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Resource Alliance—company presentation
RA Rohstoffallianz GmbH
Berlin, June 2012
Page 1
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 2
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 3
When markets fail to provide adequate solutions to counter supply risks, industry has to act: "Resource Alliance"
Current market
environment
• Resources are becoming scarcer by rapidly rising demand from emerging markets, new technologies and declining quality of deposits
• Prices for raw materials highly volatile
Challenge
• Access to raw materials is increasingly more difficult due to government interventions on the supply and the demand side
• Speculative financial investments compromise physical supply needs for industrial production
Solution
• Establishment of global, profit oriented company, in order to add further supply options for critical raw materials
• Providing contractual solutions to narrow price volatility for industrial consumers
Page 4
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 5
Resource Alliance provides one-stop solutions for all stakeholders
Lower supply risks
• Risk spread due to larger project portfolio• Optimal usage of mining products due to
diversified needs of raw materials
1
Enhancement of specialist competencies and know how
• Pooling of technical, geological and mining know-how
• Customized solutions for different industry segments
2 Better access to capital markets
• Bundling of interest and resource needs facilitates access to capital market
• Use of UFK Financing• Co-investments from dedicated fund
4
Lower individual project costs
• Economies of scale due to higher negotiation power
• Reduction of complexity in procurement processes
• Reduction of transaction costs by pooling interests
3
Better political support
• Government will fully support an open industry platform
• Leverage broad industry representation in lobbying activities
• First hand counterpart for foreign institutions and NGOs
5
Page 6
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 7
Security of supply of strategic
rare resources
Resource Alliance founded by 10 major industrial groups
Key factsKey facts
Product and service portfolioProduct and service portfolio
ShareholdersShareholders
Ways of participationWays of participation
Founded March 2012
HQ Berlin
CEO Dr. Dierk Paskert
Political lobbying
Access to capital markets for
mining projects
Arrangement of financing for exploration projects
Expertise in mining and
natural resources
Management ofproject companies
RA
• Pay annual fee• Participate on cluster level
with same rights as shareholders
• Do not take strategic decisions on projects
• May become shareholder at later step
• Are owners of RA• Pay one-off deposit at entry• Share corporate risk of RA• Decide on country and
resource focus• Receive access to
– Exploration projects– Exploitation rights– Offtake-agreements
Shareholders Associated companies
Page 8
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 9
3 ways of supporting supply of critical raw materials
Business model based on four revenue streams
Investments in exploration projects• Screening and acquisition of relevant projects• Facilitating access to subsidies & guarantees• Providing direct investments in case of mutual
interest of shareholders
Negotiations of offtake agreements• Enforcing higher negotiation power due to
pooling of interests• Providing access to project portfolio of new
and developed mining projects
Offering risk management solutions• Facilitating financing of projects• Offering access to commodity trading and
distribution solutions
Sources of revenue generation
Market research and screening of projects • One-off deposits of shareholders• Yearly fees of associated companies
Project acquisition • Success-based fees for acquisition of projects
Project development• Royalty-based compensation for project
development and project management
Investment fund management • Management-fees for administration and
governance of dedicated funds
Cor
e fu
nctio
n of
RA
Page 10
Agenda
The objective of Resource Alliance
The value-add for RA's shareholder
RA Rohstoffallianz GmbH – Who we are
Our business model
Current raw material clusters
Page 11
Project work of Resource Alliance focused on 5 critical raw materials
NF Metals
Rare Earth Elements
Coal
Special Metals
Graphite
• Copper, zinc, nickel, …
• Lithium, antimony, cobalt, molybdenum, tungsten, etc...
• Graphite
• Coking coal• Foundry coal• Pulverized coal
• Light/heavy REE• Focus: neodymium, dysprosium,
cerium, samarium, lanthanum
Cluster Raw-material focusProject work organized in clusters Working scope for cluster
Identification of exploration projects
Technical and economic evaluation of projects
Engagement and investment decision
Continuous management ofproject companies
