars sold in Europe. the diesel tax subsidy is a tough
decision for governments to make,
In 2016 new diesel car registrations however, given the amount of
accounted for 49.5% of total passenger investments European auto
vehicle registrations, the lowest level manufactures and petroleum refiners
since 2005. A large part of the reason already have made into building
why the decline has been gradual may diesel technology and the large diesel
be that diesel fuel still is cheaper than distillation capacity built in Europe.
gasoline, which incentivizes buyers to The possibility that these subsidies do
still opt for diesel passenger cars. not go that easily or are only phased out
over time may help to make the decline
The trend of declining diesel vehicle in diesel’s market share in Europe more
market share is expected to continue gradual.
in Europe in the years ahead. There is
some push back from governments with This reduction in diesel market share
regards to the sales of diesel passenger is expected to weigh on platinum
vehicles in large cities like London and fabrication demand from the
Paris. Furthermore, the Volkswagen European auto market over the long
diesel vehicle emissions violations term.
revealed in September 2015 fortified the
negative sentiment toward diesel There are several factors including
passenger vehicles in Europe. fuel costs and fuel efficiency that
presently favor diesel passenger
If negative consumer sentiment in vehicles over gasoline vehicles in
Europe toward diesel is met with further Europe. Despite these demand-
39
supportive factors, demand for diesel India

passenger vehicles in Europe has
been declining since 2012 and is likely Changing Market Share Of Gasoline
to decline further in the future. And Diesel Engines
The Bottom Line For Europe India was a major auto market with
significant potential to grow into a
In Europe where the cost of diesel fuel larger consumer of diesel passenger
is meaningfully lower than gasoline, vehicles. In late 2014, however, the
demand for diesel powered cars is government removed diesel subsidies,
forecast t o persi st for y ear s. allowing the price of diesel to be
Additionally these cars are more fuel determined by market forces. This
efficient than gasoline vehicles, which shrank the spread between diesel and
increases the benefit of owning diesel gasoline and reduced the level of
powered vehicles in Europe. demand for diesel passenger cars, which
Despite these existing benefits, often are more expensive than their
however, demand for these vehicles in gasoline counterparts. Added to this the
Europe has declined in recent years. government increased the tax on diesel
This reflects a combination of negative vehicles (infrastructure cess or levy)
sentiment toward diesel cars, increasing more than on gasoline vehicles in the
fuel efficiency in gasoline vehicles, and 2016-17 fiscal year, which is expected
an alternative to reducing emissions by to further deter demand for diesel
opting for electric or hybrid electric vehicles going forward.
vehicles. Electric and hybrid electric
vehicles are still a very small market. At its peak, diesel is estimated to have
However, both auto makers as well as accounted for around 45%-47% of total
governments are trying to push for new car registrations. Following the
increased usage of these vehicles. It removal of the subsidy the demand for
could be years before electric or these vehicles almost immediately has
hybrid vehicles meaningfully reduce declined to around 35% of new car
demand for internal combustion registrations. In the future there could
engines. Nonetheless, the ball has be periods when the spreads between
started rolling. gasoline and diesel widen, in favor of
diesel. There is no guarantee that such
an increase in spreads will drive
demand for diesel vehicles higher,
however, as the consumer may remain
wary of a shrinking in the spread now
that the fuel price is driven by market
forces.
40
This reduction in market share will have and to shelter themselves from the
a longer term negative impact on ongoing possibility of a run up in prices.
fabrication demand for platinum, the
primary metal used in auto catalysts. That said, consumers tend to make the
purchases of their vehicles with a
Alternate Power Technologies: shorter term view. As a result, the
HEV, PHEV, EV/BEV weakness in gas prices has reduced the
urgency on the part of some of these
V a r i o u s al t e r n at e p o w e r t r a i n buyers to make the switch just as many
technologies are now a commercial consumers, especially in the U.S., have
reality. That said, these technologies purchased light duty trucks in favor of
account for a very small percentage of cars in the low gas price environment.
the global auto market and that is likely
to be the case at least in the medium Hybrid Vehicles
term. One of the common factors that
has been weighing on demand for these Hybrid vehicles fall broadly into two
vehicles in recent years has been the categories, hybrid electric vehicles
softness in gasoline prices. The cost of (HEV) and plug-in hybrid electric
fuel is one of the key incentives for (PHEV). HEV are powered by both an
consumers to opt for alternate internal combustions engine and an
technologies, to save on the cost of gas electric motor which uses power stored
Hybrid Vehicles, Electric Vehicles and Global Light Duty Vehicle Sales
Million Units
80
All Other Light Duty Vehicles Hybrid Vehicles Battery Electric Vehicles
70
60
50
40
30
20
10
0
09 10 11 12 13 14 15 16 17p
41
in a battery. The primary source of car will be around the same amount
power for these cars is the internal as an internal combustion engine.
combustion engine with the battery This is even truer in the case of diesel
acting more as a backup. The battery is hybrids because diesel engines typically
charged from regenerative braking have lower exhaust gas temperatures,
(captures energy lost during braking) but it is also true in the case of gasoline
and the internal combustion engine. The engines. Depending on the
battery cannot be charged by an off- configuration of different hybrids, the
board source. PGM loadings in auto catalysts can be
higher or lower than the typical case
PHEV are primarily powered by their stated above.
batteries with the internal combustion
engine acting more as a backup. The Electric Vehicles
batteries on these vehicles can be
charged using electricity from the grid There has been a significant push both
as well as by regenerative braking and from industry and governments around
the internal combustion engine. Also the the world to produce mass market
batteries on these vehicles are larger electric vehicles or battery electric
than in the HEVs. vehicles (EVs/BEVs). Pure electric
vehicles do not and will not require
In both these variants of hybrid auto catalysts. This is because they do
vehicles, the extra power provided by not themselves produce any kind of
the electric motor (powered by the emissions.
battery) allows for a smaller internal
combustion engine. As mentioned Demand for these vehicles has been
above, holding all else equal, smaller small so far but is expected to increase
engines typically require lower PGM going forward as some of the concerns
loadings in their auto catalysts. that have held consumers back are
resolved. Furthermore there seems to be
However, because HEV and PHEVs do a strong push among some governments
not have a continuously working to incentivize consumers to purchase
co mbu stio n engin e the eng ine electric vehicles, especially in Europe.
temperatures are lower in these
vehicles. The engine’s operating Risks To Electric Vehicle Demand
temperature is an important variable in
the catalytic process. PGMs loaded in There are numerous challenges facing
the auto catalyst can convert harmful mass adoption of electric vehicle
emissions into less harmful gases more technology, which should take several
effectively at higher temperatures. To years to be overcome. There are serious
compensate for some of the lost efforts being made by governments,
efficiency occurring due to lower auto makers, and entrepreneurs to
temperatures a greater amount of PGM overcome these challenges.
may be used. In this way, the total
amount of PGMs loaded in the auto
catalyst of a hybrid electric vehicle
42
Vehicle Cost pump. The sharp decline in gas prices

since the middle of 2014 has reduced
One of the biggest impediments to incentive among buyers who are
demand for electric vehicles has been looking to save money on gas to buy
and continues to be the cost of owning these cars, especially as they are sold at
these vehicles. A compact car powered a premium to internal combustion cars
by an internal combustion engine in the same class.
typically costs between $18,000 to
$20,0000 in the United States. An Driving Range
electric vehicle in the same class (Tesla
Model 3, Nissan Leaf) would cost One concern many drivers have had and
between $30,000 and $35,000. These that has prevented them from adopting
prices are without government the electric vehicle technology is the
incentives, however, which in the limited driving range on a full change.
United States are $7,500 at the Federal For a majority of the compact electric
level and then there are other incentives vehicle presently available in the market
provided by individual state the typical driving range on a full
governments. These incentives help charge is around 80 miles. Even though
narrow the gap between the cost of a most drivers do not drive beyond the
pure electric and a comparable average range available to electric
internal combustion engine. Similar vehicles at present, there is an anxiety
incentives are being offered by associated with this limitation.
governments all around the world. Consumers driving cars powered by
Governments will play a critical role in internal combustion engines at present
driving demand for these vehicles, at know that they have no limitations on
least initially, until the time that range as long as they have fuel in their
sufficient vehicles are produced to drive tanks. Refueling only takes a few
costs down. minutes. In contrast, recharging EVs'
batteries takes several hours.
The largest cost component of electric Two developments are expected to take
vehicles is the battery costs. While care of this concern going forward. The
still high, they have declined first is an increase in energy density of
substantially in the past few years batteries, which has been growing over
and are expected to continue the past several years but is expected to
declining going forward. In 2010 grow at an exponential pace going
batteries were costing around $600 per forward. Each battery will essentially
kwh. These costs are now down to pack more power than batteries
between $145 to $200 per kwh. presently available in the market.
Fuel Costs Additionally there is an increase in the

number of fast charging ports being
While many consumers are interested in installed. At a fast charging station a 20
purchasing an electric vehicle for all of minute charge can get you a 50 mile to
its environmental benefits they are also 70 mile range. This contrasts with a
interested in saving money at the level 2 charging station which gets you
43
20 miles for an hour of charging and a Environmental Benefit

level 1 charger which gets you 5 miles
for an hour of charging. Many consumers, especially in
developed countries, may demand this
Infrastructure vehicle because it is emission free. The
electricity used to power these vehicles
The most important component of the will largely be produced by burning
infrastructure is the charging stations or coal, however. Therefore the use of
electric vehicle supply equipment electric vehicles (if using coal as the
(EVSE). This infrastructure is important primary source of electricity production,
to get more consumers to adopt the which is the case in most parts of the
electric vehicle technology as it would world) is to a large part diverting the
boost their confidence to drive long negative environmental impact of
distances without worrying about burning fossil fuels from being burnt by
running out of charge. Like with other a car to being burnt by an electricity
aspects of the electric vehicle market generating facility. The more apparent
there has been a strong amount of this fact becomes, the lesser will be the
growth in this sector as well but there is demand from consumers purchasing
still ways to go. Not only in there a need these cars to reduce emissions.
to introduce more charging stations but
also charging stations that charge fast. That said, while electric cars are not
This is expected to happen in due technically emissions free they still
course of time. produce significantly less emissions
than a car powered by gasoline. An
One area of focus in rechargeable electric vehicle produces around 5,000
batteries even for other electronics like pounds of CO2 equivalent emissions
phones is to get them to charge at a compared with around 12,000 pounds
faster pace. With regard to volume of by a gasoline car. This is a significant
charging stations, this has grown from difference.
around 48,000 (2,000 fast charging
stations) at the end of 2012 to 110,000 Adoption Of New Technology
(15,000 stations) at the end of 2015.
Consumers are generally slow to adopt
Setting up the required infrastructure new technology, especially when there
and meeting electricity demand could are known alternatives that exist in the
be a bigger challenge in developing market to meet the same purposes (in
countries. This is an important factor this case internal combustion cars).
as many of these markets are Hybrid vehicles are an good example,
expected to be the growth engines of where after several years of being in the
the global auto market going market they still account for only a
forward. minuscule portion of the auto market. If
new technology meets a need that was
not being met by existing technology
there is a chance of faster adoption, for
44
example a cell phone. This technology

quickly gained traction as it filled a Furthermore, the biggest effort made by
void. Landlines had limitations which research related to fuel cells is the need
were met by cell phones. The primary to reduce the platinum use, if not
purpose of an electric car, which is to eliminate it. The amount of platinum
aid in transport, is essentially being met used per unit of energy output today is
by internal combustion vehicles, which perhaps less than 5% of what was
will make it harder for consumers to required in the 1960s – 1980s, with a
move toward this technology. further sharp reduction over the next
couple of years.
ALTERNATE DEMAND SOURCES
Some commercialization of fuel cells
Fuel cells for stationary and vehicular use of fuel
cells has occurred. Most of the platinum
Fuel cells have been commercialized. used in commercial application is in
That said, they are a long way from fork lift trucks and buses. Fuel cells also
competing with some of the new are starting to appear in commercial and
technologies like hybrids and electric residential properties, often as backup
vehicles that have hit the markets in power sources. The reliability of such
recent years and significantly behind, as power sources remains uncertain, as
are all of these new technologies, diesel some of the early innovators who
and gasoline engines. installed fuel cell back-up systems
found they failed to work when they
Projections of Future Platinum Use in Fuel Cells -- Always Optimistic
Troy Ounces Troy Ounces

700,000 700,000
Projections have been overly optimistic for decades 2003
1995
600,000 The year in which each projection was made is shown 600,000
above e ach bar
1991
500,000 500,000
400,000 400,000
1980
300,000 300,000
1995
200,000 200,000
100,000 Actual use... mostly in

100,000
re search models
0 0
1988
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2000
2001
2002
2003
2004
2005
2005
2006
2007
2008
2009
2010
2010
2010
2011
2012
2013
2014
2015
45
were needed. Despite the technical and for fuel cells vehicles, demand for
economic lack of viability, the growth platinum is not only expected to be
in stationary fuel cells is rising, albeit reduced on a per unit basis but is also
slowly. Only a couple of thousand of unlikely to gain much from sales
ounces have been used in such systems volumes of vehicles either.
over the past few years.
Fuel Cell Passenger Vehicles Fuel cells have some benefits over those
of BEV at this time, in that they can be
There also are some fuel cell passenger refueled quickly and have longer
cars and small trucks in operation. driving ranges, two important
Some auto makers are discussing concerns for BEV as they stand right
having as many as 30,000 fuel cell cars now. One of the biggest hurdles for
sold per year over the next five years fuel cell technology in vehicles is the
while others are estimating 70,000 such setting up of refueling infrastructure.
vehicles being sold per year at the end Not only are there very few hydrogen
of the next ten years. That said, many refueling stations, but these also are
auto industry executives consider these very expensive to set up at around two
projections overly optimistic. One of the to three million dollars each. It is
basis for these projections is that there estimated that there are around 100
will be a greater number of offerings in hydrogen refueling stations globally
the market over the next several years. versus tens of thousands of electric
The auto companies planning to charging stations for BEV and PHEV.
produce these limited numbers of fuel
cell vehicles have directed their It should also be noted that the primary
suppliers that they only will move source of hydrogen fuel at this time is
forward if the platinum loadings are from fossil fuels, reducing the green
reduced by at least another 50% from appeal of these vehicles.
current levels. As of 2016, on average,
fuel cells in passenger cars were using
1.1 ounces of platinum. This demand
to further reduce the amount of
platinum per vehicle, while not an
unusual expectation, is not a very
positive factor for platinum demand
from this sector. It is common to see a
great deal of effort taken to reduce the
per unit usage of precious metal in
various fabricated uses, often the total
demand for precious metals grows from
the high volume (demand) of the final
product. Based on present projections
46
Global Auto Sales

Million Vehicles Million Vehicles
100 100
90 90
80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
- -
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17p
Note: Figures include both passenger vehicles and commercial vehicles
47
Vehicle Sales in Brazil, Russia, India and China

MillionVehicles MillionVehicles
40 40
35 35
India China Russia Brazil
30 30
25 25
20 20
15 15
10 10
5 5
- -
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17p
Vehicle Sales North America, Europe, and Japan

MillionVehicles MillionVehicles
50 50
North America Europe Japan
45 45
40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
- 0
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
48
Jewelry the difficulty associated with working

with platinum. There is also a very high
Platinum demand from the jewelry content of platinum used in making
sector continued to decline for the platinum jewelry unlike in the case of
fourth consecutive year during 2016, gold jewelry were the gold content in
slipping to 2.32 million ounces during jewelry can range from around 58% to
the year. This was the lowest level of 93% in the case of platinum jewelry the
demand from the jewelry sector since platinum content is typically 95%. The
2010. Platinum jewelry demand, like difficulty of working with platinum
other jewelry demand, is greatly coupled with the required high content
influenced by the price level and price of platinum offset to a degree the
volatility of the metal, the incomes of benefit of lower platinum prices.
populations purchasing this jewelry and
the level of advertising dollars spent. Reduced demand from China is another
Even as the price of platinum has factor that has been weighing on
declined over the past several years, it demand. China is the largest platinum
has had a limited positive impact on the jewelry market in the world, accounting
demand for platinum jewelry. This is for approximately 78% of global
because there are various other factors platinum jewelry demand. That said,
that are working against demand. For demand for platinum from the jewelry
one, while the price of platinum has sector has been on the decline in the
declined the making charges of past few years. Relatively slower
platinum jewelry are very high due to income growth in recent years as a
Platinum Jewelry Demand and Prices

Annual Data, Projected through 2017
Thou. Oz. $/Ounce
2,800 2,100
2,400 1,800
2,000 1,500
1,600 1,200
China
1,200 900
Japan
800 600
Other
400 300
0 0
1976 1981 1986 1991 1996 2001 2006 2011 2016p
49
result of a relatively slower economic sell platinum jewelry to customers at a

growth has weighed on demand for premium to gold jewelry.
luxury items like platinum jewelry. This
is already beginning to show. Demand for platinum jewelry in India
has been growing at an aggressive pace
Demand for platinum jewelry is gaining over the past few years. The strong
popularity in the urban parts of India. growth rate is based on both a shift
There has been a move away from away from gold among the youth and
heavy gold jewelry among younger the fact that total demand is still fairly
generations in favor of either lighter low in India, therefore the growth rate is
karat gold jewelry or platinum jewelry. much higher. Platinum jewelry demand
There is a significant push by the in India was estimated at around 32,000
Platinum Guild to promote the use of ounces in 2016.
platinum in jewelry by advertising it as
desirable. This sort of advertising is Demand was hurt to some extent, as
important to build a market for jewelry was the case with gold jewelry as well,
given its non essential purpose. Demand due to the demonetization of currency
is further supported by Indian jewelers during the last quarter of 2016. Demand
that continue to promote the use of is expected to rise in 2017 to around
platinum jewelry. This is especially true 35,300 ounces.
since 2015 when the price of platinum
declined below that of gold and still
jewelers were able to and continue to
Platinum Jewelry Demand in Japan, China, The United States, and Europe
Annual Data, Projected Through 2017
Thou Ounces Thou Ounces
2,500 2,500
Japan United States
2,000 China Europe 2,000
1,500 1,500
1,000 1,000
500 500
0 -
55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 00 03 06 09 12 15
50
Electronics the demand for platinum should rise

rapidly.
Platinum's role in electronics largely is
restricted to the metal being used to coat Chemical and Petroleum Catalysts
hard disks. The use of platinum on hard
disks helps improve the disk’s capacity Platinum use in chemical and petroleum
to store information. Technological refining catalysts declined during 2016.
developments in the works over the past Weaker oil prices coupled with a
few years are expected to be ratcheting down in Chinese economic
commercialized in 2017. The new growth weighed on the addition of new
technology for coating medias (the capacity in this space. Platinum demand
components coated with the two metals) from the sector slipped to 634,000
in hard drives is expected to increase ounces in 2016, down 2% from 2015.
the amount of platinum being used at That said, despite the decline this was
the cost of ruthenium. This increased the third highest level of platinum
use of platinum in favor of ruthenium in demand from this source. Demand is
hard drives is expected push up forecast to rise marginally to 635,000
platinum demand from this sector for ounces in 2017.
the first time in several years. Platinum
demand from the electronics sector is
forecast to rise to 202,000 ounces in
2017, up from 192,000 ounces in 2016.
The phase-in period is expected to be
three or four years. During this period
Platinum Electronics Demand

350 350
300 300
250 250
200 200
150 150
100 100
50 50
- -
77 80 83 86 89 92 95 98 01 04 07 10 13 16
51
China Platinum S upply And Demand

2000 2001 2002 2003 2004 2005 2006 2007 2008
S upply
Mine Production 20 24 22 32 42 51 54 65 69
% Change Year Ago 23.6% -9.3% 47.1% 30.0% 23.1% 5.0% 20.0% 6.5%
S econdary S upply 47 49 50 51 52 56 60 68 73
% Change Year Ago ______ ______
4.9% ______
1.4% ______
2.0% ______
3.5% ______
7.5% ______
6.9% ______
12.7% ______
8.3%
Total S upply 66 73 71 83 94 108 114 133 142
% Change Year Ago 10.4% -2.1% 15.8% 13.8% 14.4% 6.0% 16.2% 7.4%
Demand
Jewelry 949 1,105 1,059 1,031 964 889 935 1,062 1,058
Automotive 32 40 53 74 107 90 123 162 186
Petroleum 79 81 83 88 89 92 100 107 113
Chemical 46 49 50 52 54 58 66 73 83
Glass 25 30 36 40 45 51 58 62 72
Electronics 48 ______
______ 51 ______
53 ______
55 ______
56 ______
56 ______
58 ______
61 ______
65
Total Fabrication Demand 1,179 1,355 1,334 1,339 1,315 1,236 1,340 1,527 1,577
% Change Year Ago 14.9% -1.6% 0.4% -1.8% -6.0% 8.4% 14.0% 3.3%
Apparent S upply and
Demand Balance -1,112.8 -1,282.0 -1,262.2 -1,255.9 -1,220.8 -1,128.2 -1,225.8 -1,394.3 -1,434.3
S ources: Chinese Industry S ources, CPM Group
May 13, 2017
52
2009 2010 2011 2012 2013 2014 2015 2016 2017p

S upply
69 68 68 69 70 71 71 72 72 Mine Production
-0.6% -1.2% 1.0% 1.1% 1.0% 1.0% 0.9% 0.9% 0.6% % Change Year Ago
73 84 90 91 95 100 104 107 110 S econdary S upply
0.1% ______
______ 14.6% ______
7.0% ______
1.0% ______
4.9% ______
4.3% ______
4.2% ______
3.5% ______
2.6% % Change Year Ago
142 152 159 160 165 170 175 179 182 Total S upply
-0.3% 6.9% 4.3% 1.0% 3.2% 2.9% 2.8% 2.5% 1.8% % Change Year Ago
Demand
1,752 1,616 1,840 1,988 1,940 1,901 1,825 1,780 1,762 Jewelry
256 359 367 369 408 388 363 386 375 Automotive
131 144 152 157 161 165 170 170 171 Petroleum
76 98 102 109 115 125 128 129 130 Chemical
70 78 82 79 81 83 85 87 89 Glass
64 ______
______ 64 ______
64 ______
62 ______
63 ______
63 ______
63 ______
63 ______
63 Electronics
2,349 2,358 2,608 2,764 2,768 2,725 2,634 2,614 2,591 Total Fabrication Demand
49.0% 0.4% 10.6% 6.0% 0.1% -1.5% -3.4% -0.7% -0.9% % Change Year Ago
Apparent S upply and
-2,207.3 -2,205.9 -2,449.1 -2,604.0 -2,602.5 -2,555.0 -2,458.7 -2,434.9 -2,408.2 Demand Balance
53
Historical U.S. Platinum Demand
Troy Ounces
Year Automotive Petroleum Chemical Electronics Glass

1955 - - 348,088 48,683 -
1956 - - 320,476 53,872 -
1957 - - 243,226 52,574 -
1958 - - 148,276 53,553 -
1959 - 44,327 80,107 84,837 82,997
1960 - 35,645 71,253 106,903 59,390
1961 - 37,742 72,016 87,419 35,234
1962 - 13,160 87,822 100,569 45,530
1963 - 40,721 156,427 110,576 57,919
1964 - 41,071 137,248 103,584 49,680
1965 - 82,138 131,599 106,808 19,846
1966 - 235,098 191,429 117,156 90,556
1967 - 122,511 159,384 99,686 45,150
1968 - 89,629 157,677 117,256 47,935
1969 - 62,438 175,436 112,589 63,350
1970 - 144,657 148,289 103,318 46,687
1971 - 137,396 135,112 51,940 40,703
1972 - 98,847 225,895 92,381 26,970
1973 - 123,649 238,974 117,352 72,543
1974 350,000 139,519 215,663 98,608 74,398
1975 273,000 107,988 148,813 73,624 33,813
1976 480,965 59,103 83,560 89,319 41,683
1977 354,338 74,772 84,414 90,217 59,995
1978 597,538 108,365 149,696 106,422 98,094
1979 803,229 170,013 98,600 115,775 88,594
1980 517,143 144,039 118,956 150,060 52,897
1981 446,677 88,314 78,134 111,697 29,272
1982 525,000 21,576 63,601 89,994 20,595
1983 600,000 38,030 75,000 74,716 14,903
1984 822,000 28,045 80,000 98,925 12,184
1985 911,000 28,771 95,000 115,840 20,651
1986 890,000 30,566 97,000 103,506 15,793
1987 800,000 23,773 81,000 108,000 9,157
1988 775,000 34,466 122,000 112,335 21,895
1989 790,000 91,919 97,000 125,195 36,330
1990 720,000 105,261 86,000 125,613 13,857
1991 700,000 126,931 48,000 126,931 4,115
1992 730,000 105,000 75,000 126,000 11,574
1993 830,000 100,000 81,000 129,000 7,500
1994 880,000 106,000 63,000 139,000 8,000
1995 1,000,000 110,000 75,000 145,000 17,000
1996 1,100,000 113,000 88,000 146,000 17,000
1997 1,050,000 109,000 92,000 159,000 17,000
1998 1,100,000 109,000 94,000 167,000 17,000
1999 1,175,000 113,000 96,000 175,000 19,000
2000 1,200,000 117,000 100,000 140,000 20,000
2001 1,100,000 115,000 80,000 108,000 30,000
2002 1,000,000 120,000 100,000 95,000 20,000
2003 975,000 122,000 103,000 90,000 18,000
2004 1,000,000 125,000 107,000 85,000 20,000
2005 1,010,000 130,000 110,000 85,000 20,000
2006 920,000 132,000 112,000 85,000 23,000
2007 850,000 135,000 115,000 80,000 23,500
2008 620,000 150,000 125,000 60,000 24,000
2009 420,000 135,000 112,000 45,000 20,000
2010 475,000 140,000 130,000 35,000 23,000
2011 546,250 145,000 135,000 36,000 25,000
2012 589,950 147,000 136,000 37,000 26,000
2013 637,146 147,000 136,000 35,500 25,000
2014 675,375 149,000 138,000 35,000 25,000
2015 742,912 145,000 140,000 35,000 24,000
2016 750,341 140,000 135,000 34,000 24,500
2017p 754,093 138,000 135,000 36,000 24,000
Notes: Petroleum and glass industry demand was included in chemical industry figures prior to 1959.
Estimates for 1985 and subsequent years for the automotive and some other industries are
CPM Group estimates based on Bureau of Mines statistics prior to revisions made in 1987.
54
Dental Jewelry Percent

and and Change
Medical Decorative Miscellaneous Total in Total Year
12,304 12,860 5,297 427,232 1955
12,436 16,075 5,115 407,974 -4.5% 1956
11,514 22,505 6,567 336,386 -17.5% 1957
14,414 41,796 5,727 263,766 -21.6% 1958
15,379 54,656 5,747 368,050 39.5% 1959
15,898 57,871 2,828 349,788 -5.0% 1960
16,487 64,301 4,003 317,202 -9.3% 1961
22,601 77,162 6,017 352,861 11.2% 1962
18,894 115,743 6,844 507,124 43.7% 1963
19,376 90,022 3,195 444,176 -12.4% 1964
26,511 83,592 10,084 460,578 3.7% 1965
24,296 86,807 24,846 770,188 67.2% 1966
24,630 115,743 26,112 593,216 -23.0% 1967
24,903 102,882 31,150 571,432 -3.7% 1968
22,266 138,248 47,174 621,501 8.8% 1969
18,302 199,334 18,555 679,142 9.3% 1970
23,097 398,669 19,859 806,776 18.8% 1971
30,462 729,821 50,089 1,254,465 55.5% 1972
27,887 897,005 55,695 1,533,105 22.2% 1973
25,513 839,133 17,020 1,759,854 14.8% 1974
17,097 1,060,973 21,318 1,736,626 -1.3% 1975
26,858 836,000 46,246 1,663,734 -4.2% 1976
27,083 794,000 64,350 1,549,169 -6.9% 1977
44,139 804,000 66,336 1,974,590 27.5% 1978
27,053 592,000 77,949 1,973,213 -0.1% 1979
25,831 440,000 58,307 1,507,233 -23.6% 1980
18,739 624,000 72,202 1,469,035 -2.5% 1981
22,806 630,000 67,805 1,441,377 -1.9% 1982
16,744 553,000 75,000 1,447,393 0.4% 1983
18,644 624,000 82,000 1,765,798 22.0% 1984
24,514 675,000 125,000 1,995,776 13.0% 1985
22,619 691,000 110,000 1,960,484 -1.8% 1986
15,387 868,000 65,000 1,970,317 0.5% 1987
18,680 987,000 96,000 2,167,376 10.0% 1988
20,319 1,061,000 135,000 2,356,763 8.7% 1989
22,087 1,150,000 160,000 2,382,818 1.1% 1990
19,500 1,290,000 125,000 2,440,477 2.4% 1991
20,576 1,318,000 130,000 2,516,150 3.1% 1992
24,000 1,400,000 105,000 2,676,500 6.4% 1993
25,000 1,547,000 100,000 2,868,000 7.2% 1994
25,000 63,000 110,000 1,545,000 -46.1% 1995
25,000 70,000 115,000 1,674,000 8.3% 1996
27,000 100,000 130,000 1,684,000 0.6% 1997
29,000 140,000 140,000 1,796,000 6.7% 1998
30,000 150,000 145,000 1,903,000 6.0% 1999
31,000 200,000 155,000 1,963,000 3.2% 2000
32,000 120,000 125,000 1,710,000 -12.9% 2001
32,000 130,000 135,000 1,632,000 -4.6% 2002
32,000 120,000 135,000 1,595,000 -2.3% 2003
33,000 100,000 142,000 1,612,000 1.1% 2004
33,000 80,000 155,000 1,623,000 0.7% 2005
34,000 75,000 150,000 1,531,000 -5.7% 2006
35,000 62,000 130,000 1,430,500 -6.6% 2007
35,750 59,000 132,000 1,205,750 -15.7% 2008
32,000 60,000 128,000 952,000 -21.0% 2009
31,000 65,000 131,000 1,030,000 8.2% 2010
28,000 60,000 135,000 1,110,250 7.8% 2011
25,000 62,000 135,000 1,157,950 4.3% 2012
25,000 60,000 135,000 1,200,646 3.7% 2013
24,000 60,600 134,000 1,240,975 3.4% 2014
23,500 67,872 135,000 1,313,284 5.8% 2015
23,000 71,605 135,000 1,313,446 0.0% 2016
23,000 72,321 133,000 1,315,414 0.1% 2017p
S ources: U.S . Bureau of Mines, CPM Group.

May 1, 2017
55
2016 U.S. Demand: 1,313,446 ounces
Other, 15.4%
Jewelry, 5.0%
Petrochemical, 23.6% Automotive, 53.1%
Electrical, 2.9%
56
Japanese Platinum Demand

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Electronic 45 39 39 13 16 16 19 16 29 39 42
Automotive 68 68 112 199 209 193 170 167 167 174 248
Jewelry 836 794 804 592 440 624 630 553 624 675 691
Petroleum 35 32 48 45 48 -- -- -- -- -- --
Chemical 112 112 65 10 10 10 10 10 16 16 16
Other 52
____ 61
____ 129
____ 74
___ 257
___ 345
____ 245
____ 210
___ 345
____ 406
____ 61
____
Total 1,148 1,106 1,197 932 980 1,188 1,074 956 1,181 1,309 1,058
% Change Year Ago -- -3.7% 8.2% -22.1% 5.1% 21.2% -9.6% -11.0% 23.6% 10.8% -19.2%
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Electronics 42 48 50 50 52 43 55 57 53 53 55
Automotive 295 325 340 366 400 306 240 246 235 219 225
Jewelry 868 987 1,061 1,180 1,270 1,300 1,400 1,547 1,641 1,700 1,775
Chemical 16 19 20 20 20 15 20 22 20 32 38
Other 135
____ 98
____ 50
____ 100
____ 100
____ 85
____ 105
____ 107
____ 105
____ 151
____ 160
____
Total 1,356 1,477 1,521 1,716 1,842 1,749 1,820 1,979 2,054 2,155 2,253
% Change Year Ago 28.1% 25.0% 3.0% 12.8% 7.3% -5.0% 4.1% 8.7% 3.8% 4.9% 4.5%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Electronics 57 95 87 80 55 60 50 64 75 65 58
Automotive 218 225 290 340 430 510 615 618 625 595 590
Jewelry 643 823 949 1,105 1,059 1,031 964 889 935 1,062 1,058
Chemical 37 38 39 25 30 40 40 50 50 55 55
Petroleum -- -- -- -- 5 5 5 5 5 10 16
Other 168 100 100 125 115 105 130 135 140 100 105
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
Total 1,123 1,281 1,465 1,675 1,694 1,751 1,804 1,761 1,830 1,887 1,882
% Change Year Ago -50.2% 14.1% 14.4% 14.3% 1.2% 3.3% 3.0% -2.4% 3.9% 3.1% -0.3%
2009 2010 2011 2012 2013 2014 2015 2016 2017p
Electronics 40 38 20 21 19 19 20 22 25
Automotive 470 555 499 574 580 615 587 584 572
Jewelry 1,752 1,616 290 292 280 269 279 283 274
Chemical 52 53 46 52 51 51 52 50 49
Petroleum 14 15 12 15 14 14 13 12 11
Other 95
____ 100
____ 93
____ 98
____ 90
____ 88
____ 89
____ 89
____ 88
____
Total 2,423 2,376 960 1,052 1,034 1,056 1,039 1,040 1,019
% Change Year Ago 28.8% -1.9% -59.6% 9.6% -1.7% 2.1% -1.5% 0.0% -2.0%
Notes: Totals may not equal the sums of the individual categories due to rounding.
Beginning with 1981, sales to petroleum refiners are included in the chemical sector.
Sources: Japanese trade sources, CPM Group.
May 1, 2017
57
Annual European Platinum Use

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
Auto 14 13 17 20 14 13 18 24 42 48 71 167 185 215 322 411 475 500

Jewelry
Germany 10 16 15 10 7 3 10 17 26 31 24 23 24 26 29 35 45 45
United Kingdom 6 6 6 4 5 5 4 2 2 2 1 1 2 2 2 2 2 2
France 4 5 5 3 3 3 3 2 3 3 3 3 3 3 3 3 3 3
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
Total 20 27 26 17 15 11 17 21 31 36 28 27 29 31 34 40 50 50
Electronics
Germany 15 19 14 17 16 20 7 6 9 6 6 14 16 18 18 26 29 26
United Kingdom 18 18 17 18 18 16 10 9 10 9 10 12 12 12 12 12 11 11
France 2 2 1 1 1 1 1 1 1 1 1 * * * * * * *
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
Total 35 39 33 36 35 38 18 16 20 17 17 27 29 30 30 38 40 37
Dental
Germany 39 50 59 69 62 66 48 28 30 27 22 21 29 16 17 20 19 23
United Kingdom 3 1 1 3 3 3 2 2 2 2 2 1 1 1 1 - - -
France 5 5 3 3 2 2 2 1 1 1 1 1 1 1 1 - - -
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
Total 48 56 63 75 68 71 53 31 33 30 25 23 31 18 19 20 19 23
Other Uses 220 161 238 227 230 180 117 131 118 120 134 135 142 143 143 145 156 152
Subtotal 337 296 377 375 362 313 223 219 244 251 275 379 416 437 548 654 740 762
Other Countries 48 44 57 60 65 55 50 50 48 57 58 67 73 77 80 83 79 79
Total Europe 385 340 434 435 427 368 273 269 292 308 333 446 489 514 628 737 819 841
% Change Year Ag - -11.7% 27.6% 0.2% -1.8% -13.8% -25.8% -1.5% 8.6% 5.5% 8.0% 34.1% 9.6% 5.1% 22.2% 17.4% 11.2% 2.6%
Notes: The subtotals for individual uses presented here are the sums of the countries for
which data are available; other countries may consume relatively small amounts of platinum
for these uses, but estimates are not available. Other uses in Western Europe includes
consumption by major end-using industries in some European countries, as well as
chemical/petroleum refining use and smaller using industries throughout Western Europe.
There may be discrepancies due to rounding. * - less than 500 ounces. p - projections.
Source: European trade sources, CPM Group.
May 13, 2017
58
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
540 560 582 581 622 640 670 900 1,045 1,300 1,600 1,925 2,125 2,150 1,950 1,100 1,166 1,189 1,023 1,002 1,073 1,158 1,216 1,228
49 48 48 48 48 55 52 50 48 45 40 38 35 30 27 30 30 27 26 22 22 22 23 23
2 2 2 6 6 10 36 39 40 37 33 32 30 25 22 23 22 21 22 17 17 17 17 17
3 3 3 5 6 10 11 10 10 8 7 6 5 3 2 3 3 3 2 2 2 2 2 2
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
54 53 53 59 60 75 99 99 98 90 80 76 70 58 51 56 55 51 50 41 40 42 42 42
28 32 26 22 22 25 24 18 14 12 12 12 12 11 10 9 9 8 8 8 8 9 9 4
12 12 12 14 14 14 14 10 7 6 6 6 6 5 4 6 4 5 3 2 2 2 2 4
* * * * * * * * * * * * * * * * * * * * * * * *
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
40 44 38 36 36 39 38 28 21 18 18 18 18 16 14 15 13 13 11 10 10 11 11 8
24 24 23 22 20 20 21 20 20 20 21 22 25 25 23 22 22 18 18 15 14 13 13 13
0 - - - - - - - - - - - - - - - - - - - - - - -
0 - - - - - - - - - - - - - - - - - - - - - - -
__ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __
24 24 23 22 20 20 21 20 20 20 21 22 25 25 23 22 22 18 18 15 14 13 13 13
155 157 155 158 158 161 165 168 175 180 182 200 200 170 165 155 155 140 135 128 128 127 128 129
813 838 851 856 896 935 993 1,215 1,359 1,608 1,901 2,241 2,438 2,419 2,203 1,348 1,411 1,411 1,237 1,196 1,265 1,351 1,410 1,420
80 100 115 123 123 130 135 130 135 135 137 137 135 132 125 110 111 100 90 80 78 78 78 79
893 938 966 979 1,019 1,065 1,128 1,345 1,494 1,743 2,038 2,378 2,573 2,551 2,328 1,458 1,522 1,511 1,327 1,276 1,343 1,429 1,488 1,499
6.2% 5.0% 3.0% 1.3% 4.1% 4.5% 5.9% 19.2% 11.1% 16.7% 16.9% 16.7% 8.2% -0.9% -8.7% -37.4% 4.4% -0.7% -12.2% -3.8% 5.2% 6.4% 4.1% 0.8%
59
CPM GROUP PLATINUM GROUP METLAS YEARBOOK 2017 PLATINUM
Platinum Investment Demand size of the gold ETP market, according

to the latest data as of April 2017.
Investors have an enormous influence
on the price level and direction of The size of platinum coin market is
platinum, as they do with other precious even smaller compared to the markets
metals. One of the key factor in the for gold and silver coins. In 2016 it
platinum market since 2012 has been accounted for 0.6% of the combined
investor disinterest and disenchantment market value of gold, silver, and
after eight years of strong interest. platinum coins, despite a greater
offering of platinum coin products to
An important factor that sets platinum investors than before. In addition to this
apart from gold and silver is that there is relatively small market size of
a very small physical and exchange- investment products, platinum is also
traded products market for this metal. less marketed to investors compared to
The volume of physical platinum gold or silver.
available for investor buying and
selling, as well as the extent and This very illiquidity of the platinum
diversity of investment product offers investment market is contrasted with the
from exchanges and market-makers are enormous sum of investor capital that
limited compared to gold and silver. could be deployed in platinum at any
given period. In such a market
Platinum physical exchange-traded environment, investors can make
products are only around 20% the size discretionary decisions to allocate more
of the silver ETP market and 3% the or less capital into platinum, in ways
Platinum Market Surplus/Deficit and Prices

Thousand Ounces $/Ounce
1,200 $1,800
1,000
Net Additions to Inventories (left scale) $1,680
800 $1,560
600 $1,440
400 $1,320
200 $1,200
0 $1,080
-200 $960
-400 $840
Net Reductions to Inventories (left scale)
-600 $720
Price
-800 $600
-1,000 $480
-1,200 $360
-1,400 $240
-1,600 $120
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
60
that distinguishes themselves from other the course of 2016 investor concerns
industrial commercial market over the influences of major events
participants such as producers, refiners, including the Fed’s interest rate
manufacturers, and trading companies. schedule, the Brexit, the U.S. election,
Oftentimes such investment decisions the Italian referendum, and a host of
are detached from the near-term other international political events were
fundamentals of the platinum also factored into platinum prices.
market, and are swayed by broader These global economic and political
economic, political, and financial events generated a reversal of
market factors. investment sentiment toward platinum
from the previous period between 2012
Historically, investors purchased large and 2015. The bearish sentiment that
amounts of platinum in two bouts, from presented itself during the prior period
1985 to 1992 and then from 2001 until was no longer dominant among
around 2011. Starting in 2012 those investors. There were nascent signs of a
investors who had bought platinum recovery of investor appetite for
much earlier began liquidating their platinum as an investment. Some of this
positions, and there were significant shift in sentiment was linked to
outflows of platinum bullion from such investors allocating more capital to
stale-bull investors during that year, and investment products devoted to the
then in periods between 2013 and 2015. precious metals baskets that included
During 2014, when mine supplies platinum.
sharply contracted in South Africa due
to labor disruptions, there were notable However there are also factors that are
stale-bull investor selling activities. unique to platinum, which set it apart
Sales of platinum from investor from other precious metals. It is
inventories had continued into 2015, important to note that the very lack of
which more than cushioned the market liquidity and investment product
supplies of platinum and resulted in availability in platinum enabled it to
subpar platinum price performance. have an investor community of a
However, after platinum prices fell different profile, as well as the ways
sharply in the third quarter of 2014, as in which these investors participate in
the South African strike settled, this market. There are currently
investors shifted their strategies from millions of active and prospective
selling physical metal to hedging their platinum investors, compared to a few
remaining inventories with short futures hundred commercial enterprises
positions. Physical sales declined as engaged in this market. Those larger
short interest on the Nymex platinum investment institutions that tend to trade
futures contract increased sharply. gold and/or silver often find the
platinum market size overly restrictive
Those very macroeconomic, political, for their target capital allocation and
and financial market factors that affect may opt to trade an index or a basket of
gold and silver are also likely to affect commodity investment products that
platinum during a given period. Over offer them small exposures to the metal.
61
This means that the investment largest producer of platinum. Many of

community in the platinum investment these South African investors are
market at any given time is potentially institutional investors that need to have
more diverse when compared to the exposures to platinum due to the
investment markets of gold and silver. importance of South Africa’s platinum
industry in the Johannesburg Stock
Another interesting characteristic of the Exchange. These institutions have been
platinum investment market is that able to shift away from holding South
South Africa-based investors have been African platinum mining shares to
particularly active and influential in this holding physical platinum via ETPs in
market, perhaps more so than they are the past decade, and they have. In this
in gold and silver. The two South way they have a long-term, strategic
African exchange-traded fund as of interest in platinum which differentiates
April 2017 accounted for 37% of the them from the day-to-day, momentum-
total platinum ETP holdings. driven investment style of many
investors who participate in the
These investors in platinum have platinum market.
historically been paying a lot of
attention on the economy and currency The availability of platinum ETP
fluctuations of this country, which is the products denominated in South African
Reported Platinum Investment Demand by Region
Troy Ounces
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
ETPs
Asia Pacific 3,974 4,100 15,921 -1,115 -2,771 3,413 71,407 19,490
S outh Africa 909,500 306,016 -143,834 -154,308
Europe 194,404 102,264 380,119 110,037 57,788 103,372 -78,179 -32,777 -100,628 76,320
North America 441,929 14,928 141,624 40,911 -36,912 -77,714 57,063
Total 194,404 102,264 384,093 556,066 88,637 243,882 869,461 239,740 -250,770 -1,434
Coins
Asia Pacific 965 418 607 317 13,764 30,000 20,000 20,000 7,169 6,218
S outh Africa
Europe
North America 9,937 10,689 41,110 10,100 19,983 44,228 25,306 19,062 37,672 63,499
Total 10,902 11,107 41,717 10,417 33,747 74,228 45,306 39,062 44,841 69,717
S ubtotals
Asia Pacific 965 418 4,581 4,417 29,685 28,885 17,229 23,413 78,576 25,708
S outh Africa 909,500 306,016 -143,834 -154,308
Europe 194,404 102,264 380,119 110,037 57,788 103,372 -78,179 -32,777 -100,628 76,320
North America 9,937 10,689 41,110 452,029 34,911 185,852 66,217 -17,850 -40,042 120,562
Total 205,306 113,371 425,810 566,483 122,384 318,110 914,767 278,802 -205,928 68,283
Notes: Figures are only from publicly available sources.

S ource: ETP issuer and Mint websites, Bloomberg, CPM Group
62
Rand in their domestic market also NewPlat ETF, the largest platinum ETF
provides them a way to hedge their in the market, was a net buyer of
exposure to the currency, which platinum in 2014, having bought around
depreciated 11% in 2014 and 33% in 195,016 ounces of platinum. In the
2015 against the U.S. dollar. While in following two years it sold platinum
2016 the currency appeared to have back to the market, having liquidated
steadied itself against the U.S. dollar, 150,834 ounces of platinum in 2015 and
there are continuing investor concerns another 172,308 ounces in 2016.
about the future growth potential of the
South African economy. Many South In many ways investors in platinum
African investors also remain attuned to look for a set of characteristics that are
the supply and demand fundamentals of similar to gold and silver – portfolio
platinum, which convinced them to buy diversification, currency and risk hedge,
the metal rather than mining shares etc. Perhaps to the disappointment of
during 2014, a year marked by a record South African platinum mining
level of mine disruptions in the country. companies, the metal does not yet enjoy
the similar level of recognition as a
As major platinum mines were able to store of wealth as gold and silver. In
restore production levels back to pre- some of the major emerging economies,
strike levels in 2015 and 2016, these such as China and India, where gold and
investors were again selling platinum. silver bullion and coins were, quite
The South Africa-based Absa Capital’s literally, stashed “under the mattress”
Platinum Exchange Traded Product Holdings

Daily, through 30 April 2017
Moz Moz
3.0 3.0
2.5 2.5
2.0 NewPlat 2.0

JSE
1.5 1.5
PPLT
1.0 ZKB NYSE 1.0
Platinum
0.5 0.5
PHPT LSE
0.0 0.0
07 08 09 10 11 12 13 14 15 16 17
Note: Underlying data is data contained in “Platinum Exchange Traded Product Holdings” table.
63
by a broad array of individual and Roughly 68% of this metal, or 5.2

institutional investors, investments in million ounces, are estimated to be held
platinum bullion and coins remained in unreported bullion inventories. While
confined to a very small group of there were continued stale-bull
largely wealthy investors. This is liquidations of platinum inventories
mainly because of the illiquidity of during 2016, other investors have
platinum, as well as restricted started to buy platinum, which provided
availability of the metal for circulation some support for platinum prices.
in such economies. Gold and silver have
millennia of use as money and financial Total inventories of refined bullion
stores of wealth; platinum does not. showed a modest gain in 2016, although
a substantial portion of that metal
If platinum availability in such appears to have been taken up by
emerging economies increases over the refiners, fabricators, and market-making
longer term, in addition to increased dealers. If investors had been the larger
level of marketing, investor recognition buyers of this surplus metal, platinum
of platinum as a wealth preservation prices most likely would not have fallen
product could gradually improve in last year, but more likely would have
these emerging economies. risen. Falling prices during a surplus
year suggests that investors were not
As of the end of 2016 investors were willing to buy the surplus metal at
estimated to hold about 7.6 million prevailing prices, waiting for lower
ounces of platinum bullion and coins. prices or some other variable to
Year-End Changes to Global Platinum ETP Holdings

1,400,000 1,400,000
1,200,000 1,200,000
Gross Purchases
1,000,000 1,000,000
800,000 800,000
600,000 600,000
400,000 400,000
Net Change
200,000 200,000
0 0
-200,000 -200,000
Gross Sales
-400,000 -400,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
64
stimulate their buying interest, and around 170,873 ounces of platinum to

leaving the surpluses to be taken up by their portfolios last year.
producers and market makers.
At the beginning of 2017 investor net
Exchange Traded Products selling of platinum holdings at NewPlat
ETP slowed considerably. This
On a net basis, investors sold 1,434 combined with increases in buying at
ounces of platinum from their exchange other ETPs enabled the overall ETP
traded products (ETP) holdings in 2016. sector to record net inflows of investor
This was the second consecutive year in capital. During the first four months of
which investors were net sellers of 2017 investors platinum holdings were
platinum, although the volume of net up by 61,323 ounces as of the end of
sales was considerably lower than the April from the end of 2016.
250,770 ounces sold in 2015.
South Africa-listed NewPlat ETP, Coin Demand

which is the largest platinum ETP, saw
a net outflow of 172,308 ounces of Platinum coin sales are estimated to
platinum in 2016. This followed and have totaled around 105,000 ounces in
was larger than net disposals of 150,834 2016, up from around 61,300 ounces in
ounces from the fund in 2015. In the 2015. Investors remained interested in
meantime other ETPs experienced net platinum coins during 2016, which was
inflows of investor platinum holdings. helped by increased offerings and
Excluding the net reductions to holdings marketing of platinum coins by mints
at the NewPlat ETP, investors added and dealers.
Annual Platinum Coin Fabrication

Through 2016
450 450
400 400
350 350
300 300
250 250
200 200
150 150
100 100
50 50
0 0
83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
65
The U.S. Mint sold around 20,000 As platinum prices strengthened

ounces of Platinum American Eagle through the beginning of August,
Bullion coins during 2016. In 2017 it so however, investors started to book
far has allocated the same amount of profits. For the remainder of the year,
Platinum American Eagle Bullion coins, investors liquidated some of the gross
all 20,000 ounces of which were sold longs built during the prior months,
out in January. tripping these positions down to around
2.08 million ounces by the end of the
The Royal Canadian Mint was able to year. Meanwhile they also rebuilt some
sell roughly 53,300 ounces of Platinum gross shorts in October and November
Maple Leaf Bullion coins in 2016, a rise of the year. Such short-building was far
from 44,700 ounces of sales in 2015. less aggressive compared to periods in
During the first quarter of 2017 it sold 2015. By the end of the year investors
11,500 ounces of these platinum bullion had again liquidated some shorts built in
coins, compared with 20,000 ounces of the prior couple of months. Non-
sales during the same period last year. commercial gross shorts stood at
860,400 ounces at the end of 2016,
During 2016 the Austrian Mint down 26% from the end of 2015. Net
launched its first platinum bullion coin long positions in Nymex platinum held
program with its Vienna Philharmonic by institutional investors totaled 1.22
design and sold 35,257 ounces of coins million ounces by the end of 2016. This
for the year. During the first four was up 3.7% from 1.18 million ounces
months of this year it additionally sold at the end of 2015.
roughly 5,200 ounces of platinum coins.
During the first four months of 2017
Futures and Options investors have largely maintained their
net long exposures to platinum. As of
During the first seven months of 2016 25 April 2017 non-commercial gross
market sentiment toward platinum long positions has risen 4.2% from the
improved, as institutional investors end of 2016 to 2.17 million ounces.
liquidated their previously held shorts During this period non-commercial
and built fresh longs on Nymex gross shorts declined about 5.5% to
platinum. From the end of 2015 to 9 813,300 ounces. By 25 April investors
August 2016 noncommercial gross held around 1.35 million ounces of net
longs in Nymex platinum rose more long positions in platinum, up by
than 40% to 3.28 million ounces, while around 11% from the end of last year.
noncommercial gross shorts were
reduced by around 63% to 435,800
ounces. By 9 August 2016 investor net
long positions in Nymex platinum rose
to 2.83 million ounces, a historical
record high, from about 1.18 million
ounces at the end of 2015.
66
Annual Net Additions to Platinum ETP Holdings
Troy Ounces
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PLATINUM
PHPT ETFS 139,906 30,835 260,155 (19,804) (35,789) 96,790 (133,944) 13,480 (45,861) 60,356
Platinum ZKB 54,499 71,429 119,964 81,621 39,468 (13,124) (31,299) (45,262) (17,266) 14,199
Platinum MS L -- -- 3,974 (1,044) 4,507 (2,330) (2,096) (156) 0 0
PPLT ETF S ecurities -- -- -- 427,629 12,184 61,250 36,052 (22,644) (51,374) 59,579
S PLT iS hares -- -- -- -- 3,291 (13) 1,233 3,594 162 1,107
S PPT S ource -- -- -- -- 5,348 9,329 107,031 (21,454) (19,014) (2,632)
Platinum Julius Baer -- -- -- 48,220 45,470 10,390 (21,200) 16,865 (18,650) 3,290
GLTR - ETFS -- -- -- 7,318 1,357 (63) 6,871 (725) (2,784) 5,103
WITE-ETFS -- -- -- 6,982 1,387 (1,050) (465) (558) (589) (5,708)
Japan Mitsubishi -- -- -- 5,144 11,414 (675) (675) 3,569 71,407 21,380
67
S PPP 81,486 (1,547) (12,985) (22,967) (1,910)
HK ETFS 1,890 0 0 0 (1,890)

NewPlat JS E 909,500 195,016 (150,834) (172,308)
AfricaPlatinum 111,000 7,000 18,000
Total Net Additions 194,404 102,264 384,093 556,066 88,637 243,882 869,461 239,740 -250,770 -1,434
Total year-end Holdings 194,404 296,668 680,761 1,236,827 1,325,463 1,569,345 2,438,807 2,678,547 2,427,777 2,426,343
% Change 52.6% 129.5% 81.7% 7.2% 18.4% 55.4% 9.8% -9.4% -0.1%
Gross Additions 194,404 102,264 384,093 576,914 124,426 261,135 1,060,687 232,524 59,919 183,014
Gross Withdrawals -20,848 -35,789 -17,253 -191,226 -103,784 -310,688 -184,448
Net Change in Holdings 194,404 102,264 384,093 556,066 88,637 243,882 869,461 128,740 -250,770 -1,434
CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
Market Value of Precious Metals Coin Sales

As Percentage of Total Coin Market Value
Gold Silver Platinum
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
Market Value of Precious Metals Coin Sales
US$ Billion US$ Billion

$16 $16
$14 $14
Gold Silver Platinum
$12 $12
$10 $10
$8 $8
$6 $6
$4 $4
$2 $2
$0 $0
87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
68
Historical Annual Sales of Perth Mint Platinum Coin Programs

140 140
120 120
100 100
80 80
60 60
40 40
20 20
0 0
88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
1988 - Platinum Koala Coins Introduced 2011 - Platinum Platypus Coins Introduced
Historical Annual Sales of Royal Canadian Mint Platinum Coin Programs

80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
1988 - Maple Leaf Introduced 2009 - 79-year-old Queen Version Introduced
69
Historical Annual Sales of PBOC Mint Platinum Coin Programs

6 6
5 5
4 4
3 3
2 2
1 1
- -
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
1994 - Kirin Coins Introduced
1987 - Platinum Panda Coins Introduced 2002 - Platinum Panda Program Resumed
U.S. Eagle Platinum Bullion Coin Sales

Monthly, Through April 2017
Troy Troy Oz.
30,000 30,000
25,000 25,000
20,000 20,000
15,000 15,000
10,000 10,000
5,000 5,000
0 0
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
70
Net Additions to Platinum ETP Holdings

Annual, Through 30 April 2017
1,000,000 1,000,000
800,000 800,000
600,000
600,000
400,000
400,000
200,000
200,000
0
-200,000 0
-400,000 -200,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Platinum Prices, ETP Holdings, and Non-Commercial Long Positions

Weekly As of 25 April 2017
Million Ounces $/Oz
6.0 2,250
2,000
5.0 Price
1,750
4.0 1,500
1,250
3.0
ETP Holdings
1,000
2.0 750
500
1.0
250
Net Long Non-Commercial Positions on Nymex
0.0 -
08 09 10 11 12 13 14 15 16 17
71
PlatinumExchange Traded Product Holdings

Troy Ounces
PHPTLSE
Monthly Net (London+Zu ZKB PPLT- Julius Baer
Month Additions Total rich) Platinum MSL ASX NYSEETFS Platinum
12/31/2007 35,299 194,404 139,906 54,499 - - -
12/31/2008 56,784 296,668 170,740 125,928 - - -
12/31/2009 20,015 680,761 430,895 245,892 3,974 - -
12/31/2010 113,155 1,236,827 411,091 327,513 2,930 427,629 48,220
1/31/2011 58,439 1,295,265 424,043 346,305 2,930 437,310 59,850
2/28/2011 64,634 1,359,900 453,627 361,130 2,930 452,052 65,820
3/31/2011 28,837 1,388,736 477,828 365,715 2,930 441,913 73,940
4/30/2011 46,055 1,434,791 484,238 367,300 2,930 441,584 89,190
5/31/2011 (38,721) 1,396,070 451,916 364,004 2,930 431,557 94,690
6/30/2011 13,245 1,409,315 451,462 363,844 2,930 431,311 95,690
7/31/2011 36,298 1,445,613 471,871 363,689 2,930 436,063 100,690
8/31/2011 50,071 1,495,684 478,818 359,127 4,520 480,285 102,240
9/30/2011 (61,935) 1,433,749 478,573 356,610 4,520 440,527 87,540
10/31/2011 (35,705) 1,398,044 443,025 369,010 5,584 430,416 98,490
11/30/2011 (10,796) 1,387,248 424,078 368,856 7,437 445,001 96,390
12/31/2011 (61,784) 1,325,463 375,302 366,981 7,437 439,813 93,690
1/31/2012 35,384 1,360,847 381,094 366,975 7,437 459,348 104,140
2/29/2012 71,608 1,432,455 400,963 365,252 7,437 508,534 109,690
3/31/2012 (1,977) 1,430,478 415,858 356,478 6,992 493,450 108,540
4/30/2012 (31,382) 1,399,096 407,207 353,179 6,672 478,455 104,590
5/31/2012 (45,052) 1,354,044 376,937 353,019 5,099 468,360 102,390
6/30/2012 20,794 1,374,838 380,693 352,874 7,001 482,893 102,140
7/31/2012 (2,932) 1,371,905 385,679 352,729 4,972 482,646 95,790
8/31/2012 105,797 1,477,702 421,858 352,874 4,972 541,451 104,240
9/30/2012 65,429 1,543,131 502,186 356,816 4,972 521,489 105,170
10/31/2012 (25,258) 1,517,873 507,382 353,556 4,972 496,639 105,920
11/30/2012 7,783 1,525,656 518,384 353,395 5,108 491,581 105,670
12/31/2012 43,690 1,569,345 472,092 353,858 5,108 501,063 104,080
1/31/2013 19,891 1,589,236 476,512 353,697 4,972 515,557 104,080
2/28/2013 (15,096) 1,574,140 458,606 351,970 4,972 525,112 99,580
3/31/2013 28,215 1,602,355 456,931 352,401 4,972 559,191 93,180
4/30/2013 114,712 1,717,067 458,424 352,273 4,972 549,048 91,455
5/31/2013 243,529 1,960,596 394,208 351,363 3,012 573,329 88,685
6/30/2013 110,065 2,070,662 393,408 345,714 3,012 621,925 92,615
7/31/2013 53,634 2,124,295 350,075 341,653 3,012 607,047 88,645
8/31/2013 17,932 2,142,227 348,126 336,818 3,012 562,675 90,960
9/30/2013 56,057 2,198,285 341,639 333,882 3,012 552,611 83,160
10/31/2013 109,661 2,307,946 339,506 328,420 3,012 552,356 84,160
11/30/2013 92,214 2,400,160 346,418 325,176 3,012 542,180 82,330
12/31/2013 38,646 2,438,807 338,148 322,559 3,012 537,115 82,880
1/31/2014 (24,347) 2,414,460 343,838 318,074 3,012 522,216 89,960
2/28/2014 6,067 2,420,527 354,346 317,945 2,856 526,793 91,200
3/31/2014 70,729 2,491,256 373,756 317,817 2,856 516,773 86,530
4/30/2014 124,801 2,616,057 397,970 317,688 2,856 526,184 86,130
5/30/2014 101,050 2,717,107 376,293 317,560 2,856 526,041 86,600
6/30/2014 67,620 2,784,728 373,232 314,328 2,856 525,783 87,060
7/31/2014 3,185 2,787,912 374,880 309,551 2,856 530,349 87,510
8/31/2014 (111,187) 2,676,725 350,338 303,844 2,856 530,121 86,385
9/30/2014 (14,863) 2,661,862 345,649 298,758 2,856 534,646 86,235
10/31/2014 3,601 2,665,464 319,520 284,404 2,856 534,440 84,755
11/30/2014 23,353 2,688,817 354,337 282,781 2,856 534,129 86,615
12/31/2014 (10,270) 2,678,547 351,628 277,297 2,856 514,471 99,745
1/30/2015 6,494 2,685,041 375,058 275,677 2,856 494,798 103,565
2/27/2015 (73,697) 2,611,344 376,942 271,064 2,856 499,418 86,645
3/31/2015 17,910 2,629,255 346,859 269,443 2,856 503,983 90,505
4/30/2015 2,103 2,631,358 343,891 269,319 2,856 494,102 92,525
5/29/2015 2,892 2,634,250 344,680 269,195 2,856 493,776 96,195
6/30/2015 12,083 2,646,332 333,718 268,174 2,856 512,914 93,925
7/31/2015 132,596 2,778,929 332,309 269,540 2,856 502,954 87,705
8/31/2015 63,325 2,842,253 336,106 263,745 2,856 502,709 87,145
9/30/2015 (70,058) 2,772,196 322,663 263,652 2,856 473,497 85,245
10/30/2015 (179,103) 2,593,093 314,661 260,249 2,856 458,787 82,095
11/30/2015 (155,062) 2,438,030 313,872 260,156 2,856 458,492 81,395
12/31/2015 (10,253) 2,427,777 305,767 260,031 2,856 463,097 81,095
1/31/2016 (37,440) 2,390,337 304,771 268,690 2,856 453,205 80,225
2/29/2016 (36,934) 2,353,402 310,176 265,517 2,856 467,471 80,615
3/31/2016 46,906 2,400,308 307,417 265,421 2,856 486,457 80,615
4/30/2016 55,233 2,455,541 353,798 265,935 2,856 486,310 81,855
5/31/2016 (17,801) 2,437,740 363,511 265,839 2,856 490,842 81,705
6/30/2016 (47,105) 2,390,635 365,593 268,777 2,856 500,142 80,445
7/31/2016 (40,637) 2,349,998 318,938 270,214 2,856 500,013 84,545
8/31/2016 (29,111) 2,320,887 283,840 270,086 2,856 509,325 84,745
9/30/2016 (12,112) 2,308,775 291,902 273,021 2,856 494,682 84,215
10/31/2016 105,850 2,414,625 340,417 274,423 2,856 523,178 85,375
11/30/2016 18,470 2,433,095 371,343 274,326 2,856 522,961 81,065
12/31/2016 (6,752) 2,426,343 366,123 274,230 2,856 522,676 84,385
1/31/2017 18,996 2,445,339 390,293 274,134 2,856 517,605 85,585
2/28/2017 28,013 2,473,351 377,979 274,005 2,856 550,924 97,005
3/31/2017 15,842 2,489,193 373,164 273,909 2,856 550,635 98,265
4/30/2017 (1,528) 2,487,665 366,296 271,025 2,856 555,140 101,635
Note: PHPT is ETF Securities' platinum ETP traded on the LSE. ZKB Platinum is Zurich Cantonal Bank's platinum ETP traded on
the SIX Swiss Exchange. MSL ASX refers to ETF Securities' platinum ETP traded on the ASX. PPLT is ETF Securities' platinum
ETP traded on the NYSE. Julius Baer's platinum ETP is traded on the SIX Swiss Exchange. Tokyo Mitsubishi refers to Mitsubishi's
platinum ETP traded on the Tokyo Stock Exchange. GLTR and WITE are ETF Securities' precious metals basket ETPs traded on
the NYSE. SPLT is iShares' platinum ETP traded on the LSE. SPPT is Source's platinum ETP traded on the LSE. HK refers to
ETFS Hong Kong's platinum ETF traded on the Hong Kong Stock Exchange. SPPP is Sprott's ETP traded on NYSE and TSX.
NewPlat is the platinum ETP traded on the Johannesburg Stock Exchange.
Source: Company websites, Bloomberg, CPM Group.
May 2017
72
HK SPPP-
Tokyo GLTR- WITE- SPLT-LSE SPPT- LSE Platinum- NYSE
Mitsubishi NYSEETFS NYSEETFS iShares Source ETFS (Sprott) NewPlat - JSE AfricaPlatinum
- - - - - - - -
- - - - - - - -
- - - - - - - -
5,144 7,318 6,982 - - - - -
5,144 7,927 11,756 - - - - -
6,076 8,835 9,430 - - - - -
6,076 9,362 10,971 - - - - -
6,076 10,286 12,421 2,849 17,917 - - -
6,076 9,551 9,430 3,298 22,617 - - -
6,076 9,947 9,710 3,297 35,047 - - -
8,423 10,080 10,874 3,296 37,697 - - -
11,349 9,494 10,359 3,295 36,197 - - -
11,349 10,332 10,833 3,294 30,171 - - -
15,014 9,914 9,450 3,293 13,848 - - -
15,014 9,914 9,418 3,292 7,848 - - -
16,558 8,675 8,369 3,291 5,348 - - -
16,558 8,289 8,369 3,289 5,348 - - -
16,558 8,117 7,939 3,288 4,677 - - -
14,950 8,307 7,939 3,287 14,677 - - -
14,950 8,307 7,772 3,286 14,677 - - -
14,950 8,008 7,319 3,285 14,677 - - -
15,947 8,008 7,319 3,284 14,677 - - -
16,911 7,899 7,319 3,283 14,677 - - -
19,130 7,899 7,319 3,282 14,677 - - -
19,130 8,092 7,319 3,281 14,677 - - -
15,882 8,246 7,319 3,280 14,677 - - -
15,882 8,471 7,319 3,279 14,677 1,890 - -
15,882 8,612 7,319 3,278 14,677 1,890 81,486 -
15,882 8,863 8,343 3,276 14,677 1,890 81,486 -
15,079 9,149 8,343 3,275 14,677 1,890 81,486 -
15,754 9,559 8,343 3,274 14,677 1,890 82,183 -
16,558 9,982 8,343 3,273 14,677 1,890 82,183 123,989 -
16,558 9,831 6,855 3,621 65,202 1,890 82,183 363,860 -
16,558 9,982 6,855 3,620 65,202 1,890 82,183 427,699 -
16,558 10,140 6,855 3,619 65,202 1,890 82,183 547,417 -
16,558 10,140 6,855 3,618 100,202 1,890 82,183 579,192 -
15,272 10,607 6,855 3,617 104,702 1,890 82,183 658,856 -
15,272 10,350 6,855 4,015 109,529 1,890 82,183 770,399 -
15,272 10,207 6,855 4,012 122,960 1,890 81,905 857,944 -
15,207 15,483 6,855 4,511 121,708 1,890 79,939 909,500 -
15,207 15,463 6,855 4,509 125,822 1,890 74,375 893,240 -
15,207 9,748 6,855 4,508 125,822 1,890 74,379 888,979 -
15,207 10,556 6,855 5,937 126,222 1,890 74,379 952,479 -
15,207 10,178 6,855 6,838 138,650 1,890 73,779 1,023,832 8,000
15,207 10,143 6,855 6,838 144,042 1,890 73,779 1,135,004 14,000
16,525 10,143 6,755 6,834 159,127 1,890 73,779 1,182,417 24,000
16,525 9,938 6,297 6,834 159,127 1,890 73,779 1,182,378 26,000
16,525 9,938 6,297 6,834 108,156 1,890 73,779 1,153,763 26,000
15,561 9,745 6,297 6,827 100,263 1,890 73,779 1,153,357 26,000
18,069 9,353 6,297 6,825 100,263 1,890 73,779 1,145,013 78,000
18,776 8,892 6,297 7,606 100,263 1,890 70,485 1,108,891 105,000
18,776 14,758 6,297 8,105 100,254 1,890 66,954 1,104,516 111,000
19,548 15,401 6,297 8,103 100,051 1,890 66,562 1,104,237 111,000
21,863 10,131 6,297 8,606 102,121 1,890 64,258 1,044,254 115,000
30,029 9,736 6,297 8,606 102,121 1,890 64,258 1,071,671 121,000
30,029 9,138 6,297 9,102 102,121 1,890 60,833 1,079,254 130,000
30,961 9,330 6,297 9,099 102,124 1,890 58,937 1,078,911 130,000
37,874 9,484 6,297 8,579 58,501 1,890 58,937 1,118,183 135,000
48,933 9,065 6,297 7,441 82,812 1,890 58,937 1,185,188 183,000
53,209 9,693 5,832 7,439 82,812 1,890 53,629 1,252,188 183,000
54,206 9,693 5,708 7,436 78,691 1,890 51,730 1,231,929 183,000
57,711 9,693 5,708 7,714 81,307 1,890 48,344 1,078,078 184,000
74,429 10,239 5,708 7,990 80,238 1,890 43,987 975,778 121,000
90,183 11,974 5,708 8,267 81,240 1,890 43,987 953,682 118,000
94,202 11,395 5,708 8,265 80,357 1,890 43,987 916,786 118,000
94,202 10,640 5,264 9,112 79,532 1,890 42,075 866,053 118,000
94,202 10,640 4,171 9,109 80,141 1,890 42,077 903,314 112,000
97,385 10,832 3,120 9,400 79,107 1,890 42,077 906,978 114,000
97,385 11,408 3,120 9,396 74,707 1,890 42,077 879,005 114,000
97,224 12,153 - 9,393 78,292 1,890 42,077 794,794 137,000
97,224 13,910 - 9,390 78,292 - 42,077 794,541 138,000
97,224 15,004 - 9,387 74,092 - 42,077 794,253 138,000
97,224 15,962 - 9,384 75,352 - 42,077 786,101 136,000
123,330 15,794 - 9,381 75,962 - 42,077 785,833 136,000
116,000 16,117 - 9,377 78,342 - 42,077 781,632 137,000
111,563 17,077 - 9,374 78,608 - 42,077 781,374 136,000
111,563 17,895 - 10,514 78,058 - 39,737 781,100 136,000
108,670 18,272 - 11,844 80,138 - 39,740 776,921 135,000
106,162 18,430 - 12,426 80,938 - 39,740 780,671 152,000
106,162 19,235 - 12,422 84,738 - 39,740 776,417 152,000
73
Gross Long and Short Positions of Non-Commercial Positions
Nymex Platinum Futures & Options. Weekly Data, Through 25 April 2017
3,500 3,500
3,000 Gross Long 3,000
2,500 2,500
2,000 2,000
1,500 1,500
Net Fund Position on Nymex
1,000 1,000
500 500
0 0
-500 -500
-1,000 -1,000
-1,500 -1,500
Gross Short
-2,000 -2,000
95 97 99 01 03 05 07 09 11 13 15 17
Gross Long and Short Positions of Nymex Disaggregated Non-Commercial Positions

Nymex Platinum Futures and Options. Weekly Data, Through 25 April 2017
3,500 3,500
Money Managers
Gross Long
3,000 3,000
2,500 Other Traders 2,500

Net Position
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
-500 -500
-1,000 -1,000
-1,500 Gross Short -1,500
-2,000 -2,000
Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17
74
Investment Platinum Product Trading Volume

Annual; Platinum Futures, Coins, and ETPs
350 350
300 300
Platinum Futures Coins ETPs
250 250
200 200
150 150
100 100
50 50
0 0
87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
Investment Product Trading Volume as a % of Total Platinum Products Trading Volume

Annual; Platinum Futures, Coins, and ETPs
Platinum Futures Coins ETPs
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
75
Markets
The platinum market is the second In 2016 there was a total of 7.2 million
smallest market in dollar terms and in ounces of newly refined physical
the physical ounces traded in the platinum produced. The trading volume
precious metals complex. Platinum is in the futures and options market on
traded on the New York Mercantile exchanges was 34 time the size of this
Exchange (Nymex), part of the CME newly refined physical supply in 2016
Group, and on the Tokyo Commodities in both ounce and dollar terms.
Exchange (Tocom). These are the two Compared to gold, both the physical
major exchanges where activity occurs. and exchange futures and options
Platinum also is traded in much smaller markets for platinum were 1.5% of the
volumes at exchanges in Shanghai, size of the gold market in dollar terms.
Mumbai, Moscow, and South Africa.
The total platinum market, newly
The over-the-counter market for refined physical supply entering the
platinum and other PGMs in London market plus exchange futures and
provide daily benchmark prices. Many options trading, was 255.6 million
market participants use these ounces in 2016, up from 249.3 million
benchmarks to transact in the physical ounces in 2015. The paper market
market. Others use prices published by accounted for 248.4 million ounces of
refiners. The over-the-counter markets the total platinum market in 2016. In
and exchanges provide the liquidity for dollar terms the platinum market
many consumers and producers to actually shrank last year to $254 billion,
hedge their metals exposures. down from $263 billion in 2015. This
Combined Annual Platinum Trading Volumes at Nymex, Tocom, and SGE

Annual Data, Through 2016
Mln Oz Mln Oz
350 350
300 300
SGE
250 250
200 200
Tocom
150 150
100 100
50 50
Nymex
0 0
1975 1980 1985 1990 1995 2000 2005 2010 2015
76
contraction in the dollar value of the is on pace to set another record level
platinum market was due to the lower this year. Much of this volume may be
platinum price last year contributed to the increase in
algorithmic trading, computer based
Nymex Futures and Options quantitative trading.
Annual trading volume of platinum Combined open interest set a record

futures on the Nymex reached a record high in 2016 as well, on a month end
level in 2016, 196.9 million ounces, up basis. This record high was reached in
from the previous record in 2015 when July at 3.94 million ounces. While this
trading volume was 174.1 million level was a record high it was not as
ounces. Last year was the second large an increase as in trading volumes.
consecutive year of rising futures This suggests that while market activity
trading volumes on an annual basis. has picked up in terms of trading
That said, annual trading volumes have volume, market participants have not
really been rising almost consecutively been holding on to their long or short
since 2006, only breaking this trading positions for an extended amount of
trend in 2014. That year futures trading time. Combined open interest has
volume was basically flat, falling to ranged mostly between 3 and 4 million
161.8 million ounces from 162.7 ounces since 2013. At the end last year
million ounces totaled in 2013 before combined open interest was 3.15
continuing to rise in 2015. million ounces, down slightly from 3.33
million ounces at the end of 2015. As of
Year-to-date through April 2017 Nymex end of April 2017 combined open
futures trading volume was 71.4 million interest was 3.38 million ounces.
ounces. On an annualized basis volume
Turnover in the Precious Metals Mark ets in 2016

Million Ounces
Gold Silver Platinum Palladium
Phys ical Supply 127 988 7.2 9.3
Futures and Options 8,456 142,974 248 149
Total 8,582 143,962 255.6 158.6

Value ($bil) $10,735 $2,472 $254 $110
London Interbank Mark et 4,951 43,605 NA NA
Total 13,534 187,567

Value ($bil) $16,928 $3,221
Notes: Value calculated at average prices for 2016: $1,250.81 for gold, $17.17 for silver,
$991.84 for platinum, and $615.49 for palladium.
S ources: CPM Group
May 8, 2017
77
Trading volumes of platinum options on 63.9 million ounces in 2015. Last year’s
the Nymex were 2.66 million ounces trading volume was the lowest level
last year, down from 2.91 million since 1989, the sixth year that the
ounces in 2015. Trading volume of Tocom traded platinum futures. Last
exchange traded options has fallen year’s trading volume also was the
sharply compared to 2013 and 2014, second consecutive year that trading
when volumes were 9.19 million ounces volume declined since recently peaking
and 7.22 million ounces, respectively. at 76.5 million ounces in 2014.
Open interest meanwhile also has
declined over the past couple of years Year-to-date through April trading
compared to the levels of 2013 and volume was 16.1 million ounces, which
2014. Month end open interest of is on pace to be the lower than last
platinum options on the Nymex was year’s level. The Tocom trades two
387,000 ounces at the end of 2016, up types of platinum contracts. The
from 113,700 ounces at the end of 2015. standard platinum contract is for 500
Since the middle of 2015 month end grams (approximately 16.1 troy ounces)
open interest has been between 100,000 and the mini is for 100 grams
ounces and 400,000 ounces. (approximately 3.2 troy ounces).
Tocom Futures Total open interest in Tocom futures

was 1.1 million ounces at the end of
In 2016 platinum futures trading 2016, up from 1.0 million ounces at the
volumes at Tocom totaled 48.0 million end of 2015. Month end open interest in
ounces. This was down sharply from April this year was 948,320 ounces. A
Trading Volume in the Platinum Futures Markets

Monthly Totals, Through April 2017
50 50
45 45
40 40
Tocom
35 35
30 30
25 25
20 20
15 15
10 10
Nymex
5 5
0 0
75 80 85 90 95 00 05 10 15
78
relatively stable level of open interest Nymex, Tocom, and SGE registered
and declining trading volumes suggest depositories, and other vaults in the case
investors and short-term market of exchange traded products (ETPs).
participants have continued to retreat There used to be some reported
from the Tocom platinum futures inventories from dealers, users, and
market. producers in past years in the United
States, which are noted in this report at
SGE Spot Contract the table in the end of this section. This
data in the table is all publicly available.
Trading volume of platinum spot
contracts at the Shanghai Gold Total reported platinum inventories
Exchange declined for the third were 2.73 million ounces at the end of
consecutive year in 2016, to 847,076 2016, up slightly from 2.67 million
ounces. Volume is off sharply after ounces at the end of 2015. As of end of
having peaked in 2013 at 1.5 million March 2016 total inventories were 2.76
ounces in 2013. Year-to-date through million ounces. Combined ETP
April this year trading volume totaled platinum holdings owned by investors
207,694 ounces, on pace to match last by far represent the bulk of the reported
year’s level. inventories at 2.43 million ounces at the
end of last year. Nymex and Tocom
Inventories inventory holdings meanwhile are
looked at as industry inventories,
Total reported platinum inventories are although investors do sometimes hold
made up of inventories held at the metal in these markets as well.
Open Interest in the Platinum Futures Markets

Month End, Through April 2017
8 8
Tocom
7 7
6 6
5 5
4 4
3 3
2 2
Nymex
1 1
0 0
75 80 85 90 95 00 05 10 15
79
New York Mercantile Exchange Activity - Trading Volume

Monthly Total, Through April 2017
30 30
25 25
20 20
15 15
10 10
5 5
0 0
75 80 85 90 95 00 05 10 15
New York Mercantile Exchange Activity - Open Interest

Month-end, Through April 2017
4.50 4.50
4.00 4.00
3.50 3.50
3.00 3.00
2.50 2.50
2.00 2.00
1.50 1.50
1.00 1.00
0.50 0.50
0.00 0.00
75 80 85 90 95 00 05 10 15
80
Toyko Commodity Exchange Activity - Trading Volume

50 50
45 45
40 40
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Tokyo Commodity Exchange Activity - Open Interest

8 8
7 7
6 6
5 5
4 4
3 3
2 2
1 1
0 0
84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
81
Shanghai Gold Exchange Monthly Platinum Trading Volume

Data Through April 2017

200,000 200,000
180,000 180,000
160,000 160,000
140,000 140,000
120,000 120,000
100,000 100,000
80,000 80,000
60,000 60,000
40,000 40,000
20,000 20,000
0 0
06 07 08 09 10 11 12 13 14 15 16 17
S hanghai Gold Exchange Platinum Trading Activity

Troy Ounces
Tradi n g Vol u m e
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Jan u ary 94,041 83,881 103,365 70,474 59,865 64,334 119,151 63,594 139,052 38,967
Fe bru ary 21,219 79,219 53,209 69,124 62,501 56,907 89,090 52,631 41,185 47,680
March 50,927 88,157 63,498 116,546 102,915 121,948 116,868 94,587 74,750 66,713
April 58,675 108,637 65,813 84,524 116,482 166,123 79,027 65,491 73,207 54,335
May 38,517 77,323 106,933 76,680 117,189 137,412 50,477 79,766 94,234
Ju n e 28,646 79,766 82,756 99,635 71,600 170,495 70,185 104,361 55,139
Ju l y 83,238 78,769 66,166 47,680 77,998 102,143 71,117 80,055 42,439
Au gu st 63,433 79,316 80,184 99,957 77,515 98,574 109,377 84,846 52,920
S e pte m be r 86,260 91,533 66,777 136,126 99,699 173,614 117,415 126,160 64,912
O ctobe r 106,644 57,968 68,449 97,513 100,021 102,625 75,651 41,024 48,773
Nove m be r 42,793 45,590 75,683 81,502 80,763 147,636 68,031 117,350 71,407
De ce m be r 62,405
_______ 61,794
_______ 79,927
_______ 88,125
_______ 83,946
_______ 156,478
_______ 78,962
_______ 71,632
_______ 89,058
_______ _______
Total 736,799 931,954 912,760 1,067,887 1,050,493 1,498,289 1,045,349 981,498 847,076 207,694
% C h an ge 20.5% 26.5% -2.1% 17.0% -1.6% 42.6% -30.2% -6.1% -13.7% -36.7%
S ou rce : S GE, Bloom be rg
Note : Tradi n g volu m e s are cou n te d sin gle -side d, adju ste d from
S GE reported data, which counts both buy and sell side
tran sacti on s. Th e total an d % ch an ge in 2017 is on a YTD basis.
82
Nymex Platinum Trading Volume

Troy O unces, Monthly Total
1975 1976 1977 1978 1979 1980 1981 1982

January 735,300 290,800 521,800 1,415,400 2,192,100 1,759,000 1,823,150 1,624,900
February 358,950 147,300 373,250 1,792,950 2,272,250 1,424,200 1,484,000 1,472,600
March 276,050 217,100 770,950 2,444,200 2,171,750 2,082,900 2,806,200 2,422,150
April 475,700 948,900 402,600 1,359,150 2,106,950 1,072,200 1,834,800 2,119,800
May 331,050 592,800 295,700 1,922,500 2,258,200 1,330,650 1,541,800 1,657,250
June 239,900 973,200 362,500 1,694,000 2,539,650 1,877,850 2,232,700 2,330,650
July 481,800 1,049,950 270,550 1,298,150 2,382,050 2,037,700 1,896,250 2,791,050
August 420,100 697,450 248,850 1,725,300 2,799,750 1,333,100 1,954,550 3,844,750
S eptember 345,650 590,600 458,650 1,402,950 2,420,500 2,986,850 3,193,100 4,240,300
O ctober 313,850 539,600 729,550 1,949,150 1,750,750 2,048,300 1,771,500 3,541,500
November 173,700 341,900 845,450 1,656,500 1,909,500 1,738,100 1,658,200 3,501,600
December 264,450 383,950 733,550 1,622,650 2,002,750 1,794,550 2,328,400 3,904,650
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 4,416,500 6,773,550 6,013,400 20,282,900 26,806,200 21,485,400 24,524,650 33,451,200
1983 1984 1985 1986 1987 1988 1989 1990

January 6,302,400 2,234,250 2,052,300 5,113,550 5,859,600 4,140,700 5,178,750 4,282,850
February 5,852,300 2,184,050 1,310,050 5,735,600 4,286,550 3,878,700 4,827,550 4,045,400
March 5,395,600 3,444,100 2,672,700 6,990,100 6,705,200 5,961,500 7,423,800 4,063,500
April 3,594,450 2,722,800 2,439,100 5,014,700 7,464,800 3,715,400 5,366,050 2,763,250
May 5,311,600 2,246,150 2,153,900 3,851,000 5,535,100 6,163,150 5,581,950 3,259,400
June 5,769,550 2,688,050 2,109,600 6,110,900 5,826,750 9,112,200 6,342,500 3,506,850
July 3,796,000 2,760,000 2,017,450 3,768,450 4,355,550 5,724,500 3,489,550 2,636,150
August 3,849,100 1,917,600 4,905,800 9,491,150 6,659,950 5,291,500 4,341,250 3,690,800
S eptember 3,961,700 2,611,350 4,133,400 14,469,200 6,133,850 6,252,600 4,257,400 3,860,250
O ctober 3,075,350 1,795,400 3,431,700 8,241,350 6,361,300 5,730,350 2,821,150 3,398,850
November 2,861,950 1,915,200 3,237,900 6,832,250 4,431,150 8,240,700 4,992,200 2,504,750
December 2,894,100 2,037,400 4,198,900 5,663,500 4,457,500 8,961,450 4,404,300 3,034,650
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 52,664,100 28,556,350 34,662,800 81,281,750 68,077,300 73,172,750 59,026,450 41,046,700
1991 1992 1993 1994 1995 1996 1997 1998

January 2,540,350 2,393,750 1,469,600 2,412,950 3,070,000 3,513,000 3,025,750 1,909,900
February 2,116,350 1,916,600 2,777,750 3,264,850 1,929,700 3,027,250 4,166,250 1,776,900
March 3,633,150 2,705,200 3,071,250 4,721,300 6,564,700 4,312,900 4,312,100 3,293,550
April 2,149,750 1,464,700 2,530,150 3,130,000 3,494,600 2,707,550 2,885,950 1,808,450
May 2,552,950 1,883,000 3,288,900 3,257,000 3,019,100 2,396,450 3,350,000 1,810,400
June 2,782,500 4,099,200 3,626,750 4,415,000 3,767,650 4,440,300 3,624,050 2,373,200
July 2,029,450 3,048,650 2,987,550 4,209,100 2,671,100 2,665,600 1,936,800 1,761,150
August 2,287,100 2,531,600 2,819,950 3,770,450 3,122,550 2,682,700 1,819,550 1,375,250
S eptember 2,790,600 2,589,850 2,927,600 4,621,950 4,941,850 4,507,000 3,123,100 2,915,100
O ctober 2,243,350 1,425,300 1,848,250 3,043,900 2,795,950 2,355,800 2,309,400 2,219,050
November 2,093,500 2,113,550 2,199,900 3,863,200 2,816,950 2,098,500 1,445,650 2,132,900
December 3,013,250 2,691,250 3,256,100 4,080,550 4,140,500 4,416,350 2,931,250 3,037,600
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 30,232,300 28,862,650 32,803,750 44,790,250 42,334,650 39,123,400 34,929,850 26,413,450
83
Nymex Platinum Trading Volume

Troy Ounces, Monthly Total
1999 2000 2001 2002 2003 2004 2005 2006

January 1,885,000 1,661,300 963,900 642,400 777,250 816,850 770,500 1,030,200
February 2,684,900 1,567,600 644,250 690,350 757,850 778,700 1,012,650 1,378,600
March 3,417,500 1,750,650 1,580,850 1,221,700 1,908,500 2,112,450 2,064,850 2,140,200
April 1,845,000 1,402,850 748,050 553,300 673,600 1,461,400 813,350 860,750
May 1,325,350 1,137,050 785,700 614,700 948,400 656,250 1,006,750 1,734,200
June 3,772,200 2,359,850 1,162,250 1,358,800 1,548,050 1,424,750 2,779,400 2,299,250
July 1,376,800 826,350 725,200 709,900 542,600 779,900 1,256,600 811,000
August 1,805,750 736,950 623,850 929,150 593,900 909,000 1,330,200 1,071,400
S eptember 5,109,800 1,832,150 852,000 1,488,100 1,884,300 1,703,700 2,626,750 2,200,000
O ctober 1,531,850 606,100 497,850 591,700 963,750 1,219,550 1,091,350 1,059,100
November 1,608,800 633,100 570,050 493,900 702,000 930,300 1,522,350 2,337,700
December 2,000,450 1,532,250 1,144,500 1,694,550 2,115,050 1,991,700 2,534,100 1,733,550
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 28,363,400 16,046,200 10,298,450 10,988,550 13,415,250 14,784,550 18,808,850 18,655,950
2007 2008 2009 2010 2011 2012 2013 2014

January 1,026,700 2,723,950 1,554,500 4,407,350 6,150,600 7,505,550 14,048,950 10,873,250
February 1,348,750 3,598,900 1,759,950 4,181,500 4,857,500 8,641,100 13,750,650 9,714,800
March 2,954,950 4,245,050 4,147,450 8,829,700 11,768,650 12,623,200 16,763,650 19,465,750
April 1,322,850 2,064,150 1,614,850 4,568,250 5,276,200 6,847,700 13,881,700 9,131,400
May 1,776,250 2,723,800 1,829,200 6,689,700 5,682,750 9,060,800 11,710,900 11,969,850
June 3,348,400 3,319,900 5,220,650 7,219,850 14,452,500 14,189,000 19,421,200 18,993,000
July 1,768,550 2,156,350 2,379,850 3,551,400 4,779,450 6,916,300 9,447,100 10,508,150
August 1,798,750 2,376,950 2,432,500 3,704,950 12,562,500 10,887,950 10,809,700 8,996,900
S eptember 2,900,950 3,708,250 6,847,350 9,389,350 14,657,100 18,570,550 17,067,000 19,963,150
O ctober 1,705,000 1,905,350 2,720,650 4,960,200 7,808,600 10,582,800 11,109,500 13,596,050
November 1,806,300 1,500,550 3,409,700 7,653,900 6,805,450 9,157,700 9,269,000 10,557,550
December 3,316,200 3,453,950 6,993,450 9,292,900 11,641,100 16,102,550 15,397,450 18,027,100
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 25,073,650 33,777,150 40,910,100 74,449,050 106,442,400 131,085,200 162,676,800 161,796,950
2015 2016 2017

January 12,150,850 11,454,650 17,280,950
February 10,010,200 13,143,650 14,344,650
March 20,426,400 20,654,100 25,779,650
April 10,859,650 12,437,900 14,028,750
May 10,585,500 12,493,050
June 21,718,700 21,750,900
July 12,087,150 13,984,450
August 13,419,550 13,912,300
S eptember 22,192,500 22,804,600
O ctober 12,551,750 15,131,050
November 11,086,300 18,022,850
December 16,998,800 21,158,600
_________ _________ _________
Annual Total 174,087,350 196,948,100 71,434,000
Note: Annual trading volume for 2016 through March.

S ource: New York Mercantile Exchange.
May 12, 2017
84
Nymex Platinum Open Interest

Troy O unces
1975 1976 1977 1978 1979 1980 1981 1982
January 272,250 208,050 268,150 370,400 437,750 410,000 470,500 313,900

February 266,950 210,450 301,300 435,150 493,300 420,450 447,300 376,200
March 272,850 208,100 330,250 342,800 465,100 310,450 472,050 434,300
April 197,800 319,500 303,000 347,050 454,400 271,700 385,450 415,100
May 220,250 296,550 287,500 514,450 443,050 318,450 406,500 516,300
June 232,250 414,750 277,500 387,400 484,150 397,150 394,550 466,850
July 288,250 324,950 262,550 406,000 543,250 389,850 276,000 556,850
August 296,500 293,750 258,750 413,900 492,500 414,300 322,300 642,650
S eptember 249,150 309,000 292,950 423,300 428,150 711,950 421,050 707,050
O ctober 210,350 279,000 291,550 418,650 376,250 607,000 352,750 650,100
November 212,950 300,150 260,750 440,800 379,750 601,300 430,050 777,350
December 252,700 272,850 303,250 461,500 446,300 595,550 391,950 781,000
1983 1984 1985 1986 1987 1988 1989 1990
January 996,350 634,600 760,500 908,150 824,500 1,006,750 926,350 938,850

February 1,175,300 695,600 706,550 1,024,500 837,050 961,850 957,200 775,150
March 759,850 690,250 662,800 996,900 988,550 876,700 951,450 851,450
April 793,900 762,200 604,800 788,400 984,950 767,650 980,800 820,750
May 918,750 792,600 583,400 829,100 899,050 1,153,100 1,037,250 791,250
June 795,900 862,700 568,550 937,400 868,100 1,055,100 914,750 823,200
July 846,700 788,750 583,850 937,450 1,047,350 919,800 895,700 850,250
August 783,550 788,300 824,600 1,296,950 1,114,000 886,850 1,009,550 821,000
S eptember 770,650 861,400 657,450 1,168,200 1,311,650 1,066,650 874,200 987,600
O ctober 622,500 741,300 653,400 957,600 1,109,400 905,300 913,100 857,000
November 661,350 737,650 898,450 910,200 1,007,050 1,251,500 1,052,800 779,950
December 669,200 776,250 742,650 885,350 888,200 995,950 938,350 804,450
1991 1992 1993 1994 1995 1996 1997 1998
January 789,250 777,550 658,600 859,100 1,107,150 1,016,550 1,359,950 517,850

February 827,750 689,250 704,850 991,200 1,171,100 1,134,400 1,249,750 535,950
March 757,650 664,500 654,700 1,279,800 1,096,450 1,313,450 872,300 678,550
April 782,000 806,200 906,800 1,096,500 1,098,350 1,271,400 850,350 675,450
May 883,150 916,600 1,009,650 1,107,850 1,002,050 1,381,850 1,013,600 560,900
June 868,500 965,450 857,350 1,116,700 1,007,550 1,344,900 789,100 558,450
July 956,900 930,400 1,132,900 1,446,550 1,217,700 1,237,300 772,350 489,050
August 986,200 905,750 902,300 1,279,550 1,202,150 1,317,650 653,350 538,850
S eptember 908,100 786,200 821,550 1,129,950 1,104,850 1,416,950 696,950 710,550
O ctober 665,500 631,550 840,750 1,240,850 1,199,800 1,399,700 650,650 833,350
November 669,300 666,800 827,950 1,369,700 1,074,650 1,374,350 647,500 729,100
December 761,900 589,800 1,018,900 1,188,400 1,154,500 1,299,500 549,150 577,150
85
Nymex Platinum Open Interest

Troy O unces
1999 2000 2001 2002 2003 2004 2005 2006
January 675,200 577,950 388,400 308,300 438,400 354,500 396,650 584,300

February 866,150 133,950 366,300 319,250 406,500 414,850 369,400 428,800
March 699,600 491,500 322,950 343,700 321,400 421,750 399,250 453,950
April 628,000 398,000 336,850 355,350 308,750 303,700 432,450 492,450
May 565,350 565,850 372,400 322,400 450,400 269,050 397,300 475,000
June 666,100 473,650 275,900 323,550 330,700 389,750 559,000 366,900
July 783,750 501,750 310,550 256,850 395,650 263,450 486,700 434,100
August 628,700 505,050 305,100 387,100 460,200 322,750 570,100 487,000
S eptember 792,000 431,000 274,900 349,150 422,350 338,600 661,550 391,600
O ctober 677,850 379,900 285,450 347,900 443,550 298,900 665,250 382,400
November 590,350 415,350 310,250 384,700 479,400 418,700 663,500 419,700
December 597,650 434,350 318,150 412,750 407,700 318,900 485,250 394,650
2007 2008 2009 2010 2011 2012 2013 2014
January 504,550 884,200 937,000 1,725,450 2,073,000 2,251,500 3,437,800 2,990,600

February 626,350 763,850 1,022,000 1,742,400 1,981,950 2,258,900 3,290,800 3,250,750
March 578,300 593,200 1,005,050 1,898,850 1,668,150 2,044,450 3,178,500 3,342,250
April 719,950 683,400 991,750 1,869,800 1,923,150 2,065,650 3,134,600 3,177,700
May 715,950 788,000 1,145,450 1,508,250 1,756,050 2,456,600 3,130,650 3,571,450
June 723,600 754,700 1,149,800 1,470,300 1,577,250 2,460,700 3,070,950 3,347,150
July 738,700 664,200 1,113,400 1,513,000 1,754,250 2,611,000 3,155,150 3,466,650
August 522,600 626,200 1,344,500 1,550,500 1,958,100 2,733,750 3,313,650 3,163,250
S eptember 729,750 733,950 1,432,600 1,890,400 1,858,100 2,995,450 2,992,900 2,959,600
O ctober 783,050 765,950 1,540,700 1,893,350 1,890,050 3,057,900 2,842,100 3,019,000
November 660,150 862,950 1,773,750 1,725,050 2,038,750 3,075,050 3,041,450 3,210,700
December 918,200 910,850 1,627,650 1,954,650 2,097,750 2,979,650 3,101,850 3,205,950
2015 2016 2017
January 3,216,100 3,315,200 3,227,600

February 3,442,350 3,279,700 3,560,000
March 3,442,400 2,889,000 3,183,300
April 3,539,550 3,178,350 3,379,000
May 3,731,100 3,089,750
June 3,883,500 3,053,850
July 3,927,050 3,938,000
August 3,504,050 3,931,050
S eptember 3,777,700 3,401,950
O ctober 3,504,950 3,541,400
November 3,824,850 3,439,100
December 3,326,700 3,147,200
Note: Month-end data.

S ource: New York Mercantile Exchange.
May 14, 2017
86
Nymex Platinum O ptions Trading Volume

Troy O unces, Monthly Total
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
January - 61,200 156,200 110,150 273,600 146,900 243,500 153,150 70,850 120,000
February - 65,400 148,150 393,050 327,500 135,100 175,150 270,750 37,950 115,500
March - 126,650 132,550 230,150 436,850 190,950 179,900 141,650 67,250 34,300
April - 51,200 104,850 307,550 388,450 196,700 193,250 65,650 50,250 11,300
May - 135,350 163,950 378,000 361,200 293,000 200,150 147,200 68,650 23,550
June - 106,050 163,100 309,000 261,100 103,650 135,800 166,300 83,750 30,450
July - 127,350 232,000 275,250 488,150 160,000 88,100 89,400 70,150 43,100
August - 206,200 212,750 235,600 460,000 281,200 138,200 162,550 42,200 19,250
S eptember - 115,900 170,650 235,650 622,350 228,950 117,400 109,100 41,250 56,650
O ctober 58,350 143,300 113,350 238,650 425,800 175,000 85,000 97,700 72,200 35,600
November 64,050 110,850 125,250 212,950 306,350 180,050 100,100 75,700 71,950 44,600
December 65,050 ________
________ 150,000 ________
250,100 ________
207,050 ________
176,450 ________
88,550 ________
152,200 ________
77,800 ________
32,700 ________
23,000
Annual Total 187,450 1,399,450 1,972,900 3,133,050 4,527,800 2,180,050 1,808,750 1,556,950 709,150 557,300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
January 38,750 8,950 2,150 650 6,150 550 500 10,000 0 0
February 109,200 45,400 250 3,900 2,400 550 150 0 0 0
March 35,350 7,450 2,550 6,050 4,650 2,000 250 5,000 0 1,000
April 28,600 3,700 2,950 450 8,650 6,400 150 0 0 0
May 57,900 1,450 1,400 1,150 1,300 6,950 10,000 0 0 0
June 19,950 6,050 2,000 2,650 1,200 800 0 0 0 0
July 21,200 2,150 2,350 2,850 1,550 1,000 0 0 0 0
August 13,550 6,300 1,850 600 1,450 400 0 0 0 0
S eptember 3,150 2,650 1,400 2,450 2,450 600 0 0 0 0
O ctober 8,350 1,950 1,500 5,250 200 50 0 0 0 0
November 2,200 2,250 2,850 2,450 950 100 5,000 0 0 0
December 15,050 ________
________ 2,350 ________
1,550 ________
3,200 ________
900 ________
800 ________0 ________0 ________0 ________0
Annual Total 353,250 90,650 22,800 31,650 31,850 20,200 16,050 15,000 0 1,000
2010 2011 2012 2013 2014 2015 2016 2017

January 0 18,500 268,850 1,759,000 721,950 310,150 302,150 4,428
February 500 101,900 457,100 1,396,950 315,450 369,550 239,050 2,118
March 56,750 224,950 190,800 813,350 805,250 169,550 165,200
April 0 384,100 165,150 1,100,200 566,200 642,000 210,500
May 0 561,950 385,350 489,300 1,570,650 179,050 281,900
June 0 767,500 215,100 570,750 683,000 208,550 52,600
July 0 917,950 58,400 1,058,300 570,350 194,850 132,850
August 2,500 541,150 524,150 514,400 473,100 46,300 340,150
S eptember 42,400 286,600 936,200 192,550 566,850 216,800 288,750
O ctober 238,000 227,350 790,800 660,650 369,500 232,800 185,000
November 83,000 177,200 615,050 351,400 399,350 206,800 180,400
December 109,000 ________
________ 37,200 ________
310,600 ________
285,550 ________
176,850 ________
137,350 ________
282,500 ________
Annual Total 532,150 4,246,350 4,917,550 9,192,400 7,218,500 2,913,750 2,661,050 6,546
Note: Annual trading volume for 2017 through April.

S ource: New York Mercantile Exchange
May 12, 2017
87
Nymex Platinum O ptions O pen Interest

Troy O unces, Monthly-End
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
January - 77,650 141,950 184,650 157,750 200,250 168,650 231,750 66,250 120,350
February - 110,300 168,050 278,050 226,550 245,250 182,000 290,300 69,500 133,200
March - 72,900 122,350 159,400 174,500 105,050 75,900 106,200 30,500 19,250
April - 82,200 129,800 194,800 299,500 150,050 141,050 132,750 58,500 24,900
May - 121,600 155,050 254,850 353,500 266,750 209,700 150,250 86,100 32,750
June - 96,850 115,200 140,250 224,150 130,050 161,500 107,250 72,000 28,850
July - 136,700 191,950 180,450 266,700 201,250 189,850 136,200 85,400 61,850
August - 220,250 205,900 229,350 351,650 299,300 238,200 194,100 76,500 68,100
S eptember - 127,950 160,300 134,050 240,500 172,850 96,250 102,200 32,600 23,550
O ctober 40,950 140,300 160,250 157,250 336,650 193,250 145,850 159,050 71,650 0
November 72,650 147,400 193,650 180,400 346,900 260,950 189,450 208,700 81,500 61,300
December 56,900 74,950 124,750 124,750 147,100 117,250 163,800 57,050 20,650 16,300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
January 42,250 22,400 1,650 950 5,150 1,050 250 10,000 0 0
February 77,550 23,800 650 3,900 6,200 1,600 300 10,000 0 0
March 32,850 5,600 1,750 4,650 3,200 2,450 50 0 0 0
April 48,750 8,350 2,750 4,650 3,200 7,850 50 0 0 0
May 62,050 8,850 3,600 5,300 4,550 14,600 0 10,050 0 0
June 6,750 4,650 1,650 1,850 1,750 700 0 0 0 0
July 22,600 6,350 4,600 2,250 2,100 1,700 0 0 0 0
August 20,700 10,000 3,200 2,550 3,200 2,000 0 0 0 0
S eptember 3,950 4,250 600 1,200 1,100 550 0 0 0 0
O ctober 10,950 5,100 1,650 5,500 1,300 650 0 0 0 0
November 7,850 6,650 1,650 6,200 1,950 750 5,000 0 0 0
December 15,250 150 750 1,650 500 400 0 0 0 0
2010 2011 2012 2013 2014 2015 2016 2017

January 0 180,900 810,400 1,546,000 713,950 502,050 199,000 334,700
February 0 278,800 1,165,900 1,819,200 792,000 793,450 205,950 383,050
March 0 274,850 513,000 1,294,400 784,100 327,000 234,700
April 0 572,450 446,900 1,648,700 1,063,450 685,050 295,100
May 0 885,400 725,800 1,458,450 1,817,400 787,600 396,150
June 0 1,147,400 373,150 578,000 1,143,500 185,650 171,850
July 56,250 1,399,300 409,400 1,019,000 1,345,650 256,100 216,350
August 56,250 1,448,600 728,300 916,000 1,331,350 228,450 302,100
S eptember 56,250 1,230,400 788,250 669,400 898,700 260,600 270,850
O ctober 202,500 1,247,350 951,000 1,027,600 818,950 265,100 291,650
November 207,500 1,239,050 863,350 992,450 1,054,500 174,100 340,700
December 232,500 631,100 470,750 229,950 448,550 113,700 387,000
Note: Open Interest for 2017 through April. Month-End.

May 12, 2017
88
Tocom Platinum Trading Volume

1984 1985 1986 1987 1988 1989 1990 1991 1992
January 25,406 402,306 1,586,051 2,923,859 4,172,937 3,998,630 4,072,304 5,696,192 7,986,443
February 73,437 350,287 2,019,761 2,101,174 4,161,375 3,182,907 5,151,732 5,971,494 8,558,195
March 58,467 573,702 1,669,876 2,192,604 6,147,931 4,900,541 4,218,573 5,949,166 7,920,727
April 70,913 710,382 2,002,555 3,858,332 6,281,105 4,529,479 4,475,506 4,937,351 4,869,979
May 58,483 711,331 1,683,801 3,027,526 9,739,897 3,600,135 3,524,428 5,603,401 4,542,251
June 67,021 446,558 1,638,118 2,449,000 10,456,406 2,990,526 2,925,811 6,263,358 5,325,812
July 101,497 562,880 1,355,496 3,918,037 6,236,274 2,189,855 4,116,148 6,748,448 6,114,356
August 79,532 1,636,703 5,150,376 7,861,271 4,154,493 2,319,974 4,653,729 13,809,706 7,981,058
S eptember 134,316 1,337,904 7,046,915 2,554,758 5,020,755 1,699,383 5,111,159 6,417,714 5,313,434
October 184,920 1,106,658 3,821,862 4,994,705 3,487,543 2,712,471 6,741,726 6,680,498 5,572,022
November 240,541 1,037,996 4,205,563 5,843,102 5,451,152 11,108,691 5,553,720 5,452,775 4,449,609
December 346,267
________ 938,895
________ 2,603,030
_________ 4,364,836
_________ 6,573,842
_________ 5,397,702
_________ 4,245,629
_________ 10,119,401
_________ 4,756,407
_________
Annual Total 1,440,800 9,815,602 34,783,404 46,089,204 71,883,710 48,630,294 54,790,464 83,649,503 73,390,290
1993 1994 1995 1996 1997 1998 1999 2000 2001
January 2,519,522 8,988,516 2,594,417 16,363,838 7,901,533 12,192,928 15,658,500 24,671,643 27,172,437
February 6,464,380 8,263,534 3,215,713 19,114,909 16,210,560 8,500,693 24,819,328 39,100,395 17,330,963
March 6,706,588 9,270,301 6,845,527 10,751,339 14,084,820 19,407,031 24,251,578 16,285,567 15,274,396
April 4,742,373 9,243,969 9,237,314 9,350,243 12,207,782 21,598,390 17,124,685 12,607,367 18,583,667
May 6,895,232 5,406,815 5,960,708 8,585,089 16,048,054 13,434,331 13,738,460 18,442,365 16,193,600
June 9,241,767 5,995,270 5,472,467 6,931,096 15,395,491 14,209,532 14,307,946 16,573,413 15,815,460
July 7,537,314 5,594,640 8,283,998 7,156,264 14,978,657 30,851,731 13,513,823 21,654,750 17,158,266
August 8,130,012 4,919,732 12,228,197 5,051,341 14,178,314 27,431,958 13,460,148 16,230,091 47,132,171
S eptember 7,825,127 3,520,534 17,914,724 3,841,076 12,770,885 32,477,126 18,258,608 14,723,092 18,072,117
October 6,188,447 3,861,765 10,410,782 7,722,244 21,225,764 39,199,709 20,093,094 6,456,375 24,604,947
November 6,168,980 4,462,131 8,441,922 7,020,250 12,351,688 28,536,784 22,556,449 9,165,891 18,024,406
December 7,707,519
_________ 3,638,238
_________ 5,466,503
_________ 8,959,307
_________ 16,896,447
_________ 24,546,031
_________ 15,650,495
_________ 22,347,309
_________ 25,774,927
_________
Annual Total 80,127,261 73,165,444 96,072,272 110,846,997 174,249,994 272,386,244 213,433,113 218,258,258 261,137,357
2002 2003 2004 2005 2006 2007 2008 2009 2010
January 21,423,876 16,609,245 20,494,801 9,711,280 14,059,276 8,637,125 12,543,242 4,200,158 7,867,244
February 19,142,559 21,255,406 19,939,832 11,748,750 15,040,258 10,111,074 15,853,687 3,926,266 5,335,573
March 21,055,429 18,817,837 27,569,547 11,184,055 14,629,678 12,370,078 7,492,592 4,728,050 6,393,324
April 19,907,263 17,452,686 22,570,081 8,619,812 15,258,095 12,486,737 9,274,143 8,903,468 7,864,765
May 15,782,377 23,407,799 16,907,185 7,922,286 18,054,017 14,367,424 9,171,277 4,275,770 8,639,269
June 18,724,632 20,195,269 17,719,633 10,138,659 15,090,333 15,029,906 9,930,660 6,443,267 6,215,373
July 22,996,190 20,925,701 17,540,088 7,654,053 15,938,034 10,892,947 10,915,902 4,865,565 5,607,593
August 15,065,995 19,758,663 17,777,424 12,260,444 12,766,352 15,190,740 8,731,632 5,000,402 4,960,937
S eptember 16,670,717 18,158,297 16,092,454 9,480,968 16,039,261 8,888,800 8,913,010 4,170,145 4,665,690
October 23,754,722 16,002,529 15,180,114 10,931,881 13,092,006 15,133,334 8,150,701 4,225,493 5,364,627
November 20,268,750 14,162,946 17,335,031 19,621,894 15,584,232 13,311,370 6,041,631 4,994,862 6,377,249
December 17,273,735
_________ 21,713,666
_________ 14,165,245
_________ 18,544,926
_________ 11,567,774
_________ 10,507,395
_________ 5,319,131
_________ 5,084,620
_________ 4,417,207
_________
Annual Total 232,066,244 228,460,045 223,291,434 137,819,007 177,119,315 146,926,931 112,337,607 60,818,065 73,708,852
2011 2012 2013 2014 2015 2016 2017
January 5,016,268 4,083,766 7,897,231 6,022,357 5,630,356 4,993,354 4,848,030

February 4,481,943 5,044,622 8,867,366 5,282,868 4,802,112 3,782,884 3,740,859
March 6,982,762 5,590,476 6,026,179 6,276,154 5,471,007 3,790,207 4,397,711
April 4,375,157 4,087,473 7,057,072 5,583,455 5,000,807 3,772,087 3,081,140
May 3,846,265 4,155,726 5,638,239 5,813,043 3,519,550 3,258,084
June 4,739,412 4,267,443 6,715,908 6,550,110 5,123,648 4,125,282
July 3,457,309 3,884,361 5,581,889 6,874,498 7,114,207 4,723,690
August 4,929,609 4,628,248 5,297,538 5,236,468 6,712,372 3,809,012
S eptember 4,608,372 5,983,956 4,560,876 6,492,525 5,543,604 3,506,510
October 6,206,908 6,166,009 5,100,062 9,171,151 5,303,985 3,633,309
November 4,489,521 5,631,247 4,522,012 6,037,381 4,780,719 4,349,903
December 4,262,832
_________ 4,602,357
_________ 4,217,686
_________ 7,189,925
_________ 4,920,176
_________ 4,224,904
_________ _________
Annual Total 57,396,359 58,125,681 71,482,060 76,529,935 63,922,543 47,969,227 16,067,740
Notes: Annual trading volume for 2017 through April.

S ource: Tokyo Commodity Exchange.
May 12, 2017
89
Tocom Platinum Open Interest

Troy Ounces
1984 1985 1986 1987 1988 1989 1990 1991 1992

January 19,473 263,406 676,872 1,769,733 3,075,718 3,684,780 4,045,764 3,824,821 5,743,899
February 41,068 313,769 738,635 1,737,090 3,110,547 3,410,118 3,879,705 4,485,007 5,697,458
March 50,346 368,795 823,135 1,667,560 3,632,183 3,692,901 3,687,942 5,655,340 5,750,603
April 56,505 426,876 847,754 1,745,516 4,004,579 3,306,000 3,398,393 5,539,550 6,425,285
May 60,815 498,593 884,368 1,909,018 4,323,751 3,576,867 3,163,624 5,561,187 4,178,787
June 64,593 536,348 938,091 1,916,479 4,521,278 3,237,049 3,067,319 5,957,669 4,291,138
July 70,302 546,029 1,009,245 1,867,596 4,399,247 3,308,846 2,972,235 6,165,041 4,513,267
August 89,984 495,377 1,340,992 2,330,040 3,911,315 3,258,644 2,912,935 6,546,268 4,025,396
S eptember 130,232 512,872 1,692,082 2,375,852 3,353,629 3,142,112 2,698,960 6,660,886 5,743,899
October 181,575 545,160 1,663,782 2,649,550 3,246,214 2,901,347 3,005,318 6,485,455 4,104,005
November 229,027 606,023 1,763,703 2,847,752 3,678,911 3,757,944 3,590,962 6,404,757 4,161,571
December 226,133 640,338 1,764,844 2,991,137 3,538,661 3,804,480 3,734,448 5,818,666 3,823,924
1993 1994 1995 1996 1997 1998 1999 2000 2001

January 3,675,179 3,988,423 2,353,238 5,260,851 4,853,759 5,186,824 6,949,229 6,397,121 4,882,791
February 3,300,993 4,012,729 2,297,955 5,386,094 5,123,198 4,908,897 7,114,307 5,090,051 4,643,799
March 3,424,066 4,178,819 2,324,190 5,388,152 5,715,108 5,268,391 7,306,439 4,300,333 4,613,063
April 3,257,139 3,981,896 3,031,007 5,069,860 5,607,629 5,897,740 6,688,390 4,128,745 4,656,418
May 3,852,168 3,783,944 3,898,931 5,038,384 5,872,647 5,563,357 6,330,135 3,822,525 4,590,445
June 3,857,762 3,565,304 3,306,153 4,890,234 6,003,147 5,343,816 5,930,904 3,883,531 4,337,724
July 3,924,572 3,422,297 3,838,167 4,909,637 5,666,625 6,840,415 5,459,896 3,564,420 3,810,742
August 3,884,753 3,225,149 4,093,508 4,465,941 5,407,282 7,000,381 5,031,359 3,209,090 4,766,100
S eptember 4,089,617 3,192,147 4,970,337 4,466,616 5,630,150 7,260,030 5,322,854 3,344,412 4,217,288
October 3,983,086 2,934,169 5,369,842 4,648,621 5,685,353 7,182,804 6,482,208 3,061,824 4,402,878
November 4,205,006 2,978,569 5,153,709 4,848,631 6,034,108 7,442,324 6,959,437 3,004,226 3,997,232
December 3,820,596 2,435,962 4,801,787 4,916,839 5,348,655 7,287,149 6,686,944 4,213,831 4,135,866
2002 2003 2004 2005 2006 2007 2008 2009 2010

January 4,164,818 3,633,335 3,482,033 2,580,271 2,099,151 1,476,023 1,209,059 571,488 765,630
February 3,749,190 3,363,494 3,079,716 2,469,109 1,949,715 1,618,531 963,171 530,564 730,390
March 3,575,753 3,034,865 3,318,708 2,458,869 1,952,528 1,250,357 760,766 600,074 761,708
April 3,393,313 2,968,104 2,653,060 2,301,845 2,044,785 1,576,510 794,299 600,868 887,925
May 3,603,740 3,380,228 2,862,923 2,133,199 1,762,968 1,891,988 927,773 636,507 840,439
June 3,251,529 3,469,237 2,774,155 2,077,064 1,524,667 1,760,058 1,152,828 579,828 916,642
July 3,141,590 3,989,291 2,787,643 2,088,927 1,630,024 1,798,944 1,106,981 583,876 857,488
August 3,105,693 4,250,146 2,947,174 1,950,503 1,543,507 1,387,769 790,409 580,510 880,071
S eptember 3,322,550 3,799,554 2,944,667 1,976,545 1,289,854 1,430,111 699,985 555,567 834,070
October 3,647,336 3,614,671 3,045,813 2,106,884 1,311,154 1,428,890 583,873 635,536 856,032
November 3,736,265 3,604,736 2,941,034 2,431,734 1,571,944 1,412,284 593,798 687,630 917,931
December 3,512,191 3,395,982 2,723,004 1,859,420 1,484,462 1,490,523 578,780 696,841 934,460
2011 2012 2013 2014 2015 2016 2017

January 898,300 683,003 1,064,256 1,009,256 1,017,769 989,988 736,598
February 996,566 691,665 1,174,070 960,567 1,147,799 917,276 711,759
March 685,238 755,095 1,145,417 952,982 1,104,904 884,276 891,439
April 638,082 757,429 800,614 1,135,624 1,158,856 787,300 948,320
May 783,963 767,309 919,430 1,144,751 1,083,652 865,835
June 1,017,239 778,809 838,751 1,178,204 1,393,199 837,558
July 1,030,391 811,854 798,251 1,331,409 1,295,641 698,982
August 768,238 832,784 777,809 1,573,124 1,159,705 717,752
S eptember 738,550 898,345 803,469 1,607,493 1,172,928 916,035
October 701,480 929,969 795,990 1,405,561 1,148,182 1,039,718
November 748,967 1,003,182 951,288 1,280,437 1,122,101 995,151
December 764,209 1,007,076 932,579 1,119,963 998,784 1,013,323
Notes: Month-end data.

May 12, 2017
90
Exchange Stocks of Platinum

350 350
300 300
250 250
Tocom Nymex
200 200
150 150
100 100
50 50
0 0
1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015
Platinum Prices, Total Open Interest, and Nymex Inventories

Daily, Through 4 May 2017
$ / Oz Mln Ozs
2,500 4.4
2,300 4.0
2,100 3.6
Prices (Left scale) 3.2

1,900
2.8
1,700
2.4
1,500
2.0
1,300
1.6
1,100 Open Interest 1.2
900 0.8
Nymex Stocks
700 0.4
500 0.0
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
91
Total Reported Market Inventories

Quarterly, Through First Quarter 2017

3,500 3,500
3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
Nymex Tocom
1,000 1,000
ETPs
500 500
U.S. Industry
0 0
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
New York Mercantile Exchange Activity - Options Trading Volume

Ounces Ounces
2,000,000 2,000,000
1,800,000 1,800,000
1,600,000 1,600,000
1,400,000 1,400,000
1,200,000 1,200,000
1,000,000 1,000,000
800,000 800,000
600,000 600,000
400,000 400,000
200,000 200,000
0 0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
92
Reported Market Inventories

Troy O unces
Exchanges
U.S . Industry Nymex Tocom Exchange Traded Products Total
O unces % of Total O unces % of Total O unces % of Total O unces % of Total O unces
1985 I 311,618 57.7 228,850 42.3 - - - - 540,468

II 258,950 50.7 230,500 45.1 21,123 4.1 - - 510,573
III 259,513 47.8 251,150 46.3 31,877 5.9 - - 542,540
IV 258,961 46.6 270,500 48.7 25,672 4.6 - - 555,133
1986 I 336,375 53.2 269,550 42.7 25,769 4.1 - - 631,694
II 380,775 56.2 271,050 40.0 25,817 3.8 - - 677,642
III 395,738 59.1 251,800 37.6 21,702 3.2 - - 669,240
IV 365,012 55.0 277,800 41.9 20,769 3.1 - - 663,581
1987 I 349,619 56.8 240,250 39.0 25,817 4.2 - - 615,686
II 332,306 53.3 223,750 35.9 67,147 10.8 - - 623,203
III 322,704 49.3 267,500 40.9 64,430 9.8 - - 654,634
IV 290,986 43.8 291,000 43.8 81,984 12.3 - - 663,970
1988 I 289,952 45.7 231,450 36.5 113,508 17.9 - - 634,910
II 316,651 43.3 199,050 27.2 216,037 29.5 - - 731,738
III 278,385 42.4 179,050 27.3 198,450 30.3 - - 655,885
IV 411,945 55.6 180,850 24.4 148,279 20.0 - - 741,074
1989 I 295,252 50.4 138,300 23.6 152,410 26.0 - - 585,963
II 259,553 48.7 140,209 26.3 133,699 25.1 - - 533,461
III 267,441 50.0 163,250 30.5 104,321 19.5 - - 535,012
IV 309,891 52.2 165,650 27.9 117,897 19.9 - - 593,438
1990 I 271,586 50.4 153,350 28.5 113,428 21.1 - - 538,364
II 272,871 50.7 150,650 28.0 114,392 21.3 - - 537,913
III 268,295 49.0 137,800 25.2 141,745 25.9 - - 547,840
IV 279,516 47.8 137,350 23.5 167,923 28.7 - - 584,789
1991 I 217,655 43.7 115,100 23.1 164,923 33.1 - - 497,678
II 224,508 41.2 110,950 20.4 209,606 38.5 - - 545,064
III 223,994 40.7 110,373 20.1 215,458 39.2 - - 549,825
IV 238,977 41.5 93,751 16.3 243,252 42.2 - - 575,980
1992 I 184,885 37.4 92,350 18.7 217,403 44.0 - - 494,638
II 277,628 48.0 86,350 14.9 214,043 37.0 - - 578,021
III 274,746 50.7 75,600 13.9 191,779 35.4 - - 542,125
IV 376,972 61.1 79,150 12.8 160,850 26.1 - - 616,972
1993 I 265,000 54.5 78,200 16.1 143,071 29.4 - - 486,271
II 252,000 52.6 72,450 15.1 155,063 32.3 - - 479,513
III 193,519 44.3 116,500 26.7 126,995 29.1 - - 437,014
IV 217,178 48.1 113,300 25.1 121,369 26.9 - - 451,847
1994 I 205,861 46.8 109,150 24.8 124,873 28.4 - - 439,884
II 205,973 46.5 120,550 27.2 116,450 26.3 - - 442,973
III 205,393 47.0 118,750 27.2 113,138 25.9 - - 437,281
IV 207,180 45.9 124,100 27.5 120,147 26.6 - - 451,427
- -
1995 I 200,000 49.8 103,750 25.8 97,835 24.4 - - 401,585
II 202,000 54.0 79,850 21.3 92,240 24.7 - - 374,090
III 185,000 57.5 61,950 19.3 74,750 23.2 - - 321,700
IV 183,000 64.4 38,200 13.4 62,951 22.2 - - 284,151
1996 I 180,000 68.2 31,100 11.8 52,952 20.1 - - 264,052
II 180,000 66.8 40,100 14.9 49,512 18.4 - - 269,612
III 186,000 57.8 70,600 21.9 65,234 20.3 - - 321,834
IV 186,000 53.2 91,450 26.1 72,275 20.7 - - 349,725
1997 I 190,000 60.4 77,300 24.6 47,519 15.1 - - 314,819
II 180,000 64.5 54,700 19.6 44,239 15.9 - - 278,939
III - - 43,000 63.3 24,949 36.7 - - 67,949
IV - - 41,900 66.5 21,123 33.5 - - 63,023
1998 I - - 36,550 66.6 18,310 33.4 - - 54,860
II - - 41,450 69.8 17,940 30.2 - - 59,390
III - - 61,350 78.5 16,783 21.5 - - 78,133
IV - - 57,050 67.3 27,666 32.7 - - 84,716
1999 I - - 69,500 71.9 27,151 28.1 - - 96,651
II - - 70,950 74.5 24,258 25.5 - - 95,208
III - - 67,850 70.2 28,775 29.8 - - 96,625
IV - - 32,700 65.6 17,185 34.4 - - 49,885
2000 I - - 18,750 60.6 12,185 39.4 - - 30,935
II - - 13,200 46.6 15,143 53.4 - - 28,343
III - - 22,400 59.7 15,111 40.3 - - 37,511
IV - - 33,500 62.6 19,998 37.4 - - 53,498
2001 I - - 28,350 59.5 19,290 40.5 - - 47,640
II - - 19,850 53.5 17,249 46.5 - - 37,099
III - - 19,450 54.7 16,075 45.3 - - 35,525
IV - - 12,300 38.5 19,676 61.5 - - 31,976
93

Troy O unces
Exchanges
U.S . Industry Nymex Tocom Exchange Traded Products Total
O unces % of Total Ounces % of Total O unces % of Total O unces % of Total Ounces
2002 I - - 28,600 55.7 22,763 44.3 - - 51,363

II - - 25,600 61.7 15,915 38.3 - - 41,515
III - - 10,600 39.4 16,333 60.6 - - 26,933
IV - - 6,800 29.4 16,333 70.6 - - 23,133
2003 I - - 7,950 32.7 16,333 67.3 - - 24,283
II - - 5,600 26.0 15,915 74.0 - - 21,515
III - - 31,550 66.7 15,738 33.3 - - 47,288
IV - - 9,100 34.8 17,040 65.2 - - 26,140
2004 I - - 12,000 40.7 17,506 59.3 - - 29,506
II - - 9,150 38.7 14,500 61.3 - - 23,650
III - - 20,950 61.7 12,989 38.3 - - 33,939
IV - - 19,000 50.3 18,760 49.7 - - 37,760
2005 I - - 18,500 55.9 14,580 44.1 - - 33,080
II - - 17,000 54.5 14,195 45.5 - - 31,195
III - - 25,450 64.2 14,195 35.8 - - 39,645
IV - - 23,500 59.3 16,140 40.7 - - 39,640
2006 I - - 23,050 60.2 15,207 39.8 - - 38,257
II - - 22,500 58.4 15,995 41.6 - - 38,495
III - - 35,350 68.8 15,995 31.2 - - 51,345
IV - - 31,900 74.8 10,754 25.2 - - 42,654
2007 I - - 33,200 86.2 5,321 13.8 - - 38,521
II - - 32,800 59.2 5,763 10.4 16,858 30.4 55,421
III - - 39,400 38.5 4,863 4.7 58,129 56.8 102,392
IV - - 48,450 22.7 6,285 2.9 159,105 74.4 213,840
2008 I - - 53,400 12.6 15,014 3.5 356,022 83.9 424,436
II - - 53,400 10.6 20,898 4.1 430,998 85.3 505,296
III - - 52,900 15.1 10,979 3.1 286,040 81.7 349,919
IV - - 78,100 23.7 12,137 3.7 239,884 72.7 330,121
2009 I - - 128,950 24.6 12,973 2.5 382,135 72.9 524,058
II - - 126,150 20.8 20,335 3.4 460,456 75.9 606,941
III - - 146,750 21.4 19,821 2.9 517,970 75.7 684,541
IV - - 139,500 17.1 17,715 2.2 660,746 80.8 817,961
2010 I - - 134,100 12.4 19,403 1.8 928,734 85.8 1,082,237
II - - 132,900 11.1 19,098 1.6 1,044,799 87.3 1,196,797
III - - 128,550 11.0 22,216 1.9 1,019,044 87.1 1,169,811
IV - - 108,100 8.6 30,447 2.4 1,123,671 89.0 1,262,218
2011 I - - 125,650 8.3 23,004 1.5 1,359,900 90.1 1,508,554
II - - 122,600 7.9 23,615 1.5 1,396,070 90.5 1,542,285
III - - 166,650 9.9 24,804 1.5 1,495,684 88.7 1,687,138
IV - - 180,500 11.3 29,804 1.9 1,387,248 86.8 1,597,552
2012 I - - 198,100 12.0 22,907 1.4 1,432,455 86.6 1,653,463
II - - 192,600 12.1 39,706 2.5 1,354,044 85.4 1,586,350
III - - 210,850 12.2 40,092 2.3 1,477,702 85.5 1,728,644
IV - - 207,450 11.6 52,743 3.0 1,525,656 85.4 1,785,849
2013 I - - 234,157 12.8 25,447 1.4 1,574,140 85.8 1,833,745
II - - 230,560 10.4 36,025 1.6 1,960,596 88.0 2,227,181
III - - 286,776 11.7 29,161 1.2 2,142,227 87.1 2,458,164
IV - - 250,669 9.3 49,850 1.8 2,400,160 88.9 2,700,679
2014 I - - 248,117 9.2 37,198 1.4 2,420,527 89.5 2,705,842
II - - 243,441 8.1 42,246 1.4 2,717,107 90.5 3,002,794
III - - 146,491 5.1 70,603 2.4 2,676,725 92.5 2,893,820
IV - - 135,207 4.7 74,799 2.6 2,688,817 92.8 2,898,823
2015 I - - 131,153 4.7 70,812 2.5 2,611,344 92.8 2,813,309
II - - 128,444 4.5 67,742 2.4 2,646,332 93.1 2,842,518
III - - 123,887 4.2 61,006 2.1 2,772,196 93.7 2,957,089
IV - - 154,544 5.8 86,164 3.2 2,427,777 91.0 2,668,485
2016 I - - 192,119 7.2 71,970 2.7 2,400,308 90.1 2,664,397
II - - 187,063 7.1 70,217 2.7 2,390,635 90.3 2,647,916
III - - 242,180 9.2 70,217 2.7 2,308,775 88.1 2,621,172
IV - - 238,070 8.7 70,217 2.6 2,426,343 88.7 2,734,630
2017 I 226,723 8.2 40,880 1.5 2,489,193 90.3 2,756,796
Notes: First through third quarters, end of quarter stock levels; fourth quarter reflects annual reporting. U.S . industry stocks include dealers,
importers and refiners. In the third quarter of 1997, U.S . Bureau of Mines ceased publication of U.S . Industry stock level data. NA -- not available.
S ources: U.S . Bureau of Mines, Tokyo Commodity Exchange, New York Mercantile Exchange Inc. ETP issuer websites, Bloomberg, CPM Group
May 12, 2017
94
Prices Price trends in 2016
Platinum prices, basis the nearby active During the first half of 2016 platinum
Nymex futures contract, fell on an an- prices trended higher, peaking on 10
nual average basis in 2016 to $991.75. August at an intraday high of
This was down 5.9% from $1,053.83 $1,199.50. Following this peak prices
averaged in 2015, making last year the then trend lower. Prices began 2016 at
fifth consecutive year of declining an- $884.50 and end the year at $901.60.
nual average prices. Through the first This was a small increase of 1.9% even
four months of this year platinum prices as prices had moved in that $388.10
averaged $978.33, up 4.1% from range over the course of the year.
$939.49 averaged during the same time
in 2016. Platinum traded between $811 and $900
in January 2016, breaking above $900
On an intraday basis platinum traded in in early February. Prices eventually ral-
a narrower range in 2016 compared to lied in early March, topping $1,000, but
2015: Prices traded in a $388.10 band only briefly as they settled at $1,002 on
between $811.40 and $1,119.50. In 7 March. Prices declined into early
2015 platinum moved between $825 April before move back firmly above
and $1,290.30, a $465.30 range. Last $1,000 in the second half of that month.
year, on an intraday basis, platinum
prices bottomed out at $811.40 on 21 In May prices reached an intraday high
January and topped out at $1,199.50 on of $1,092.30 before backing of for most
10 August. of the remainder of the month. By the
Real and Nominal Platinum Prices
$/Ounce $/Ounce
$2,000 $2,000
$1,800 $1,800
$1,600 $1,600
$1,400 $1,400
$1,200 $1,200
Nominal Platinum Price
$1,000 $1,000
$800 $800
$600 $600
$400 $400
$200 $200
Real Platinum Price
$0 $0
68 71 74 77 80 83 86 89 92 95 98 01 04 07 10 13 16
Note: Real prices are indexed to the base period of 1982-1984=100

95
end of May prices had fallen back to above $1,000 in February but then drop-
$980.40. Platinum then moved sideways ping back below this level in March. By
in June until rallying once more in July. April prices were moving mainly side-
Prices broke above $1,100 in July, near- ways, but began a downward descent in
ing the $1,200 resistance level in early early May, as platinum settled at
August, but supply concerns over South $907.70 on 4 May. The price seasonal-
Africa eventually eased and many ity chart later in this section of the re-
prices sold off. port shows that there is a strong sea-
sonal price pattern with which 2017 is
By October platinum was firmly trading in line.
between $900 and $1,000 once more. It
was only briefly that prices jumped Volatility
above $1,000 in early November, but by
the end of December platinum was trad- Annual platinum price volatility was
ing on either side of $900. 24.3% in 2016, up from 20.5% in 2015.
Volatility is calculated as the standard
Prices In Early 2017 deviation of the daily logarithmic price
changes based on the nearby active Ny-
During the first four months of this year mex contract settlement price. Platinum
platinum prices appeared to be follow- price volatility was prevalent in 2016.
ing a similar pattern compared to last Monthly volatility was mainly above
year. Platinum traded mostly between 20% with the exception of July and Oc-
$900 and $1,000 in January, moving tober, when volatility measured 19.6%
Daily High, Low and Settlement Prices

Through 4 May 2016
$ / Oz $ / Oz
$1,300 $1,300
$1,200 $1,200
$1,100 $1,100
$1,000 $1,000
$900 $900
$800 $800
$700 $700
Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17
96
and 18.5%, respectively. The highest

volatility was in December, at 31.1%.
During the first four months of 2017
monthly volatility eased, touching a
multi-year low of 11.8% in February.
Platinum –Gold Spread
In 2016 gold prices were at a premium

to platinum prices every month, averag-
ing a premium of $235.30 for the year.
The month with the highest gold price
premium was May when it averaged
$427.65. The gold premium narrowed
from then to $20.90 in October before
widening once more over the next sev-
eral months. By April 2017 gold prices
held a premium to platinum prices by
$301.35.
Platinum Price Volatility

Percent Percent
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17
97
Platinum Price Seasonality

Monthly
Seasonal Strength Seasonal Strength
106 106
104 104
102 102
100 100
98 98
96 96
94 94
92 92
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
98
Monthly Platinum and Gold Prices

Through April 2017
$/Ounce $/Ounce
2,200 2,200
2,000 2,000
1,800 Platinum 1,800
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
Gold
200 200
0 0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Platinum - Gold Price Differential

Monthly Data, Through April 2017 $/Ounce
$/Ounce
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
-200 -200
-400 -400
-600 -600
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Platinum/Gold Price Ratio

Price Ratio Price Ratio
2.4 2.4
2.2 2.2
2.0 2.0
1.8 1.8
1.6 1.6
1.4 1.4
1.2 1.2
1.0 1.0
0.8 0.8
0.6 0.6
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
99
Quarterly Real and Nominal Interest Rates and the Price of Platinum
Through First Quarter 2017. Nominal interest rate is the T-bill. Real interest
rate is adjusted using U.S. Consumer Price Index
Percent Change $/Ounce
20 2,400
Nominal Interest Rate Platinum (right scale)

15 2,000
10 1,600
5 1,200
0 800
-5 400
Real Interest Rate

-10 0
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Platinum Contango and Backwardation

Difference between Nymex nearby active and forward active prices, annualized
and expressed in percentage terms. Daily, Through 4 May 2017
Percent Percent
15% 15%
10% 10%
5% 5%
0% 0%
-5% -5%
-10% -10%
-15% -15%
-20% -20%
-25% -25%
-30% -30%
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
100
Platinum and U.S. Inflation

$/Ounce Percent Change
2,000 20
Inflation (right scale)
1,800
Platinum (left scale)
1,600 15
1,400
1,200 10
1,000
800 5
600
400 0
200
0 -5
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
101
New York Dealer Platinum Prices

Monthly Averages
1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
January $80.00 $83.50 $83.50 $83.50 $88.27 $93.00 $98.50 $102.93 $216.00 $276.00
February 83.50 83.50 83.50 83.50 88.50 98.50 98.50 110.50 209.00 261.00
March 83.50 83.50 83.50 83.50 88.50 98.50 98.50 110.50 219.00 256.00
April 83.50 83.50 83.50 78.50 88.50 98.50 99.65 110.50 227.00 220.00
May 83.50 83.50 83.50 78.50 88.50 98.50 100.00 110.50 237.00 198.00
June 83.50 83.50 83.50 78.50 88.50 98.50 100.00 110.50 283.00 182.00
July 83.50 83.50 83.50 78.50 88.50 98.50 100.00 110.50 292.00 171.00
August 83.50 83.50 83.50 78.95 88.50 98.50 100.00 110.50 287.00 167.00
S eptember 83.50 83.50 83.50 80.75 88.50 98.50 100.00 110.50 286.00 166.00
October 83.50 83.50 83.50 80.50 88.50 98.50 100.00 110.50 276.00 165.00
November 83.50 83.50 83.50 82.90 88.50 98.50 100.00 110.50 272.00 180.00
December 83.50 _______
_______ 83.50 _______
83.50 _______
83.50 _______
88.50 _______
98.50 _______
100.00 ________
115.05 ________
272.00 ________
179.00
Annual $83.21 $83.50 $83.50 $80.93 $88.48 $98.04 $99.60 $110.25 $256.33 $201.75
Percent Change -- 0.4% -3.1% 9.3% 10.8% 1.6% 10.7% 132.5% -21.3%
1970 1971 1972 1973 1974 1975 1976 1977 1978 1979
January $176.00 $110.00 $103.67 $129.55 $171.55 $150.64 $141.83 $154.73 $202.76 $363.21
February 175.00 105.00 102.00 153.78 211.61 152.28 137.78 161.07 224.08 411.00
March 177.00 105.00 102.00 146.50 215.14 150.71 136.65 162.44 225.30 395.73
April 175.00 107.00 102.00 139.76 227.50 146.50 150.64 159.70 213.44 391.14
May 162.00 105.00 103.09 147.64 210.64 148.24 156.00 156.49 234.89 430.39
June 156.00 109.00 128.98 152.48 197.25 146.29 167.21 149.18 244.42 427.52
July 150.00 111.00 149.05 166.38 190.14 158.00 169.22 149.12 249.20 415.00
August 143.00 117.00 150.48 165.13 185.27 167.95 156.00 146.97 264.30 402.37
S eptember 138.00 115.00 140.85 165.33 169.60 153.14 158.44 150.83 269.70 474.42
October 127.00 115.00 133.46 167.57 181.27 142.63 156.88 157.38 337.55 516.50
November 120.00 106.00 134.50 158.92 177.28 143.29 156.71 167.55 324.25 504.05
December 121.00 ________
________ 109.00 ________
142.52 ________
158.50 _______
171.19 _______
143.46 _______
152.16 _______
177.07 _______
339.78 _______
617.00
Annual $151.67 $109.50 $124.38 $154.29 $192.37 $150.26 $153.29 $157.71 $260.81 $445.69
Percent Change -24.8% -27.8% 13.6% 24.0% 24.7% -21.9% 2.0% 2.9% 65.4% 70.9%
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
January $820.23 $521.67 $367.75 $461.00 $374.50 $273.91 $364.95 $515.00 $491.58 $527.50
February 889.47 479.83 360.89 464.90 390.00 269.22 373.16 514.63 451.85 529.90
March 699.05 496.41 317.57 401.87 398.23 259.83 413.33 525.23 491.17 534.30
April 599.77 478.36 337.38 414.19 391.91 282.27 417.46 584.50 523.33 538.00
May 564.29 461.75 306.75 447.19 386.23 271.89 411.48 605.00 544.53 514.96
June 648.33 440.41 275.74 422.59 381.29 264.38 432.38 565.27 576.36 494.18
July 664.09 408.00 286.25 435.05 341.14 267.82 439.23 568.30 543.25 500.00
August 650.48 422.62 308.77 435.44 337.63 307.64 536.81 608.33 529.13 482.96
S eptember 707.38 434.19 325.38 428.91 325.58 309.10 595.24 586.33 506.24 476.45
October 671.36 419.00 342.35 393.55 323.82 323.39 570.68 564.48 522.10 483.10
November 633.59 393.11 341.47 384.87 327.42 334.05 510.39 494.21 566.50 504.19
December 579.64 _______
_______ 396.50 _______
358.70 _______
392.86 _______
303.00 _______
334.19 _______
474.00 _______
499.50 _______
557.38 _______
501.75
Annual $677.31 $445.99 $327.42 $423.53 $356.73 $291.47 $461.59 $552.57 $525.28 $507.27
Percent Change 52.0% -34.2% -26.6% 29.4% -15.8% -18.3% 58.4% 19.7% -4.9% -3.4%
102
New York Dealer Platinum Prices

Monthly Averages
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
January $492.19 $400.17 $337.05 $355.21 $383.65 $411.55 $412.71 $357.10 $365.60 $350.00
February 515.53 379.21 356.42 353.95 389.47 413.05 415.85 358.68 380.25 358.00
March 493.77 393.10 353.27 347.17 395.70 412.43 408.90 375.57 391.25 365.60
April 474.76 394.00 345.73 365.27 394.10 443.50 401.77 367.23 405.80 353.25
May 483.59 384.09 354.95 381.75 393.10 431.36 399.11 381.62 380.75 351.75
June 478.57 372.00 364.77 378.64 398.95 435.14 389.88 413.57 350.50 345.00
July 475.10 372.48 376.52 398.05 408.40 430.80 391.16 407.14 368.60 345.50
August 486.35 342.66 353.33 385.91 407.65 421.57 398.23 414.67 366.50 362.00
S eptember 458.04 347.10 360.71 357.57 413.24 425.05 388.35 418.86 356.50 362.00
October 415.23 358.64 355.38 363.20 416.35 409.81 382.77 417.82 339.40 406.25
November 416.00 359.37 352.05 371.50 410.25 409.00 380.82 389.67 341.75 421.50
December 414.25 _______
_______ 349.95 _______
359.59 _______
379.83 _______
406.67 _______
406.03 _______
369.04 _______
359.05 _______
346.00 _______
432.00
Annual $466.95 $371.06 $355.81 $369.84 $401.46 $420.77 $394.88 $388.41 $366.08 $371.07
Percent Change -7.9% -20.5% -4.1% 3.9% 8.6% 4.8% -6.2% -1.6% -5.8% 1.4%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
January $424.50 $610.75 $465.00 $614.40 $839.00 $850.75 $1,001.25 $1,129.00 $1,554.60 $920.75
February 502.50 595.00 464.25 669.00 833.75 855.50 1,025.25 1,176.75 1,921.50 1,008.75
March 469.60 578.20 502.75 665.00 883.00 859.80 1,022.40 1,205.80 1,943.75 1,055.00
April 480.00 581.50 531.25 619.75 858.00 859.75 1,072.50 1,260.00 1,949.50 1,136.80
May 511.25 601.40 526.00 629.00 790.50 861.75 1,217.50 1,285.20 1,951.40 1,101.00
June 544.60 573.75 545.50 650.75 799.75 870.80 1,167.00 1,275.00 1,991.25 1,178.75
July 550.00 526.75 522.25 673.80 793.40 865.50 1,205.25 1,294.00 1,864.60 1,136.00
August 566.20 441.80 533.40 685.50 833.75 890.75 1,220.00 1,245.80 1,440.50 1,217.50
S eptember 581.00 448.25 547.25 699.00 841.20 905.60 1,167.75 1,287.50 1,172.50 1,260.00
October 574.25 420.75 569.40 718.00 825.00 921.50 1,066.25 1,383.75 863.00 1,304.00
November 584.00 422.00 580.75 750.25 844.00 943.50 1,135.00 1,426.40 798.75 1,361.25
December 600.50 _______
_______ 450.25 _______
589.25 _______
794.00 _______
838.20 _______
962.80 1,105.00
_______ 1,469.00
_______ 815.20
_______ 1,416.00
_______
Annual $532.37 $520.87 $531.42 $680.70 $831.63 $887.33 $1,117.10 $1,286.52 $1,522.21 $1,174.65
Percent Change 43.5% -2.2% 2.0% 28.1% 22.2% 6.7% 25.9% 15.2% 18.3% -36.2%
2010 2011 2012 2013 2014 2015 2016 2017

January $1,521.25 $1,758.75 $1,437.50 $1,603.60 $1,397.00 $1,220.00
$830.75 $966.25
February 1,491.25 1,795.00 1,605.00 1,635.00 1,391.75 1,183.75
900.25 1,012.62
March 1,575.00 1,730.00 1,633.00 1,563.75 1,430.25 1,123.50
969.00 961.80
April 1,686.25 1,777.50 1,573.75 1,496.25 1,408.25 1,131.80
997.00 964.27
May 1,566.25 1,752.50 1,450.00 1,481.10 1,431.60 1,127.75
831.75
June 1,526.25 1,738.40 1,407.50 1,433.13 1,431.25 1,078.75
986.50
July 1,507.00 1,737.50 1,393.75 1,388.00 1,473.20 1,001.40
1,086.63
August 1,518.75 1,749.50 1,419.60 1,490.20 1,434.25 960.00
1,138.13
S eptember 1,563.20 1,715.40 1,576.25 1,463.13 1,353.25 963.75
1,055.00
October 1,668.75 1,476.25 1,625.25 1,416.70 1,236.60 951.00
961.13
November 1,673.25 1,571.00 1,548.00 1,425.38 1,192.25 877.50
966.25
December 1,676.00
_______ 1,427.00
_______ 1,561.25
_______ 1,357.50
_______ 1,192.00
_______ 842.00
916.90 _______
_______
_______
Annual $1,581.10 $1,685.73 $1,519.24 $1,479.48 $1,364.30 $1,038.43 $969.94 $976.24
Percent Change 34.6% 6.6% -9.9% -2.6% -6.4% -23.9% -6.6% 5.6%
Notes: Percent change in 2017 compares the average price through April with the same period in 2016.
S ource: Metals Week, CPM Group.
May 5, 2017
103
104
CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 PALLADIUM
Palladium
105
PALLADIUM CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
Review and Outlook metal and metal prices for forward

delivery.
A shift in investor sentiment toward
palladium in the beginning of 2016 For the first part of 2017, through 21
provided strong upward momentum to June, palladium prices averaged
palladium prices over the course of the $787.76, up 44.2% from the same
year. The price of palladium rose to period in 2016.
$683.25 at the end of 2016, up from
$562.00 at the end of 2015. Even so, Heavy investor selling earlier had
the annual average palladium price, weighed palladium prices down from
basis the nearby active Nymex futures September 2014 into 2016. By the end
contract settlement price, was $615.49 of January 2016 prices had been
in 2016, down 10.8% from $690.35 trending downward for 17 months and
averaged in 2015. had dipped below the long-run
psychological and technical support
These trends persisted in the first half of level of $500. Such low levels of prices
2017, and were behind a sharp increase had not been seen since the middle of
in palladium prices and a wide 2010, and convinced some investors to
backwardation that emerged in the stop their inventory liquidation at least
market in the middle of June 2017 as until prices improved.
this report was being prepared.
Palladium prices rose as high as Since that time investors who had
$891.35 on 9 June, , with a very steep shorted palladium on the Nymex started
backwardation between spot physical booking profits in their short positions.
The Price of Palladium

Monthly Average Metals Week New York Dealer Prices, Through May 2017
$/Ounce $/Ounce
1,000 1,000
900 900
800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
106
Some of these investors who had accommodated by sales of the metal out
shorted palladium were using such of investor inventories.
shorts to hedge their large positions of
the physical metal. The lower prices of While sales of investor inventories
palladium enabled them to lock in continued to cushion the palladium
profits while waiting for the market to market, the available supplies of
improve. As the palladium market palladium became tighter than in the
tightened in the third quarter of 2016 past two years as investors decided to
and prices rose back above $700, there hold on to their palladium. This helped
was another bout of inventory extend a floor to palladium prices.
liquidation by stale-bull investors. This
lasted through the year’s end. In this Palladium prices also were supported by
bout of selling, however, investors were positive fabrication demand trends and
less keen on getting rid of their tightening mine supplies. Fabrication
inventories. Rather, they stopped selling demand for palladium hit a record high
when prices were showing signs of last year while mine production fell in
short-term weakness. Russia and South Africa, the two largest
producers of the metal.
This shift of investor sentiment from
selling heavily into the market toward Going forward, investment demand, and
holding palladium inventories is a inventory purchases and sales will
critical change for the palladium continue to play an important part in
market. Since 2014 the shortfalls in determining prices as they have over the
newly refined metal over fabrication past few years.
demand had been more than
Annual Palladium Fabrication Demand

10.0 10.0
Electrical Auto
9.0 9.0
Dental Jewelry
8.0 8.0
Petro Chemical Other Uses
7.0 7.0
6.0 6.0
5.0 5.0
4.0 4.0
3.0 3.0
2.0 2.0
1.0 1.0
0.0 0.0
76 79 82 85 88 91 94 97 00 03 06 09 12 15
107
Fabrication Demand United States, reach what some are

calling cyclical peak levels of demand
Total palladium fabrication demand for the current cycle. Some of the
rose to a record high 9.35 million softness in demand from the auto
ounces in 2016, driven higher primarily industry should be offset by a revival in
by an increase in demand from the auto demand from the electronics sector.
sector. Increases in demand from the Total palladium fabrication demand in
auto sector during 2016 were offset to 2017 is forecast to reach 9.43 million
some extent by softness in demand from ounces, up around 0.9% for the year.
the electronics, dental, and jewelry
sectors. A healthy passenger vehicle Palladium fabrication demand from the
market, increased market share of auto sector is estimated to have risen to
gasoline vehicles in Europe, and a record high 6.26 million ounces in
ongoing substitution of platinum with 2016, up 2.1% from 2015. The pace of
palladium in diesel auto catalysts all growth from the sector declined
helped to boost demand for the metal in significantly compared to recent years,
the auto sector. even as the total amount of metal being
used expanded. The growth rate appears
Heading into 2017 demand for to be the lowest rate of increase in
palladium from the auto sector annual palladium use since the Great
continues rising. The increase is Recession in 2008 – 2009. This
expected to be relatively lackluster slowdown in growth can in large part be
compared to recent years, as many of attributed to the slowdown in growth
the major auto markets, especially the from the U.S. market, the largest source
Palladium Supply and Fabrication Demand Balance

10.0 10.0
9.0 9.0
8.0 8.0
Supply
7.0 7.0
6.0 6.0
5.0 5.0
4.0 4.0
Demand
3.0 3.0
2.0 2.0
1.0 1.0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
108
of palladium demand from the auto 2016, slipping to 445,000 ounces from
sector. 447,000 ounces in 2015. This trend is
not expected to change any time soon
Palladium demand from the electronics and demand for palladium jewelry is
sector declined during 2016 to 1.24 expected to soften to 443,000 ounces in
million ounces, down 0.7% from 2015. 2017.
While demand declined, the contraction
was small and from a very high level, Supply
suggesting that there is still a large
amount of palladium being consumed Newly refined palladium supply fell to
by the electronics sector. Demand for 9.3 million ounces in 2016, a decline of
palladium in the electronics industry is -1.2% from the previous year. This
expected to rebound during 2017 after compared to a 5.4% year-on-year
going through a slowdown over the past increase in 2015 from th strike-plagued
couple of years due to an increase in 2014.
inventory buildup. Demand is forecast
to reach a record 1.26 million ounces A decline in palladium mine production,
during the year, up 1.3% over 2016. due largely to declines in South Africa
and Russia, was mainly responsible for
Lack of advertising dollars and the this decrease in total refined metal
consequent dearth of awareness among supplies. Global palladium mine
consumers regarding palladium jewelry production fell -2.8% from the previous
resulted in demand for palladium year to 6.9 million ounces last year,
jewelry to continue declining during recovering strongly from the -3.2%
Palladium Market Surplus/Deficit

4000 4000
3500 3500
3000 Surplus 3000
2500 2500
2000 2000
1500 1500
1000 1000
500 500
0 0
-500 -500
-1000 -1000
Deficit
-1500 -1500
-2000 -2000
-2500 -2500
76 81 86 91 96 01 06 11 16
109
decline in 2014. Much of the decline in 3.3% to 2.5 million ounces last year, an
2016 came from South Africa (-7.9%), all-time high.
Russia (-1.9%), and Canada (-2.9%),
which more than offset increases in the Total newly refined palladium supply is
United States. Despite the small drop expected to rebound 2.2% to 9.6 million
in palladium mine production, Russia ounces in 2017, helped by expected
outpaced South Africa to become the increases in mine production and scrap
top palladium producing country once supply.
more in 2016, accounting for 37.0% of
global palladium mine production. It is Investment Demand
followed by South Africa, Canada, and
the United States, having accounted for During 2016 the palladium market is
roughly 35.9%, 9.8%, and 6.2% of the estimated to have recorded a small
global total, respectively. deficit of around 11,000 ounces (within
the margin of error for palladium
Palladium prices rose strongly over the market supply and demand statistics).
course of 2016, encouraging the While sales of investor inventories
recycling of spent auto catalysts that continued to cushion the palladium
contain significant loadings of market, the available supplies of
palladium. Recovery of palladium from palladium became tighter than in the
spent auto catalyst, end-of-life past two years as investors decided to
electronics scrap, old jewelry scrap, and hold on to their palladium. This helped
other scrap is estimated to have risen extend a floor to palladium prices.
Annual Palladium Supply

10 10
9 Other Mine Production 9
8 8
Secondary Supply
7 7
6 6
5 5
4 4
3 Russian Supply 3
2 2
1 1
0 0
76 80 84 88 92 96 00 04 08 12 16
Note: Russian supply is exports through 2002 and production since 2003.
110
In the first four months of 2017 investor two years. During 2016 palladium
disposals of palladium lessened further prices were mostly in an upward trend,
while other investors began ending the year about 20% higher than
accumulating fresh inventories. There where they started.
appeared to be some investor interest in
gaining long exposure to palladium for
the longer term. The palladium market
is expected to record a surplus around
117,000 ounces for the year, but to
tighten significantly in the years ahead.
Such surplus metal may become
absorbed by those investors with
renewed interest in palladium.
Markets
The palladium market is the smallest of

the major precious metals markets in
terms of both ounces and dollar value
traded. As with the platinum market the
palladium market in ounces terms grew,
but in dollar value contracted. The
volume of metal traded, which includes
physical supply and exchange traded
futures and options activity, was 158.6
million ounces in 2016. This was up
from 151.2 million ounces traded in
2015, but in terms of dollar value, last
year’s palladium market was $98
billion, down from $104 billion in 2015.
Last year’s decline in the dollar value of
the market from the previous year was
the result of the decline in the annual
average price of palladium.
Prices
Palladium prices, basis the nearby

active Nymex futures contract
settlement prices, averaged $615.49 in
2016, down 10.8% from $690.35
averaged in 2015. Palladium prices have
been on a declining trend for the past
111
Palladium Statistical Position

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
Mine Production
Russia* 1,608 1,075 1,278 1,412 1,214 1,255 1,380 1,286 1,444 1,256 1,393 1,609 1,512 1,500 1,700 1,900 1,850 2,500
South Africa 714 780 757 832 872 887 697 719 876 1,000 985 1,077 1,090 1,206 1,217 1,300 1,450 1,475
Canada 186 207 154 88 183 170 102 74 155 155 175 169 185 200 200 220 210 168
United States 5 5 8 7 2 6 8 7 18 3 4 92 120 156 191 170 179 224
Others 26
___ 38
_____ 38
___ 35
_____ 42
_____ 49
_____ 52
_____ 57
_____ 56
_____ 156
_____ 160
_____ 162
_____ 154
_____ 144
_____ 150
_____ 153
_____ 150
_____ 154
_____
Total 2,539 2,105 2,235 2,374 2,313 2,366 2,238 2,143 2,549 2,570 2,716 3,109 3,061 3,205 3,458 3,743 3,839 4,521
% Change Year Ago - -17.1% 6.2% 6.2% -2.6% 2.3% -5.4% -4.3% 19.0% 0.8% 5.7% 14.5% -1.6% 4.7% 7.9% 8.2% 2.6% 17.8%
Secondary Supply
United States 135 134 166 221 162 186 139 178 256 205 173 125 132 135 134 100 115 125
Japan 48 48 48 48 96 80 96 251 200 213 218 243 252 254 269 349 300 310
Taiwan - - - - - - - - 2 37 113 128 154 155 163 127 150 177
Other 113 93 124 158 96 141 102 138 183 190 261 383 376 376 393 424 460 482
Total 296 275 338 427 354 407 337 567 641 645 765 879 914 920 959 1,000 1,025 1,094
% Change Year Ago _____- -7.1%
_____ 22.9%
_____ 26.3%
_____ -17.1%
_____ 15.0%
_____ -17.2%
_____ 68.2%
_____ 13.1%
_____ 0.6% 18.6%
_____ _____ 14.9%
_____ 4.0%
_____ 0.7%
_____ 4.2%
_____ 4.3%
_____ 2.5% _____
_____ 6.7%
Total Supply 2,835 2,380 2,573 2,801 2,667 2,773 2,575 2,710 3,190 3,215 3,481 3,988 3,975 4,125 4,417 4,743 4,864 5,615
% Change Year Ago - -16.1% 8.1% 8.9% -4.8% 4.0% -7.2% 5.2% 17.7% 0.8% 8.3% 14.6% -0.3% 3.8% 7.1% 7.4% 2.5% 15.4%
Fabrication Demand
Electronics 427 481 552 719 585 905 928 1,024 1,387 1,244 1,476 1,568 1,786 1,897 1,889 2,103 1,969 2,176
Automotive 197 128 203 227 181 212 213 270 384 397 413 430 444 479 445 459 434 582
Dental 368 293 480 568 533 490 617 681 863 956 1,151 1,229 1,193 1,155 1,093 1,048 1,070 1,134
Other 940
_____ 996
_____ 1,136
_____ 1,375
_____ 1,062
_____ 680
_____ 725
_____ 683
_____ 568
_____ 561
_____ 498
_____ 652
_____ 709
_____ 753
_____ 740
_____ 714
_____ 718
_____ 740
_____
Total Demand 1,932 1,898 2,371 2,889 2,361 2,287 2,483 2,658 3,201 3,158 3,537 3,879 4,132 4,284 4,167 4,324 4,191 4,632
% Change Year Ago - -1.8% 24.9% 21.8% -18.3% -3.1% 8.6% 7.0% 20.4% -1.4% 12.0% 9.7% 6.5% 3.7% -2.7% 3.8% -3.1% 10.5%
Net Surplus or Deficit 903 482 202 -88 306 486 92 52 -11 58 -55 109 -158 -158 250 419 673 983
Inventory Sales ** - - - - - - - - - - - - - - - - - -
Changes in
Market Stocks*** 128 13 -107 -31 -14 107 -128 108 172 -123 166 -120 21 -95 -58 24 -72 -17
Price Per Ounce

High $62.00 $59.50 $83.35 $183.50 $317.50 $147.00 $100.60 $172.50 $165.40 $131.10 $147.00 $151.30 $148.30 $180.65 $139.10 $102.25 $113.90 $144.40
Low 37.40 41.20 52.40 70.60 142.00 63.30 48.90 88.60 121.50 91.15 96.00 103.65 114.10 130.00 81.15 78.25 76.20 98.10
Average 47.76 49.69 62.71 118.04 198.69 93.92 66.30 133.99 146.49 105.76 115.96 130.58 124.52 146.12 114.50 88.31 87.85 122.16
% Change Year Ago - 4.0% 26.2% 88.2% 68.3% -52.7% -29.4% 102.1% 9.3% -27.8% 9.6% 12.6% -4.6% 17.3% -21.6% -22.9% -0.5% 39.1%
Notes: Demand in other countries prior to 1984 is included in the 'Other' category. Excludes transitional economies except as noted.
* Prior to 2003 Russian supply represented palladium exports. Russian supply represents mine production since 2003 . Secondary
production excludes toll-refined material. Prices are settlement prices for the active nearby contract on the New York Mercantile Exchange.
***Changes in market stocks are year-end. Changes in 1997 market stocks exclude U.S. Industry stocks the U.S. Bureau of Mines ceased
publication of U.S. Industry stock level data in the third quarter of 1997. ** Inventory sales in 2002 and 2003 were of a stockpile
held by a bullion bank. This metal was acquired from the Russian government earlier. As of 2006 Inventories includes changes in
ETP holdings. There may be discrepancies due to rounding. Changes in market inventories are year-end.
e -- estimate. p -- projections. - no percent change from previous year.
Sources: U.S. Bureau of Mines; Statistics Canada; trade sources; CPM Group.
June 13, 2017
112
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e 2012 2013 2014 2015 2016 2017p
Mine Production
3,215 3,950 3,950 2,500 1,700 1,700 1,800 3,550 1,350 3,000 3,200 3,140 3,170 3,120 2,737 2,686 2,732 2,714 2,638 2,590 2,759 2,585 2,536 2,694 Russia*
1,500 1,560 1,620 1,789 1,839 1,926 1,849 2,028 2,040 2,169 2,275 2,602 2,833 2,630 2,447 2,443 2,617 2,637 2,384 2,497 1,939 2,674 2,463 2,464 South Africa
224 295 273 258 303 284 337 423 491 441 582 463 508 550 513 229 250 503 519 585 748 692 671 666 Canada
213 175 202 277 347 321 337 411 482 460 450 438 473 423 394 418 382 407 404 412 408 411 428 432 United States
157 _____
_____ 157 _____
160 _____
187 _____
292 _____
344 _____
299 _____
308 _____
294 _____
357 _____
440 _____
408 _____
424 _____
539 _____
442 _____
550 _____
553 _____
575 _____
605 _____
668 _____
685 _____
686 754 _____
_____ 731 Others
5,309 6,138 6,205 5,012 4,481 4,575 4,622 6,719 4,657 6,427 6,947 7,051 7,409 7,262 6,533 6,326 6,535 6,836 6,550 6,752 6,539 7,048 6,853 6,987 Total
17.4% 15.6% 1.1% -19.2% -10.6% 2.1% 1.0% 45.4% -30.7% 38.0% 8.1% 1.5% 5.1% -2.0% -10.0% -3.2% 3.3% 4.6% -4.2% 3.1% -3.2% 7.8% -2.8% 2.0% % Change Year Ago
Secondary Supply
131 134 139 144
- - - - - - - - - - - - - - - - - - - - United States
315 326 328 328
- - - - - - - - - - - - - - - - - - - - Japan
185 190 194 194
- - - - - - - - - - - - - - - - - - - - Taiwan
505 515 531 549
- - - - - - - - - - - - - - - - - - - - Other
1,136 1,165 1,192 1,215 1,253 1,280 1,408 1,520 1,250 1,275 1,313 1,359 1,407 1,508 1,400 1,412 2,209 2,112 2,152 2,348 2,438 2,410 2,490 2,565 Total
3.8% _____
_____ 2.6% _____
2.3% _____
1.9% _____
3.1% _____
2.2% 10.0% 8.0% -17.8%
_____ _____ 2.0% _____
_____ _____ 3.0% _____
3.5% _____
3.5% _____
7.2% -7.1% 0.8% 56.4%
_____ _____ _____ -4.4% 1.9% _____
_____ _____ 9.1% _____
3.8% -1.2%
_____ 3.3% _____
_____ 3.0% % Change Year Ago
6,445 7,303 7,397 6,227 5,734 5,855 6,030 8,239 5,907 7,702 8,260 8,410 8,816 8,770 7,933 7,738 8,743 8,948 8,702 9,100 8,977 9,457 9,343 9,552 Total Supply
14.8% 13.3% 1.3% -15.8% -7.9% 2.1% 3.0% 36.6% -28.3% 30.4% 7.2% 1.8% 4.8% -0.5% -9.5% -2.5% 13.0% 2.3% -2.7% 4.6% -1.4% 5.4% -1.2% 2.2% % Change Year Ago
Fabrication Demand
2,528 2,822 2,708 2,978 2,805 2,703 2,630 775 768 880 975 1,070 1,220 1,200 1,125 1,095 1,179 1,207 1,191 1,229 1,246 1,250 1,241 1,257 Electronics
821 1,425 1,809 2,077 2,748 3,180 3,220 2,755 2,860 2,895 3,395 3,860 4,240 4,545 4,252 3,960 4,812 5,035 5,465 5,695 5,921 6,132 6,260 6,335 Automotive
1,185 1,245 1,267 1,249 1,143 1,039 872 805 855 788 957 952 765 776 775 782 774 762 756 744 737 727 726 711 Dental
797 _____
_____ 790 _____
814 _____
810 _____
791 _____
745 _____
832 _____
821 _____
940 _____
1,054 _____
1,248 _____
1,311 _____
1,380 _____
1,241 _____
1,285 _____
1,206 _____
1,152 _____
1,137 _____
1,134 _____
1,134 _____
1,137 _____
1,134 _____
1,127 _____
1,131 Other
5,331 6,282 6,598 7,114 7,487 7,667 7,554 5,156 5,423 5,617 6,575 7,193 7,605 7,762 7,437 7,043 7,917 8,141 8,546 8,801 9,041 9,242 9,353 9,434 Total Demand
15.1% 17.8% 5.0% 7.8% 5.2% 2.4% -1.5% -31.7% 5.2% 3.6% 17.0% 9.4% 5.7% 2.1% -4.2% -5.3% 12.4% 2.8% 5.0% 3.0% 2.7% 2.2% 1.2% 0.9% % Change Year Ago
1,114 1,021 799 -887 -1,753 -1,812 -1,523 3,083 484 2,085 1,685 1,216 1,211 1,007 496 696 826 807 156 298 -64 215 -11 117 Net Surplus or Deficit
- - - - - - - - 1,600 1,600 - - - - - - - - - - - - - - Inventory Sales **

Changes in
-80 51 17 -200 -16 19 -51 44 -43 262 468 80 -94 148 275 613 712 -17 -30 164 508 -738 Market Stocks***
YTD Price Per Ounce

$162.65 $178.15 $145.25 $227.60 $398.15 $454.65 $975.00 ####### $447.00 $275.00 $344.70 $305.00 $409.00 $389.50 $600.00 $410.00 $804.90 $857.70 $719.75 $783.95 $908.65 $831.65 $771.65 $834.05 High
123.40 129.00 115.75 121.10 200.00 288.05 430.20 305.00 224.00 146.25 177.50 170.20 262.00 315.20 160.30 176.10 380.05 564.15 561.60 $633.25 $700.10 $525.80 $469.80 $709.90 Low
143.72 152.75 129.75 174.85 279.26 359.11 684.99 605.73 337.78 202.81 233.08 203.85 323.46 358.28 352.98 266.75 528.97 733.92 644.91 726.51 803.45 690.35 615.49 779.39 Average
17.6% 6.3% -15.1% 34.8% 59.7% 28.6% 90.7% -11.6% -44.2% -40.0% 14.9% -12.5% 58.7% 10.8% -1.5% -24.4% 98.3% 38.7% -12.1% 12.7% 10.6% -14.1% -10.8% 42.5% % Change Year Ago
113
Supply top palladium producing country once

more in 2016, accounting for 37.0% of
Newly refined palladium supply fell to global palladium mine production. It is
9.3 million ounces in 2016, a decline of followed by South Africa, Canada, and
-1.2% from the previous year. This the United States, having accounted for
compared to a 5.4% year-on-year roughly 35.9%, 9.8%, and 6.2% of the
increase in 2015. global total, respectively.
A decline in palladium mine production, Palladium prices rose strongly over the
due largely to declines in South Africa course of 2016, encouraging the
and Russia, was mainly responsible for recycling of spent auto catalysts that
this decrease in total refined metal contain significant loadings of
supplies. Global palladium mine palladium. Recovery of palladium from
production fell -2.8% from the previous spent auto catalyst, end-of-life
year to 6.9 million ounces last year, electronics scrap, old jewelry scrap, and
recovering strongly from the -3.2% other scrap is estimated to have risen
decline in 2014. Much of the decline in 3.3% to 2.5 million ounces last year, an
2016 came from South Africa (-7.9%), all-time high.
Russia (-1.9%), and Canada (-2.9%),
which more than offset increases in the Total newly refined palladium supply is
United States. Despite the small drop expected to rebound 2.2% to 9.6 million
in palladium mine production, Russia ounces in 2017, helped by expected
outpaced South Africa to become the increases in mine production and scrap
Annual Palladium Supply

10 10
Other Mine Production
9 9
8 8
Secondary Supply
7 7
6 6
5 5
4 4
3 3
Russian Supply
2 2
1 1
0 0
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Note: Russian supply is exports through 2002 and production since 2003.
114
supply. Global palladium mine supply Russia as Norilsk Nickel completes the
is expected to rise by 2.0% to nearly 7.0 reconfiguration of its processing routes.
million ounces, boosted by a strong
recovery in Russian palladium mine South Africa
production and a moderate increase in
U.S. mine production. Secondary South African palladium mine
supply of palladium is expected to production fell 7.9% year-on-year last
continue to rise, albeit at a slower pace year to nearly 2.5 million ounces after
of 3.0%, to nearly 2.6 million ounces. recording a strong recovery in the
previous year. Much of the decline in
South African palladium supply in 2016
Mine Production by Major Country came from a sharp decline at Amplats,
and Company where palladium production had risen
significantly in the previous year.
Palladium mine supply fell to nearly 6.9
million ounces in 2016, down 2.8% The level of palladium output from
from the previous year. South Africa depends in part on the mix
of PGMs ores being mined in a given
Declines in Russia and South Africa year. The Merensky Reef is the main
were largely responsible for the year-on ore type being mined by major mining
-year decrease in global palladium mine companies; it contains higher levels of
production last year. platinum (58%-65%) than palladium
(26%-31%). South Africa also has
Palladium production in South Africa other types of ores with higher
fell last year, after rebounding strongly palladium content. The increasingly
in 2015 following the labor strike- mined Platreef, which is exploited at
plagued 2014, to nearly 2.5 million Amplats’ Mogalakwena mine, contains
ounces from 2.7 million ounces in the a higher level of palladium (49%)
previous year. Russian palladium relative to platinum (42%).
production, largely coming from
Norilsk Nickel, dropped 1.9% in 2016 While palladium is of lower per ounce
to 2.5 million ounces from the previous value compared to platinum, shifts of
year due to changes implemented to the mine plans as well as initiatives to raise
process flowsheet at its Polar and Kola production from lower-cost operations
divisions following the closure of its old such as Mogalakwena may result in
nickel smelter and PGM concentration more palladium-intensive ores being
plant at its Norilsk mine site as well as mined. This could result in a boost in
the transfer of PGM treatment activities palladium output, although
to the Kola division. such increases may not be sustainable
for a long period.
Mine supply could rise to nearly 7
million ounces in 2017, an increase of In 2017 palladium production from
2.0% from the previous year, helped by South Africa is expected to remain flat
a rebound in palladium production in at nearly 2.5 million ounces.
115
S outh African Palladium Mine Production
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Anglo Platinum 1,546 1,390 1,319 1,199 1,268 1,236 1,195 1,201 1,070 1,370 1,212 1,089
% of Total 54.6% 52.9% 53.9% 49.1% 48.4% 46.9% 50.1% 48.1% 55.2% 51.2% 49.2% 44.2%
% Change 14.2% -10.1% -5.1% -9.0% 5.7% -2.5% -3.3% 0.5% -10.9% 28.0% -11.5% -10.1%
Impala Platinum 532 582 480 531 619 634 472 477 256 445 431 393
% of Total 18.8% 22.1% 19.6% 21.7% 23.7% 24.0% 19.8% 19.1% 13.2% 16.6% 17.5% 16.0%
% Change -8.1% 9.4% -17.6% 10.8% 16.6% 2.3% -25.5% 1.2% -46.4% 73.8% -3.1% -8.7%
Lonmin 448 341 329 308 276 340 312 352 179 364 325 307
% of Total 15.8% 13.0% 13.4% 12.6% 10.5% 12.9% 13.1% 14.1% 9.2% 13.6% 13.2% 12.4%
% Change 9.9% -23.9% -3.7% -6.4% -10.5% 23.4% -8.1% 12.8% -49.1% 103.3% -10.8% -5.6%
S ibanye 142 138 118 96 121 108 77 69 63 78 72 238

% of Total 5.0% 5.2% 4.8% 3.9% 4.6% 4.1% 3.2% 2.8% 3.3% 2.9% 2.9% 9.7%
% Change 30.5% -2.8% -14.2% -18.7% 25.9% -10.4% -28.8% -10.8% -7.8% 23.5% -8.2% 230.4%
Northam Platinum 96 84 90 93 79 84 89 101 99 122 142 142

% of Total 3.4% 3.2% 3.7% 3.8% 3.0% 3.2% 3.8% 4.0% 5.1% 4.6% 5.8% 5.8%
% Change -12.5% -12.6% 7.3% 3.9% -15.3% 6.8% 6.1% 13.0% -2.5% 23.7% 16.8% 0.0%
African Rainbow Minerals 10 47 48 113 127 127 132 156 143 160 150 140
% of Total 0.3% 1.8% 2.0% 4.6% 4.9% 4.8% 5.5% 6.2% 7.4% 6.0% 6.1% 5.7%
% Change 374.7% 2.2% 134.7% 13.1% -0.4% 3.6% 18.6% -8.2% 12.0% -6.2% -7.0%
Norilsk 19 19 13 11 23 24 24 46 48 53 40 35
% of Total 0.7% 0.7% 0.5% 0.5% 0.9% 0.9% 1.0% 1.8% 2.5% 2.0% 1.6% 1.4%
% Change 0.0% 0.0% -31.6% -15.4% 109.0% 4.9% 0.0% 90.8% 4.3% 10.4% -24.5% -13.3%
S ylvania Resources 6 7 9 13 12 12 15 15 18 15
% of Total 0.3% 0.3% 0.3% 0.5% 0.5% 0.5% 0.8% 0.6% 0.7% 0.6%
% Change 10.0% 30.7% 47.6% -12.4% 3.0% 22.0% 3.6% 20.0% -15.8%
S edibelo Platinum Mines 8 13 14 19 45 46 53 50 49

% of Total 0.3% 0.5% 0.5% 0.8% 1.8% 2.4% 2.0% 2.0% 2.0%
% Change 69.3% 4.3% 35.8% 139.0% 3.5% 14.0% -6.0% -1.3%
Pan African Resources 0.1 0.9 1.1 2.1 3.0 2.7 2.7
% of Total 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1%
% Change 616.0% 14.8% 94.4% 43.2% -11.0% 0.0%
Platinum Group Metals 16 49

% of Total 0.7% 2.0%
% Change 204.5%
Wesizwe Platinum
% of Total
% Change
Other 5 5 1 5 5 4 4 4 4 4 4 4
% Change -54.5% 0.0% 0.0% 400.0% 0.0% -20.0% -5.0% 1.5% 1.5% 1.5% 1.5% 0.0%
Total
S outh African
Mine Production 2,833 2,630 2,447 2,443 2,617 2,637 2,384 2,497 1,939 2,674 2,463 2,464
% Change 8.9% -7.2% -7.0% -0.2% 7.1% 0.8% -9.6% 4.8% -22.3% 37.9% -7.9% 0.0%
Note: Production is based on calendar year. Production refers to metal output attributable to company ownership.
Exceptions to this include Bafokeng - and 33% Ango Platinum) and Mototolo (50:50 JV between Anglo Platinum and Gelncore).
Production at oth these mines has been fully attributed in Anglo Platinum. Rasimone Platinum Mine owned 67% Royal
Bafokeng Platinum Ltd. Aquarius was taken over by S ibanye in 2016. Anglo Platinum's Rustenberg mines
have been included in S ibanye starting 2017. Figures may not equal sum due to rounding.
May 2017
116
Anglo Platinum is the largest last year, down 10.8% from a record
palladium producer in South Africa. high 364,379 ounces in 2015. The
The company’s refined palladium decline in palladium production in 2016
output fell to 1.3 million ounces last was in line with the company’s
year, from nearly 1.5 million ounces in production guidance in light of
2015. Palladium accounted for a higher unfavorable market conditions as well
portion of the PGMs mix produced by as shifts in mine schedules. Lonmin’s
the company between 2014 and 2016. palladium production is expected to slip
In the past three years palladium was further to 306,637 ounces in 2017.
36.2% of the mix, compared to 33.7%
in the previous five years, from 2009 to Russia
2013.
In 2016 Russian palladium production
Impala Platinum produced 487,500 extended a downward trajectory (with
ounces of palladium from its South the exceptions of 2010 and 2014) that
African operations in 2016, down 1.9% has been in place over the past decade.
from 497,100 ounces in the previous Palladium mine production in the
year. The company’s palladium country fell -1.9% to 2.5 million
production in 2017 is expected to fall ounces, due largely to a decrease in
8.9% further to 443,873 ounces. palladium production at Norilsk Nickel,
the country’s world’s palladium
Lonmin’s South African mines producer. Palladium output from
produced 324,845 ounces of palladium Norilsk’s Russian fell -2.0% to 2.5

4,000 4,000
Indicates Stockpile Withdrawal
3,500 3,500
Production
3,000 3,000
2,500 2,500
Residual
2,000 2,000
1,500 1,500
Exports
1,000 1,000
500 500
77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17p
117
Russian Palladium Production and Exports
Percent of
Production Exports Production Residual
1970 1,318 - - -
1975 1,672 - - -
1980 2,058 1,214 59% 844
1985 2,540 1,256 49% 1,284
1986 2,585 1,393 54% 1,192
1987 2,606 1,609 62% 997
1988 2,628 1,512 58% 1,116
1989 2,641 1,500 57% 1,141
1990 2,655 1,700 64% 955
1991 2,814 1,900 68% 914
1992 2,696 1,850 69% 846
1993 2,500 2,500 100% 0
1994 2,375 3,215 135% -840
1995 2,400 3,950 165% -1,550
1996 2,520 3,950 157% -1,430
1997 2,782 2,500 90% 282
1998 2,949 1,700 58% 1,249
1999 3,002 1,700 57% 1,302
2000 3,302 1,800 55% 1,502
2001 3,338 3,550 106% -212
2002 2,900 1,350 47% 1,550
2003 3,000 1,800 60% 1,200
2004 3,200 2,000 63% 1,200
2005 3,140 3,090 98% 50
2006 3,170 3,080 97% 90
2007 3,120 3,020 97% 100
2008 2,737 2,700 99% 37
2009 2,686 2,650 99% 36
2010 2,732 2,575 94% 157
2011 2,714 2,600 96% 114
2012 2,638 2,510 95% 128
2013 2,590 2,435 94% 155
2014 2,759 2,566 93% 193
2015 2,585 2,404 93% 181
2016 2,536 2,384 94% 152
2017p 2,694 2,505 93% 189
Note: NA -- not available
S ources: Bank of Foreign Trade, U.S . Bureau of Mines, Central
Intelligence Agency, CPM Group.
May 2017
118
million ounces last year, due to the Abramovich, and Norilsk were in talks
reconfiguration of downstream with the Russian central bank about
production facilities. This output level purchasing the palladium from the
was above the higher end of the central bank, giving the cash value of
production guidance issued by the the palladium to the central bank for use
company for the year, however. as collateral and possibly in paying off
the bond when it was due. Talks
In the first quarter of 2017 palladium between the central bank and Mr.
output was down 17% year-on-year, due Potanin went dark for several months,
largely to the increase of work-in- but have continued through 2015 and
progress materials in transit from the 2016.
Polar division to the Kola division after
the shutdown of its old nickel plant. The concept behind the offer to buy the
palladium was to take the metal into the
The disposition of an estimated 1.0 – hands of palladium-interested parties. In
2.5 million ounces of palladium owned 2001 the Russian central bank used
by the Russian central bank, stored in around 3.2 million ounces of palladium
Switzerland and used as collateral it had pledged against an earlier bond to
against an international bond sold by the pay off that bond, at a time when
Russian central bank, continues to be up palladium prices had spiked up to
in the air. In 2014 Vladimir Potanin, $1,080 two months earlier and had
one of the two major owners of Norilsk already fallen to around $750 per ounce.
Nickel, said he, his partner Roman That metal was sold to the bank holding
Palladium Mine Production in Canada

800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017p
119
the collateral, which later sold it in a alongside him. Mr. Abramovich has
mechanical fashion that drove said he may invest in the fund. The
palladium prices down to a low of $146 Board of Directors of Norilsk Nickel on
in the second quarter of 2003. Mr. 1 February approved a proposal that the
Potanin would like to avoid having company also would invest in the fund,
large volumes of palladium in hands perhaps between $200 and $350
that might allow such sales and price million. In total Mr. Potanin has
patterns to recur, so he proposed in indicated he wished to raise between $1
2014 that he create a fund, now named and $2 billion for the fund.
the Global Palladium Fund, to buy and
hold the central bank’s palladium. In May 2016, Norilsk Nickel reportedly
Related to Norilsk and its key had begun pilot purchases in the market
shareholders, the Global Palladium for its Global Palladium Fund, in which
Fund would hold the palladium as a it may invest up to $200 million.
long-term investment, not selling it into Norilsk Nickel intended to buy stocks
weak markets but waiting until such held by the Russian central bank and
future times when strong demand and hedge funds to reduce market volatility.
tight supplies might drive palladium
prices sharply higher. Such a move should not swing supply
and demand balances given it only
Mr. Potanin has said he would invest involves an ownership change in
between $100 and $200 million of his existing market stocks.
own money into the fund, and would
invite friends and associates to invest
PGM Mine Production in the United States

Annual, Projected through 2017

700,000 700,000
Palladium
600,000 600,000
Platinum
500,000 500,000
400,000 400,000
300,000 300,000
200,000 200,000
100,000 100,000
0 0
76 80 84 88 92 96 00 04 08 12 16
120
Canada United States
Palladium mine production in Canada Palladium mine output in the United

fell -2.9% last year to 671,480 ounces. States stood at 428,200 ounces in 2016,
Production declines were recorded at up 4.2% from 410,900 ounces in 2015.
Vale’s Sudbury operations, which in Stillwater Mining Company, which
2016 produced 322,000 ounces of operates the Stillwater and the Easter
palladium, down from 341,000 ounces Boulder mines in Montana, is the main
in the previous year. palladium producer in the country. The
Stillwater mine produced 250,500
North American Palladium’s Lac des ounces of palladium last year, up from
Iles mine also saw a decline in 246,400 ounces in the previous year.
production to 149,563 ounces from Palladium mine production in the
166,785 ounces in the previous year. United States is projected to increase to
431,958 ounces in 2017.
Glencore’s Raglan operations produced
173,000 ounces of palladium, up from Zimbabwe
157,000 ounces in 2015. In 2017
Canadian palladium mine production is Palladium mine production in
expected to reach 666,020 ounces, Zimbabwe reached an all-time high in
down -0.8% from the previous year. 2016, up 20.5% to 393,500 ounces from
the previous year. Zimplats produced
Palladium Mine Production in Zimbabwe

Ounces Ounces
450 450
400 400
350 350
300 300
250 250
200 200
150 150
100 100
50 50
0 0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17p
121
241,400 ounces of palladium last year, of the available scrap material. Old
accounting for 61.3% of total palladium jewelry and other sources of scrap
mine output in Zimbabwe. The Mimosa account for a minor portion of the
mine, jointly owned by Aquarius metal’s secondary supply.
Platinum and Impala, produced 95,700
ounces last year, while the Unki mine, Palladium secondary supply has been
owned by Anglo Platinum, produced helped in recent years by increased
56,500 ounces of palladium. In 2017 palladium loadings per unit in available
palladiu m mine production in spent auto catalysts.
Zimbabwe is expected to decline -6.2%
to 369,120 ounces. Steel prices recovered to some extent
over the course of 2016 after remaining
Secondary Supply weak in the prior two years. This
improvement in steel prices and a strong
Spent auto catalysts are the largest rebound in palladium prices over the
source of scrap material for palladium, course of the year helped encourage
accounting for roughly 81% of the more end-of-life (EOL) vehicles to
metal’s secondary supply. Electronics enter the scrap yard and increase the
also is a major source of palladium volumes of spent auto catalysts that
secondary supplies, accounting for 18% could be recovered, which helped
Palladium Secondary Supply in 1995 Palladium Secondary Supply in 2016

Total = 1.21 million ounces Total = 2.5 million ounces
Electronics
Jewelry 16%
1%
Auto Jewelry
Catalyst 1%
9%
Electronics Auto
91% Catalyst
83%
122
increase the volumes of scrap palladium

in the second half of the year. Spent
auto catalysts in advanced economies
typically have higher loadings of
palladium per unit, which also helped
boost the amount of palladium that was
recovered during the year.
Palladium secondary supply rose 3.3%

to nearly 2.5 million ounces in 2016
from the previous year. In 2017
palladium secondary supply is forecast
to rise further to nearly 2.6 million
ounces, an increase of 3.0% from the
previous year.
Available Palladium Scrap Feedstock and Actual Refined Secondary Palladium Supply

3,000 3,000
Available Palladium-Bearing Recyclable Material:
Jewelry Scrap
2,500 2,500
Electronics Scrap
2,000 2,000
AutoCatalyst Scrap
1,500 1,500
1,000 1,000
500 500
0 0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017p
123
Palladium Production by Country

Troy Ounces
S outh United
Year Russia Africa Canada S tates Zimbabwe Japan* Botswana China
1976 N/A 1,608,000 714,000 5,088 NA 18,089 - -
1977 2,068,000 1,075,000 780,000 4,910 NA 22,716 - -
1978 2,111,000 1,278,000 757,000 8,399 NA 24,221 - -
1979 2,154,000 1,412,000 832,000 6,832 NA 22,495 - -
1980 2,058,000 1,214,000 872,000 2,438 NA 28,968 - -
1981 2,240,000 1,255,000 887,000 5,536 5,200 25,748 - -
1982 2,285,000 1,380,000 697,000 7,555 2,765 27,862 - -
1983 2,411,000 1,286,000 719,000 7,031 2,395 37,122 - -
1984 2,476,000 1,444,000 876,000 17,898 1,222 33,802 - -
1985 2,540,000 1,256,000 1,000,000 3,463 965 43,703 - -
1986 2,585,000 1,393,000 985,000 3,742 1,125 46,999 - -
1987 2,606,000 1,077,000 169,000 92,095 1,150 45,558 - 2,154
1988 2,628,000 1,090,000 185,000 119,922 1,100 37,616 - 3,826
1989 2,641,000 1,206,000 200,000 155,931 32 26,396 - 3,636
1990 2,655,205 1,217,000 200,000 190,654 997 33,758 - 3,349
1991 2,814,000 1,300,000 220,000 170,000 965 33,758 - 3,445
1992 2,696,000 1,450,000 210,000 179,000 611 31,701 - 3,445
1993 2,500,000 1,475,000 168,000 224,000 354 37,938 - 3,732
1994 2,375,000 1,500,000 224,000 213,000 643 41,057 - 4,180
1995 2,400,000 1,560,000 295,268 175,000 546 40,960 - 4,405
1996 2,520,000 1,620,000 272,626 202,000 546 41,217 - 4,276
1997 2,782,080 1,789,179 258,086 277,030 7,118 61,054 - 4,501
1998 2,949,005 1,838,975 303,328 346,800 28,255 133,458 - 4,394
1999 3,002,087 1,926,462 283,541 321,080 38,600 172,135 - 7,073
2000 3,302,296 1,849,136 336,716 337,150 11,600 151,494 - 15,218
2001 3,338,462 2,028,007 422,700 411,060 11,900 154,484 11,400 8,359
2002 2,900,000 2,039,675 491,300 482,000 62,548 180,623 10,800 13,503
2003 3,000,000 2,168,925 441,000 460,000 111,000 176,829 33,000 14,789
2004 3,200,000 2,274,720 582,000 450,000 176,000 170,399 39,000 21,863
2005 3,140,000 2,601,810 463,167 438,000 126,900 173,614 61,086 27,971
2006 3,170,000 2,833,397 508,338 473,000 134,400 173,614 64,301 27,007
2007 3,120,000 2,629,546 550,400 423,000 134,400 176,829 160,754 46,887
2008 2,737,000 2,446,767 513,083 394,000 107,900 176,829 96,452 37,742
2009 2,686,000 2,442,960 228,869 417,997 214,900 180,044 96,452 39,140
2010 2,732,000 2,616,866 250,227 382,000 221,700 180,044 90,020 41,936
2011 2,714,000 2,636,914 502,534 406,900 265,217 180,044 67,520 42,921
2012 2,638,000 2,383,711 519,030 404,005 264,303 181,500 83,590 43,966
2013 2,590,000 2,497,058 584,754 412,200 313,528 181,500 83,590 44,996
2014 2,759,000 1,939,257 747,844 408,200 328,031 181,500 83,590 46,052
2015 2,759,000 2,674,165 691,568 410,900 326,569 181,500 83,590 47,137
2016 2,585,000 2,463,240 671,480 428,200 393,500 181,500 83,590 48,251
2017p 2,536,000 2,464,371 666,020 431,958 369,120 181,500 83,590 49,248
Notes: * These figures represent Japanese refined recovery of mine output from other
countries, including Australia, Canada, Papua New Guinea, Indonesia, and the Philippines.
These figures appear to include some production listed for Canada.
Russian supply is exports through 2002 and mine production from 2003 and forward.
S ource: U.S . Bureau of Mines; CPM Group.
May 2017
124
S erbia and
Australia Finland Montenegro Brazil Total Year
7,950 330 NA NA 2,353,457 1976
9,581 352 4,951 NA 3,965,510 1977
7,395 352 5,562 NA 4,191,929 1978
6,880 396 5,241 NA 4,439,844 1979
7,100 385 5,150 NA 4,188,041 1980
12,896 1,993 3,119 NA 4,436,492 1981
13,379 4,662 2,893 NA 4,421,116 1982
12,000 2,283 2,926 NA 4,479,757 1983
16,815 1,093 3,100 NA 4,869,930 1984
15,304 1,125 3,300 91,600 4,955,460 1985
13,760 3,086 3,100 91,600 5,126,412 1986
15,800 3,000 3,100 91,600 4,106,457 1987
13,214 3,408 4,565 90,000 4,176,652 1988
12,860 3,215 6,398 91,000 4,346,469 1989
12,860 3,215 4,180 92,000 4,413,218 1990
12,860 3,215 4,983 94,000 4,657,226 1991
12,860 3,215 4,179 94,000 4,685,011 1992
12,860 3,215 2,314 94,000 4,521,413 1993
12,860 3,215 1,511 94,000 4,469,466 1994
12,860 3,054 1,479 94,000 4,587,572 1995
12,860 5,787 1,608 94,000 4,774,921 1996
12,860 6,143 1,752 94,000 5,293,804 1997
25,721 4,823 1,608 94,000 5,730,366 1998
26,235 4,823 804 94,000 5,876,840 1999
26,106 - 804 94,000 6,124,520 2000
26,621 - 804 94,000 6,507,798 2001
25,721 - 900 - 6,207,070 2002
20,300 - 965 - 6,426,808 2003
32,000 - 611 - 6,946,592 2004
17,683 - 611 - 7,050,842 2005
24,113 - 482 - 7,408,652 2006
19,290 - 482 - 7,261,588 2007
22,506 - 482 - 6,532,761 2008
19,290 - 482 - 6,326,135 2009
19,290 - 482 - 6,534,565 2010
19,290 - 482 - 6,835,823 2011
19,290 12,183 482 - 6,550,061 2012
19,290 24,639 482 - 6,752,038 2013
19,290 25,990 482 - 6,539,237 2014
19,290 27,500 482 - 7,221,702 2015
19,290 27,500 482 - 6,902,034 2016
19,290 27,500 482 - 6,829,079 2017p
125
Palladium Secondary S upply

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Palladium Contained in Hypothetically Available Scrap Material
S pent Auto Catalysts

United States 114.0 154.3 186.9 194.3 220.0 250.5 335.5 385.1 444.2 563.6 664.0
Western Europe 2.3 4.5 8.3 13.5 20.7 29.5 39.1 53.5 71.7 92.9 117.8
Japan 15.5 19.0 25.3 30.4 37.0 45.4 54.8 66.8 86.9 101.6 113.6
China N/A N/A N/A N/A 0.0 0.1 0.3 0.5 1.4 2.1 3.1
S ubtotal 131.7 177.7 220.4 238.3 277.8 325.6 429.6 506.0 604.2 760.1 898.5
% Change 21.0% 34.9% 24.0% 8.1% 16.6% 17.2% 32.0% 17.8% 19.4% 25.8% 18.2%
% of Total 10.6% 13.8% 17.2% 18.5% 19.8% 22.0% 37.0% 45.5% 53.5% 65.2% 79.3%
Old Jewelry 8.3 10.8 12.7 12.3 19.5 11.9 11.3 12.5 17.8 17.8 25.6
% Change -0.6% 30.1% 17.0% -3.1% 58.8% -39.0% -4.8% 10.2% 43.0% 0.0% 43.6%
% of Total 0.7% 0.8% 1.0% 1.0% 1.4% 0.8% 1.0% 1.1% 1.6% 1.5% 2.3%
EOL Electronics 1,100.0 1,100.0 1,050.0 1,035.6 1,105.8 1,144.9 721.1 594.6 506.3 388.7 208.7
% Change 0.0% 0.0% -4.5% -1.4% 6.8% 3.5% -37.0% -17.5% -14.8% -23.2% -46.3%
% of Total 88.7% 85.4% 81.8% 80.5% 78.8% 77.2% 62.1% 53.4% 44.9% 33.3% 18.4%
Total 1,240.1 1,288.5 1,283.1 1,286.2 1,403.1 1,482.3 1,162.0 1,113.1 1,128.3 1,166.6 1,132.7
% Change 1.9% 3.9% -0.4% 0.2% 9.1% 5.6% -21.6% -4.2% 1.4% 3.4% -2.9%
Total Refined Palladium
from S econdary S ources 1,165.0 1,215.0 1,253.0 1,280.0 1,408.0 1,520.0 1,250.0 1,275.0 1,313.0 1,359.0 1,407.0
% Change 0.0% 4.3% 3.1% 2.2% 10.0% 8.0% -17.8% 2.0% 3.0% 3.5% 3.5%
Notes: Differences in the volume of palladium contained in hypothetically available scrap

material and actual refined secondary supply of palladium are due to factors that influence
S ource: CPM Group
May 2017
126
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Spent Auto Catalysts

800.4 918.1 1,039.5 1,141.9 1,211.4 1,267.8 1,306.8 1,322.0 1,358.1 1,334.8 1,331.5 United States
152.1 193.4 272.8 300.9 326.7 346.6 356.0 362.6 383.4 411.6 413.1 Western Europe
122.0 139.3 149.7 162.2 176.3 192.8 210.9 229.3 249.3 270.6 291.4 Japan
4.6 6.9 9.9 18.2 24.1 30.7 37.9 57.7 83.9 119.2 165.8 China
1,079.2 1,257.6 1,471.9 1,623.2 1,738.5 1,837.8 1,911.6 1,971.7 2,074.7 2,136.2 2,201.9 Subtotal
20.1% 16.5% 17.0% 10.3% 7.1% 5.7% 4.0% 3.1% 5.2% 3.0% 3.1% % Change
80.9% 82.1% 83.8% 82.7% 82.1% 81.1% 80.5% 80.5% 81.6% 82.3% 81.9% % of Total
23.7 23.6 24.0 38.6 33.4 28.4 27.1 26.3 24.2 22.5 30.5 Old Jewelry
-7.5% -0.2% 1.5% 60.9% -13.5% -15.0% -4.6% -3.0% -8.0% -7.0% 35.7% % Change
1.8% 1.5% 1.4% 2.0% 1.6% 1.3% 1.1% 1.1% 1.0% 0.9% 1.1% % of Total
230.9 250.9 260.1 300.0 344.4 400.3 436.7 451.3 442.2 437.8 456.2 EOL Electronics
10.7% 8.6% 3.7% 15.3% 14.8% 16.2% 9.1% 3.3% -2.0% -1.0% 4.2% % Change
17.3% 16.4% 14.8% 15.3% 16.3% 17.7% 18.4% 18.4% 17.4% 16.9% 17.0% % of Total
1,333.8 1,532.1 1,755.9 1,961.7 2,116.3 2,266.4 2,375.4 2,449.2 2,541.0 2,596.4 2,688.5 Total
17.8% 14.9% 14.6% 11.7% 7.9% 7.1% 4.8% 3.1% 3.8% 2.2% 3.5% % Change
Total Refined Palladium
1,508.0 1,400.5 1,412.4 2,208.6 2,112.1 2,151.9 2,347.8 2,437.7 2,409.6 2,489.8 2,564.5 from S econdary S ources
7.2% -7.1% 0.8% 56.4% -4.4% 1.9% 9.1% 3.8% -1.2% 3.3% 3.0% % Change
127
Fabrication Demand pared to recent years, however, as many
of the major auto markets, especially
Palladium fabrication demand contin- the United States, reach their peak lev-
ued to rise during 2016, driven higher els of demand for the current cycle.
primarily by increased demand from the Some of the softness in demand from
auto sector. Total palladium demand the auto industry should be offset by a
during 2016 reached a record 9.35 mil- revival in demand from the electronics
lion ounces, up 1.2% from 2015. While sector. Total palladium fabrication de-
demand rose to a record high, there mand in 2017 is forecast to reach 9.43
were many sectors where palladium million ounces, up around 0.9% for the
demand declined, such as in electronics, year.
dental, and jewelry. This weakness was
more than offset, however, by the in- Automotive
crease in demand from the auto sector.
A healthy passenger vehicle market, Palladium fabrication demand from the
increased market share of gasoline vehi- auto sector is estimated to have risen to
cles in Europe, and ongoing substitution a record high 6.26 million ounces in
of platinum with palladium in diesel 2016, up 2.1% from 2015. That said, the
auto catalysts all helped to boost de- pace of growth from the sector declined
mand for the metal in the auto sector. significantly compared to recent years.
The growth rate appears to be the lower
Heading into 2017, demand for palla- rate of increase in annual palladium use
dium from the auto sector is forecast to since the Great Recession in 2008 –
continue rising. The increase is ex- 2009. This slowdown in growth can in
pected to be relatively lackluster com- large part be attributed to the slowdown
Annual Palladium Fabrication Demand

10.0 10.0
Electrical Auto
9.0 9.0
Dental Jewelry
8.0 8.0
Petro Chemical Other Uses
7.0 7.0
6.0 6.0
5.0 5.0
4.0 4.0
3.0 3.0
2.0 2.0
1.0 1.0
0.0 0.0
76 79 82 85 88 91 94 97 00 03 06 09 12 15
128
in growth from the U.S. market, the pected to further weigh on palladium
largest source of palladium demand fabrication demand. Palladium demand
from the auto sector. from the U.S. auto market during 2017
is forecast to remain flat from 2016 lev-
U.S. vehicle sales grew at a strong pace els.
post the Great Recession, rising above
their pre-recession highs in 2014 and The overall weakness in auto demand in
continuing to rise, reaching a record in Japan during 2016 weighed on palla-
2016. At this late stage of the demand dium fabrication demand from the
cycle, it is normal for the level of new country, which slipped to 723,000
and replacement demand for vehicles to ounces, down 1.6% from 2015. Vehicle
slow. Palladium demand from the U.S. demand in the country has been rising at
market rose to 1.97 million ounces in a healthy pace during the first quarter of
2016, up 0.5% from 2015. This com- 2017 and this demand could be sus-
pares with an 11.9% compounded tained following two consecutive years
growth rate from 2009 to 2015. While of declines in auto demand and also
consideration should be given to the fact some improvement in economic activity
that 2009 was a particularly weak year in the country during 2016. This is ex-
for demand, the softness in demand pected to drive higher palladium fabri-
growth during 2016 is in stark contrast cation demand in Japan during 2017 to
to previous years. 738,000 ounces, the highest level of
demand since 2014.
Heading into 2017, vehicle demand in
the U.S. could slow further or could Palladium demand in the European auto
potentially decline a little, which is ex- market continued to rise during 2016 for
Palladium Fabrication Demand By Country and Region

7,000 7,000
United States Japan Europe Other
6,000 6,000
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
129
U.S. Light-Duty Vehicle Sales

Monthly Through March 2017
2,000 2,000
1,800 1,800
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16
Ratio of US Cars to Light Truck Sales
Passenger Cars Light Trucks

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: 2017 data through April.
130
Annual Palladium Use
1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
Electronics
North America 152 224 287 392 313 345 312 250 389 301 316 318 420 558 579 415 424
Japan 199 177 177 209 177 462 504 646 764 688 874 950 1,044 1,000 950 1,343 1,222
Western Europe 76 80 88 118 95 98 112 128 197 215 242 252 269 281 300 285 263
China
Other ___- ___- ___- ___- ___- ___- ___- _____- _____
36 _____
40 _____
44 _____
48 _____
53 _____
58 _____ 60 _____
60 _____ 60
Subtotal 427 481 552 719 585 905 928 1,024 1,387 1,244 1,476 1,568 1,786 1,897 1,889 2,103 1,969
% of Total 22.1% 25.3% 23.3% 24.9% 24.8% 39.6% 37.4% 38.5% 43.3% 39.4% 41.7% 40.4% 43.2% 44.3% 45.3% 48.6% 47.0%
% Change Year Ago - 12.6% 14.8% 30.3% -18.6% 54.7% 2.5% 10.3% 35.4% -10.3% 18.6% 6.2% 13.9% 6.2% -0.4% 11.3% -6.4%
Auto
North America 194 125 199 222 177 129 118 172 286 295 270 250 245 255 230 219 252
Japan - - - - - 80 90 93 96 100 129 161 180 200 180 200 132
Western Europe 3 3 4 5 4 3 5 5 2 2 2 2 2 5 13 15 20
China
Other ___- ___- ___- ___- ___- ___- ___- ___- ___- ___- 12
___ 17
___ 18
___ 18
___ 22
___ 25
___ 30
___
Subtotal 197 128 203 227 181 212 213 270 384 397 413 430 444 479 445 459 434
% of Total 10.2% 6.7% 8.6% 7.9% 7.7% 9.3% 8.6% 10.2% 12.0% 12.6% 11.7% 11.1% 10.8% 11.2% 10.7% 10.6% 10.4%
% Change Year Ago - -35.0% 58.6% 11.8% -20.3% 17.1% 0.5% 26.8% 42.1% 3.4% 4.0% 4.1% 3.4% 7.8% -7.1% 3.1% -5.4%
Dental
North America 139 112 206 244 244 255 311 344 347 339 402 334 213 271 197 157 166
Japan 177 119 209 257 225 161 193 199 206 214 309 412 425 435 440 418 450
Germany 39 49 52 54 51 61 87 113 195 260 260 257 257 193 196 193 174
Other Europe 13 13 13 13 13 13 26 25 103 127 160 202 273 230 232 250 250
China
Other - - - - - - - - 13 16 19 24 24 26 28 30 30
___ ___ ___ ___ ___ ___ ___ ___ ___ ___ _____ _____ _____ _____ _____ _____ _____
Subtotal 368 293 480 568 533 490 617 681 863 956 1,151 1,229 1,193 1,155 1,093 1,048 1,070
% of Total 19.0% 15.4% 20.2% 19.7% 22.6% 21.4% 24.8% 25.6% 27.0% 30.3% 32.5% 31.7% 28.9% 27.0% 26.2% 24.2% 25.5%
% Change Year Ago - -20.4% 63.8% 18.3% -6.2% -8.1% 25.9% 10.4% 26.7% 10.8% 20.3% 6.8% -3.0% -3.2% -5.4% -4.1% 2.1%
Jewelry
North America 6 16 13 12 13 15 8 7 6 8 7 7 6 6 6 11 30
Japan 48 48 48 64 48 64 61 48 57 59 61 72 85 90 95 120 113
Western Europe 23 31 32 30 22 27 30 35 53 55 55 54 53 52 55 59 56
China
Other __- __- __- ___- __- ___- __- __- ___1 ___2 ___2 ___2 ___2 ___2 ___3 ___3 ___3
Subtotal 77 95 93 106 83 106 99 90 117 124 125 135 146 151 159 193 202
% of Total 4.0% 5.0% 3.9% 3.7% 3.5% 4.6% 4.0% 3.4% 3.7% 3.9% 3.5% 3.5% 3.5% 3.5% 3.8% 4.5% 4.8%
% Change Year Ago - 23.4% -2.1% 14.0% -21.7% 27.7% -6.6% -9.1% 30.1% 5.8% 0.8% 8.2% 8.4% 2.9% 5.5% 21.4% 4.7%
Chemical/Petroleum
Refining
North America 136 170 165 225 142 111 150 90 170 144 105 76 111 144 124 82 86
Japan 222 203 338 434 402 57 53 125 92 45 32 163 123 145 148 150 135
Western Europe - - - - - - - - 101 103 103 110 115 106 110 115 118
China ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
Subtotal 358 373 503 659 544 168 203 215 363 293 240 349 349 395 382 347 339
% of Total 18.5% 19.7% 21.2% 22.8% 23.0% 7.3% 8.2% 8.1% 11.4% 9.3% 6.8% 9.0% 8.4% 9.2% 9.2% 8.0% 8.1%
% Change Year Ago - 4.2% 34.9% 31.0% -17.5% -69.1% 20.8% 5.9% 69.0% -19.5% -17.8% 45.0% 0.0% 13.2% -3.2% -9.2% -2.3%
Other Uses
North America 30 53 48 38 23 34 27 60 57 88 61 100 134 128 127 107 129
Japan 19 19 32 66 35 70 61 24 14 33 48 44 55 55 52 45 23
Western Europe 456
___ 456
___ 460
___ 506
___ 377
___ 302
___ 335
___ 294
___ 17
___ 23
___ 23
___ 25
___ 25
___ 25
___ 20
___ 22
___ 25
___
Subtotal 505 528 540 610 435 406 423 378 88 144 132 169 214 208 199 174 177
% of Total 26.1% 27.8% 22.8% 21.1% 18.4% 17.8% 17.0% 14.2% 2.7% 4.6% 3.7% 4.3% 5.2% 4.8% 4.8% 4.0% 4.2%
% Change Year Ago - 4.6% 2.3% 13.0% -28.7% -6.7% 4.2% -10.6% -76.8% 64.3% -8.2% 27.4% 26.9% -2.9% -4.2% -12.6% 1.7%
Total 1,932 1,898 2,371 2,889 2,361 2,287 2,483 2,658 3,201 3,158 3,537 3,879 4,132 4,284 4,167 4,324 4,191
% Change Year Ago - -1.8% 24.9% 21.8% -18.3% -3.1% 8.6% 7.0% 20.4% -1.4% 12.0% 9.7% 6.5% 3.7% -2.7% 3.8% -3.1%
Notes: For the years prior to 1984, European chemical and petroleum refining demand is included in Other Uses in
the Western Europe row. The subtotals for individual uses here are the sums of the countries for which data are
available; other countries may consume palladium in these uses, but estimates are not available. Demand in other
countries prior to 1984 in all industries is included in the Other Uses in Western Europe row. There may be
discrepancies due to rounding. p -- projections.
Sources: U.S. Bureau of Mines, trade sources, CPM Group.
May 1, 2017
131
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p 2017e
Electronics
475 523 586 568 643 650 680 620 175 202 210 240 270 300 310 280 235 245 247 245 255 258 258 250 250 North America
1,375 1,650 1,850 1,750 1,900 1,710 1,573 1,580 260 146 220 235 265 290 260 220 200 220 210 215 218 221 220 219 225 Japan
256 275 296 280 295 295 280 260 140 170 180 200 205 210 190 170 160 175 175 165 166 167 170 171 175 Western Europe
138 171 198 216 226 233 257 260 277 260 262 263 255 257 260 262 265 269 China
_____70 _____80 _____90 110
_____ 140
_____ 150
_____ 170
_____ _____32 _____
29 _____
52 _____
54 _____
74 97 _____
_____ 163 180 _____
_____ 178 240 _____
_____ 277 312 _____
_____ 311 333 _____
_____ 340 340 _____
_____ 336 _____ Other
338
2,176 2,528 2,822 2,708 2,978 2,805 2,703 2,630 775 768 880 975 1,070 1,220 1,200 1,125 1,095 1,179 1,207 1,191 1,229 1,246 1,250 1,241 1,257 Subtotal
47.0% 47.4% 44.9% 41.0% 41.9% 37.5% 35.3% 34.8% 15.0% 14.2% 15.7% 14.8% 14.9% 16.0% 15.5% 15.1% 15.5% 14.9% 14.8% 13.9% 14.0% 13.8% 13.5% 13.3% 13.3% % of Total
10.5% 16.2% 11.6% -4.0% 10.0% -5.8% -3.6% -2.7% -70.5% -0.9% 14.6% 10.8% 9.7% 14.0% -1.6% -6.3% -2.7% 7.6% 2.4% -1.3% 3.2% 1.4% 0.3% -0.7% 1.3% % Change Year Ago
Auto
400 460 700 900 1,000 1,300 1,400 1,000 900 910 900 1,200 1,450 1,550 1,600 1,300 1,000 1,300 1,450 1,631 1,775 1,872 1,966 1,976 1,978 North America
125 130 194 300 350 500 700 900 505 520 540 635 670 780 790 750 600 720 626 764 768 799 735 723 738 Japan
22 193 474 545 652 848 880 920 880 900 915 960 990 1,010 1,055 1,002 960 1,000 1,005 970 926 991 1,070 1,129 1,152 Western Europe
59 62 86 123 175 173 215 277 318 476 693 808 845 1,024 1,102 1,168 1,297 1,357 China
35 ___
___ 38 ___57 ___64 ___75 ___
100 ___
200 341
___ 408
___ 444
___ 417
___ 425
___ 577
___ 685
___ 823
___ 882
___ 924
___ 1,099
___ 1,145
___ 1,255
___ 1,201
___ 1,157
___ 1,193
___ 1,135
___ 1,111
___ Other
582 821 1,425 1,809 2,077 2,748 3,180 3,220 2,755 2,860 2,895 3,395 3,860 4,240 4,545 4,252 3,960 4,812 5,035 5,465 5,695 5,921 6,132 6,260 6,335 Subtotal
12.6% 15.4% 22.7% 27.4% 29.2% 36.7% 41.5% 42.6% 53.4% 52.7% 51.5% 51.6% 53.7% 55.8% 58.6% 57.2% 56.2% 60.8% 61.8% 63.9% 64.7% 65.5% 66.3% 66.9% 67.2% % of Total
34.1% 41.1% 73.6% 26.9% 14.8% 32.3% 15.7% 1.3% -14.4% 3.8% 1.2% 17.3% 13.7% 9.8% 7.2% -6.4% -6.9% 21.5% 4.6% 8.5% 4.2% 4.0% 3.6% 2.1% 1.2% % Change Year Ago
Dental
183 193 198 202 205 205 195 120 118 122 150 190 225 235 240 240 245 244 240 235 230 228 226 226 222 North America
510 560 576 595 595 580 525 470 475 505 405 520 475 270 268 265 265 260 255 260 260 258 255 255 250 Japan
161 140 170 164 149 104 90 80 60 65 67 73 76 80 82 82 83 82 83 82 80 79 77 76 74 Germany
250 260 268 273 270 229 206 180 130 140 142 150 150 155 158 160 161 160 155 150 145 142 139 139 137 Other Europe
21 21 22 22 23 24 24 25 26 27 27 28 28 28 28 29 29 27 China
30 32 33 33 30 25 23 1 1 1 2 1 2 1 3 2 1 1 1 2 1 1 1 1 1 Other
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
1,134 1,185 1,245 1,267 1,249 1,143 1,039 872 805 855 788 957 952 765 776 775 782 774 762 756 744 737 727 726 711 Subtotal
24.5% 22.2% 19.8% 19.2% 17.6% 15.3% 13.6% 11.5% 15.6% 15.8% 14.0% 14.6% 13.2% 10.1% 10.0% 10.4% 11.1% 9.8% 9.4% 8.8% 8.5% 8.1% 7.9% 7.8% 7.5% % of Total
6.0% 4.5% 5.1% 1.8% -1.4% -8.5% -9.1% -16.1% -7.7% 6.2% -7.8% 21.4% -0.5% -19.6% 1.4% -0.1% 0.8% -1.0% -1.6% -0.8% -1.6% -1.0% -1.4% -0.1% -2.1% % Change Year Ago
Jewelry
40 42 46 48 52 52 54 45 46 48 48 49 50 60 65 68 75 76 72 70 69 69 68 67 67 North America
120 125 125 121 130 118 115 150 140 165 160 155 145 130 125 125 118 119 114 110 108 105 104 103 103 Japan
56 60 62 64 57 57 55 50 50 52 52 53 50 60 62 63 64 65 63 60 62 64 64 65 64 Western Europe
49 66 101 212 356 397 420 269 302 307 201 174 162 155 148 145 144 143 China
___3 ___4 ___6 ___6 ___8 ___8 ___7 ___5 ___6 ___8 ___8 20
___ 40
___ 50
___ 60
___ 63
___ 65
___ 68
___ 69
___ 69
___ 67
___ 66
___ 66
___ 67
___ 66 Other
219 231 239 239 247 235 231 299 308 374 480 633 682 720 581 621 629 529 492 471 461 451 447 445 443 Subtotal
4.7% 4.3% 3.8% 3.6% 3.5% 3.1% 3.0% 4.0% 6.0% 6.9% 8.5% 9.6% 9.5% 9.5% 7.5% 8.3% 8.9% 6.7% 6.0% 5.5% 5.2% 5.0% 4.8% 4.8% 4.7% % of Total
8.4% 5.5% 3.5% 0.0% 3.3% -4.9% -1.7% 29.3% 3.2% 21.3% 28.2% 32.0% 7.7% 5.6% -19.3% 6.9% 1.3% -15.9% -7.1% -4.1% -2.2% -2.2% -0.8% -0.5% -0.6% % Change Year Ago
Chemical/Petroleum
Refining
94 105 105 108 106 106 106 90 92 94 97 102 107 115 112 110 100 115 130 137 140 143 142 140 140 North America
140 155 140 150 146 140 105 90 70 110 110 135 135 140 135 132 110 120 115 120 125 126 125 125 124 Japan
120 130 132 135 133 133 130 120 122 125 128 130 132 135 130 127 107 107 108 106 104 106 106 102 103 Western Europe
___ ___ ___ ___ ___ ___ ___ 60
___ 62
___ 62
___ 65
___ 66
___ 68
___ 74
___ 80
___ 85
___ 89
___ 98
___ 104
___ 108
___ 111
___ 114
___ 117
___ 119
___ 128 China
___
354 390 377 393 385 379 341 360 346 391 400 433 442 464 457 454 406 440 457 471 480 489 490 486 495 Subtotal
7.6% 7.3% 6.0% 6.0% 5.4% 5.1% 4.4% 4.8% 6.7% 7.2% 7.1% 6.6% 6.1% 6.1% 5.9% 6.1% 5.8% 5.6% 5.6% 5.5% 5.4% 5.4% 5.3% 5.2% 5.2% % of Total
4.4% 10.2% -3.3% 4.2% -2.0% -1.6% -10.0% 5.5% -4.0% 13.2% 2.1% 8.3% 2.1% 5.1% -1.6% -0.5% -10.6% 8.4% 3.7% 3.0% 1.9% 2.0% 0.2% -0.9% 1.8% % Change Year Ago
Other Uses
110 115 118 120 122 122 118 115 115 120 120 122 125 130 133 135 120 125 130 132 134 136 136 136 136 North America
30 32 27 29 26 25 25 30 30 30 30 35 35 36 39 40 30 35 33 35 35 36 35 34 35 Japan
27
___ 29
___ 29
___ 33
___ 30
___ 30
___ 30
___ 28
___ 22
___ 25
___ 25
___ 25
___ 28
___ 30
___ 32
___ 35
___ 21
___ 23
___ 26
___ 25
___ 24
___ 25
___ 26
___ 26
___ 23 Western Europe
___
167 176 174 182 178 177 173 173 167 175 175 182 188 196 204 210 171 183 189 192 193 197 197 196 194 Subtotal
3.6% 3.3% 2.8% 2.8% 2.5% 2.4% 2.3% 2.3% 3.2% 3.2% 3.1% 2.8% 2.6% 2.6% 2.6% 2.8% 2.4% 2.3% 2.3% 2.2% 2.2% 2.2% 2.1% 2.1% 2.1% % of Total
-5.6% 5.4% -1.1% 4.6% -2.2% -0.6% -2.3% 0.0% -3.5% 4.8% 0.0% 4.0% 3.3% 4.3% 4.1% 2.9% -18.6% 7.0% 3.3% 1.6% 0.5% 2.1% 0.0% -0.5% -1.0% % Change Year Ago
4,632 5,331 6,282 6,598 7,114 7,487 7,667 7,554 5,156 5,423 5,617 6,575 7,193 7,605 7,762 7,437 7,043 7,917 8,141 8,546 8,801 9,041 9,242 9,353 9,434 Total
10.5% 15.1% 17.8% 5.0% 7.8% 5.2% 2.4% -1.5% -31.7% 5.2% 3.6% 17.0% 9.4% 5.7% 2.1% -4.2% -5.3% 12.4% 2.8% 5.0% 3.0% 2.7% 2.2% 1.2% 0.9% % Change Year Ago
132
the third consecutive year. Demand Demand from the ‘other’ category,
from this region rose to a record high which includes every country and re-
1.13 million ounces in 2016, up 5.5% gion other than North America, Europe,
from 2015. There were several factors and Japan, rose strongly to a record 2.4
that helped palladium fabrication de- million ounces in 2016. This was an
mand from the region’s auto sector increase of 3% over 2015 and was in
grow in 2016. Not only was there an large part driven by China and India.
increase in vehicle demand in the re- Both of these countries’ auto markets
gion, but there also has been an increase saw an uptick in demand and the large
in demand for gasoline vehicles, which fleets of gasoline powered vehicles in
use more palladium intensive catalysts. both markets helped to push demand
Furthermore, over the past several years higher, offsetting some of the weakness
there has been an ongoing substitution in demand that occurred from Russia
of platinum with palladium in diesel and Brazil, but also from some of the
autocatalysts, all of which are factors smaller auto markets. The largest con-
that were supportive of palladium fabri- tributor to this increase in palladium
cation demand from the European auto demand was China, which accounted
sector during 2016. Palladium demand for around 53% of the volume.
from this region’s auto sector is forecast
to continue growing during 2017 reach- A sharp increase in the number of vehi-
ing a new record high of 1.15 million cles sold helped to drive demand higher.
ounces. The increase in demand is ex- This increase in auto demand was
pected to be supported by all of the driven by a government subsidy for
same factors that propelled demand small cars. While the number of cars
higher in 2016. sold was large, the smaller engine sizes
means that holding all other factors that
Chinese Passenger Car Sales

Monthly Data, Through March 2017
Thousand Vehicles Thousand Vehicles

3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17
133
influence the amount of PGMs loaded to the price of gas in making their deci-
on auto catalysts constant, a smaller sion to purchase light trucks versus cars.
engine would require lower PGM load- During periods when oil prices have
ings. This curtailed the demand for pal- risen since 2002, light truck sales have
ladium from China during 2016. This declined.
subsidy was initially set to expire during
2016. This resulted in aggressive pur- Going forward oil prices are forecast to
chases during 2016 and in pulling for- remain relatively soft compared to the
ward demand from 2017. The subsidy high prices around 2007 - 2014, which
was later extended to the end of 2017, is expected to continue encouraging
which should provide some support to demand for these light trucks. Aside
vehicle demand, but a lot of the demand from fuel cost, higher fuel economy
was already met in 2016 which could standards being enforced by the U.S.
make demand growth in 2017 relatively government should further encourage
lackluster. Demand in Brazil and Russia the use of these vehicles in the United
should also recover some in 2017, States. Large vehicles have been profit
which should help support demand. De- drivers for all vehicle manufacturers
mand from ‘other’ countries is forecast and therefore these companies are
to rise to 2.47 million ounces in 2017. taking special efforts to redesign their
pick up vehicles to make them more
U.S. Demand for Cars versus Light fuel efficient.
Trucks
The Trump Administration has stated it
Weakness in oil prices has played an plans to roll back fuel efficiency stan-
important role in driving higher demand dards. Whether or not it will, or will be
for light trucks in the United States. allowed to by the courts, improvements
(SUVs are considered light trucks by in fuel economy over the past seven
U.S. regulators.) This has important years are not likely to be reversed, and
implications for PGM demand, particu- further improvements would be ex-
larly palladium, because these light pected in the long run.
trucks are powered by gasoline engines
which use palladium intensive catalysts. Emissions Standards
The volume of light truck sales to cars Emissions standards in the country
is important because holding all other where the vehicle is being sold is an-
factors that influence PGM loadings in other important factor in influencing the
auto catalysts constant, the larger the amount of PGMs loaded in auto cata-
engine size the greater the PGM loading lysts. Tighter emissions standards, hold-
per catalyst. During 2016 light trucks ing all the other factors that influence
accounted for 61% of total light duty PGM loadings constant, typically re-
vehicle sales, with the remainder com- quire higher PGM loadings. The impor-
prised of passenger cars. This was the tance of tighter emissions standards can
highest level that light truck sales have be clearly seen in the amount of PGMs
reached at least since 2002, the first demanded in different parts of the
year for which such data are available. world.
Consumers are typically very sensitive
134
In 2016 China was the largest auto mar- Emissions Standards in India
ket in the world. Despite this, the
United States was the largest consumer India’s emissions standards are modeled
of palladium (both markets are primar- on those of Europe and the regulations
ily gasoline markets) in auto catalysts. are phased first into major Indian cities
This is because the emissions standards and then on a countrywide basis. Emis-
in the United States are more stringent sions standards are at Bharat IV, which
than those in China. That said, this gap is the equivalent of Euro 4, in the large
is expected to start narrowing in com- Indian cities. Meanwhile the rest of the
ing years. This expectation is based on country is on Bharat III (Euro 3). The
the changes in emissions standards in entire country is expected to remain on
China and the large volume of vehicles these emissions standards until 2019. In
being sold in the country. 2020, the concept of phasing in emis-
sions standard first in big cities and
Chinese Emissions Standards Changes then on a nationwide basis will be
abandoned and the entire country
Emissions standards in China for pas- will be moved onto Bharat VI (Euro
senger vehicles and light duty commer- 6). The severe pollution occurring in
cial vehicles were based on the Euro- Delhi as of 2016 may focus national
pean regulations until China 5, which attention on air quality, which could
would be equivalent of Euro 5 emis- lead to changes in emission control
sions standards in Europe. In 2015, the regulations. Offsetting factors, such as
government decided that China 6 will the economic costs of implementing a
be based on U.S. Tier 3 regulations in- more stringent emission control regime
stead of Euro 6 regulations. U.S. Tier 3 more rapidly may prevent this from
regulations are significantly more strin- happening, although such developments
gent than Euro 6 regulations. Tier 3 are something to be watched in India.
emissions standards are not only mean-
ingfully tighter than Tier 2 standards but Electronics
are a fraction of allowable limits under
Euro 6. Tier 3 emissions standards will Palladium demand from the electronics
be introduced in the United States in sector declined during 2016 to 1.24 mil-
2017 and China 6, its equivalent, will be lion ounces, down 0.7% from 2015.
introduced only in Beijing in 2017. It This was the first decline in demand
has been typical for China to introduce from the electronics sector since 2012.
new emissions standards first in Beijing Demand during 2016 declined due to a
and then with a three or four year lag in buildup in semiconductor inventory
the rest of the country, so while no date globally. While demand declined, it was
has been released for the launch of small and from a very high level, sug-
China 6 on a nationwide basis there is a gesting that there is still a large amount
fairly high likelihood based on the past of palladium being consumed by the
that the emissions standards will be electronics sector. Improvement in con-
launched around 2020 or 2021 on a na- sumer confidence globally since 2016
tional level. has been helping to increase demand for
consumer electronics, which should
135
help drive down the built up semicon- jewelry is in white gold which is often
ductor inventory. an alloy of gold and palladium. Pure
palladium jewelry has a very limited
Demand for palladium in the electronics market. Furthermore, the higher price of
industry is expected to rebound during gold and palladium and the declining
2017 after going through a slowdown price of platinum reduce the need to opt
over the past couple of years due to an for white gold over platinum. This is
increase in inventory buildup. Demand trend is not expected to change any time
is forecast to reach a record 1.26 million soon and demand for palladium jewelry
ounces during the year, up 1.3% over is expected to soften to 443,000 ounces
2016. in 2017.
Jewelry Dental
Palladium jewelry demand continued to Demand for palladium from the dental
decline during 2016, slipping to sector has been in a long term decline, a
445,000 ounces from 447,000 ounces in trend that continued during 2016. Palla-
2015. This was the lowest level of de- dium demand from this sector declined
mand since 2002. The lack of advertis- to 726,000 ounces in 2016. There has
ing for palladium jewelry is the primary been an ongoing shift toward ceramics,
reason that demand for the metal from which has weighed on demand for pal-
this sector has been suffering. There is ladium in the dental sector. That said,
not sufficient awareness among con- the strength and durability of precious
sumers regarding what palladium jew- metals have prevented them from being
elry. Much of the palladium used in completely substituted in this use. De-
Electronics Palladium Demand by Region

3,500 3,500
United States Japan Europe Other
3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
136
mand for palladium from the dental sec- several months of 2017 is expected to
tor has stagnated in recent years. hurt palladium demand from the dental
sector during the year. Demand from
Palladium demand in the dental sector this sector is expected to slip to 711,000
tends also to be price sensitive. The ounces during 2017.
sharp uptick in price during the first
Palladium Demand In Dental

1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
U.S. Demand by Sector

Projected 2016 Demand: 2,794,665
Other, 7.3%
Petrochem, 5.0% Electronics, 8.9% Dental/medical,
8.1%
Auto, 70.7%
137
Historical U.S. Palladium Demand
Troy Ounces
Dental
and
Year Electronics MedicalAutomotive Chemical Petroleum
1955 250,714 - 36,246 -
1956 304,990 - 31,449 -
1957 285,576 - 25,936 -
1958 238,815 - 93,215 -
1959 374,080 - 42,394 603
1960 271,560 - 73,854 5,300
1961 353,010 - 90,533 449
1962 327,788 - 110,518 961
1963 331,868 - 118,757 16,008
1964 350,889 - 117,102 41,887
1965 430,384 - 156,796 37,001
1966 531,545 - 221,559 28,760
1967 324,684 - 192,011 3,506
1968 329,012 - 228,318 22,683
1969 430,258 - 214,508 1,337
1970 429,032 - 184,618 15,494
1971 431,505 - 218,651 2,916
1972 425,081 - 292,710 14,499
1973 524,056 - 259,959 3,761
1974 390,237 150,000 163,205 14,877
1975 132,247 97,000 142,975 2,255
1976 152,312 139,000 194,496 128,229 7,291
1977 223,748 112,000 125,010 161,234 8,507
1978 286,574 206,000 198,809 146,352 18,909
1979 392,372 244,000 222,156 199,743 24,588
1980 312,778 244,000 176,518 119,905 22,013
1981 345,365 255,000 129,214 90,272 20,877
1982 312,372 311,000 118,445 128,778 20,845
1983 250,059 344,000 172,050 39,892 49,870
1984 389,070 347,000 286,000 78,600 92,134
1985 300,677 339,000 295,000 63,236 80,940
1986 316,390 402,000 270,000 44,485 60,959
1987 318,301 334,000 250,000 34,682 41,344
1988 419,534 213,000 245,000 65,000 46,233
1989 557,879 271,000 255,000 61,826 81,759
1990 578,616 197,000 230,000 76,165 47,840
1991 414,840 157,000 219,000 46,779 35,402
1992 424,293 166,000 252,000 61,569 24,113
1993 475,000 183,000 290,000 70,000 24,000
1994 523,000 193,000 460,000 77,000 28,000
1995 586,000 198,000 700,000 77,000 28,000
1996 568,000 202,000 900,000 79,000 29,000
1997 643,000 205,000 1,000,000 78,000 28,000
1998 650,000 205,000 1,300,000 80,000 26,000
1999 680,000 195,000 1,400,000 81,000 25,000
2000 620,000 120,000 1,000,000 68,774 21,226
2001 175,000 118,000 900,000 69,000 23,000
2002 202,000 122,000 910,000 70,000 24,000
2003 210,000 150,000 900,000 72,000 25,000
2004 240,000 190,000 1,200,000 76,000 26,000
2005 270,000 225,000 1,450,000 79,500 27,500
2006 300,000 235,000 1,550,000 85,500 29,500
2007 310,000 240,000 1,600,000 89,250 35,000
2008 280,000 240,000 1,300,000 94,000 37,500
2009 235,000 245,000 1,000,000 100,000 40,000
2010 245,000 244,000 1,300,000 83,000 32,000
2011 247,000 240,000 1,450,000 93,000 37,000
2012 245,000 235,000 1,631,250 97,000 40,000
2013 255,000 230,000 1,774,800 99,124 40,876
2014 258,000 228,250 1,872,414 99,500 43,800
2015 258,000 225,500 1,966,035 99,000 42,000
2016p 250,000 226,000 1,975,865 98,800 41,000
Notes: Petroleum consumption was included in chemical prior to 1959;
glass industry was included in chemical prior to 1960.
138
Jewelry Percent
and Change
Decorative Glass Other Total in Totals Year
28,673 - 7,221 322,854 1955
25,447 - 7,761 369,647 14.5% 1956
21,257 - 5,387 338,156 -8.5% 1957
25,129 - 1,802 358,961 6.2% 1958
34,113 - 5,590 456,780 27.3% 1959
23,336 6 1,552 375,608 -17.8% 1960
14,354 5 2,461 460,812 22.7% 1961
12,975 124 12,595 464,961 0.9% 1962
13,880 20 3,054 483,587 4.0% 1963
20,886 110 10,665 541,539 12.0% 1964
18,203 1,402 23,107 666,893 23.1% 1965
32,215 1,011 12,020 827,110 24.0% 1966
18,676 301 25,878 565,056 -31.7% 1967
17,797 10 62,023 659,843 16.8% 1968
21,837 3,891 34,581 706,412 7.1% 1969
17,329 21,147 24,140 691,760 -2.1% 1970
18,752 237 26,451 698,512 1.0% 1971
19,375 2,250 27,835 781,750 11.9% 1972
23,052 1,439 65,157 877,424 12.2% 1973
21,701 9,549 12,420 761,989 -13.2% 1974
23,026 17,633 11,942 427,078 -44.0% 1975
5,700 2,989 26,766 656,783 53.8% 1976
15,567 907 53,023 699,996 6.6% 1977
12,570 2,757 45,645 917,616 31.1% 1978
11,766 1,729 36,640 1,132,994 23.5% 1979
13,491 1,155 21,828 911,688 -19.5% 1980
14,772 2,922 30,650 889,072 -2.5% 1981
7,866 213 27,031 926,550 4.2% 1982
6,711 146 59,582 922,310 -0.5% 1983
5,884 10 57,134 1,255,832 36.2% 1984
7,982 - 87,970 1,174,805 -6.5% 1985
6,521 - 61,182 1,161,537 -1.1% 1986
7,099 - 100,239 1,085,665 -6.5% 1987
6,302 354 133,618 1,129,041 4.0% 1988
5,755 5,819 121,723 1,360,761 20.5% 1989
5,691 11,124 116,128 1,262,564 -7.2% 1990
10,610 - 107,448 991,078 -21.5% 1991
30,000 4,051 115,228 1,077,254 8.7% 1992
40,000 4,500 105,000 1,191,500 10.6% 1993
42,000 - 115,000 1,438,000 20.7% 1994
46,000 - 118,000 1,753,000 21.9% 1995
48,000 - 120,000 1,946,000 11.0% 1996
52,000 - 122,000 2,128,000 9.4% 1997
52,000 - 122,000 2,435,000 14.4% 1998
54,000 - 118,000 2,553,000 4.8% 1999
45,000 - 115,000 1,990,000 -22.1% 2000
46,000 - 115,000 1,446,000 -27.3% 2001
48,000 - 120,000 1,496,000 3.5% 2002
48,000 - 120,000 1,525,000 1.9% 2003
49,000 - 122,000 1,903,000 24.8% 2004
50,000 - 125,000 2,227,000 17.0% 2005
60,000 - 130,000 2,390,000 7.3% 2006
65,000 - 133,000 2,472,250 3.4% 2007
68,000 - 135,000 2,154,500 -12.9% 2008
75,000 - 120,000 1,815,000 -15.8% 2009
76,000 - 125,000 2,105,000 16.0% 2010
72,000 - 130,000 2,269,000 7.8% 2011
70,000 - 132,000 2,450,250 8.0% 2012
69,000 - 134,000 2,602,800 6.2% 2013
68,500 - 136,000 2,706,464 4.0% 2014
68,000 - 136,000 2,794,535 3.3% 2015
67,000 - 136,000 2,794,665 0.0% 2016p
Source: U.S. Bureau of Mines, CPM Group.
May 1, 2017
139
Japanese Palladium Demand

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
Electronics 199 177 177 209 177 462 504 646 764 688 874 950 1,044 1,000
Automotive - - - - - 80 90 93 96 100 129 161 180 200
Dental 177 119 209 257 225 161 193 199 206 214 309 412 425 435
Jewelry 48 48 48 64 48 64 61 48 57 59 61 72 85 90
Chemical/Petroleum
Refining 222 203 338 434 402 57 53 125 92 45 32 163 123 145
Other 19 ___
___ 19 ___32 _____
66 ___ 35 ___
70 ___
61 _____
24 _____
14 _____
33 _____
48 _____
44 55
_____ 55
_____
Total 665 566 804 1,030 887 894 962 1,135 1,229 1,139 1,453 1,802 1,912 1,925
% Change Year Ago - -14.9% 42.0% 28.1% -13.9% 0.8% 7.6% 18.0% 8.3% -7.3% 27.6% 24.0% 6.1% 0.7%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Electronics 950 1,343 1,222 1,375 1,650 1,850 1,750 1,900 1,710 1,573 1,580 260 146 220
Automotive 180 200 132 125 130 194 300 350 500 700 900 505 520 540
Dental 440 418 450 510 560 576 595 595 580 525 470 475 505 405
Jewelry 95 120 113 120 125 125 121 130 118 115 150 140 165 160
Chemical/Petroleum
Refining 148 150 135 140 155 140 150 146 140 105 90 70 110 110
Other 52
_____ 45 _____
_____ 23 _____
30 _____
32 _____
27 _____
29 _____
26 _____
25 _____
25 _____
30 _____
30 30
_____ 30
_____
Total 1,865 2,276 2,075 2,300 2,652 2,912 2,945 3,147 3,073 3,043 3,220 1,480 1,476 1,465
% Change Year Ago -3.1% 22.0% -8.8% 10.8% 15.3% 9.8% 1.1% 6.9% -2.4% -1.0% 5.8% -54.0% -0.3% -0.7%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Electronics 235 265 290 260 220 200 220 210 215 218 221 220 219 225
Automotive 635 670 780 790 750 600 720 626 764 768 799 735 723 738
Dental 520 475 270 268 265 265 260 255 260 260 258 255 255 250
Jewelry 155 145 130 125 125 118 119 114 110 108 105 104 103 103
Chemical/Petroleum
Refining 135 135 140 135 132 110 120 115 120 125 126 125 125 124
Other 35 _____
_____ 35 _____
36 _____
39 _____
40 _____
30 _____
35 _____
33 _____
35 _____
35 _____
36 _____
35 34
_____ 35
_____
Total 1,715 1,725 1,646 1,617 1,532 1,323 1,474 1,353 1,504 1,514 1,545 1,474 1,459 1,475
17.1% 0.6% -4.6% -1.8% -5.3% -13.6% 11.4% -8.2% 11.1% 0.7% 2.0% -4.6% -1.0% 1.1%
Note: Totals may not equal the sums of the individual categories due to rounding. Sales to the chemical
industry through 1980 include sales for use in automobiles; beginning with 1980, sales to petroleum refiners
are included in the chemical sector, while sales for use in automotive catalysts are separated. p -- projections.
Sources: Japanese trade sources, CPM Group.
May 1, 2017
140
Palladium Investment Demand during between 2000 and 2013. The

volumes involved are opaque to the
In 2016 investors continued to sell a market and the actual selling is seen
large amount of palladium from their only by the market makers and others
Exchange Traded Fund inventories, a involved in buying this metal from
pattern that emerged and 2015. In investors.
contrast to 2015, however, the ETF-
based investor selling was not joined by In the beginning of 2016, however,
other investors selling palladium in the there is a notable shift in investor
physical market away from ETFs. In sentiment toward palladium. Heavy
2015 investors holding physical investor selling had weighed palladium
palladium outside of ETFs also sold. In prices down since September 2014. By
2016 they appear to have been relatively the end of January 2016 prices had been
significant net buyers. trending down for 17 months and had
dipped below the long-run support level
There have been significant levels of of $500. Such low levels of prices had
stale-bull investor inventory selling at not been seen since the middle of 2010,
times since 2014, which perhaps was and convinced some investors to hold
the major force that drove palladium off their inventory liquidation until
prices lower in 2015 and 2016. Most of prices improved.
the sales came out of ETF holdings,
although a significant amount of selling In the meantime investors who had
has been apparent from unreported shorted palladium on the Nymex started
stocks that investors had built up booking profits in their short positions.
Palladium Surplus/Deficit
3,500 3,500
3,000 3,000
2,500 2,500
Surplus/Net Additions to Inventories
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
-500 -500
Deficit/Net Reduction in Inventories
-1,000 -1,000
-1,500 -1,500
-2,000 -2,000
76 81 86 91 96 01 06 11 16
141
Some of these investors who had demand had been more than
shorted palladium were using such accommodated by sales of the metal out
shorts to hedge their large positions of of investor inventories.
the physical metal. The lower prices of
palladium enabled them to lock in During 2016 the palladium market was
profits while waiting for the market to estimated to have recorded a small
improve. As the palladium market deficit of around 11,000 ounces (within
tightened in the third quarter of 2016 the margin of error for palladium
and prices rose back above $700, there market supply and demand statistics).
was another bout of inventory While sales of investor inventories
liquidation by stale-bull investors, continued to cushion the palladium
which lasted through the year’s end. In market, the available supplies of
this bout of selling, however, investors palladium became tighter than in the
were less keen on getting rid of their past two years as investors decided to
inventories. Rather, they stopped selling hold on to their palladium. This helped
when prices were showing signs of extend a floor to palladium prices.
short-term weakness.
In the first four months of 2017 investor
This shift of investor sentiment from disposals of palladium lessened further
selling heavily into the market toward while other investors began
holding palladium inventories is a accumulating fresh inventories. There
critical change for the palladium appeared to be some investor interest in
market. Since 2014 the shortfalls in gaining long exposure to palladium for
newly refined metal over fabrication the longer term. The palladium market
Palladium ETP Holdings

Through April 2017
Mil. Oz. Mil. Oz.

3.5 3.5
ABSA
3.0 Standard Bank 3.0
SPPP NYSE (Sprott)
Mitsubishi
2.5 2.5
SPAL
SPDM
2.0 2.0
WITE
GLTR
1.5 1.5
Julius Baer
MSL ASX PALL NYSE
1.0 1.0
ZKB
0.5 0.5
PHPD LSE
0.0 0.0
07 08 09 10 11 12 13 14 15 16 17
Source: ETP issuer websites, Bloomberg
142
Annual Changes to Palladium ETP Holdings

Through April 2017
Thou. Oz. Thou Oz.

1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
-200 -200
-400 -400
-600 -600
-800 -800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Bloomberg, ETP issuer websites.
Monthly Changes in Palladium ETP Holdings and Prices

Through April 2017
Thou Oz Percent
500 40%
Change in Month-End Palladium Price (RHS)
400
30%
300
20%
200
100 10%
0 0%
-100
-10%
-200
-20%
-300
-400 -30%
10 11 12 13 14 15 16 17
143
is expected to record a surplus around 2,305 ounces. Investors in other ETPs

117,000 ounces for the year, but to were liquidating their palladium
tighten significantly in the years ahead. holdings as well, selling 189,765 ounces
Such surplus metal may become on a net basis. ETF Securities’ PHPD
absorbed by those investors with ETF was a major contributor to this
renewed interest in palladium. decline, experiencing 158,623 ounces of
palladium liquidations during this four-
Exchange Traded Products month period.
Futures
Over the course of 2016 investors
reduced their holdings in palladium
ETPs by 586,071 ounces from the end Over the course of 2016 gross short
of the previous year. This was a smaller positions in Nymex palladium held by
amount of ETP outflows than the net institutional investors generally trended
reduction of 695,065 ounces in 2015. lower, as investors were exiting most of
This was the second consecutive year in the shorts they had built in 2015.
which investors were net sellers of Meanwhile, institutional investors
palladium ETPs, as they reduced their exhibited renewed interest in building
physical exposure to the metal. longs in palladium during the second
half of 2016 and in early 2017. This
The decreases in the two South African improvement of investor sentiment
palladium ETPs, Standard Bank’s helped extend support to palladium
palladium ETP and ABSA’s palladium prices, which strengthened for the most
ETP, over the course of 2016 were the part of 2016 and in early 2017.
main contributors to the net decline in
overall palladium ETPs. Combined, Investors liquidated roughly 28.5% of
these two ETPs recorded an outflow of their gross shorts during the first three
303,375 ounces in palladium holdings months of 2016, from around 1.06
during 2016. Investors in other million ounces at the beginning of
palladium ETPs also liquidated their January to around 754,800 ounces at the
holdings, by a smaller 282,696 ounces end of March. This was followed by
for the year. two bouts of short building, which
pulled up investor gross short positions
In the first four months of 2017
to a yearly high of 1.33 million ounces
palladium ETPs holdings fell another
on 21 June.
176,541 ounces.
For the remainder of 2016 investors
During this period ABSA’s palladium
mostly were liquidating previously built
ETP reversed its declining trend of the
gross shorts, which fell to 376,200
past two years and increased holdings
ounces at the end of the year, a drop of
7.4%, or 15,529 ounces. Meanwhile
around 72% from the peak reached on
Standard Bank’s palladium ETP
21 June. This low level of a level of
registered a modest decline of 0.5%, or
gross shorts on palladium was last seen
144
in January 2015, suggesting that most of related to longer term growth in

the investors who had shorted palladium palladium use in auto catalysts and
in 2015 and in early 2016 had mostly lower supplies due to weaker platinum
exited their bearish bets. market conditions constraining South
African mine output.
Meanwhile investors also started
rebuilding their gross long positions in By the end of April 2017 investor gross
Nymex palladium in June 2016. Prior to short positions were 38% higher than
this investors had been mostly the end of 2016, reaching around
liquidating their gross longs, between 518,000 ounces. Meanwhile there were
September 2014 and June 2016, during other investors who were more bullish
which time gross longs were halved about the longer term fundamentals of
from the record high level around 3.13 palladium. Gross longs in Nymex
million ounces in 2 September 2014 to a palladium held by institutional investors
low of 1.44 million ounces at the end of rose to 2.5 million ounces by the end of
June 2016. Beginning in June 2016, April 2017, a rise of 37% from the end
however, investors resumed their long of 2016.
building in the Nymex palladium
market. This increased long building and
relatively less dynamic short exposures
Gross longs spiked higher to around to palladium increased investor net long
2.28 million ounces on 9 August, and exposures to Nymex palladium to a high
remained at generally elevated levels of 2.09 million ounces on 4 April 2017,
for the next three months. There was a up from the previous trough around
brief bout of gross long liquidations 223,100 ounces on 21 June 2016.
from the middle of October to the During this period prices of palladium
middle of November, during which time had recorded substantial gains, up from
gross longs dropped to 1.31 million a trough around $530-$550 in the
ounces on 8 November 2016. This was middle of June 2016 to around $790 -
mainly due to shifts in investor $830 during the last week of April
sentiment toward the precious metals 2017.
complex ahead of and during the
November elections in the United It is important to note that while there
States. was a clear shift in many investors
attitudes toward more positive
In the beginning of 2017 investors dispositions toward palladium, those
largely maintained a steady outlook for investors who have made money
Nymex palladium. There were concerns shorting palladium, along with its sister
among some of the more bearish metal platinum, over the past few years
investors, however, about the Fed’s clearly have not abandoned the market.
interest rate policies as well as slower They are less heavily shorting Nymex
growth in auto sales at the United palladium, but they are still very much
States. Overriding these potentially present in this metals’ market.
negative factors was investor views
145
PalladiumExchange TradedProduct Holdings

Troy Ounces
SPPPNYSE
PHPD LSE PalladiumZKB MSLASX PALL Julius Baer GLTR WITE SPDM SPAL Mitsubishi (Sprott) StandardBank ABSA Total
07 April 14,534 - - - - - - - - - 14,534

May 21,997 144,669 - - - - - - - - 166,666
June 29,080 192,815 - - - - - - - - 221,895
July 38,999 224,943 - - - - - - - - 263,942
August 29,899 224,866 - - - - - - - - 254,765
September 29,899 224,708 - - - - - - - - 254,608
October 31,535 237,446 - - - - - - - - 268,981
November 34,694 237,446 - - - - - - - - 272,140
December 42,969 237,234 - - - - - - - - 280,202
08 January 77,492 237,137 - - - - - - - - 314,629
February 201,456 333,120 - - - - - - - - 534,577
March 233,785 342,605 - - - - - - - - 576,390
April 217,121 371,229 - - - - - - - - 588,350
May 236,703 380,671 - - - - - - - - 617,374
June 258,125 386,905 - - - - - - - - 645,030
July 275,093 418,709 - - - - - - - - 693,801
August 237,747 418,500 - - - - - - - - 656,247
September 240,496 450,194 - - - - - - - - 690,690
October 231,790 465,896 - - - - - - - - 697,686
November 171,292 475,272 - - - - - - - - 646,563
December 170,265 490,977 - - - - - - - - 661,242
09 January 160,248 532,117 3,879 - - - - - - - 696,244
February 241,683 544,669 3,879 - - - - - - - 790,231
March 248,060 557,124 3,879 - - - - - - - 809,063
April 274,452 556,906 3,879 - - - - - - - 835,236
May 279,888 556,642 3,880 - - - - - - - 840,409
June 312,950 556,401 3,879 - - - - - - - 873,230
July 342,249 549,832 4,277 - - - - - - - 896,359
August 389,941 540,075 4,277 - - - - - - - 934,293
September 529,481 546,212 4,186 - - - - - - - 1,079,878
October 575,783 517,412 4,499 - - - - - - - 1,097,695
November 626,743 514,016 4,499 - - - - - - - 1,145,259
December 665,329 497,973 4,499 - - - - - - - 1,167,801
10 January 605,479 488,261 7,523 399,925 8,850 - - - - - 1,510,038
February 642,844 475,381 7,523 469,793 16,405 - - - - - 1,611,947
March 672,713 465,700 7,812 549,407 27,955 - - - - - 1,723,586
April 619,322 456,000 7,812 694,007 37,985 - - - - - 1,815,126
May 506,573 478,149 7,812 788,437 48,515 - - - - - 1,829,485
June 470,904 495,147 7,812 808,020 49,015 - - - - - 1,830,897
July 475,037 450,647 7,710 752,760 50,745 - - - - 7,395 1,744,293
August 488,988.60 450,454.46 5,101.29 752,343.51 51,195.00 - - - - 7,394.67 1,755,478
September 510,579.01 450,261.56 5,101.29 717,186.72 49,535.00 - - - - 7,394.67 1,740,058
October 549,184.50 431,131.87 6,027.00 841,287.56 56,935.00 1,732.42 - - 7,394.67 1,893,693
November 568,631.54 421,493.06 6,027.00 920,361.81 63,785.00 9,209.24 798.23 - - 7,394.67 1,997,701
December 586,775.72 437,082.97 3,307.14 1,088,962.44 73,535.00 10,986.72 5,597.16 - - 7,394.67 2,213,642
11 January 624,614.90 452,672.88 3,308.14 1,153,059.91 73,513.00 11,896.66 7,195.05 - - 9,002.21 2,335,263
February 594,849.75 452,483.19 3,308.14 1,212,057.47 81,073.00 13,306.18 7,582.24 - - 10,609.75 2,375,270
March 602,775.75 442,844.38 3,308.14 1,037,722.96 78,473.00 13,985.48 8,765.99 - - 12,217.28 2,200,093
April 632,530.49 442,395.09 3,308.14 1,047,070.32 96,243.00 15,430.23 9,173.94 6,388.53 46,870.80 12,217.28 2,311,628
May 579,971.49 432,769.16 3,308.14 1,011,928.18 88,843.00 14,269.64 7,578.26 6,387.47 54,070.80 12,217.28 2,211,343
June 565,219.49 423,136.78 3,308.14 1,001,509.78 94,843.00 14,553.22 7,973.20 6,385.00 64,549.90 12,217.28 2,193,696
July 547,109.24 416,661.63 3,307.14 1,015,890.26 101,743.00 15,086.97 8,765.19 6,382.08 70,049.10 12,217.28 2,197,212
August 520,519.60 416,497.66 3,307.14 921,217.28 126,293.00 14,252.31 8,353.07 6,379.69 63,047.70 12,217.28 2,092,085
September 512,785.56 410,032.13 3,307.14 782,108.75 115,943.00 15,445.22 8,739.80 6,378.22 95,064.00 12,217.28 1,962,021
October 489,145.68 409,289.47 4,327.14 687,751.38 126,843.00 14,821.17 7,482.58 6,375.49 97,259.00 12,217.28 1,855,512
November 487,484.00 402,836.81 4,327.14 613,222.75 130,893.00 14,821.17 7,482.58 6,373.74 94,759.00 12,217.28 1,774,417
December 464,076.69 386,967.19 4,327.14 588,123.00 128,243.00 12,977.17 6,728.05 6,371.78 94,759.00 12,217.28 1,704,790
12 January 459,145.39 387,256.56 4,327.14 647,167.19 123,243.00 12,409.43 6,728.05 6,369.06 94,759.00 12,217.28 1,753,622
February 494,994.15 383,954.66 4,327.14 735,713.88 124,043.00 12,121.29 6,300.00 6,367.04 102,059.00 12,217.28 1,882,097
March 512,068.60 383,800.34 4,327.14 784,753.63 123,043.00 12,423.12 6,300.00 6,365.02 95,559.00 12,217.28 1,940,857
April 524,472.94 378,907.00 3,706.26 799,148.31 123,643.00 12,322.07 6,300.00 6,362.65 105,672.30 12,217.28 1,972,752
May 529,742.00 375,611.56 3,706.26 838,170.88 121,693.00 12,114.90 5,875.33 6,360.63 105,672.30 12,217.28 2,011,164
June 535,629.34 369,187.84 3,706.26 827,931.88 124,723.00 12,016.49 5,875.33 6,358.61 97,672.30 12,217.28 1,995,318
July 537,420.87 365,895.59 3,706.26 807,744.50 122,223.00 11,718.36 5,875.33 6,356.38 97,672.30 12,860.30 1,971,473
August 525,796.09 369,187.84 3,706.26 827,036.00 130,773.00 11,718.36 5,875.33 6,354.22 97,672.30 12,860.30 1,990,980
September 512,108.90 357,160.25 3,706.26 792,152.74 131,923.00 12,031.88 5,875.33 6,352.27 101,472.30 12,860.30 1,935,643
October 514,133.65 355,436.97 3,812.19 752,493.79 132,523.00 12,340.36 5,875.33 6,349.56 101,472.30 12,538.79 1,896,976
November 550,720.69 355,276.19 3,812.19 712,675.23 133,923.00 12,632.81 5,875.33 6,347.89 102,981.70 12,538.79 1,896,784
December 555,077.11 365,445.47 3,812.19 712,363.30 135,123.00 12,934.77 5,875.33 6,346.43 102,981.70 12,538.79 186,098.00 2,098,596
13 January 554,272.35 363,722.19 3,812.19 716,845.06 177,623.00 13,233.73 6,682.12 6,345.74 102,981.70 11,895.78 186,098.00 2,143,512
February 617,855.44 361,998.91 3,812.19 765,638.32 190,373.00 13,809.41 6,682.12 10,229.67 102,981.70 11,252.76 186,098.00 2,270,732
March 603,863.46 360,587.50 3,812.19 765,332.53 195,813.00 14,401.51 6,682.12 10,226.41 101,564.20 11,252.76 187,994.00 2,261,530
April 578,536.60 356,716.56 3,812.19 784,500.02 189,263.00 14,987.46 6,682.12 10,222.82 101,564.20 11,252.76 187,994.00 2,245,532
May 543,466.38 344,623.06 3,812.19 789,055.94 214,403.00 14,695.00 5,455.04 11,229.09 154,415.20 11,252.76 187,944.00 2,280,352
June 524,567.69 331,606.81 3,812.19 788,656.39 188,813.00 14,995.90 5,455.04 11,225.51 155,932.00 11,252.76 187,944.00 2,224,261
July 482,659.12 321,308.94 3,812.19 793,161.81 199,643.00 15,203.77 5,455.04 11,221.44 137,635.20 9,645.22 187,944.00 2,167,690
August 469,713.24 305,294.66 3,812.19 763,339.47 193,963.00 15,203.77 5,455.04 11,217.75 170,635.20 9,645.22 187,944.00 2,136,224
September 459,690.53 302,983.00 3,812.19 762,943.57 193,653.00 15,850.12 5,455.04 11,213.93 174,355.20 8,359.19 187,708.00 2,126,024
October 459,311.11 295,694.44 3,812.19 694,205.37 196,473.00 15,459.23 5,455.04 11,212.94 173,100.90 8,359.19 187,714.00 2,050,797
November 480,145.34 289,344.66 3,812.19 708,399.68 188,473.00 15,251.02 5,455.04 11,206.54 173,100.90 8,359.19 187,055.00 2,070,603
December 467,013.50 288,003.97 3,812.19 717,864.88 187,723.00 23,182.86 5,455.04 11,202.73 169,359.70 8,359.19 182,562.00 2,064,539
14 January 461,030.35 286,319.31 3,812.19 717,459.25 195,973.00 23,182.86 5,455.04 11,198.79 170,239.70 8,359.19 169,851.00 2,052,881
February 467,911.21 286,190.00 3,596.20 648,826.51 195,973.00 14,588.84 5,455.04 11,195.35 170,907.60 8,359.19 169,851.00 1,982,854
March 505,906.59 283,612.22 3,596.20 643,555.12 201,663.00 15,790.75 5,455.04 11,191.54 157,859.80 8,359.19 169,851.00 33,000.00 20,000.00 2,059,840
April 511,074.14 280,381.06 3,596.20 633,544.08 197,183.00 15,185.86 5,455.04 11,187.85 156,015.00 7,073.16 168,489.00 270,888.39 208,769.00 2,468,842
May 594,315.20 273,459.13 3,596.20 623,518.80 186,503.00 15,185.86 5,455.04 11,187.85 166,124.90 7,073.16 168,489.00 400,717.72 336,588.14 2,792,214
June 571,262.19 267,163.88 3,596.20 628,042.53 169,943.00 15,185.86 5,455.04 11,179.50 166,124.90 7,073.16 168,489.00 437,560.37 420,380.47 2,871,456
July 577,660.96 260,871.98 3,596.20 632,670.54 171,583.00 14,881.16 5,037.25 11,178.60 166,059.00 7,073.16 168,489.00 501,326.77 436,214.22 2,956,642
August 456,329.59 256,403.03 3,596.20 622,615.85 162,883.00 14,881.16 5,037.25 11,172.39 164,871.90 7,073.16 168,489.00 530,124.03 436,070.00 2,839,547
September 447,174.68 254,441.84 3,596.20 578,518.70 148,913.00 14,567.64 5,037.25 11,169.00 163,940.00 7,073.16 168,489.00 575,786.00 443,925.00 2,822,631
October 393,752.34 241,534.84 2,382.17 558,723.42 146,203.00 13,972.54 5,037.25 11,165.00 166,474.00 7,073.16 168,489.00 693,225.33 476,699.00 2,884,731
November 495,433.78 240,542.66 2,382.17 553,586.17 143,093.00 13,376.12 5,037.25 11,162.00 150,915.90 7,073.16 160,961.00 700,070.42 492,531.00 2,976,165
December 511,005.20 238,054.38 2,382.17 514,503.51 143,093.00 22,144.70 5,037.25 11,157.18 144,788.40 7,073.16 152,898.00 702,831.62 516,223.20 2,971,192
15 January 492,875.39 236,430.77 2,382.17 489,974.52 143,443.00 23,028.39 5,037.25 11,154.12 144,381.30 7,073.16 151,996.00 705,583.35 508,153.41 2,921,513
February 488,274.21 236,337.45 2,382.17 484,907.06 138,573.00 15,067.00 5,037.25 11,279.21 147,832.90 7,073.16 146,375.00 705,387.93 502,960.11 2,891,486
March 469,028.00 229,964.36 2,382.17 460,434.00 136,943.00 14,541.00 5,037.25 11,146.53 133,581.50 7,073.16 138,909.00 727,026.00 478,886.76 2,814,953
April 466,918.27 229,839.94 2,382.17 460,222.73 154,683.00 14,237.98 5,037.25 11,279.21 133,581.50 7,073.16 138,909.00 747,711.48 506,594.57 2,878,470
May 476,060.56 226,760.70 2,382.17 460,012.59 167,563.00 13,938.47 5,037.25 7,303.77 132,364.50 7,073.16 134,562.00 753,462.91 518,399.13 2,904,920
June 471,139.66 222,042.30 2,382.17 445,203.10 165,083.00 14,182.24 5,037.25 7,301.21 133,784.60 7,716.18 134,562.00 765,060.59 526,176.60 2,899,671
July 503,459.50 221,948.98 2,382.17 435,289.65 163,913.00 13,582.36 5,037.25 6,237.38 160,973.10 9,966.73 134,562.00 777,017.96 529,993.43 2,964,364
August 500,242.42 220,362.70 2,382.17 381,942.84 164,943.00 14,480.90 4,661.29 6,235.05 165,342.40 10,609.75 118,088.00 756,560.13 537,767.49 2,883,618
September 452,682.59 220,269.41 2,382.17 343,056.37 163,193.00 14,480.89 4,661.29 6,233.06 143,186.50 10,609.75 118,088.00 756,189.30 592,239.69 2,827,272
October 400,441.91 218,387.64 2,382.17 338,014.99 138,113.00 14,480.90 4,660.00 6,231.01 158,281.50 10,609.75 110,353.00 684,675.38 430,070.62 2,516,702
November 313,871.56 216,804.48 2,382.17 352,396.09 137,393.00 15,359.80 4,575.92 6,229.09 150,303.00 10,609.75 100,399.00 621,788.33 337,563.33 2,269,676
December 362,272.76 216,711.17 2,382.17 337,706.17 135,893.00 17,963.45 4,575.92 6,226.43 142,176.00 10,609.75 100,400.00 610,715.92 328,493.92 2,276,127
16 January 362,014.94 223,911.48 2,382.17 318,216.32 126,923.00 17,047.42 4,575.92 6,225.88 135,930.10 11,574.27 96,032.00 610,494.53 328,465.00 2,243,793
February 359,595.50 223,815.05 2,382.17 318,118.65 117,713.00 15,885.61 4,261.83 6,222.61 149,241.80 11,574.27 96,032.00 567,612.12 312,412.12 2,184,867
March 359,366.70 223,718.58 2,382.17 313,079.03 117,713.00 15,885.61 3,308.65 6,220.50 143,201.80 11,574.27 96,032.00 606,124.72 312,312.64 2,210,920
April 364,846.37 219,629.02 2,382.17 308,113.02 119,083.00 16,187.25 2,526.57 6,220.50 143,201.80 11,574.27 96,032.00 609,918.71 297,348.48 2,197,063
May 375,618.88 215,574.80 2,382.17 307,979.57 117,613.00 17,019.74 2,526.57 6,216.01 140,821.80 11,574.27 96,032.00 578,959.90 259,576.74 2,131,895
June 380,171.76 215,478.34 2,382.17 307,804.55 116,313.00 18,172.21 0.00 6,214.03 145,821.80 11,574.27 96,032.00 581,741.60 271,359.44 2,153,065
July 380,749.77 215,381.91 2,382.17 293,163.32 120,813.00 20,803.00 0.00 6,212.13 152,721.80 11,574.27 96,032.00 566,732.85 271,276.02 2,137,842
August 356,444.95 213,751.84 2,382.17 283,443.80 121,083.00 22,482.38 0.00 6,209.68 161,851.80 11,574.27 96,032.00 536,815.20 259,286.16 2,071,357
September 365,703.49 213,655.41 2,382.17 283,342.17 118,273.00 22,784.23 0.00 6,209.68 140,151.80 11,574.27 96,032.00 526,745.28 249,304.56 2,036,158
October 360,917.99 210,494.98 2,382.17 292,740.83 114,273.00 23,724.00 0.00 6,108.63 134,064.50 11,574.27 96,032.00 516,635.97 249,230.69 2,018,179
November 360,189.34 210,430.69 2,382.17 268,649.03 106,953.00 24,869.00 0.00 5,465.62 134,700.00 8,037.69 96,032.00 425,493.87 215,503.39 1,858,706
December 331,556.52 210,366.38 2,382.17 263,741.25 102,073.00 25,666.33 0.00 5,465.62 8,900.00 8,037.69 96,032.00 426,324.79 209,510.41 1,690,056
17 January 186,629.10 204,183.80 2,382.17 253,958.73 103,253.00 26,781.19 0.00 6,108.63 7,600.00 8,037.69 90,682.00 425,209.06 193,606.08 1,508,431
February 182,210.68 204,087.34 2,382.17 253,871.16 105,723.45 27,309.32 0.00 6,108.63 8,300.00 8,037.69 90,694.00 424,090.17 214,299.90 1,527,115
March 178,311.87 204,023.05 2,382.17 253,702.22 111,343.00 27,619.87 0.00 6,108.63 8,300.00 8,037.69 90,187.00 422,044.00 229,053.27 1,541,113
April 172,933.49 192,001.88 2,382.17 244,082.42 111,713.00 28,709.60 0.00 6,108.63 8,300.00 8,037.69 90,187.00 424,020.00 225,039.68 1,513,516
146

Data as of 30 April 2017, Changes from 31 December 2016
Month-end Holdings ∆% ∆ Ounce

PALL ETF S ecurities 244,082 ↓ -7.45% -19,659
Palladium ZKB - S IX 192,002 ↓ -8.73% -18,365
Palladium Julius Baer 111,713 ↑ 9.44% 9,640
PHPD ETF S ecurities 172,933 ↓ -47.84% -158,623
GLTR - ETFS 28,710 ↑ 11.86% 3,043
WITE - ETFS - - ─ ─
Palladium MS L - AS X 2,382 ─ 0.00% 0
S PDM iS hares 6,109 ↑ 11.76% 643
S PAL S ource 8,300 ↓ -6.74% -600
Mitsubishi 8,038 ─ 0.00% 0
S tandard Bank 424,020 ↓ -0.54% -2,305
ABS A 225,040 ↑ 7.41% 15,529
S prott 90,187 ↓ -6.09% -5,845
Total 1,513,516 ↓ -10.4% -176,541

Data as of 31 December 2016, Changes from 31 December 2015
Month-end Holdings ∆% ∆ Ounce

PALL ETF S ecurities 263,741 ↓ -21.90% -73,965
Palladium ZKB - S IX 210,366 ↓ -2.93% -6,345
Palladium Julius Baer 102,073 ↓ -24.89% -33,820
PHPD ETF S ecurities 331,557 ↓ -8.48% -30,716
GLTR - ETFS 25,666 ↑ 42.88% 7,703
WITE - ETFS - ↓ -100.00% -4,576
Palladium MS L - AS X 2,382 _ 0.00% 0
S PDM iS hares 5,466 ↓ -12.22% -761
S PAL S ource 8,900 ↓ -93.74% -133,276
Mitsubishi 8,038 ↓ -24.24% -2,572
S tandard Bank 426,325 ↓ -30.19% -184,391
ABS A 209,510 ↓ -36.22% -118,984
S prott 96,032 ↓ -4.35% -4,368
Total 1,690,056 ↓ -25.7% -586,071
147

Nymex Palladium Futures & Options. Weekly Data, Through 25 April 2017
'000 Ozs '000 Ozs

3,600 3,600
Gross Long
2,800 2,800
Net Position in Nymex

2,000 2,000
1,200 1,200
400 400
-400 -400
-1,200 Gross Short -1,200
-2,000 -2,000
95 97 99 01 03 05 07 09 11 13 15 17

Nymex Palladium Futures & Options. Weekly Data, Jan 2013 Through Apr. 2017
'000 Ozs '000 Ozs
3,400 3,400
3,000 3,000
2,600 Long 2,600
2,200 2,200
1,800 1,800
1,400 1,400
1,000 1,000
600 600
Net Position in Nymex
200 200
-200 -200
-600 -600
-1,000 -1,000
-1,400 -1,400
Short
-1,800 -1,800
-2,200 -2,200
J-13A-13J-13O-13J-14A-14J-14O-14J-15A-15J-15O-15J-16A-16J-16O-16J-17A-17
148
Disaggregated Non-Commercial Positions

Nymex Palladium Futures and Options. Weekly Data, 25 April 2017
3,600 3,600
3,200 Other Traders 3,200
Gross Long
2,800 Money Managers 2,800
2,400 Net Position 2,400
2,000 2,000
1,600 1,600
1,200 1,200
800 800
400 400
0 0
-400 -400
-800 -800
-1,200 -1,200
Gross Short
-1,600 -1,600
-2,000 -2,000
Nov-09 Oct-10 Sep-11 Aug-12 Jul-13 Jun-14 May-15 Apr-16 Mar-17
149
Palladium Markets million ounces of newly refined

physical palladium, down from 9.6
The palladium market is the smallest in million ounces in 2015.
the precious metals complex. The
volume of metal traded, which includes The palladium market compared to the
physical supply and exchange traded gold market was just 0.6%. Compared
futures and options activity, was 158.6 to the silver market the palladium
million ounces in 2016. while this was market was 3.0%. The palladium
up from 151.2 million ounces traded in market was just 38.5% of the platinum
2015, in dollar terms the value of these market.
palladium transactions fell last year to
$98 billion, from $104 billion in 2015. Futures
Obviously, last year’s decline from the
previous year was the result of the Palladium futures trading volume for
decline in the annual average prices of the Nymex and Tocom totaled 145.1
palladium. million ounces in 2016, up 7.1% from
137.4 million ounces in 2015. Last
The palladium market consists of year’s increase in futures trading
futures and options traded at the New volume was a reversal of 2015’s
York Mercantile Exchange (Nymex), decline. Since 2011 the Nymex has
which is part of the CME Group. accounted for the more than 90% of the
Palladium futures also trade on the combined futures trading volume. More
Tokyo Commodity Exchange (Tocom). recently, in 2016 Nymex accounted for
In 2016 there also was a total of 9.3 99.0% of the futures trading volume,
Trading Volume in the Palladium Futures Markets

45 45
40 40
35 35
Tocom
30 30
25 25
Nymex
20 20
15 15
10 10
5 5
0 0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
150
with its market share rising almost the end of 2016, down from 2.51
linearly since 2011. million ounces at the end of 2015. At
the end of April this year combined
Palladium trading volumes on the open interest on both exchanges was
Nymex were 143.6 million ounces in 3.72 million ounces, up from 2.36
2016, up 6.8% from 134.4 million million ounces at the end of April in
ounces in 2015. From January to April 2015 and up from open interest at the
2017 trading volume at the Nymex was end of 2016.
45.0 million ounces, up from 43.2
million ounces during the same period Nymex open interest of palladium
in 2016. futures accounted for the majority of
activity as in trading volume when
Tocom accounted for just 1.0% of total compared to the Tocom. At the end of
trading volume of palladium futures in last year Tocom open interest was
2016. Palladium trading volume at the 53,097 ounces, down from 66,504
Tocom was 1.5 million ounces last year, ounces at the end of 2015. At the end of
down from 3.0 million ounces in 2015. April this year open interest on the
During the first four months of this year Tocom was 60,379 ounces, up from
trading volume at the exchange totaled both the end of last year and the end of
467,985 ounces, little changed from the April 2016.
same period in 2016.
Options
Combined year-end open interest of
palladium futures on the Nymex and The only exchange to trade palladium
Tocom totaled 2.43 million ounces at options is the Nymex, which began to
Palladium Open Interest in the Futures Markets
7 7
6 6
Tocom
5 5
4 4
Nymex
3 3
2 2
1 1
0 0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
151
offer options on palladium futures producers. At the end of 2016 combined

contracts in August 2010. That said, the inventories in Nymex and Tocom
exchange traded palladium options registered depositories were 69,620
market is still very illiquid. Most ounces, down from 94,282 ounces at the
options trading activity appears to end of 2015. Palladium stocks at
continue to occur in the over the counter Nymex registered warehouses were
market or interbank market. 59,397 ounces or 85.3% of the
exchange inventories.
Options trading volume for palladium
futures was 4.21 million ounce last year, By the end of the first quarter 2017
up slightly from 4.16 million ounces in exchange inventories were 61,041
2015. At the end of February 2017 ounces, of which 57,848 or 94.8% were
Nymex palladium options volume made up of Nymex stocks. Holdings for
totaled 600,000 million ounces, down ETPs in various depositories at the end
from 636,500 ounces at the end of of 2016 were 1.76 million ounces, down
February 2016. from 2.37 million ounces at the end of
2015. As of the end of March 2017,
Inventories ETP holding of palladium were 1.6
million ounces.
Reported inventories of palladium are
made up of inventories held at Nymex
and Tocom registered warehouses, bank
vaults for exchange traded products
(ETPs), and for dealers, users, and
Reported Palladium Inventories

Thousand Ounces
3,000 3,000
2,500 2,500
ETF
Holdings
2,000 2,000
1,500 1,500
Nymex
1,000 1,000
500 500
Tocom
0 0
80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
152
New York Mercantile Exchange Activity - Trading Volume

Montly Total, Through April 2017
25,000 25,000
20,000 20,000
15,000 15,000
10,000 10,000
5,000 5,000
0 0
77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17
New York Mercantile Exchange Activity - Open Interest

5,000 5,000
4,500 4,500
4,000 4,000
3,500 3,500
3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17
153
Tokyo Commodity Exchange Activity - Trading Volume

45,000 45,000
40,000 40,000
35,000 35,000
30,000 30,000
25,000 25,000
20,000 20,000
15,000 15,000
10,000 10,000
5,000 5,000
0 0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Tokyo Commodity Exchange Activity - Open Interest

7,000 7,000
6,000 6,000
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
154
Nymex Palladium Open Interest

Troy Ounces
1977 1978 1979 1980 1981 1982 1983
January 59,900 237,200 203,500 220,200 255,500 282,300 690,200

February 65,400 267,400 236,400 227,200 240,300 288,500 656,400
March 58,800 180,700 179,100 179,100 219,000 281,100 632,200
April 59,000 139,700 171,600 175,700 207,200 311,000 702,200
May 59,800 193,000 174,300 185,300 275,000 350,400 759,200
June 65,000 162,000 155,600 208,400 212,600 305,900 774,800
July 65,000 177,700 150,000 236,800 215,600 327,600 969,300
August 69,000 175,800 155,000 244,800 230,100 323,300 862,900
S eptember 86,800 177,500 197,200 276,700 205,800 309,900 910,600
October 123,200 252,200 203,700 306,200 241,500 355,300 840,800
November 253,600 222,700 198,600 279,100 274,900 519,700 800,400
December 193,100 195,900 225,200 241,000 267,900 543,100 876,400
1984 1985 1986 1987 1988 1989 1990
January 774,200 682,500 666,700 649,000 617,800 640,300 631,500

February 738,500 672,800 604,900 650,300 642,600 696,400 578,300
March 693,100 655,500 620,600 677,800 638,900 677,800 547,100
April 721,500 701,700 610,100 770,700 624,000 959,800 524,100
May 701,800 731,700 573,900 771,100 690,700 946,600 568,800
June 683,200 652,000 525,900 615,000 674,300 896,000 552,000
July 625,800 686,800 533,500 742,200 755,200 780,500 549,400
August 620,700 720,000 607,300 867,300 673,400 438,000 575,600
S eptember 607,300 619,300 650,900 711,200 654,600 692,400 501,300
October 623,800 644,500 694,600 727,100 635,700 687,700 543,300
November 683,700 695,000 667,000 685,500 644,300 743,600 504,900
December 679,900 642,400 587,200 572,800 642,400 623,700 457,700
1991 1992 1993 1994 1995 1996 1997
January 465,500 414,300 380,600 455,800 785,300 618,500 871,700

February 451,900 428,400 469,600 502,700 687,200 708,700 1,194,300
March 423,600 412,500 469,600 465,500 775,800 670,300 968,200
April 457,800 424,500 555,500 468,800 635,700 828,700 975,400
May 448,900 425,400 495,400 459,900 686,500 884,100 940,600
June 453,500 385,900 467,600 509,800 649,400 794,800 637,900
July 436,600 378,900 519,900 629,100 654,900 800,400 567,300
August 445,300 327,100 470,700 259,900 668,500 903,500 409,900
S eptember 401,200 295,800 431,700 646,700 595,400 791,100 381,900
October 385,700 281,300 465,500 743,500 623,000 811,200 424,400
November 401,800 253,500 451,000 739,900 633,500 854,000 438,700
December 366,500 345,400 463,800 737,800 619,600 799,500 356,500
155
Nymex Palladium Open Interest

Troy Ounces
1998 1999 2000 2001 2002 2003 2004
January 469,800 285,200 340,900 179,200 113,200 204,300 1,084,900

February 486,300 336,200 267,900 152,200 114,000 199,400 1,252,500
March 539,000 305,200 280,300 153,200 113,600 191,600 1,116,500
April 490,900 260,000 183,300 160,400 137,500 219,300 894,300
May 439,800 271,700 703,400 158,400 160,800 268,300 880,900
June 394,100 279,900 262,200 136,400 202,700 257,800 779,500
July 398,100 275,800 312,000 148,700 222,500 283,800 829,700
August 282,200 218,600 516,900 119,700 199,000 495,800 943,100
S eptember 312,000 305,400 185,700 124,200 190,500 546,300 973,600
October 300,400 334,300 191,300 141,500 190,200 566,400 978,000
November 271,600 319,600 181,200 150,000 199,900 638,700 1,369,300
December 286,100 286,900 184,800 127,400 194,100 734,400 1,265,900
2005 2006 2007 2008 2009 2010 2011
January 1,293,200 1,593,900 1,551,200 2,208,700 1,265,300 2,307,000 2,174,100

February 1,382,400 1,690,500 1,712,000 2,182,900 1,154,100 2,180,100 2,261,500
March 1,276,300 1,689,900 1,576,100 1,928,900 1,317,400 2,328,700 2,087,300
April 1,352,300 1,810,000 1,994,500 1,921,200 1,392,100 2,444,000 2,120,900
May 1,321,200 1,720,400 2,162,500 1,764,100 1,556,200 2,156,600 2,010,400
June 1,352,800 1,342,300 1,751,100 1,725,200 1,644,400 2,047,500 1,963,000
July 1,416,300 1,410,900 1,862,300 1,372,500 1,882,200 2,036,600 2,505,700
August 1,338,000 1,146,800 1,628,000 1,345,600 2,227,500 2,025,700 2,041,900
S eptember 1,327,500 1,112,700 1,604,000 1,499,600 2,072,200 2,380,200 1,871,700
October 1,462,400 1,270,700 1,664,700 1,353,200 2,229,100 2,619,000 1,891,500
November 1,493,400 1,171,700 1,486,400 1,324,700 2,380,100 2,284,200 2,025,100
December 1,406,300 1,193,000 1,636,000 1,200,600 2,261,500 2,284,900 1,781,500
2012 2013 2014 2015 2016 2017
January 1,939,800 3,615,900 3,905,500 3,364,500 2,553,800 2,848,800

February 2,192,000 3,558,900 3,920,000 3,268,700 2,626,600 2,764,500
March 2,045,800 3,919,800 4,105,100 3,149,700 2,224,700 3,304,500
April 2,163,600 3,619,300 4,292,100 3,248,100 2,307,300 3,659,900
May 2,313,700 3,720,200 4,099,900 2,916,900 2,234,100
June 2,269,400 3,496,600 4,015,300 3,710,000 2,164,800
July 2,369,800 3,764,700 4,578,200 3,796,700 2,802,500
August 1,953,700 3,592,700 4,427,500 2,871,000 2,541,800
S eptember 1,977,400 3,558,700 3,423,800 2,670,000 2,810,500
October 2,075,300 3,874,400 3,369,600 2,601,700 2,275,800
November 2,303,100 3,569,000 3,172,100 2,663,600 2,665,400
December 2,853,200 3,888,100 3,316,800 2,445,900 2,381,200

S ource: New York Mercantile Exchange, Inc.
May 16, 2017
156
Nymex Palladium Trading Volume

Troy Ounces
1977 1978 1979 1980 1981 1982 1983
January 74,300 549,800 316,400 621,100 327,900 153,300 753,200

February 79,100 672,000 585,500 819,000 428,200 602,900 268,400
March 90,400 518,000 383,200 727,700 262,000 302,200 145,300
April 37,100 237,600 662,200 291,900 205,600 196,400 400,500
May 53,000 372,200 462,300 403,400 588,500 637,700 868,500
June 80,500 204,800 264,200 428,200 195,300 417,400 774,600
July 16,400 186,700 279,300 554,900 202,800 384,300 811,500
August 63,500 348,600 379,200 462,400 477,500 559,700 291,400
S eptember 85,400 120,400 326,600 476,800 301,300 475,000 766,500
October 89,600 650,100 453,100 407,900 190,500 433,600 199,500
November 722,800 444,700 301,700 564,300 575,400 1,332,800 200,200
December 617,100
________ 210,700
________ 535,300
________ 306,600
________ 328,200
________ 888,900
________ 541,000
________
Annual Total 2,009,200 4,515,600 4,949,000 6,064,200 4,083,200 6,384,200 6,020,600
1984 1985 1986 1987 1988 1989 1990
January 2,237,100 985,200 1,211,500 965,300 1,136,500 1,287,000 513,000

February 2,099,800 1,387,100 2,129,600 1,330,000 1,531,500 1,476,200 1,722,300
March 1,119,300 1,097,800 868,000 967,400 924,900 1,385,900 725,500
April 1,335,000 877,800 979,600 1,927,500 969,500 4,314,700 513,700
May 1,837,200 1,727,700 1,234,800 2,130,900 1,307,000 3,101,900 1,374,300
June 769,500 721,800 645,600 777,000 1,577,300 1,369,200 568,200
July 838,900 789,000 446,000 1,012,900 1,301,200 1,401,000 446,600
August 1,424,800 1,426,900 2,276,400 1,829,000 1,290,600 1,664,400 1,167,900
S eptember 815,100 832,200 1,626,600 674,300 637,000 1,071,400 540,700
October 1,085,500 893,200 1,056,500 1,835,300 709,500 928,900 715,000
November 1,545,900 1,482,900 1,409,000 1,604,200 1,427,800 1,774,800 959,200
December 963,000
_________ 990,300 _________
________ 672,600 ________
974,900 1,175,500
________ 1,032,900 317,800
________ _________
Annual Total 16,071,100 13,211,900 14,556,200 16,028,700 13,988,300 20,808,300 9,564,200
1991 1992 1993 1994 1995 1996 1997
January 501,700 721,700 770,800 825,000 1,088,400 1,372,500 1,390,800

February 1,054,200 732,300 1,446,100 1,495,300 1,709,200 3,351,900 4,316,000
March 538,000 342,900 805,700 606,700 2,100,100 1,193,100 2,270,600
April 724,500 283,300 506,300 667,600 1,277,500 1,641,600 2,160,400
May 1,052,100 801,100 1,219,000 1,548,100 1,741,300 2,746,700 3,642,200
June 444,700 288,100 736,800 651,400 961,500 898,900 1,764,700
July 523,000 496,500 704,300 902,400 1,161,600 989,600 1,809,700
August 1,011,400 675,200 1,335,600 923,900 1,894,800 2,374,000 1,875,100
S eptember 291,400 506,600 697,700 1,569,000 975,400 1,072,100 833,100
October 566,800 535,900 922,000 960,300 932,000 814,900 1,309,400
November 815,000 674,200 1,247,700 2,138,400 1,666,200 2,887,000 1,314,300
December ________ _________ 1,368,100
297,100 791,200 839,000 1,163,300
________ ________ ________ 1,218,700
________ 1,176,300
________
Annual Total 7,819,900 6,849,000 11,760,100 13,127,100 16,671,300 20,561,000 23,862,600
157
Nymex Palladium Trading Volume

Troy Ounces
1998 1999 2000 2001 2002 2003 2004
January 1,150,600 309,200 458,400 217,100 127,500 420,000 1,709,300

February 1,778,600 1,161,400 1,397,600 609,000 337,200 726,600 4,103,600
March 1,867,800 408,200 280,300 139,700 153,800 325,600 2,050,800
April 1,404,200 709,700 183,300 112,100 152,700 397,100 3,021,400
May 1,794,200 889,000 703,400 332,500 612,600 842,000 2,734,300
June 737,000 341,100 262,200 101,300 216,600 343,000 1,143,300
July 424,100 505,300 312,000 117,300 215,400 422,100 760,600
August 873,700 686,800 516,900 322,100 897,100 1,564,500 2,889,500
S eptember 621,400 582,600 252,300 52,300 145,200 815,200 1,069,000
October 496,200 372,200 246,000 125,500 171,000 758,700 1,503,600
November 1,283,900 1,067,000 304,100 326,100 811,800 1,832,300 3,894,100
December 693,300
________ 506,900
________ 160,100
________ 137,500
________ 264,400
________ 1,114,200
________ 1,474,500
________
Annual Total 13,125,000 7,539,400 5,076,600 2,592,500 4,105,300 9,561,300 26,354,000
2005 2006 2007 2008 2009 2010 2011
January 772,800 2,844,7002,363,600 2,695,400 1,428,400 4,876,200 7,212,100

February 4,326,800 5,927,9006,281,500 10,584,500 4,172,600 9,037,800 12,127,100
March 1,697,900 3,257,3001,498,700 4,941,100 1,450,900 4,833,200 9,440,200
April 1,331,600 2,313,5002,516,600 2,475,000 1,733,200 5,810,400 8,589,700
May 4,613,200 6,486,3006,908,900 6,693,900 5,421,300 13,432,300 13,260,800
June 1,359,400 2,585,7001,632,200 1,893,400 2,340,300 4,593,100 8,066,500
July 1,718,500 1,346,4001,507,200 2,624,500 2,568,900 4,423,300 6,629,000
August 4,926,800 4,112,3006,510,600 5,369,200 5,750,200 8,736,600 13,920,800
S eptember 1,774,700 1,622,2001,697,500 2,525,300 2,539,300 5,428,600 8,093,200
October 2,168,000 1,435,1002,638,500 2,862,700 2,897,600 6,962,300 7,289,500
November 5,064,300 4,779,7005,241,100 4,387,900 7,122,800 15,529,700 11,973,200
December 2,440,300
________ 1,100,500
________ 1,302,900
________ 1,329,900
________ 2,871,900
________ 6,135,500
________ 7,350,800
________
Annual Total 32,194,300 37,811,600 40,099,300 48,382,800 40,297,400 89,799,000 113,952,900
2012 2013 2014 2015 2016 2017
January 7,047,300 12,698,700 8,750,200 9,978,7009,012,900 11,195,900

February 11,975,400 19,882,100 15,876,000 14,692,800
15,115,900 14,164,800
March 7,591,000 8,768,100 13,612,600 10,074,8009,691,700 9,830,800
April 6,183,300 12,252,000 11,164,800 7,799,8009,388,700 9,786,100
May 13,603,300 18,101,600 19,588,000 13,110,500
14,258,500
June 6,771,000 9,349,700 10,161,000 9,104,4009,493,700
July 5,930,800 7,717,500 9,780,900 10,266,500
10,421,900
August 12,373,100 16,389,200 20,847,400 18,509,400
16,985,200
S eptember 8,520,900 8,247,000 12,613,200 8,720,1008,844,000
October 8,473,000 9,994,400 11,570,800 9,228,400
11,397,700
November 14,583,500 18,213,300 16,194,700 16,238,200
19,853,700
December 7,748,300
________ 6,988,000
________ 7,237,600
________ 6,695,600
________ 9,122,400
________ ________
Annual Total 110,800,900 148,601,600 157,397,200 134,419,200 143,586,300 44,977,600
Notes: Annual trading volume for 2016 through S eptember

S ource: New York Mercantile Exchange, Inc.
May 16, 2017
158
Nymex Palladium O ptions Trading Volume

2010 2011 2012 2013 2014 2015 2016

January 0 193,500 197,200 1,479,600 304,300 615,700 205,000
February 0 338,000 123,400 1,917,400 277,900 228,100 431,500
March 0 79,000 567,900 2,138,000 2,416,500 605,000 419,000
April 0 123,600 481,800 1,385,500 1,970,600 293,200 200,400
May 0 485,000 573,500 570,000 1,544,900 312,100 170,000
June 0 1,104,400 475,200 748,000 1,301,300 446,000 183,700
July 0 107,300 1,132,900 1,220,100 1,275,400 272,700 539,200
August 128,000 275,400 725,100 671,500 1,553,400 397,900 491,000
S eptember 360,000 89,700 282,000 676,000 1,315,800 323,800 275,600
O ctober 42,400 201,500 366,200 928,300 1,047,500 330,000 410,500
November 466,000 12,419 864,900 1,126,200 469,700 273,800 458,100
December 225,000
________ 487,700
________ 840,600
________ 551,400
________ 273,800
________ 64,100
________ 423,200
________
Annual Total 1,221,400 3,497,519 6,630,700 13,412,000 13,751,100 4,162,400 4,207,200
2017
January 468,800
February 211,200
March
April
May
June
July
August
S eptember
O ctober
November
December ________
Annual Total 680,000
Note: Annual trading volume for 2017 through February.

May 22, 2017
159
Nymex Palladium O ptions Open Interest

Troy Ounces, Monthly-End
2010 2011 2012 2013 2014 2015 2016

January 0 588,500 699,100 1,742,800 1,314,800 510,100 450,200
February 0 447,500 208,400 1,433,000 477,300 447,500 419,500
March 0 493,500 765,800 2,388,000 2,205,000 801,800 440,900
April 0 553,000 1,181,600 2,477,000 2,746,200 969,800 466,800
May 0 391,500 923,000 1,906,000 1,690,300 433,900 412,000
June 0 803,700 1,109,000 1,867,500 1,304,100 569,000 465,700
July 0 906,500 1,207,100 2,252,000 1,961,900 565,700 694,600
August 128,000 735,200 752,500 1,439,000 1,415,000 429,300 354,400
S eptember 448,000 738,300 709,700 1,901,000 1,461,800 521,200 413,900
O ctober 448,000 914,400 1,000,700 2,226,500 1,619,700 556,800 356,900
November 402,000 504,900 685,100 1,129,500 468,300 447,400 193,900
December 495,000 735,100 1,030,400 1,125,600 405,900 344,900 265,200
2017
January 546,900
February 308,600
March
April
May
June
July
August
S eptember
O ctober
November
December
Note: Open Interest for 2017 through February. Month-End.

May 22, 2017
160
Tocom Palladium Open Interest

Troy Ounces
1992 1993 1994 1995 1996 1997 1998 1999 2000
January - 4,032,321 2,664,535 1,962,991 1,408,489 1,111,850 3,627,946 4,686,024 4,503,489

February - 4,257,874 2,237,059 1,736,859 1,193,690 4,333,444 3,718,466 5,334,085 2,426,925
March - 4,216,206 2,078,348 1,474,992 1,100,903 4,894,071 4,284,977 5,533,355 1,444,079
April - 3,923,860 1,736,715 1,712,071 889,432 5,688,643 4,970,172 5,771,447 1,103,459
May - 3,690,012 1,586,780 1,820,049 922,901 6,140,761 4,763,186 6,337,138 1,000,593
June - 3,331,886 1,334,606 1,793,332 868,695 5,914,485 4,329,634 5,706,052 863,487
July - 3,462,241 1,589,818 1,741,537 811,981 5,870,069 4,614,794 5,048,153 772,822
August 491,423 3,381,993 2,169,640 1,577,714 1,161,620 4,263,275 4,551,425 4,360,788 638,753
S eptember 456,604 3,496,047 2,337,514 1,467,373 1,311,603 3,804,067 4,512,941 4,046,740 572,925
O ctober 477,727 3,736,165 2,180,828 1,405,643 1,401,978 3,513,409 4,096,316 3,506,898 347,661
November 688,957 3,559,127 2,414,579 1,434,241 1,457,631 3,328,366 4,584,508 3,500,822 304,065
December 3,565,445 3,234,904 2,244,197 1,466,553 1,256,336 3,021,262 4,441,856 3,797,798 101,226
2001 2002 2003 2004 2005 2006 2007 2008 2009
January 128,040 149,501 220,875 960,373 933,366 1,101,482 550,403 472,759 364,974
February 130,451 146,028 221,598 899,560 862,474 1,011,781 539,794 1,218,430 288,102
March 141,929 133,441 235,536 1,161,137 1,084,989 940,793 434,564 1,020,173 266,931
April 155,577 143,569 281,640 998,568 1,002,233 848,488 560,483 853,504 258,491
May 172,167 151,430 607,792 1,010,383 997,121 840,869 654,041 838,361 255,501
June 181,667 137,251 641,358 970,259 922,370 653,125 644,396 945,857 211,905
July 184,706 128,378 650,328 1,026,635 758,547 629,012 653,076 861,365 181,137
August 187,888 118,105 676,804 1,124,389 652,208 564,630 447,393 575,529 167,489
S eptember 151,092 113,138 747,310 1,054,944 615,653 477,341 476,087 512,835 162,811
O ctober 149,790 124,327 708,681 1,040,235 683,796 400,999 461,185 428,102 153,021
November 132,332 168,598 752,663 1,034,399 1,069,026 496,487 406,159 425,160 156,590
December 141,109 198,884 704,968 937,706 927,434 447,489 475,123 375,584 159,869
2010 2011 2012 2013 2014 2015 2016 2017
January 184,272 165,946 122,590 131,946 69,687 108,364 65,057 56,714

February 159,580 177,713 121,240 118,491 59,173 105,422 58,257 60,909
March 183,114 124,520 133,634 139,614 75,908 113,958 55,701 62,453
April 232,498 129,053 120,999 108,653 77,065 94,234 51,602 60,379
May 216,197 141,640 103,252 120,565 91,967 96,018 49,239
June 193,917 130,692 196,087 83,045 102,480 109,762 49,817
July 187,454 135,804 101,709 86,228 94,523 93,896 53,579
August 165,222 151,140 103,541 84,540 102,625 75,425 49,094
S eptember 175,253 184,898 122,205 74,027 119,986 76,197 47,406
O ctober 190,830 126,304 94,137 68,819 91,967 66,166 37,616
November 133,924 121,047 99,828 68,529 96,163 67,854 50,637
December 189,142 116,273 104,072 74,172 110,775 66,504 53,097

May 16, 2017
161
Tocom Palladium Trading Volume

Troy O unces
1992 1993 1994 1995 1996 1997 1998 1999 2000
January - 8,343,677 3,026,278 1,886,360 1,578,726 3,482,978 15,377,294 24,071,622 24,661,378

February - 19,739,866 3,233,216 1,731,892 3,880,360 18,250,069 11,026,586 37,100,358 19,937,255
March - 14,805,044 2,604,493 4,324,763 2,348,365 19,205,956 21,531,752 30,173,417 1,077,755
April - 11,397,829 2,052,113 4,072,637 1,744,431 17,139,954 21,378,248 42,301,098 497,065
May - 6,251,970 2,390,997 2,981,138 1,504,121 21,223,780 39,637,142 39,414,869 200,620
June - 6,041,705 2,803,908 2,718,066 907,613 26,528,351 23,083,905 26,423,604 419,180
July - 7,756,718 3,894,925 1,990,142 1,198,271 26,123,301 17,033,230 19,812,832 307,923
August 1,980,883 8,703,250 5,625,563 2,489,281 1,691,382 19,160,383 14,763,281 12,383,038 345,009
S eptember 797,610 7,169,518 3,984,480 3,311,149 1,777,851 4,986,183 17,941,133 10,407,557 191,264
O ctober 570,706 9,193,805 2,828,455 1,835,482 1,681,978 11,987,633 23,887,881 9,843,168 312,408
November 1,014,193 4,710,716 3,099,437 1,288,792 1,361,854 6,175,098 20,528,506 10,972,428 153,696
December 15,124,301 5,640,706 1,796,756 1,706,091 1,262,991 9,857,973 24,315,742 18,381,340 474,833
_________ _________ _________ _________ _________ _________ _________ _________ _________
Annual Total 19,487,693 109,754,805 37,340,620 30,335,794 20,937,945 184,121,660 250,504,700 281,285,331 48,578,387
2001 2002 2003 2004 2005 2006 2007 2008 2009
January 253,187 580,545 558,264 2,295,365 726,959 1,737,872 1,004,596 798,526 292,057
February 367,048 381,371 464,175 1,473,111 734,964 3,395,641 990,176 12,074,199 489,639
March 351,326 386,965 429,115 3,363,185 1,838,375 2,504,666 875,447 8,427,735 484,141
April 525,422 284,533 672,319 5,061,801 696,625 2,440,091 1,074,041 2,281,427 724,547
May 472,808 382,046 1,551,720 1,527,125 628,529 1,636,742 987,283 1,467,710 380,455
June 379,297 368,254 1,755,909 1,911,196 672,126 1,404,872 1,105,774 1,982,233 621,151
July 695,805 202,115 1,208,013 1,028,516 874,627 749,721 768,626 1,716,556 316,700
August 602,921 179,690 1,448,564 804,795 713,552 644,975 944,796 1,605,106 431,044
S eptember 408,860 170,334 2,426,925 889,095 750,589 854,613 374,523 1,129,067 291,237
O ctober 560,724 163,245 1,191,809 886,346 1,225,278 750,300 800,069 686,256 415,322
November 373,752 584,451 567,282 699,132 3,073,202 703,183 534,537 489,108 375,681
December 656,018 554,695 1,003,583 1,228,364 3,658,907 609,962 564,726 361,550 378,188
_________ _________ _________ _________ _________ _________ _________ _________ _________
Annual Total 5,647,168 4,238,246 13,277,679 21,168,031 15,593,732 17,432,638 10,024,594 33,019,474 5,200,161
2010 2011 2012 2013 2014 2015 2016 2017
January 631,375 662,239 252,077 395,067 214,365 287,379 169,804 167,585

February 345,588 549,391 307,055 533,428 172,746 189,046 116,176 95,536
March 538,781 590,286 287,089 453,566 228,109 342,115 120,999 102,336
April 1,034,496 343,417 214,220 448,502 212,436 300,400 94,282 102,528
May 949,908 300,930 206,890 385,808 193,820 183,355 93,558
June 406,497 381,371 218,030 404,761 324,320 306,524 88,302
July 337,341 310,961 173,951 258,588 290,803 417,830 160,544
August 297,603 479,415 192,518 186,297 418,264 308,116 129,824
S eptember 424,244 537,913 208,529 233,366 480,620 173,903 105,711
O ctober 636,728 556,335 252,560 169,900 440,496 183,982 80,248
November 1,103,411 257,237 257,672 174,096 312,842 192,181 177,327
December 862,908 343,224 319,787 183,452 416,046 132,863 183,645
_________ _________ _________ _________ _________ _________ _________ _________
Annual Total 7,568,878 5,312,721 2,890,377 3,826,830 3,704,866 3,017,694 1,520,421 467,985

Note: Annual trading volume for 2017 through April.
May 8, 2017
162

Quarterly, Troy Ounces
Exchanges
U.S . Industry Nymex Tocom Exchange Traded Products
% % %
Ounces of Total Ounces of Total Ounces of Total Ounces % of Total Total
1977 I 359,023 94.7 20,000 5.3 - - - - 379,023

II 359,514 91.7 32,400 8.3 - - - - 391,914
III 376,306 94.1 23,700 5.9 - - - - 400,006
IV 378,049 84.7 68,300 15.3 - - - - 446,349
1978 I 314,473 82.4 67,400 17.6 - - - - 381,873

II 320,298 83.1 65,100 16.9 - - - - 385,398
III 299,451 85.7 50,100 14.3 - - - - 349,551
IV 299,473 88.2 40,000 12.7 - - - - 339,473
- - - -
1979 I 337,077 91.3 32,000 8.7 - - - - 369,077
II 314,855 92.0 27,300 8.0 - - - - 342,155
III 336,546 91.3 32,200 8.7 - - - - 368,746
IV 284,478 92.3 23,700 7.7 - - - - 308,178
1980 I 311,995 91.1 30,500 8.9 - - - - 342,495

II 280,734 90.9 28,200 9.1 - - - - 308,934
III 289,765 90.3 31,300 9.7 - - - - 321,065
IV 261,631 89.0 32,200 11.0 - - - - 293,831
1981 I 312,457 86.3 49,700 13.7 - - - - 362,157

II 317,784 77.6 91,900 22.4 - - - - 409,684
III 299,911 75.7 96,500 24.3 - - - - 396,411
IV 302,769 75.5 98,400 24.5 - - - - 401,169
1982 I 216,863 69.6 94,800 30.4 - - - - 311,663

II 213,440 70.2 90,700 29.8 - - - - 304,140
III 252,514 73.4 91,400 26.6 - - - - 343,914
IV 208,771 76.4 64,650 23.6 - - - - 273,421
1983 I 328,442 69.8 142,100 30.2 - - - - 470,542

II 314,810 71.3 127,000 28.7 - - - - 441,810
III 297,105 75.1 98,300 24.9 - - - - 395,405
IV 302,295 79.3 79,100 20.7 - - - - 381,395
1984 I 262,411 77.2 77,300 22.8 - - - - 339,711

II 481,447 86.4 75,800 13.6 - - - - 557,247
III 435,634 89.3 52,300 10.7 - - - - 487,934
IV 486,934 87.9 66,900 12.7 - - - - 553,834
1985 I 370,772 83.2 75,000 16.8 - - - - 445,772

II 321,553 82.8 66,800 17.2 - - - - 388,353
III 319,488 79.1 84,600 20.9 - - - - 404,088
IV 319,836 74.2 111,400 23.3 - - - - 431,236
1986 I 290,304 71.1 117,800 28.9 - - - - 408,104

II 284,505 75.9 90,500 24.1 - - - - 375,005
III 315,644 78.1 88,400 21.9 - - - - 404,044
IV 489,662 82.0 107,300 16.8 - - - - 596,962
163

Exchanges
% % %
1987 I 285,293 72.9 106,200 14.4 - - - - 391,493

II 312,114 75.2 103,200 24.8 - - - - 415,314
III 324,330 79.5 83,500 20.5 - - - - 407,830
IV 415,620 87.1 61,800 12.9 - - - - 477,420
1988 I 454,486 81.0 106,300 19.0 - - - - 560,786

II 466,015 80.2 115,400 19.8 - - - - 581,415
III 452,221 78.0 127,200 22.0 - - - - 579,421
IV 463,557 93.0 35,100 7.0 - - - - 498,657
- -
1989 I 375,352 83.9 71,800 16.1 - - - - 447,152
II 355,136 89.7 40,896 10.3 - - - - 396,032
III 324,433 79.7 82,499 20.3 - - - - 406,931
IV 313,570 77.6 90,500 22.4 - - - - 404,070
1990 I 270,720 78.3 74,900 21.7 - - - - 345,620

II 309,247 81.1 71,900 18.9 - - - - 381,147
III 310,520 82.5 65,900 17.5 - - - - 376,420
IV 280,863 81.1 65,400 18.9 - - - - 346,263
1991 I 259,584 75.7 83,400 24.3 - - - - 342,984

II 259,713 76.1 81,502 23.9 - - - - 341,215
III 257,109 76.1 89,602 26.5 - - - - 337,711
IV 257,302 69.5 112,688 30.5 - - - - 369,990
1992 I 266,080 79.9 76,904 23.1 - - - - 333,210

II 286,458 80.4 69,900 19.6 - - - - 356,358
III 281,965 79.6 72,400 20.4 - - - - 354,365
IV 247,755 83.3 49,800 16.7 - - - - 297,555
1993 I 387,400 89.1 47,400 10.9 22,956 5.0 - - 457,756

II 304,462 88.9 38,200 11.1 19,098 5.3 - - 361,760
III 280,228 83.8 54,300 16.2 18,905 5.3 - - 353,433
IV 242,674 86.8 36,900 13.2 70,506 20.1 - - 350,080
1994 I 237,084 86.5 37,000 13.5 52,181 16.0 - - 326,265

II 240,079 78.3 26,500 8.6 40,317 13.1 - - 306,896
III 195,252 80.3 48,000 19.7 36,073 12.9 - - 279,325
IV 164,100 72.0 63,700 28.0 5,594 2.4 - - 233,394
1995 I 150,000 72.3 49,500 23.9 8,006 3.9 - - 207,506

II 170,000 84.2 0 0.0 31,926 15.8 - - 201,926
III 163,000 66.6 60,600 24.8 21,027 8.6 - - 244,627
IV 154,000 61.3 69,100 27.5 28,260 11.2 - - 251,360
1996 I 147,000 78.3 22,200 11.8 18,615 9.9 - - 187,815

II 147,000 74.4 31,000 15.7 19,580 9.9 - - 197,580
III 150,000 61.1 67,300 27.4 28,068 11.4 - - 245,368
IV 150,000 56.0 98,500 36.8 19,483 7.3 - - 267,983
164

Exchanges
% % %
1997 I 153,000 47.2 158,900 49.0 12,539 3.9 - - 324,439

II 140,000 81.3 28,400 16.5 3,762 2.2 - - 172,162
III - - 57,900 99.2 482 0.8 - - 58,382
IV - - 65,500 96.6 2,315 3.4 - - 67,815
1998 I - - 55,100 97.3 1,543 2.7 - - 56,643

II - - 33,500 96.1 1,350 3.9 - - 34,850
III - - 41,100 93.8 2,701 6.2 - - 43,801
IV - - 46,400 89.6 5,401 10.4 - - 51,801
- -
1999 I - - 53,400 97.7 1,254 2.3 - - 54,654
II - - 48,400 93.7 3,279 6.3 - - 51,679
III - - 32,200 76.6 9,838 23.4 - - 42,038
IV - - 33,300 47.3 37,038 52.7 - - 70,338
2000 I - - 19,600 47.8 21,412 52.2 - - 41,012

II - - 21,600 87.2 3,183 12.8 - - 24,783
III - - 12,400 79.6 3,183 20.4 - - 15,583
IV - - 15,900 83.3 3,183 16.7 - - 19,083
2001 I - - 20,500 86.6 3,183 13.4 - - 23,683

II - - 10,500 76.7 3,183 23.3 - - 13,683
III - - 42,200 96.3 1,640 3.7 - - 43,840
IV - - 60,200 95.7 2,701 4.3 - - 62,901
2002 I - - 244,800 98.7 3,279 1.3 - - 248,079

II - - 279,100 98.0 5,691 2.0 - - 284,791
III - - 1,986 25.9 5,691 74.1 - - 7,677
IV - - 620,600 99.3 4,437 0.7 - - 625,037
0
2003 I - - 230,100 98.1 4,437 1.9 - - 234,537
II - - 274,900 97.9 5,980 2.1 - - 280,880
III - - 1,987 27.2 5,305 72.8 - - 7,292
IV - - 677,800 98.4 10,899 1.6 - - 688,699
2004 I - - 323,300 97.8 7,234 2.2 - - 330,534

II - - 519,700 98.6 7,620 1.4 - - 527,320
III - - 745,300 98.9 7,909 1.1 - - 753,209
IV - - 724,400 96.6 25,463 3.4 - - 749,863
2005 I - - 676,800 96.9 21,798 3.1 - - 698,598

II - - 718,600 97.0 22,570 3.0 - - 741,170
III - - 694,500 96.9 22,570 3.1 - - 717,070
IV - - 800,200 96.4 29,611 3.6 - - 829,811
2006 I - - 1,193,100 97.8 27,103 2.2 - - 1,220,203

II - - 1,111,800 97.5 28,164 2.5 - - 1,139,964
III - - 944,500 97.5 23,824 2.5 - - 968,324
IV - - 715,100 97.1 21,027 2.9 - - 736,127
165

Exchanges
% % %
2007 I - - 715,700 92.8 55,267 7.2 - - 770,967

II - - 608,500 90.8 47,165 7.0 14,534 2.2 670,199
III - - 634,900 67.1 47,165 5.0 263,942 27.9 946,007
IV - - 571,000 64.6 43,982 5.0 268,981 30.4 883,963
2008 I - - 523,000 61.2 17,265 2.0 314,629 36.8 854,894

II - - 456,600 42.6 26,910 2.5 588,350 54.9 1,071,860
III - - 433,000 37.3 33,951 2.9 693,801 59.8 1,160,753
IV - - 428,900 37.0 32,215 2.8 697,686 60.2 1,158,801
2009 I - - 345,000 32.5 21,027 2.0 696,244 65.5 1,062,270

II - - 429,100 33.4 20,448 1.6 835,236 65.0 1,284,784
III - - 548,800 37.5 16,397 1.1 896,359 61.3 1,461,556
IV - - 661,100 37.3 12,635 0.7 1,097,695 62.0 1,771,430
2010 I - - 635,400 29.5 11,960 0.6 1,510,038 70.0 2,157,398

II - - 626,700 25.5 13,310 0.5 1,815,126 73.9 2,455,136
III - - 614,200 25.9 13,310 0.6 1,744,293 73.5 2,371,804
IV - - 577,900 23.3 11,478 0.5 1,893,693 76.3 2,483,071
2011 I - - 520,600 18.2 11,285 0.4 2,335,263 81.4 2,867,148

II - - 503,300 17.8 10,996 0.4 2,311,628 81.8 2,825,923
III - - 547,900 19.9 10,996 0.4 2,197,212 79.7 2,756,107
IV - - 603,300 24.5 6,945 0.3 1,855,512 75.3 2,465,757
2012 I - - 593,100 25.2 5,305 0.2 1,753,622 74.6 2,352,027

II - - 574,800 22.5 8,006 0.3 1,972,752 77.2 2,555,557
III - - 542,000 21.5 4,919 0.2 1,971,473 78.3 2,518,392
IV - - 533,800 21.9 4,823 0.2 1,896,976 77.9 2,435,599
2013 I - - 553,029 20.5 4,340 0.2 2,143,512 79.4 2,700,881

II - - 565,839 20.1 4,147 0.1 2,245,532 79.8 2,815,518
III - - 557,450 20.4 5,016 0.2 2,167,690 79.4 2,730,155
IV - - 545,513 21.0 3,472 0.1 2,050,797 78.9 2,599,783
2014 I - - 417,863 16.9 2,604 0.1 2,052,881 83.0 2,473,348

II - - 341,663 12.1 3,183 0.1 2,468,842 87.7 2,813,688
III - - 268,784 8.3 2,218 0.1 2,956,642 91.6 3,227,644
IV - - 221,466 7.1 2,025 0.1 2,884,731 92.8 3,108,223
2015 I - - 184,474 5.9 2,025 0.1 2,921,513 94.0 3,108,012

II - - 143,605 4.7 5,208 0.2 2,899,671 95.1 3,048,484
III - - 95,448 3.3 7,041 0.2 2,827,272 96.5 2,929,761
IV - - 83,865 3.5 10,417 0.4 2,276,127 96.0 2,370,408
2016 I - - 65,870 2.9 11,478 0.5 2,210,920 96.6 2,288,267

II - - 68,367 3.1 11,671 0.5 2,153,065 96.4 2,233,103
III - - 68,425 3.2 11,381 0.5 2,036,158 96.2 2,115,964
IV - 59,397 3.4 10,224 0.6 1,690,056 96.0 1,759,677
2017 I 57,858 3.6 3,183 0.2 1,541,113 96.2 1,602,154
Notes: Q uarterly stock levels are end-quarter; year-end figure may reflect annual reporting. Industrial stocks as reported to the Bureau of
Mines on a voluntary basis by traders, refiners, and users. The U.S . Bureau of Mines stopped reporting year-end data in 1995. In the third
quarter of 1997, U.S . Bureau of Mines ceased publication of U.S . Industry stock level data.
S ources: U.S . Bureau of Mines, New York Mercantile Exchange, Inc., Tokyo Commodity Exchange, ETP issuer websites, Bloomberg.
May 18, 2017
166
Prices than the previous year’s figures, when

palladium touched an intraday low of
Even though palladium prices ended $520 and an intraday high of $833.60.
last year more than one-fifth higher than
they started the year, on an annual Price Trends in 2016
average basis prices declined. Palladium
prices, basis the nearby active Nymex While on an annual average basis
futures contract settlement prices, palladium prices fell, on a year-end to
averaged $615.49 in 2016. This was year-end basis prices actually rose.
down 10.8% from $690.35 averaged in Palladium prices ended 2016 at
2015. While palladium prices have $683.25, up 21.6% from $562 at the end
come off in the past two years, they of 2015. Palladium recouped a
remain at historically high levels. substantial part of its losses from the
decline of 29.6% in prices during 2015,
The chart below shows that palladium when it dropped from $798.40 at the
prices moved steadily higher through end of 2014.
2016.
Palladium prices entered 2016 on a
Palladium prices continued to move in a downward trend. Prices began January
wide trading range in 2016, expanding at $544.20, ending the month at
to a $324.50 band from $313.60 in $498.50. Prices had fallen to an intraday
2015. In 2016 prices moved between an low of $451.50 in the middle of the
intraday low of $451.50 and an intraday month, on 12 January. This proved to be
high of $776. These levels were lower the low for the year. Platinum traded on
Daily High, Low and Settlement Prices

Through 4 May 2017
$ / Oz
$900 $900
$850 $850
$800 $800
$750 $750
$700 $700
$650 $650
$600 $600
$550 $550
$500 $500
$450 $450
$400 $400
Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17
167
either side of $500 in February, moving began to trade on either side of this
above $550 in early March. Prices level. As of 4 May palladium prices had
briefly topped $600 on 21 and 22 March settled at $800.65.
before ending the quarter at $564,
slightly higher than where prices began Volatility
for the year.
The annual volatility rate for 2016 was
During the second quarter of the year 29.8%, little changed from 29.4% in
palladium prices moved broadly 2015. Volatility is calculated as the
sideways, between $523 and $632, as standard deviation of the daily
they consolidated the gain or recovery logarithmic price changes based on the
that occurred in early March. Prices fell nearby active Ny mex contract
into early April before rising to their settlement price. January 2016 was the
quarterly high in late April. Palladium most volatile month of the year,
then fell to around $550 and traded on measuring at 37.5%. Volatility
either side of this level for the remained around this level in the first
remainder of the quarter. quarter, then eased to between 22% and
29% in the second quarter on a monthly
In July prices began to trend higher basis. Volatility dropped to 15.4% in
once more, breaking above $700 by 27 July, as would be expected to happen in
July. Palladium traded mainly sideways the summer months of the Northern
in August, before prices fell to test the Hemisphere, but picked up in August to
$650 support level in the middle of 32%. During the remaining four months
September. By the end of September, of 2016 monthly price volatility ranged
however, prices were back above $700. from 22.7% to 26.7%.
Palladium price volatility picked up in Platinum / Palladium Ratio

the last quarter of 2016 as prices fell
from above $700 at the start of October Platinum prices have typically held a
to near $600 by late October and early premium to palladium prices. There was
November before surging to above $750 an exception in recent times during
in late November. Prices settled at 2000 and 2001, when there was
$771.65 on 30 November and reached uncertainty and some lack Russian
an intraday high of $776 on 1 supply. Over the most recent years,
December. These were the highs for however, the premium of platinum to
2016. Palladium prices eventually fell, palladium has narrowed. In October
ending 2016 at $683.25. 2012 platinum prices held more than a
$1,000 premium to palladium. In April
In 2017 palladium prices have 2017 that premium was between $150
continued their upward trend. Palladium and $200, and more recently in early
rose to trade above $750 in early May 2017 it had narrowed to around
January, breaking below this level only $100. The platinum to palladium ratio
a few times each month since then, if has shrunk from 2.6 in October 2012 to
any. Prices held below $800 until the 1.2 in April 2017. The narrowing trend
second half of March, when palladium was prevalent for most of 2016.
168
Palladium Price Volatility

Monthly Data, through April 2017
Percent Percent
160% 160%
140% 140%
120% 120%
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Palladium Price Seasonality

Monthly
Seasonal Strength Seasonal Strength
112 112
107 107
102 102
97 97
92 92
87 87
82 82
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
169
Monthly Palladium and Platinum Prices

Through April 2017
$/Ounce
2,200 2,200
2,000 2,000
1,800 1,800
1,600 1,600
1,400 Palladium 1,400
Platinum
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
0 0
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Platinum - Palladium Price Differential

$/Ounce $/Ounce
1,800 1,800
1,500 1,500
1,200 1,200
900 900
600 600
300 300
0 0
-300 -300
-600 -600
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Platinum - Palladium Price Ratio

Monthly Data, Through April 2017
Price Ratio Price Ratio
6.0 6.0
5.0 5.0
4.0 4.0
3.0 3.0
2.0 2.0
1.0 1.0
0.0 0.0
75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17
170
Quarterly Real and Nominal Palladium Prices

Through First Quarter 2017. Basis Metals Week New York Dealer Price
$/Ounce $/Ounce
1,000 1,000
900 900
800 800
Nominal Palladium Price
700 700
600 600
500 500
Real Palladium Price
400 400
300 300
200 200
100 100
0 0
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
Palladium and U.S. Inflation

Quarterly, Through First Quarter 2017. Inflation is change in U.S. Consumer
Price Index. Palladium price is Metals Week New York Dealer Price
$/Ounce Percent Change
1,000 20
900 18
Inflation Palladium (left scale)
800 16
14
700
12
600
10
500
8
400
6
300
4
200 2
100 0
0 -2
68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
171
New York Dealer Palladium Prices

Monthly Averages
1968 1969 1970 1971 1972 1973 1974

January $44.00 $42.75 $35.50 $35.00 $34.50 $65.05 $87.55
February 46.00 40.88 35.50 35.00 35.50 66.89 99.67
March 51.50 40.80 36.00 35.00 35.50 65.46 114.52
April 49.60 39.13 36.00 35.00 35.50 65.43 140.82
May 49.00 38.75 36.00 35.00 35.50 74.82 142.91
June 49.25 37.70 36.00 35.25 37.43 79.10 134.00
July 49.10 36.50 36.00 35.25 48.90 81.19 139.91
August 45.50 36.50 36.00 35.25 53.04 82.22 141.32
S eptember 44.88 36.40 36.00 35.25 57.20 80.21 132.80
October 42.88 36.50 36.00 35.25 65.21 82.00 131.55
November 42.00 36.50 35.40 34.75 67.00 81.50 130.06
December 42.00
______ 35.88
______ 35.00
______ 34.50
______ 67.57
______ 81.50
______ 119.95
_______
Annual $46.31 $38.19 $35.78 $35.04 $47.74 $75.45 $126.25
Percent Change -- -17.5% -6.3% -2.1% 36.2% 58.0% 67.3%
1975 1976 1977 1978 1979 1980 1981

January $111.00 $42.29 $54.61 $55.69 $76.00 $230.96 $127.71
February 100.94 38.00 58.22 63.83 99.44 271.05 111.67
March 89.24 37.34 57.10 63.33 95.18 230.24 118.73
April 82.73 39.55 54.50 60.00 94.38 194.55 107.18
May 66.33 42.19 52.06 60.94 108.55 159.81 102.80
June 53.19 51.06 44.52 59.46 124.02 170.43 92.50
July 54.82 56.75 44.01 59.53 123.36 199.23 84.65
August 55.14 51.09 42.08 61.51 121.08 204.91 85.52
S eptember 49.24 52.88 41.98 60.46 142.47 213.00 86.62
October 46.23 51.90 42.78 73.71 144.55 201.32 78.45
November 43.71 52.49 49.03 67.40 141.53 183.12 69.36
December 42.77
______ 51.00
______ 51.21
______ 70.11
______ 167.38
_______ 150.77
_______ 69.77
______
Annual $66.28 $47.21 $49.34 $63.00 $119.83 $200.78 $94.58
Percent Change -47.5% -28.8% 4.5% 27.7% 90.2% 67.6% -52.9%
1982 1983 1984 1985 1986 1987 1988

January $66.50 $125.10 $156.14 $121.29 $102.43 $122.75 $123.66
February 67.17 124.90 160.13 124.44 100.95 119.50 118.90
March 66.91 101.89 160.27 112.98 110.10 122.50 121.44
April 69.19 120.33 160.10 112.05 106.77 135.93 121.50
May 67.88 131.48 155.14 108.00 107.74 144.70 122.10
June 56.64 132.73 152.86 98.38 110.19 136.71 127.46
July 56.62 146.45 138.10 94.48 111.23 139.50 124.45
August 59.46 148.07 137.44 102.89 128.31 140.00 122.96
S eptember 64.26 150.98 138.05 98.80 140.14 136.71 119.62
October 62.58 142.00 140.36 100.75 134.84 129.24 120.68
November 74.47 145.91 145.58 100.47 121.94 111.21 125.48
December 90.23
______ 164.10
_______ 134.00
_______ 94.55
_______ 116.89
_______ 120.59
_______ 131.14
_______
Annual $66.82 $136.16 $148.18 $105.76 $115.96 $129.95 $123.28
Percent Change -29.3% 103.8% 8.8% -28.6% 9.6% 12.1% -5.1%
172
New York Dealer Palladium Prices

Monthly Averages
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
January $134.95 $134.93 $84.29 $81.31 $108.79 $123.88 $155.05 $128.52 $120.26 $216.28
February 141.05 135.24 82.90 84.71 108.11 130.53 156.66 135.75 132.63 232.13
March 145.07 129.57 84.33 83.83 104.83 131.61 160.28 137.31 144.29 251.50
April 166.25 126.57 94.39 82.93 112.41 132.02 167.75 135.61 150.02 294.00
May 152.36 118.41 94.05 82.03 118.00 135.00 159.14 133.53 165.24 320.00
June 152.46 114.57 96.00 79.59 124.11 136.84 157.66 128.00 188.48 267.50
July 149.95 115.95 94.50 85.28 137.10 144.75 154.68 131.02 178.27 294.80
August 133.61 115.02 81.32 84.48 133.36 151.35 148.98 126.61 204.43 280.25
S eptember 136.57 103.47 81.23 89.62 119.52 151.19 141.05 120.63 187.05 278.00
October 136.98 93.68 83.94 93.67 126.80 153.20 134.33 116.64 200.00 275.60
November 138.14 92.78 85.95 94.06 127.38 155.90 133.52 117.03 203.67 274.25
December 136.98 _______
_______ 87.25 _______
80.30 103.95 _______
______ 123.17 _______
153.17 _______
130.20 _______
117.52 _______
194.41 _______
290.00
Annual $143.70 $113.95 $86.93 $87.12 $120.30 $141.62 $149.94 $127.35 $172.40 $272.86
Percent Change 16.6% -20.7% -23.7% 0.2% 38.1% 17.7% 5.9% -15.1% 35.4% 58.3%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
January $313.00 $439.25 $985.00 $400.40 $244.00 $208.50 $181.25 $264.50 $329.75 $368.60
February 341.00 565.00 982.50 366.25 247.25 229.25 179.75 276.25 334.25 442.75
March 349.60 650.60 766.40 366.25 220.50 254.75 190.00 296.00 344.40 465.75
April 353.75 566.00 673.25 363.25 156.75 275.00 196.00 336.25 359.50 437.75
May 317.00 565.00 644.00 351.20 158.40 237.25 187.75 356.25 361.60 418.60
June 337.75 619.40 601.75 330.25 174.50 223.75 184.00 303.40 365.00 430.75
July 327.60 678.75 526.75 316.75 168.40 215.60 179.50 309.25 363.50 417.00
August 337.50 733.00 434.40 317.00 175.50 210.25 185.00 321.00 338.20 302.25
S eptember 354.30 715.75 429.50 322.25 202.50 208.40 184.40 316.00 330.25 237.75
October 380.25 732.00 323.00 312.60 193.80 212.25 200.75 304.25 356.25 190.00
November 394.75 772.40 320.40 281.00 194.25 211.75 233.50 318.00 359.80 189.50
December 419.00 _______
_______ 892.50 _______
376.25 _______
236.25 _______
193.20 _______
187.60 _______
253.80 _______
323.00 _______
346.50 _______
168.40
Annual $352.13 $660.80 $588.60 $330.29 $194.09 $222.86 $196.31 $310.35 $349.08 $339.09
Percent Change 29.1% 87.7% -10.9% -43.9% -41.2% 14.8% -11.9% 58.1% 12.5% -2.9%
2009 2010 2011 2012 2013 2014 2015 2016 2017

January $178.50 $420.25 $766.25 $633.25 $697.40 $719.80 $765.25 $499.13 $742.25
February 200.00 405.00 796.75 682.50 731.25 716.25 770.75 509.45 751.94
March 195.00 445.60 740.00 670.20 738.75 752.25 778.25 570.28 773.54
April 220.40 515.00 752.50 640.00 686.50 771.25 750.20 563.00 776.41
May 219.00 452.50 706.25 606.00 718.20 804.40 771.25 575.25
June 234.75 445.00 747.40 594.50 714.13 817.00 721.25 552.50
July 240.80 439.00 767.50 568.25 708.50 859.80 627.00 644.75
August 265.25 475.00 731.75 581.40 741.20 860.00 573.75 704.88
S eptember 289.25 520.80 692.00 634.00 701.25 829.50 576.00 683.90
October 306.40 571.25 615.76 624.75 725.90 750.40 667.20 655.63
November 340.50 661.25 611.75 613.00 735.63 758.25 555.75 677.63
December 362.00 _______
_______ 721.00 _______
607.00 _______
675.50 _______
703.50 _______
789.40 _______
551.90 _______
710.70 _______
Annual $254.32 $505.97 $711.24 $626.95 $716.85 $785.69 $675.71 $612.26 $761.03
Percent Change -25.0% 98.9% 40.6% -11.9% 14.3% 9.6% -14.0% -20.6% 44.6%
Note: Percent change in 2017 compares the average price through April
with the same period in 2016.
S ource: Metals Week, CPM Group.
May 8, 2017
173
174
RHODIUM CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
Rhodium
175
CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 RHODIUM
176
Review and Outlook inventory liquidation by holders of

rhodium in expectation of higher prices
After declining for five consecutive helped push the price of rhodium higher
years, the price of rhodium showed during the first several months of 2017.
some signs of bottoming out during The price of rhodium rose to $1,025 in
2016. Prices started the year at $660 and April 2017 before softening in May to
spent the year trading in a range around $930, which was still higher
between $625 and $825. The average than levels seen in 2016.
price during 2016 was $693.74, down
26.9% from 2015. The rhodium market was in a deficit of
newly refined metal relative to
After moving mostly sideways during fabrication demand for the third
the first nine months of the year, the consecutive year in 2016. The market
price of rhodium picked up toward the was in a deficit of 48,700 ounces in
end of the year, supported by an overall 2016, up from a deficit of 37,134
optimistic view toward industrial ounces in 2015. A decline in South
commodities that swept the markets African mine supply and an uptick in
following the election of Donald Trump fabrication demand were the primary
as U.S. president. This sentiment toward reasons for the expansion of the deficit.
industrial commodities continued into The deficit is forecast to shrink in 2017
the first several months of 2017. to 45,000 ounces as supply rises slightly
Strength in palladium prices, inventory and fabrication demand moderates.
building by automakers, and lack of These deficits have been met by a
Daily JM Rhodium Prices

Through 2 June 2017
$/Ounce
11,000
8,800
6,600
4,400
2,200
0
S-94 S-97 S-00 S-03 S-06 S-09 S-12 S-15
177
Selected Rhodium Statistics
Troy Ounces
1977 1978 1979 1980 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Mine Production
South Africa 77,000 74,000 82,000 86,000 103,000 180,000 212,000 271,000 285,000 311,000 355,000 358,000 436,440 392,085 437,150 416,567
Russia* - - - 24,000 33,000 150,000 120,000 118,000 115,000 85,000 63,000 70,000 70,000 47,000 0 14,000
Canada 17,700 13,200 7,500 15,600 13,200 20,000 22,000 20,000 16,000 18,000 16,200 19,440 18,468 18,000 18,540 19,652
Other _______- _______- _______- ________- ________- ________- ________- ________
2,000 ________
3,000 ________
3,000 ________
2,000 ________
2,000 ________
2,000 ________
4,863 ________
4,909 ________
3,000
Total 94,700 87,200 89,500 125,600 149,200 350,000 354,000 411,000 419,000 417,000 436,200 449,440 526,908 461,948 460,599 453,219
% Change Year Ago 10.4% -7.9% 2.6% 40.3% 4.0% 12.5% 1.1% 16.1% 1.9% -0.5% 4.6% 3.0% 17.2% -12.3% -0.3% -1.6%
Secondary Supply
Total 5,333 8,588 8,286 16,141 11,609 25,000 30,000 23,000 30,200 32,700 30,000 36,000 39,000 45,000 50,000 60,000
% Change Year Ago -36.4% _______
_______ 61.0% _______
-3.5% ________
94.8% ________
18.5% ________
14.4% ________
20.0% ________
-23.3% ________
31.3% ________
8.3% ________
-8.3% ________
20.0% ________
8.3% ________
15.4% ________
11.1% ________
20.0%
Total Supply 100,033 95,788 97,786 141,741 160,809 375,000 384,000 434,000 449,200 449,700 466,200 485,440 565,908 506,948 510,599 513,219
% Change Year Ago 6.2% -4.2% 2.1% 45.0% 4.9% 12.7% 2.4% 13.0% 3.5% 0.1% 3.7% 4.1% 16.6% -10.4% 0.7% 0.5%
Fabrication Demand
Automotive 871 2,939 26,136
37,012 114,188 270,000 306,000 329,000 344,000 354,366 356,800 360,000 369,000 384,000 404,000 463,500
Electronics 18,796 22,367 26,568
21,248 15,310 27,809 24,851 19,200 24,500 22,450 25,255 25,900 26,200 27,000 27,500 55,163
Other 62,363 72,434 69,732
44,750 30,662 51,697 51,705 43,091 48,300 42,466 37,850 42,300 65,525 68,880 69,650 116,341
Other Countries 29,000 _______
______ ______ _______ _______ 27,000 _______
35,000 _______
35,000 _______
33,000 _______
32,000 29,000
_______ 24,000
_______ 23,000
_______ 22,000
_______ 20,000
_______ 21,000
_______ 4,000
_______
Total 82,030 97,740 122,437 132,010 187,161 384,506 417,556 424,291 448,800 448,282 443,905 451,200 482,725 499,880 522,150 639,004
% Change Year Ago 18.3% 19.2% 25.3% 7.8% 1.1% 8.9% 8.6% 1.6% 5.8% -0.1% -1.0% 1.6% 7.0% 3.6% 4.5% 22.4%
Apparent Surplus
or Deficit 18,003 -1,952 -24,651 9,731 -26,352 -9,506 -33,556 9,709 400 1,418 22,295 34,240 83,183 7,068 -11,551 -125,785
Price per Ounce

High $445 $645 $830 $870 $1,145 $5,500 $5,500 $2,950 $1,175 $900 $590 $330 $330 $715 $950 $2,550
Low 375 448 670 610 615 2,000 1,425 1,725 725 565 240 215 175 360 725 980
Average 411 525 772 728 928 3,567 3,737 2,365 1,066 713 424 281 268 575 862 1,833
% Change Year Ago 32.4% 28.0% 46.9% -5.7% 51.5% 174.4% 4.8% -36.7% -54.9% -33.1% -40.5% -33.8% -4.4% 114.3% 50.1% 112.5%
Notes: Secondary supply for Europe includes small amounts recovered elsewhere in the years prior to 1987. * Prior to 2003 Russian supply represented
rhodium exports. Russian supply represents mine production since 2003. Automotive includes U.S., Japanese, and European data. Electronics and other
Uses include U.S. and Japanese use only. Other Countries include European use excluding auto catalysts. Industrial stocks are as of year end. Prices are
Metals Week New York Dealer monthly average prices, 2012 through April; percent change is from the same 2011 period.
There may be discrepancies due to rounding. e -- estimate. p -- projections.
Sources: U.S. Bureau of Mines; trade sources; CPM Group.
May 20, 2017
178
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
466,600 466,005 524,070 513,180 654,902 677,559 643,570 624,160 656,305 642,992 641,774 582,541 599,446 433,570 614,539 599,895 590,531
48,000 100,000 108,000 105,000 100,000 95,000 94,000 88,000 87,000 87,000 87,000 88,000 87,000 88,000 87,000 86,000 92,618
19,510 19,510 20,000 35,500 35,600 35,700 27,810 29,245 21,601 9,795 23,710 21,204 22,024 25,929 23,570 26,010 27,803
3,000 7,000 15,000 19,100 13,700 13,900 14,300 14,800 20,000 24,200 27,713 28,567 37,087 35,204 36,096 43,800 40,164
________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________
537,110 592,515 667,070 672,780 804,202 822,159 779,680 756,205 784,906 763,987 780,197 720,312 745,557 582,703 761,206 755,704 751,116
18.5% 10.3% 12.6% 0.9% 19.5% 2.2% -5.2% -3.0% 3.8% -2.7% 2.1% -7.7% 3.5% -21.8% 30.6% -0.7% -0.6%
70,000 80,000 100,000 130,000 140,000 150,000 170,000 154,136 139,895 182,215 173,989 167,491 206,295 211,000 214,623 220,938 233,840
16.7% ________
________ 14.3% ________
25.0% ________
30.0% ________
7.7% ________
7.1% ________
13.3% ________
-9.3% ________
-9.2% ________
30.3% ________
-4.5% ________
-3.7% ________
23.2% ________
2.3% ________
1.7% ________
2.9% ________
5.8%
607,110 672,515 767,070 802,780 944,202 972,159 949,680 910,341 924,801 946,202 954,186 887,803 951,852 793,703 975,828 976,642 984,956
18.3% 10.8% 14.1% 4.7% 17.6% 3.0% -2.3% -4.1% 1.6% 2.3% 0.8% -7.0% 7.2% -16.6% 22.9% 0.1% 0.9%
430,000 551,000 584,000 718,000

795,000 865,000 877,550 818,168 689,875 734,160 739,177 775,854
790,001 820,248 851,759 866,639 872,119
42,830 41,571 40,879 44,950
44,884 45,526 45,947 44,580 41,246 43,860 44,457 44,338
43,897 43,616 44,136 43,667 44,197
96,540 99,778 103,754 110,488
102,415 95,470 95,426 95,913 93,543 98,882 103,724 108,817
110,488 113,164 115,067 113,291 112,460
2,000
_______ 4,000
_______ 4,000
_______ 4,000
5,000 _______
_______
_______ 5,000 _______
5,000 _______
4,000 _______
2,000 4,000
_______ 4,000
_______ 2,000
2,000 _______
_______
_______ 2,000 _______
2,000 _______
1,750 1,250
_______
571,370 696,349 732,632 877,438 947,299 1,010,996 1,023,922 962,661 826,664 880,901 891,358 931,009 946,387 979,028 1,012,962 1,025,346 1,030,025
-10.6% 21.9% 5.2% 19.8% 8.0% 6.7% 1.3% -6.0% -14.1% 6.6% 1.2% 4.4% 1.7% 3.4% 3.5% 1.2% 0.5%
35,740 -23,834 34,438 -74,658 -3,097 -38,837 -74,242 -52,321 98,137 65,300 62,828 -43,206 5,465 -185,324 -37,134 -48,704 -45,069
YTD
$2,150 $2,941 $575 $1,275 $2,950 $5,900 $6,725 $9,494 $2,285 $2,712 $2,285 $1,415 $1,206 $1,475 $1,245 $740 $1,015
673 1,346 385 475 1,275 2,960 5,400 1,050 1,038 2,375 1,038 1,038 1,070 1,025 640 640 930
1,478 776 487 903 1,967 4,359 6,051 6,240 1,478 2,354 1,931 1,195 1,029 1,060 950 689 956
-19.3% -47.5% -37.2% 85.3% 117.9% 121.6% 38.8% 3.1% -76.3% 59.3% -18.0% -38.1% -17.0% 8.9% -10.4% -27.4% 38.7%
179
combination of selling by investors and is estimated to have come from

industrial entities that had inventories. liquidation of unreported inventories
Some of the industrial stocks have come from both other investors and industrial
from producers and the semi-fabricators users.
that process and sell their metal,
especially during the 2014 strike. Other Rhodium prices are likely to remain
industrial sales were from fabricators supported around current levels as an
whose demand for rhodium has absence of sales from inventory holders,
declined in some cases and who have who are showing signs of being more
determined that they did not need to willing to wait for higher prices, keep
hold as much rhodium in inventory as prices sup ported . Furth ermore,
they formerly did. continued tightness in the supply of
newly refined rhodium relative to
The weakness in annual average fabrication demand is forcing
rhodium prices during 2016 coupled automakers to build larger inventories,
with a deficit in the market suggests that which should also provide support to
inventory holders were willing and prices. Most of this inventory building
ready net sellers of the metal to meet was done during the first quarter, which
fabrication demand needs. A majority of is when it is typically done, and is likely
the investor liquidation came from to resume after the summer in the
investors in the one existing rhodium northern hemisphere.
exchange traded fund, who sold 45,300
ounces of the metal on a net basis Newly refined total rhodium supply was
during 2016. The balance 3,400 ounces largely flat at 977,000 ounces in 2016,
Rhodium Exchange Traded Product Holdings

Ounces Ounces
140,000 140,000
120,000 120,000
100,000 100,000
80,000 80,000
60,000 60,000
40,000 40,000
20,000 20,000
0 0
May-11 Aug-12 Nov-13 Feb-15 May-16
Note: Metal is stored in the United Kingdom and is the combined holdings of the ETC's two primary listings, the db Physical
Rhodium ETC (EUR) traded on the Xetra and Borse Italiano and the db Physical Rhodium ETC traded on the LSE.
Source: db, Bloomberg
180
compared to an estimated 976,000 Total rhodium fabrication demand rose

ounces in the previous year. Global 1.3% in 2016 to a record 1.026 million
rhodium mine supply was down 0.7% in ounces during the year. The auto and
2016 from 2015, levels when output had glass industries were primarily
recovered strongly from the South responsible for the rise in rhodium
African labor strike in 2014. fabrication demand during 2016.
Demand for rhodium is forecast to
There was an increase in the amount of continue rising slightly during 2017,
rhodium recovered from spent auto reaching 1.03 million ounces supported
catalysts, which helped push secondary by demand from the auto and
supply higher. This source of supply electronics sector during the year.
rose to 221,000 ounces in 2016, up
2.9% from 2015. Growth in total refined The largest source of demand for
rhodium supply is expected to be muted rhodium is from autocatalysts, which
in 2017, up 0.9% to 985,000 ounces. rose to an estimated 867,000 ounces in
2016, up 1.7% from 2015. Ongoing
Rhodium mine supply is expected to thrifting, increased popularity of
slip further to 751,000 ounces, down Selective Reduction Catalyst, and
0.6% due to lower South African reduced demand for autos from Japan
production. Secondary supply of weighed on the growth rate of demand
rhodium, meanwhile, is forecast to rise for rhodium from the auto sector during
5.8% to 234,000 ounces in 2017. 2016. Even so, 2016 saw the second
highest level of rhodium fabrication
Rhodium Surplus/Deficit
200 200
150 150
Surplus/ Net Additions to Inventories
100 100
50 50
0 0
-50 -50
-100 -100
Deficit/ Net Reduction in Inventories
-150 -150
-200 -200
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
181
demand on record from the auto sector.

The ongoing tightening of emissions
standards should continue to provide
support to rhodium fabrication demand.
The incremental benefits of these tighter
emissions standards are expected to
wane going forward, as catalyst makers
rely on alternate catalyst and power-
train technologies to meet tighter
emissions regulations.
182
Supply Mine Supply
Total supply of newly refined rhodium Rhodium is the most difficult and time
was largely flat at 977,000 ounces in consuming metal to recover and refine
2016 from 976,000 ounces in the from ore. Prior to the use of rhodium in
previous year. auto catalysts, there was relatively less
requirement for the metal. This meant
Global rhodium mine supply was down that platinum group metal (PGM)
0.7% from a year ago after recovering producers did not have as great of an
strongly from the South African labor incentive to refine the metal from the
strike in 2014. Increased recovery of residual material left after other metals,
rhodium from spent auto catalysts including platinum, palladium, iridium,
helped pull secondary supply higher, and ruthenium, had been extracted from
rising 2.9% from 2015 to 221,000 the polymetallic PGM-bearing smelter
ounces last year. matte. In the 1970s perhaps around 40%
of the rhodium contained in ore was
Growth in total refined rhodium supply recovered during the smelting and
is expected to be muted in 2017, up by refining process. Rhodium is the last
0.9% to 985,000 ounces. Rhodium metal to be extracted from the matte
mine supply is expected to slip further through a complex series of
by 0.6% to 751,000 ounces, due to hydrochemical and pyrometallurgical
moderately lower South African processes.
production. Secondary supply of
rhodium is forecast to rise 5.8% further This means it has the longest lead time
to 234,000 ounces in 2017.
Annual Rhodium Supply

1,200 1,200
1,000 1,000
Secondary Supply
800 800
600 600
400 400
200 Mine 200
0 0
1977 1985 1993 1997 2001 2005 2009 2013 2017p
183
and is the most costly to produce. It also year-on-year increase in its rhodium
led to some rhodium not being refined production to 293,300 ounces last year.
back when there was not a great deal of Output increases at some of its
demand for it. The increase in demand operations more than offset declines at
since the late 1970s has pushed refiners other operations. Amandelbult’s
to improve recovery rates for the metal rhodium output rose sharply in 2016, up
and has encouraged greater refining of 13.0% to 72,000 ounces, while its
rhodium. In contrast to that 40% Union mine produced 6.2% more
recovery rate back in the 1970s (and rhodium than the previous year.
through much of the 1980s into the Rhodium production at its
1990s), today probably 85% - 90% of Mogalakwena mine fell slightly to
rhodium is recovered to refined metal 28,000 ounces last year after a record
form. year in 2015.
Rhodium supply is the most Impala Platinum produced 128,900

geographically concentrated among the ounces of rhodium from its South
major platinum group metals. In 2016, African operations last year, down 7.7%
South Africa accounted for 79.4% of from 2015. Implats’ rhodium output is
global mine supply. This compared to forecast to decline further to 125,063
platinum and palladium, in which South ounces in 2017.
Africa accounted for 70.5% and 35.9%
of global mine supplies, respectively. Lonmin produced 101,390 ounces of
As a result of this high level of rhodium last year, down 10.8% from
concentration, rhodium mine supply 2015. Rhodium production is expected
was heavily swayed by the South to fall 5.6% to 95,707 ounces in 2017.
African labor strike in 2014 and the
sharp production recovery in 2015. Russia
Global rhodium mine supply is
expected to moderately decline -1.6% Russia’s rhodium mine supply comes
from last year to 751,000 ounces in almost entirely from Norilsk Nickel.
2017, due to expected lower production The company is estimated to have
levels at South Africa. produced 84,000 ounces in 2016, down
from around 87,000 ounces in the
South Africa previous year. Most of the rhodium
produced at Norilsk Nickel is exported
Similar to trends in platinum and once it is refined. There is little use for
palladium mine production, South the metal domestically other than some
Africa’s rhodium mine production fell auto catalyst production capacity in the
in 2016 after a strong rebound in the country, and small electronics and
previous year, down 2.4% year-on-year chemical process catalyst work.
to 600,000 ounces. Pruduction had been Russian rhodium exports are estimated
615,000 ounces in 2015. It is projected at 84,000 ounces in 2016.
to be around 591,000 ounces in 2017.
Anglo Platinum, the world’s largest
producer of rhodium, recorded a 0.6%
184
South African PGM Production

Annual, Projected Through 2017. Indexed to 100 = 1990
Index Index
450 450
400 400
350 350
300 300
Rhodium
250 Palladium 250
200 200
150 150
Platinum
100 100
50 50
90 93 96 99 02 05 08 11 14 17p

160 160
Production
Indicates Stockpile Withdrawal
140 140
120 120
100 100
80 80
Residual
60 60
40 40
Exports
20 20
0 0
76 80 84 88 92 96 00 04 08 12 16
185
S outh African Rhodium Mine Production
2010 2011 2012 2013 2014 2015 2016 2017p
Anglo Platinum 277.5 279.6 268.5 249.3 188.2 257.7 257.5 209.8
% of Total 43.2% 43.6% 46.1% 41.6% 43.4% 41.9% 42.9% 35.5%
% Change -7.2% 0.8% -4.0% -7.1% -24.5% 37.0% -0.1% -18.5%
Impala Platinum 154.7 151.8 111.4 134.2 63.6 123.8 112.1 109.8
% of Total 24.1% 23.6% 19.1% 22.4% 14.7% 20.1% 18.7% 18.6%
% Change 6.4% -1.9% -26.6% 20.4% -52.7% 94.8% -9.5% -2.0%
Lonmin 87.4 92.5 97.1 100.2 68.6 113.7 101.4 95.7

% of Total 13.6% 14.4% 16.7% 16.7% 15.8% 18.5% 16.9% 16.2%
% Change -11.2% 5.8% 5.0% 3.1% -31.5% 65.8% -10.8% -5.6%
S ibanye 39.9 37.5 25.7 22.7 22.4 24.6 25.4 67.6

% of Total 6.2% 5.8% 4.4% 3.8% 5.2% 4.0% 4.2% 11.4%
% Change 17.7% -6.0% -31.6% -11.6% -1.0% 9.5% 3.5% 165.8%
Northam Platinum 21.1 22.5 23.9 28.2 33.1 39.5 45.9 45.9
% of Total 3.3% 3.5% 4.1% 4.7% 7.6% 6.4% 7.7% 7.8%
% Change -15.3% 6.8% 6.1% 18.4% 17.4% 19.1% 16.4% 0.0%
African Rainbow Minerals 25.2 26.6 25.2 30.4 27.5 28.9 30.4 28.6
% of Total 3.9% 4.1% 4.3% 5.1% 6.3% 4.7% 5.1% 4.9%
% Change 0.7% 5.4% -5.2% 20.5% -9.5% 5.2% 4.9% -5.6%
Norilsk 1.2 1.3 1.4 2.6 2.7 2.9 2.2 1.9

% of Total 0.2% 0.2% 0.2% 0.4% 0.6% 0.5% 0.4% 0.3%
% Change 90.0% 10.1% 9.2% 80.5% 2.6% 9.0% -24.7% -13.3%
S ylvania Resources 4.9 7.1 6.2 8.9 8.9 8.3 9.9 8.3
% of Total 0.8% 1.1% 1.1% 1.5% 2.0% 1.3% 1.7% 1.4%
% Change 136.2% 43.9% -12.4% 43.7% 0.0% -7.1% 20.0% -15.8%
S edibelo Platinum Mines 3.6 3.8 5.1 11.9 12.4 10.6 9.9 9.8
% of Total 0.6% 0.6% 0.9% 2.0% 2.8% 1.7% 1.7% 1.7%
% Change 61.6% 4.3% 35.8% 133.7% 3.5% -14.5% -6.0% -1.3%
Pan African 0.04 0.3 0.4 0.7 1.0 0.9 0.9

% of Total 0.0% 0.1% 0.1% 0.2% 0.2% 0.1% 0.2%
% Change 616.0% 14.8% 94.4% 43.2% -11.0% 0.0%
Platinum Group Metals 4 12
% of Total 0.6% 2.0%
% Change 204.5%
Wesizwe Platinum
% of Total
% Change
Other 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4

% Change N/M 0.0% -20.0% 1.0% 1.0% 1.0% N/M 0.0%
Total
S outh African
Mine Production 643.0 641.8 582.5 599.4 433.6 614.5 599.9 590.5
% Change -2.0% -0.2% -9.2% 2.9% -27.7% 41.7% -2.4% -1.6%
Note: Production forecasts are based on calendar year.

May 2017
186
Russian Rhodium Production and Exports
Percent of
Production Exports Production Residual
1976 80 - - -
1977 88 - - -
1978 90 - - -
1979 92 - - -
1980 93 24 26% 69.0
1981 95 23 24% 72.0
1982 97 33 34% 64.0
1983 102 43 42% 59.0
1984 104 38 37% 66.0
1985 104 33 32% 71.0
1986 104 67 64% 37.0
1987 105 92 88% 13.0
1988 106 100 94% 6.0
1989 107 132 123% -25.0
1990 108 150 140% -42.5
1991 108 120 112% -12.5
1992 100 118 118% -18.0
1993 90 115 128% -25.0
1994 80 85 106% -5.0
1995 80 63 79% 17.0
1996 84 70 83% 14.0
1997 93 70 75% 22.7
1998 100 47 47% 53.0
1999 102 0 0% 101.8
2000 112 14 13% 97.9
2001 113 48 42% 65.2
2002 105 100 95% 5.0
2003 108 108 100% 0.0
2004 105 105 100% 0.0
2005 100 100 100% 0.0
2006 95 94 99% 1.0
2007 94 92 98% 2.0
2008 88 85 97% 3.0
2009 87 84 97% 3.0
2010 87 82 94% 5.0
2011 87 82 94% 5.0
2012 88 81 92% 7.0
2013 87 81 93% 6.0
2014 88 87 99% 1.0
2015 87 85 98% 2.0
2016 86 84 98% 2.0
2017p 93 83 90% 9.6
Notes: NA -- not available.
S ources: Bank of Foreign Trade, U.S . Bureau of Mines, Central Intelligence Agency,
CPM Group.
May 2017
187
Zimbabwe reached 19,910 ounces last year.

Canadian rhodium mine production is
Zimbabwe is the third largest producer expected to rise further in 2017 to
of rhodium in the world. Mine output 27,803 ounces.
from the country reached an all-time
high of 43,800 ounces in 2016, up Secondary Supply
21.3% from the previous year. Much of
the increase came from rhodium Rhodium secondary supply comes
production at Zimplats, which grew almost entirely from spent auto
36.2% to 27,100 ounces last year from catalysts. A negligible amount comes
2015. In 2017 rhodium production in from end-of-life electronics. Most of
Zimbabwe is forecast to fall slightly to the rhodium used in glass and fiber
40,164 ounces after a record year in glass manufacturing equipment is
2016. recovered and refined on a toll basis,
with the manufacturers or their leasing
Canada agents retaining ownership of the metal
during the recovery, refining, and re-
Output in Canada totaled 26,010 ounces fabrication processes rather than selling
in 2016, up from 23,570 ounces in the scrap and buying new rhodium.
previous year. Vale’s Sudbury
operations produced most of the Increased availability of rhodium-
country’s rhodium output, which bearing scrap coupled with increased
Rhodium Mine Production in Zimbabwe

Ounces Ounces
50,000 50,000
45,000 45,000
40,000 40,000
35,000 35,000
30,000 30,000
25,000 25,000
20,000 20,000
15,000 15,000
10,000 10,000
5,000 5,000
- -
04 05 06 07 08 09 10 11 12 13 14 15 16 17p
188
efficiency of metal recovery from some prices during the year, helped increase
of the refining operations have been the availability of spent auto catalysts.
helping improve secondary supply of Higher loadings of rhodium that were
rhodium, a trend expected to continue. contained in those scrap feeds also
Recovery of rhodium is less pegged to helped. In 2017 rhodium secondary
price trends of rhodium and is more supply is forecast to rise further to
closely aligned with the prices scrap 233,800 ounces, an increase of 5.8%
collectors can receive in total for old from the previous year.
spent auto catalysts.
Secondary supply of rhodium rose 2.9%

to 220,900 ounces in 2016, as rising
volumes of scrapped automobiles, due
to some improvement in global steel
Available Rhodium Scrap Feedstock and Actual Refined Secondary Rhodium Supply

300 300
Available Spent Auto Catalyst Rhodium Material:
China
250 250
Japan
200 200
Europe
Refined Secondary Supply
150 150
United States
100 100
50 50
0 0
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
189
Rhodium S econdary S upply
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p
Rhodium Contained in Hypothetically Available S crap Material
S pent Auto Catalysts S pent Auto Catalysts

United States 28.6 35.4 48.1 57.6 57.5 48.5 49.7 59.9 61.7 63.4 70.3 73.3 91.5 93.6 95.7 97.8 100.0 101.9 104.1 105.7 110.1 111.3 110.8 United States
Western Europe 0.3 0.5 1.0 1.9 3.1 3.7 5.3 7.0 9.5 12.7 16.4 20.8 31.3 39.7 55.9 61.4 66.3 70.0 72.3 74.1 79.0 85.8 87.4 Western Europe
Japan 7.2 8.7 10.2 13.0 15.4 14.5 17.1 20.0 22.4 25.6 26.0 26.0 29.8 31.2 30.7 30.4 30.2 30.2 30.0 29.9 29.9 30.3 30.9 Japan
China N/A N/A N/A N/A N/A 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.4 0.6 0.9 1.7 2.3 3.0 3.8 5.8 8.5 12.1 16.6 China
Total 36.0 44.6 59.4 72.5 76.0 66.7 72.1 86.9 93.7 101.9 112.9 120.3 153.0 165.1 183.1 191.3 198.8 205.1 210.2 215.5 227.6 239.4 245.7 Total
% Change 23.7% 33.3% 22.0% 4.9% -12.3% 8.2% 20.5% 7.8% 8.7% 10.8% 6.6% 27.2% 7.9% 10.9% 4.5% 3.9% 3.2% 2.5% 2.5% 5.6% 5.2% 2.6% % Change
Total Refined Platinum Total Refined Platinum

from S econdary S ources 30.0 36.0 39.0 45.0 50.0 60.0 70.0 80.0 76.6 98.0 114.9 122.6 144.6 154.1 139.9 182.2 174.0 167.5 206.3 211.0 214.6 220.9 233.8 from S econdary S ources
% Change 20.0% 8.3% 15.4% 11.1% 20.0% 16.7% 14.3% -4.2% 27.8% 17.3% 6.7% 17.9% 6.6% -9.2% 30.3% -4.5% -3.7% 23.2% 2.3% 1.7% 2.9% 5.8% % Change
Notes: Differences in the volume of rhodium contained in hypothetically available scrap

material and actual refined secondary supply of rhodium are due to factors that influence
S ource: CPM Group
May 2017
190
RHODIUM
Fabrication Demand however, during 2016 relative to the

preceding two years on account of a
Total rhodium fabrication demand rose decline in demand from vehicles in
to a record 1.026 million ounces in Japan, ongoing thrifting of the metal in
2016, up 1.3% from 2015. The increase auto catalysts, and the increased use of
was driven primarily by increased Selective Reduction Catalyst. Demand
demand from the auto and glass sectors. is forecast to rise to 872,000 ounces in
Healthy vehicle demand helped boost 2017, up 0.6% from 2016. Trends
demand from the auto sector while related to thrifting and the use of SCRs
weak rhodium prices helped demand are expected to continue during 2017,
from the glass sector. Demand for although these trends will be offset by
rhodium is forecast to continue rising the fact that vehicle demand in Japan is
slightly during 2017, reaching 1.03 forecast to grow during the year.
million ounces supported by demand Increased demand for vehicles in Japan
from the auto and electronics sector is expected to be offset by slower
during the year. growth in demand from the United
States, China, and Europe.
Automotive
Increased Emphasis on Nitrogen Oxide
Rhodium demand from the auto sector Emissions
rose to an estimated 867,000 ounces in
2016, up 1.7% from 2015. This was the As global emission standards get tighter
second highest level of demand on there is an increased emphasis on
record. Demand growth slowed, reducing the level of nitrogen oxide
Rhodium Fabrication Demand

Annual Data, Projected Through 2017
1200 1200
Automotive Electronics
1000 1000
Chemical Glass
800 800
Other Other Countries
600 600
400 400
200 200
0 0
76 79 82 85 88 91 94 97 00 03 06 09 12 15
191
emissions (nitrous oxide and nitric are reduced by 50% for diesel vehicles
oxide, collectively referred to as and 53% for gasoline engines, from
nitrogen oxides or NOx in the auto Euro 4 to Euro 5 NOx emissions are
emission control market). Nitrogen reduced by a further 28% for diesel and
oxides emissions are of particular 25% for gasoline vehicles. Euro 6
importance to the rhodium market reduces NOx emissions by another 92%
because it is the only PGM that is for diesel and keep them unchanged for
capable of reducing nitrogen oxides to gasoline. While NOx emissions from
harmless nitrogen and oxygen gasoline are left untouched in Euro 6,
emissions. they are now 60% lower than Euro 3
and are 25% lower than Euro 6 for
The other two PGMs typically loaded in diesel.
auto catalysts, platinum and palladium,
are used for oxidizing carbon monoxide, The Tier 2 emission standard presently
reducing hydrocarbons, and oxidizing in effect in the United States also puts
some of the gases that result from the special emphasis on the reduction of
reduction of hydrocarbons into their NOx emissions. The reduction is from
constituent elemental gases. These 0.6 grams per mile in the Tier 1
emissions have already been reduced provision to 0.2 g/mile in Tier 2 and
significantly in the earlier phases of 0.16 g/mile in Tier 3.
emissions controls.
Reduced Incremental Benefit
All of the major auto markets are now at
Euro 4 or higher. As the world moves While the tightening of emissions
from Euro 3 to Euro 4, NOx emissions standards is typically positive for PGM
European Diesel Passenger Vehicle Emission Standards European Gas Passenger Vehicle Emission Standards
g/km g/km g/km Particulate Matter g/km

4.50 4.50 4.50 4.50
Particulate Matter
4.00 4.00 4.00 Nox 4.00
3.50 NOx 3.50 3.50 3.50

HC+NOx
3.00 3.00 3.00 3.00
HC+NOx
2.50 2.50 2.50 HC 2.50
2.00 CO 2.00 2.00 2.00

CO
1.50 1.50 1.50 1.50
1.00 1.00 1.00 1.00
0.50 0.50 0.50 0.50
0.00 0.00 0.00 0.00

Euro 1 Euro 2 Euro 3 Euro 4 Euro 5 Euro 6 Euro 1 Euro 2 Euro 3 Euro 4 Euro 5 Euro 6
Source: Dieselnet, CPM Group Source: Dieselnet, CPM Group
192
demand, there is expected to be a

lowered incremental benefit to PGM The second is that auto makers will
demand in catalysts moving forward. need to do more than just optimizing
This is already being seen to some their traditional PGM catalysts,
degree. The loadings are increased as increasing fuel efficiency, and
emissions standards become tighter, improving fuel quality to curb
essentially to ensure that the internal emissions in the face of ever tightening
surface area of the auto catalyst, over regulations. They will need to do all this
which emissions flow, is coated with and more to be able to meet future
sufficient PGMs for optimal regulations. There already is some shift
performance. But the increase of PGM away from traditional catalysts toward
loadings has a limited benefit. SCR catalysts, which are more efficient
in curbing emissions. Furthermore as
There are essentially two reasons why some of the traditional efforts
the benefit of tighter emissions may not mentioned here begin to fall short in
be as beneficial for PGM demand in the meeting tighter regulations, they are
future as they have been in the past. The expected to potentially push automakers
first is the use of nanotechnology, and governments to make electric and
which has been making inroads into the hybrid vehicles a larger share of the
auto catalyst market over the past few market to meet emissions standards.
years and is likely to become a more
established technology in the sector Selective Catalytic Reduction
over the next several years. It has been
applied to on-road vehicles since around There is a growing popularity of
2011. Selective Catalytic Reduction (SCR)
NOx Emissions Reduction from Previous Standards for Diesel Cars NOx Emissions Reduction from Previous Standards
for Gasoline Cars
0% 0%
0% 0% Euro 3 Euro 4 Euro 5 Euro 6
Euro 3 Euro 4 Euro 5 Euro 6
-10% -10% -10% -10%
-20% -20% -20% -20%
-30% -30%
-30% -30%
-40% -40%
-40% -40%
-50% -50%
-60% -60% -50% -50%
-70% -70%
-60% -60%
Note: Euro 2 did not have NOx only limits. Euro 2 had
-80% -80% combined limits on NOx and HC, which exaggerates the decline
in NOx emissions for Euro 3 shown here.
193
systems that are being fitted on large Demand is forecast to rise to 44.2
commercial vehicles. These catalysts, million ounces in 2017 as product
using urea, have been used in stationery inventory that was built up in 2016,
site catalysts since the 1980s. Meeting which weighed on demand during that
tightening emissions standards in year, gets worked through and there is a
developed countries is becoming fresh demand from this sector.
increasingly difficult with traditional
catalysts. The SCR catalyst system is Chemical Catalysts
more efficient at reducing toxins. It is a
more expensive catalyst system, The PGMs, mostly platinum in
however, which has made it more combination with rhodium, are also
popular in large commercial vehicles used in chemical catalysts. The metals
such as trucks and buses and high end are used in the production of nitric acid,
cars. The SCR catalyst itself does not which is used in fertilizers and
contain any PGMs, with PGMs used explosives. The need for increased
only in the downstream catalysts to productivity in the agricultural sector is
ensure that emissions remain low even expected to keep the demand for
when exhaust temperatures drop. The fertilizers high. The explosives are
impact of SCR catalysts is an overall typically used for road construction and
reduction in the use of PGMs per mining. The overall slowdown in
vehicle. demand from the mining sector has
weighed on rhodium demand from this
Electronics sector. Rhodium demand slipped to
51,160 ounces in 2016, down 1.8%
Rhodium is used in a wide range of from 2016 and is forecast to slip to
electronics and electrical applications. 51,080 ounces in 2017.
The surge in the price of rhodium in
2008 has largely been responsible for Glass
lower per unit demand from the
electronics sector. There are certain Platinum and rhodium are the two
qualities inherent to rhodium that do not PGMs that are used in glass
allow the metal to be completely manufacturing equipment. The typical
substituted, however. breakdown between platinum and
rhodium used in glass manufacturing
Furthermore, the sheer increase in the equipment is 80% platinum and 20%
volume of electronic items that are rhodium. The manufacturer can change
being produced has, to some degree, the breakdown to be 90% platinum and
offset this decline in per unit usage of 10% rhodium.
rhodium. Rhodium demand from
electronics declined during 2016 due to The decision to change the mix is
the overall condition of the electronics largely driven by the relative prices of
market. the two metals. Making a change in the
composition even within the prescribed
Demand slipped to 43,700 million limits of 80% - 20% or 90% - 10%
ounces in 2016, down 1.1% from 2015. platinum and rhodium is complicated by
194
Emission Standards In Major Auto Markets
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Europe Euro 4 Euro 5 Euro 6
Beijing China 3 China 4 China 5 China 6

China
Nationwide China 2 China 3 China 4 China 5 China 6
Select Cities Bharat III Bharat IV Bharat VI

India
Nationwide Bharat II Bharat III Bharat VI
Russia Euro 1 Euro 2 Euro 3 Euro 4 Euro 5
USA Tier 2 and LEV II Tier 2 and LEV III Tier 3 and LEV III
Brazil Prconve 3 Prconve 5 Prconve 6
Notes: Standards are for passenger cars and light commercial vehicles
China 3 was introduced in Beijing in December 2005.
195
Chinese Emissions standards for new passenger cars and light duty commercial vehicles up to China 5 are based on European regulations. China 6 is based on U.S. Tier 3.
Select Cities in India include, Mumbai, Delhi, Kolkata, Chennai, Banglore,Hyderabad, Ahmedabad,
Pune, Surat, Kanpur, and Agra. Bharat VI (equivalent of Euro 6) will be introduced on a nationwide basis in 2020
LEV II Standards - Low Emission Vehicles (California Emission Standards)
Source: Dieselnet, CPM Group
RHODIUM
the fact that it takes more than an ounce from this sector. While the price had
of platinum to meet the efficiency of moved to a significant discount to
one ounce of rhodium. This means that platinum in 2016, the price of rhodium
to alter the composition so that it is a has bounced back strongly since the last
cost-effective change would require that quarter of 2016 and into the first four
the price of rhodium would have to rise months of 2017. In March and April of
enough to offset the increased use of 2017, the price of rhodium rose to be at
platinum. par and at times higher than the price of
platinum.
That said, this has not been an issue in
recent years, with the price of rhodium It should also be noted that replacement
trading at a discount to platinum. This demand for platinum and rhodium from
discount benefitted the use of rhodium this industry if fairly low in large part
Annual Rhodium Use

Troy Ounces
1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
Automotive
U.S. 391 871 2,939 26,136 37,012 30,009 26,323 19,734 63,000 74,000 92,500 90,000 95,000 97,000 105,000 95,000 105,000
Japan - - - - - 14,468 14,468 27,328 36,330 40,188 64,301 65,266 64,301 67,000 70,000 85,000 64,000
Europe - - - - - - - - - - 13,000 55,000 58,000 76,000 95,000 126,000 120,000
China
Other Co ___- ___- _____- ______- ______- ______- ______- ______- ______- _______- _______- _______- _______- _______- _______- _______- _______
40,000
S ubtota 391 871 2,939 26,136 37,012 44,477 40,791 47,062 99,330 114,188 169,801 210,266 217,301 240,000 270,000 306,000 329,000
% of Tot 0.6% 1.1% 3.0% 21.3% 28.0% 33.1% 35.1% 30.4% 53.7% 61.0% 64.2% 69.9% 72.3% 68.0% 70.2% 73.3% 77.5%
% Chang - 122.8% 237.4% 789.3% 41.6% 20.2% -8.3% 15.4% 111.1% 15.0% 48.7% 23.8% 3.3% 10.4% 12.5% 13.3% 7.5%
Electronics
U.S. 9,062 10,758 14,329 16,923 14,818 12,050 9,392 8,472 9,023 5,665 6,813 5,775 3,955 8,745 8,809 5,851 5,900
Japan 6,430 8,038 8,038 9,645 6,430 13,825 13,503 12,217 12,860 9,645 14,468 19,290 17,683 18,400 19,000 19,000 13,300
China ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
S ubtota 15,492 18,796 22,367 26,568 21,248 25,875 22,895 20,689 21,883 15,310 21,281 25,065 21,638 27,145 27,809 24,851 19,200
% of Tot 22.3% 22.9% 22.9% 21.7% 16.1% 19.2% 19.7% 13.4% 11.8% 8.2% 8.0% 8.3% 7.2% 7.7% 7.2% 6.0% 4.5%
% Chang - 21.3% 19.0% 18.8% -20.0% 21.8% -11.5% -9.6% 5.8% -30.0% 39.0% 17.8% -13.7% 25.5% 2.4% -10.6% -22.7%
Chemical
U.S. 19,225 20,245 19,397 11,684 5,273 8,899 6,873 3,984 4,631 4,096 5,083 3,446 3,504 6,076 5,433 5,841 5,048
Japan 6,430 6,430 6,430 11,253 11,253 6,430 6,109 8,038 9,645 10,288 11,253 12,217 10,288 11,000 11,250 10,000 7,500
Europe - - - - - - - - - - - -
China ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
S ubtota 25,655 26,675 25,827 22,937 16,526 15,329 12,982 12,022 14,276 14,384 16,336 15,663 13,792 17,076 16,683 15,841 12,548
% of Tot 37.0% 32.5% 26.4% 18.7% 12.5% 11.4% 11.2% 7.8% 7.7% 7.7% 6.2% 5.2% 4.6% 4.8% 4.3% 3.8% 3.0%
% Chang - 4.0% -3.2% -11.2% -28.0% -7.2% -15.3% -7.4% 18.8% 0.8% 13.6% -4.1% -11.9% 23.8% -2.3% -5.0% -20.8%
Glass
U.S. 3,828 13,986 16,605 15,376 8,581 3,950 2,005 2,033 2,941 2,467 2,952 1,772 2,733 5,691 997 161 386
Japan 6,430 6,430 6,430 8,038 6,430 3,215 2,251 2,251 3,215 3,537 3,537 3,858 3,215 3,600 3,700 3,500 3,000
Europe - - - - - - - - - - - - - - - - -
China ______ ______ ______ ______ ______ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
S ubtota 10,258 20,416 23,035 23,414 15,011 7,165 4,256 4,284 6,156 6,004 6,489 5,630 5,948 9,291 4,697 3,661 3,386
% of Tot 14.8% 24.9% 23.6% 19.1% 11.4% 5.3% 3.7% 2.8% 3.3% 3.2% 2.5% 1.9% 2.0% 2.6% 1.2% 0.9% 0.8%
% Chang - 99.0% 12.8% 1.6% -35.9% -52.3% -40.6% 0.7% 43.7% -2.5% 8.1% -13.2% 5.6% 56.2% -49.4% -22.1% -7.5%
Other
U.S. 8,369 9,356 16,370 13,351 7,844 7,202 5,322 10,002 8,342 8,024 11,580 12,548 10,787 16,236 22,987 26,203 22,657
Japan 9,163 ______
______ 5,916 7,202
______ 10,031 ______
______ 5,369 1,961
_____ 836 ______
_____ 29,482 997
_____ 2,251
______ 12,539 ______
______ 6,430 ______
257 ______
7,000 7,330
______ 6,000 ______
______ 4,500
S ubtota 17,532 15,272 23,572 23,382 13,213 9,163 6,158 39,484 9,339 10,275 24,119 18,978 11,044 23,236 30,317 32,203 27,157
% of Tot 25.3% 18.6% 24.1% 19.1% 10.0% 6.8% 5.3% 25.5% 5.0% 5.5% 9.1% 6.3% 3.7% 6.6% 7.9% 7.7% 6.4%
% Chang - -12.9% 54.3% -0.8% -43.5% -30.7% -32.8% 541.2% -76.3% 10.0% 134.7% -21.3% -41.8% 110.4% 30.5% 6.2% -15.7%
Other Countries
(excluding - - - - 29,000 32,500 29,000 31,250 34,060 27,000 26,500 25,350 31,000 36,270 35,000 35,000 33,000
Total 69,328 82,030 97,740 122,437 132,010 134,509 116,081 154,791 185,045 187,161 264,525 300,953 300,723 353,018 384,506 417,556 424,291
% Chang - 18.3% 19.2% 25.3% 7.8% 1.9% -13.7% 33.3% 19.5% 1.1% 41.3% 13.8% -0.1% 17.4% 8.9% 8.6% 1.6%
Notes: There may be discrepancies due to rounding. p -- projections.

Sources: U.S. Bureau of M ines, trade sources, CPM Group.
May 15, 2016
196
because around 95% to 97% of PGMs may slow, especially with the expected
used in these application is recovered relative softness in demand from the
from the equipment, which reduces the solar panel market.
need for fresh PGMs substantially.
Demand for PGMs in this industry is Rhodium demand from this sector
expected to come from the building on reached 41,380 ounces in 2016, up
new capacity for glass manufacturing. 1.1% from 2015. Demand for rhodium
While demand for all kinds of glass is from the glass industry is expected to
expected to grow over the long term, in slip slightly to 41,130 ounces in 2017.
the short term building of new capacity
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p 2017p
Automotive
125,000 132,000 138,000 138,000 143,000 152,000 154,000 170,000 170,000 190,000 210,000 320,000
370,000 395,000 383,150 320,000 230,000 250,000 262,500 294,000 311,640
320,989 337,039 340,409 341,260 U.S.
49,000 35,366 24,800 25,000 26,000 26,000 32,000 67,500 50,000 84,000 85,000 90,000
100,000 105,000 110,000 112,000 90,000 95,000 85,500 102,600 103,113
106,722 104,588 103,019 104,049 Japan
125,000 137,000 140,000 142,000 145,000 158,000 164,000 172,000 160,000 215,000 225,000 240,000
250,000 280,000 274,400 266,168 244,875 249,160 244,177 219,759 210,969
227,846 243,795 253,547 255,449 Europe
4,573 4,851 6,725 9,570 13,614
13,472 16,691 21,547 24,703 37,013 49,247 58,068 64,581 72,937
80,317 77,741 85,583 93,385 China
45,000 _______
_______ 50,000 54,000
_______ 55,000
_______ 55,000
_______ 48,000
_______ 54,000 _______
_______ 49,427 _______
45,149 _______
55,275 54,430
_______ 54,386
61,528 _______
_______
_______ 68,309 88,453
_______ 95,297
_______ 87,987
_______ 90,753
_______ 88,932
_______ 94,914 91,342
84,374 _______
_______
_______ 88,597 _______
_______ 84,082 _______
77,976 Other Countries
344,000 354,366 356,800 360,000 369,000 384,000 404,000 463,500 430,000 551,000 584,000 718,000 795,000 865,000 877,550 818,168 689,875 734,160 739,177 775,854 790,001 820,248 851,759 866,639 872,119 Subtotal
76.6% 79.0% 80.4% 79.8% 76.4% 76.8% 77.4% 72.5% 75.3% 79.1% 79.7% 81.8% 83.9% 85.6% 85.7% 85.0% 83.5% 83.3% 82.9% 83.3% 83.8% 83.8% 84.1% 84.4% 84.5% % of Total
4.6% 3.0% 0.7% 0.9% 2.5% 4.1% 5.2% 14.7% -7.2% 28.1% 6.0% 22.9% 10.7% 8.8% 1.5% -6.8% -15.7% 6.4% 0.7% 5.0% 1.8% 3.8% 3.8% 1.7% 0.6% % Change Year Ago
Electronics
7,500 8,000 9,000 9,500 9,800 10,000 10,500 10,800 7,000 7,400 7,500 8,500 8,500 8,000 8,000 7,000 6,000 7,000 10,500 9,000 8,750 8,500 9,000 9,000 9,000 U.S.
17,000 14,450 16,255 16,400 16,400 17,000 17,000 34,000 25,000 23,000 22,000 25,000 25,000 26,000 26,000 25,000 23,000 25,000 22,000 23,500 23,250 23,100 23,000 22,500 23,000 Japan
_______ _______ _______ _______ _______ _______ 10,363 _______
_______ _______ 10,830 _______
11,171 _______
11,379 11,450 _______
_______ 11,384 _______
11,526 11,947 _______
_______ 12,580 _______
12,246 _______
11,860 _______
11,957 _______
11,838 _______
11,897 12,016 _______
_______ 12,136 _______
12,167 _______
12,197 China
24,500 22,450 25,255 25,900 26,200 27,000 27,500 55,163 42,830 41,571 40,879 44,950 44,884 45,526 45,947 44,580 41,246 43,860 44,457 44,338 43,897 43,616 44,136 43,667 44,197 Subtotal
5.5% 5.0% 5.7% 5.7% 5.4% 5.4% 5.3% 8.6% 7.5% 6.0% 5.6% 5.1% 4.7% 4.5% 4.5% 4.6% 5.0% 5.0% 5.0% 4.8% 4.5% 4.5% 4.4% 4.3% 4.3% % of Total
27.6% -8.4% 12.5% 2.6% 1.2% 3.1% 1.9% 100.6% -22.4% -2.9% -1.7% 10.0% -0.1% 1.4% 0.9% -3.0% -7.5% 6.3% 1.4% -0.3% -1.0% -0.6% 1.2% -1.1% 1.2% % Change Year Ago
Chemical
6,200 6,300 6,500 7,000 12,000 12,500 12,750 12,200 12,200 12,300 12,350 14,000 11,000 10,000 9,500 9,500 10,000 10,900 12,000 13,000 11,500
12,000 12,000 11,000 11,250 U.S.
8,500 6,800 9,100 11,000 15,000 16,000 15,500 20,000 15,000 16,000 17,000 19,000 17,000 16,000 16,000 16,000 15,000 15,800 14,500 16,000 16,250
16,300 15,750 15,500 15,250 Japan
- - - - 6,000 6,250 6,000 7,000 5,000 5,500 6,500 8,000 7,000 6,000 7,000 7,000 7,000 7,000 7,000 7,000 7,500
8,000 8,000 8,000 7,500 Europe
_______ _______ _______ _______ _______ _______ 6,501 _______
_______ _______ 7,507 _______
7,677 _______
7,918 _______
7,557 7,705 _______
_______ 7,017 7,809 _______
_______ 8,801 _______
8,073 10,412
_______ 11,973
_______ 12,836
_______ 13,862
15,055 16,334 _______
_______
_______ _______ 16,661 _______
17,077 China
14,700 13,100 15,600 18,000 33,000 34,750 34,250 45,701 39,707 41,477 43,768 48,557 42,705 39,017 40,309 41,301 40,073 44,112 45,473 48,836 49,112 51,355 52,084 51,161 51,077 Subtotal
3.3% 2.9% 3.5% 4.0% 6.8% 7.0% 6.6% 7.2% 6.9% 6.0% 6.0% 5.5% 4.5% 3.9% 3.9% 4.3% 4.8% 5.0% 5.1% 5.2% 5.2% 5.2% 5.1% 5.0% 5.0% % of Total
17.2% -10.9% 19.1% 15.4% 83.3% 5.3% -1.4% 33.4% -13.1% 4.5% 5.5% 10.9% -12.1% -8.6% 3.3% 2.5% -3.0% 10.1% 3.1% 7.4% 0.6% 4.6% 1.4% -1.8% -0.2% % Change Year Ago
Glass
600 500 500 600 625 1,500 1,200 1,200 2,000 3,000 4,000 5,000 6,000 5,000 4,000 3,750 3,750 5,000 10,000 9,000 9,000 9,250 9,400 9,500 9,500 U.S.
3,300 2,706 3,350 3,900 3,900 4,200 4,200 12,000 10,000 10,000 9,000 11,000 12,000 11,000 10,000 10,000 9,000 9,000 7,000 9,000 10,000 10,500 10,750 11,000 10,750 Japan
- - - - 7,000 5,500 6,500 14,000 7,500 7,000 8,000 8,000 8,000 8,000 9,000 9,000 8,250 8,000 8,000 8,000 8,250 8,300 8,350 8,250 8,000 Europe
_______ _______ _______ _______ _______ _______ 7,440 _______
_______ _______ 8,333 _______
9,301 _______
9,486 _______
9,931 _______
9,710 _______
9,453 11,117 _______
_______ 11,362 _______
11,770 _______
11,770 _______
11,770 _______
11,982 _______
12,126 _______
12,259 _______
12,443 _______
12,630 _______
12,882 China
3,900 3,206 3,850 4,500 11,525 11,200 11,900 34,640 27,833 29,301 30,486 33,931 35,710 33,453 34,117 34,112 32,770 33,770 36,770 37,982 39,376 40,309 40,943 41,380 41,132 Subtotal
0.9% 0.7% 0.9% 1.0% 2.4% 2.2% 2.3% 5.4% 4.9% 4.2% 4.2% 3.9% 3.8% 3.3% 3.3% 3.5% 4.0% 3.8% 4.1% 4.1% 4.1% 4.1% 4.0% 4.0% 4.0% % of Total
15.2% -17.8% 20.1% 16.9% 156.1% -2.8% 6.3% 191.1% -19.7% 5.3% 4.0% 11.3% 5.2% -6.3% 2.0% 0.0% -3.9% 3.1% 8.9% 3.3% 3.7% 2.4% 1.6% 1.1% -0.6% % Change Year Ago
Other
24,000 21,600 12,200 13,300 14,500 15,970 16,400 16,000 14,000 15,000 15,500 14,000 12,000 12,000 11,000 10,500 10,500 11,000 11,480 11,000 11,000 10,750 11,000 10,000 9,750 U.S.
5,700 _______
_______ 4,560 6,200
_______ 6,500
_______ 6,500
_______ 6,960
_______ 7,100 _______
_______ 20,000 _______
15,000 _______
14,000 _______
14,000 _______
14,000 _______
12,000 _______
11,000 10,000 _______
_______ 10,000 _______
10,200 _______
10,000 _______
10,000 _______
11,000 _______
11,000 _______
10,750 _______
11,040 _______
10,750 _______
10,500 Japan
29,700 26,160 18,400 19,800 21,000 22,930 23,500 36,000 29,000 29,000 29,500 28,000 24,000 23,000 21,000 20,500 20,700 21,000 21,480 22,000 22,000 21,500 22,040 22,040 22,040 Subtotal
6.6% 5.8% 4.1% 4.4% 4.4% 4.6% 4.5% 5.6% 5.1% 4.2% 4.0% 3.2% 2.5% 2.3% 2.1% 2.1% 2.5% 2.4% 2.4% 2.4% 2.2% 2.2% 2.2% 2.1% 2.1% % of Total
9.4% -11.9% -29.7% 7.6% 6.1% 9.2% 2.5% 53.2% -19.4% 0.0% 1.7% -5.1% -14.3% -4.2% -8.7% -2.4% 1.0% 1.4% 2.3% 2.4% -2.3% 0.0% 0.0% 0.0% 0.0% % Change Year Ago
Other Countries
32,000 29,000 24,000 23,000 22,000 20,000 21,000 4,000 2,000 4,000 4,000 4,000 5,000 5,000 5,000 4,000 2,000 4,000 4,000 2,000 2,000 2,000 2,000 1,750 1,250 (excluding auto)
448,800 448,282 443,905 451,200 482,725 499,880 522,150 639,004 571,370 696,349 732,632 877,438 947,299 1,010,996 1,023,922 962,661 826,664 880,901 891,358 931,009 946,387 979,028 1,012,962 1,026,636 1,031,815 Total
5.8% -0.1% -1.0% 1.6% 7.0% 3.6% 4.5% 22.4% -10.6% 21.9% 5.2% 19.8% 8.0% 6.7% 1.3% -6.0% -14.1% 6.6% 1.2% 4.4% 1.7% 3.4% 3.5% 1.3% 0.5% % Change Year Ago
197
Historical U.S. Rhodium Demand
Troy Ounces
Year Automotive Electronics Glass Chemical Jewelry

1955 - 1,408 - 14,929 2,798
1956 - 1,193 - 13,379 2,834
1957 - 1,665 - 12,610 2,337
1958 - 1,714 - 12,790 3,523
1959 - 5,649 8,375 12,023 4,407
1960 - 4,163 8,273 7,705 4,175
1961 - 3,004 2,481 6,880 5,593
1962 - 5,265 5,111 8,276 6,546
1963 - 6,676 13,191 9,537 7,044
1964 - 7,687 23,923 13,179 8,296
1965 - 7,924 10,275 12,499 7,498
1966 - 9,216 34,491 14,210 9,100
1967 - 11,736 11,281 17,770 8,775
1968 - 9,514 7,441 14,507 7,059
1969 - 10,788 10,839 18,060 5,622
1970 - 9,056 7,138 26,445 5,343
1971 - 9,084 3,362 14,910 5,419
1972 - 7,867 13,923 15,358 6,593
1973 - 13,187 16,689 23,772 12,526
1974 - 15,538 7,464 23,328 10,460
1975 - 8,252 4,471 15,440 4,932
1976 391 9,062 3,828 19,225 5,170
1977 871 10,758 13,986 20,245 5,011
1978 2,939 14,329 16,605 19,397 9,950
1979 26,136 16,923 15,376 11,684 7,458
1980 37,012 14,818 8,581 5,273 5,434
1981 30,009 12,050 3,950 8,899 3,618
1982 26,323 9,392 2,005 6,873 3,372
1983 19,734 8,472 2,033 3,984 2,248
1984 63,000 9,023 2,941 4,631 1,238
1985 74,000 5,665 2,467 4,096 2,222
1986 92,500 6,813 2,952 5,083 3,194
1987 90,000 5,775 1,772 3,446 7,391
1988 95,000 3,955 2,733 3,504 5,691
1989 97,000 8,745 5,691 6,076 6,591
1990 105,000 8,809 997 5,433 6,269
1991 95,000 5,851 161 5,841 4,951
1992 105,000 5,900 386 5,048 3,720
1993 125,000 7,500 600 6,200 3,000
1994 132,000 8,000 500 6,300 3,150
1995 138,000 9,000 500 6,500 -
1996 138,000 9,500 600 7,000 -
1997 143,000 9,800 625 12,000 -
1998 152,000 10,000 1,500 12,500 -
1999 154,000 10,500 1,200 12,750 -
2000 170,000 10,800 1,200 12,200 -
2001 170,000 7,000 2,000 12,200 -
2002 190,000 7,400 3,000 12,300 -
2003 210,000 7,500 4,000 12,350 -
2004 320,000 8,500 5,000 14,000 -
2005 370,000 8,500 6,000 11,000 -
2006 395,000 8,000 5,000 10,000 -
2007 383,150 8,000 4,000 9,500 -
2008 320,000 7,000 3,750 9,500 -
2009 230,000 6,000 3,750 10,000 -
2010 250,000 7,000 5,000 10,900 -
2011 262,500 10,500 10,000 12,000 -
2012 294,000 9,000 9,000 13,000 -
2013 311,640 8,750 9,000 11,500 -
2014 320,989 8,500 9,250 12,000 -
2015 337,039 9,000 9,400 12,000 -
2016 340,409 9,000 9,500 11,000 -
2017p 341,260 9,000 9,500 11,250 -
Note: Consumption by the glass and petroleum industries is included in
chemical figures for years prior to 1959. There may be discrepancies due to rounding.
198
Percent
Change
Petroleum Dental Miscellaneous Total in Totals Year
- 29 51 19,215 1955
- 56 102 17,564 -8.6% 1956
- 243 598 17,453 -0.6% 1957
- 51 503 18,581 6.5% 1958
45 138 176 30,813 65.8% 1959
33 83 183 24,615 -20.1% 1960
550 16 650 19,174 -22.1% 1961
152 44 659 26,053 35.9% 1962
188 10 422 37,068 42.3% 1963
2,121 38 182 55,426 49.5% 1964
369 124 221 38,910 -29.8% 1965
517 335 1,819 69,688 79.1% 1966
397 77 4,916 54,952 -21.1% 1967
201 38 6,016 44,776 -18.5% 1968
2,341 339 2,155 50,144 12.0% 1969
59 51 805 48,897 -2.5% 1970
176 31 1,384 34,366 -29.7% 1971
149 48 2,157 46,095 34.1% 1972
3,057 297 3,987 73,515 59.5% 1973
1,239 373 3,200 61,602 -16.2% 1974
114 41 3,598 36,848 -40.2% 1975
1 75 3,123 40,875 10.9% 1976
- 275 4,070 55,216 35.1% 1977
281 232 5,907 69,640 26.1% 1978
1,223 45 4,625 83,470 19.9% 1979
662 45 1,703 73,528 -11.9% 1980
- 35 3,549 62,110 -15.5% 1981
4 7 1,939 49,915 -19.6% 1982
- 173 7,581 44,225 -11.4% 1983
11 427 6,666 87,937 98.8% 1984
31 352 5,419 94,252 7.2% 1985
- 611 7,775 118,928 26.2% 1986
- 334 4,823 113,541 -4.5% 1987
32 64 5,000 115,979 2.1% 1988
868 - 8,777 133,748 15.3% 1989
- - 16,718 143,226 7.1% 1990
- - 21,252 133,055 -7.1% 1991
- - 18,937 138,990 4.5% 1992
1,000 - 20,000 163,299 17.5% 1993
1,250 - 17,200 168,399 3.1% 1994
- - 12,200 166,199 -1.3% 1995
- - 13,300 168,399 1.3% 1996
- - 14,500 179,924 6.8% 1997
- - 15,970 191,970 6.7% 1998
- - 16,400 194,850 1.5% 1999
- - 16,000 210,200 7.9% 2000
- - 14,000 205,200 -2.4% 2001
- - 15,000 227,700 11.0% 2002
- - 15,500 249,350 9.5% 2003
- - 14,000 361,500 45.0% 2004
- - 12,000 407,500 12.7% 2005
- - 12,000 430,000 5.5% 2006
- - 11,000 415,650 -3.3% 2007
- - 10,500 350,750 -15.6% 2008
- - 10,500 260,250 -25.8% 2009
- - 11,000 283,900 9.1% 2010
- - 11,480 306,480 8.0% 2011
- - 11,000 336,000 9.6% 2012
- - 11,000 351,890 4.7% 2013
- - 10,750 361,489 2.7% 2014
- - 11,000 378,439 4.7% 2015
- - 10,000 379,909 0.4% 2016
- - 9,750 380,760 0.2% 2017p
Source: U.S. Bureau of Mines, CPM Group.
May 1, 2017
199
Annual U.S. Rhodium Demand


500 500
450 450
400 400
350 350
300 300
250 250
200 200
150 150
100 100
50 50
0 0
1955 1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015
200
Japanese Rhodium Demand
Troy Ounces
1974 1975 1976 1977 1978 1979 1980 1981 1982

- - - - - - - 14,468 14,468
6,430 8,038 6,430 8,038 8,038 9,645 6,430 13,825 13,503
6,430 9,645 6,430 6,430 6,430 11,253 11,253 6,430 6,109
8,038 9,645 6,430 6,430 6,430 8,038 6,430 3,215 2,251
3,987
______ 18,037
______ 9,163
______ 5,916
______ 7,202
______ 10,031
______ 5,369
______ 1,961
______ 836
______
24,885 45,365 28,453 26,814 28,100 38,967 29,482 39,899 37,166
-- 82.3% -37.3% -5.8% 4.8% 38.7% -24.3% 35.3% -6.8%
1983 1984 1985 1986 1987 1988 1989 1990 1991
27,328 36,330 40,188 64,301 65,266 64,301 67,000 70,000 85,000

12,217 12,860 9,645 14,468 19,290 17,683 18,400 19,000 19,000
8,038 9,645 10,288 11,253 12,217 10,288 11,000 11,250 10,000
2,251 3,215 3,537 3,537 3,858 3,215 3,600 3,700 3,500
29,482
______ 997
______ 2,251
______ 12,539
______ 6,430
______ 257
______ 7,000
______ 7,330
______ 6,000
______
79,316 63,048 65,909 106,097 107,062 95,745 107,000 111,280 123,500
113.4% -20.5% 4.5% 61.0% 0.9% -10.6% 11.8% 4.0% 11.0%
1992 1993 1994 1995 1996 1997 1998 1999 2000

64,000 49,000 35,366 24,800 25,000 26,000 26,000 32,000 67,500
13,300 17,000 14,450 16,255 16,400 16,400 17,000 17,000 34,000
7,500 8,500 6,800 9,100 11,000 10,600 16,000 15,500 20,000
3,000 3,300 2,706 3,350 3,900 3,900 4,200 4,200 12,000
4,500
______ 5,700
______ 4,560
______ 6,200
______ 6,500
______ 6,500
______ 6,960
______ 7,100
______ 20,000
______
92,300 83,500 63,882 59,705 62,800 63,400 70,160 75,800 153,500
-25.3% -9.5% -23.5% -6.5% 5.2% 1.0% 10.7% 8.0% 102.5%
2001 2002 2003 2004 2005 2006 2007 2008 2009
50,000 84,000 85,000 90,000 100,000 105,000 110,000 112,000 90,000

25,000 23,000 22,000 25,000 25,000 26,000 26,000 25,000 23,000
15,000 16,000 17,000 19,000 17,000 16,000 16,000 16,000 15,000
10,000 10,000 9,000 11,000 12,000 11,000 10,000 10,000 9,000
15,000
______ 14,000
______ 14,000
______ 14,000
______ 12,000
______ 11,000
______ 10,000
______ 10,000
______ 10,200
______
115,000 147,000 147,000 159,000 166,000 169,000 172,000 173,000 147,200
-25.1% 27.8% 0.0% 8.2% 4.4% 1.8% 1.8% 0.6% -14.9%
2010 2011 2012 2013 2014 2015 2016 2017p

95,000 85,500 102,600 103,113 106,722 104,588 103,019 104,049
25,000 22,000 23,500 23,250 23,100 23,000 22,500 23,000
15,800 14,500 16,000 16,250 16,300 15,750 15,500 15,250
9,000 7,000 9,000 10,000 10,500 10,750 11,000 10,750
10,000
______ 10,000
______ 11,000
______ 11,000
______ 10,750
______ 11,040
______ 10,750
______ 10,500
______
154,800 139,000 162,100 163,613 167,372 165,128 162,769 163,549
5.2% -10.2% 16.6% 0.9% 2.3% -1.3% -1.4% 0.5%
Notes: S ales for use in automobiles prior to 1981 were included in sales
for use by the chemical sector. There may be discrepancies due to rounding.
S ources: Japanese trade sources, CPM Group. p - projections.
May 1, 2017
201
Annual Japanese Automotive Demand

120 120
100 100
80 80
60 60
40 40
20 20
0 0
81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
Automotive Use as a Percentage of Total Japanese Demand

Percent Percent
75 75
70 70
65 65
60 60
55 55
50 50
45 45
40 40
35 35
30 30
81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15
202
CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 MINOR PGMS
Minor PGMs
203
MINOR PGMS CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017
204
Minor PGMs in any products that involve large

numbers of units being manufactured.
Ruthenium, iridium, and osmium often For example, researchers showed that
are referred to as the minor PGMs, iridium offers various valuable
given the smaller size of their markets. performance enhancements in
That may not be fair. These are critical automotive emission control catalysts
metals that have long served in a and some semi-conductor applications.
number of useful applications. Their There simply is not enough iridium
volumes of mine output are much lower around to allow the metal to be used in
than those of platinum and palladium. these applications, however, given the
Ruthenium output actually can approach tens of millions of units that are
output levels of rhodium, although the produced every year.
dollar value is much less, given the
price spread between the two metals. Even with the supply constraints,
however, iridium, ruthenium, and even
As a consequence of their smaller osmium, so long overlooked by most
supply volumes, fabrication demand market participants, have been
also tends to be much lower for these benefiting from on-going research and
metals. It is not so much that these development efforts across a range of
metals are not useful in a number of technologies. These metals have found
electronic, metallic, mechanical, uses in which their presence is critical,
catalytic, medical, and other despite supply constraints and fears that
applications. They simply do not exist any major new use will drive prices
in sufficient volumes to allow their use higher.
Iridium Prices
Metals Week NY dealer weekly low prices, through 25 May 2017
$/Ounce $/Ounce
1200 1200
1000 1000
800 800
600 600
400 400
200 200
0 0
72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
205
Last year and during the first half of this are now buying and deploying these
year there has been a noticeable metals in these new uses do not even
increase in demand for all three of these want it pointed out in public that the
metals in various uses. The result is that prices are rising due to new uses, as that
iridium prices began rising in the also goes against their best commercial
middle of 2016, and have continued to interests.
rise in 2017. Ruthenium prices began
rising in the first five months of 2017. CPM used the low end of the Metals
Osmium prices, mired at $350 since Week dealer quotes for these metals.
1998, have not changed on any official The logic is that if these prices are
fabricator price sheet, even though there available in the market, it is likely that
is a clear pick up in fabrication demand. more users are buying at the low end of
prevailing prices than at the high end.
Iridium, ruthenium, and osmium are not
being used in increasing volumes in a Iridium prices began rising in the
n u mb e r o f n e w p r o d u c t s an d middle of 2016. Much earlier, the
applications, including electronics, iridium price had spent much of the
chemical process catalysts, and other time from 1992 to 1997 below $100 per
new technologies. Unfortunately for the ounce, dropping to around $30 per
curious, almost all of the new uses are ounce from 1993 into 1996. Prices
confidential to the companies deploying began rising then as new applications
the new technologies, so little to came into production. Iridium had risen
nothing can be said about the to $525 by 1998, before subsiding to for
applications. Indeed, the companies that a few years. By 2002 – 2003 prices
The Price of Ruthenium

Metals Week New York Dealer Prices, Through 25 May 2017
$/Ounce $/Ounce
900 900
800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
206
were below $100 once more, only to The price averaged $790.24 during the
rise again. Iridium entered an extended first five months of this year, up 61%
bull market that took the metal to from the same period last year. The
$1,060 in September 2011, around the $960 at the end of May was 37.1%
time many other commodities prices higher than the price at the start of this
were peaking. Iridium average $987.92 year.
in 2011 and $1,025.57 in 2012, using
the low end of the Metals Week dealer Annual average ruthenium prices have
quote. Prices dropped sharply after that, been falling at double-digit rates since
hitting $350 in December 2013. 2011, through 2016. On a more frequent
basis, the low end of the weekly Metals
Iridium traded between $400 and $550 Week dealer Ruthenium price fell from
for much of the period from 2013 until a short term high around $75 in May
September 2016. In the middle of last 2014 to around $50 by September and
year industrial demand from a handful October of that year. Prices continued to
of new uses and companies emerged. weaken, touching $30 by July 2015.
Prices began rising. By the end of 2016 Prices moved sideways between $35
iridium was trading at $700 and above. and $42 from then until March of this
The price averaged $567.79 in 2016, up year. Prices then started rising,
12.0% from 2015. increasing 88.6% between March and
the end of May.
In the first five months of 2017 iridium
rose further to $960 by the end of May.
The Price of Osmium

Metals Week New York Dealer Prices, Through 25 May 2017
$/Ounce $/Ounce
1,000 1,000
900 900
800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16
207
208

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The CPM Platinum Group Metals Yearbook 2017

CPM GROUP PLATINUM GROUP METALS YEARBOOK 2017 CPM GROUP

Copyright © 2017 by CPM Group. All rights reserved.

Printed in the United States of America.

CPM Group’s Platinum Group Metals Yearbook 2017

Jeffrey M. Christian, Managing Partner

Rohit Savant, Director of Research

Annual Research Reports

Monthly Research Reports

Visit www.cpmgroup.com for additional information.

CPM Group’s surplus/deficit statistics for platinum and to a lesser extent

The Following Organizations Assisted in the Preparation of

China Gold Association

As a nationwide, non-profit, and self-regulatory organization, China Gold Associa-

CGA is comprised of enterprises involving gold exploration, manufacture, circula-

Commodities Now is the online service specializing in the traded commodity

The Institute of Scrap Recycling Industries, Inc.

Jingyi Gold Co Ltd.

Kitco Metals Inc.

A Canadian corporation founded in 1977, Kitco Metals Inc. is an international

Monex Precious Metals

Located in Newport Beach, California, Monex Precious Metals is home to a large

Monex Precious Metals

NOAH Capital Markets

Our experienced team of investment professionals provides unique services to both

Sabin Metal Group of Companies

The group is composed of four independent organizations:

Umicore is a global materials technology and recycling group. It focuses on applica-

Umicore’s overriding goal of sustainable value creation is based on an ambition to

Dr. Bernhard Fuchs

Umicore AG & Co. KG

Tel: +49 6181 59-4610

Review and Outlook

Markets & Inventories

Chart: Tocom Platinum Trading Volume . . . . . . . . . . . . . . . . . . . . . . . . 81

Review and Outlook

Chart: Palladium Mine Production in United States . . . . . . . . . . . . . . . .120

Markets & Inventories

Table: Tocom Palladium Open Interest . . . . . . . . . . . . . . . . . . . . . . . . 161

Review and Outlook

Chart: The Price of Iridium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Review and Outlook fabrication demand remained less than total

Platinum Price 1960-Present

exploration and expansion spending in the

Platinum Statistical Position

Price Per Ounce

Price Per Ounce

Platinum Supply and Demand Balance

Million Ounces Million Ounces

investors were net sellers of platinum,

Platinum coin sales are estimated to have

The platinum investment market is

The platinum market, in ounces terms,

The total platinum market, newly refined

Supply largely balanced out by a decline in

Annual Platinum Supply

Source of Platinum Mine Supply 2016

Russia, 12.3% Canada, 4.8%

South African Mine Production of Platinum