CPM Group

CPM Group
30 Broad Street
37th Floor
New York, NY 10004

Phone: 212-785-8320
Fax: 212-785-8325
E-mail: info@cpmgroup.com
 CPM GROUP

ƒ CPM Group is the world's premier precious metals and commodities research and consulting
company. CPM Group provides a suite of research and consulting services related to the financial
management of commodities exposure. CPM Group’s services are divided into five groups:

ƒ Research
ƒ Consulting
ƒ Commodities Management
ƒ Asset Management
ƒ Investment Banking

ƒ CPM Group, founded in 1986 via a management buyout of the Commodities Research Group of
Goldman Sachs, has extensive experience in commodities research, trading, banking, and
financing. CPM Group is a member of the National Futures Association and a registered
CTA/CPO under the guidelines of the Commodity Futures Trading Commission.

ƒ CPM Group is independent of all miners, fabricators, bullion banks, and other companies that
have commercial positions, allowing for a completely unbiased view of the markets.

ƒ Expertise and independence have earned CPM Group the reputation of being the ultimate trusted
authority in the metals and commodities markets.

ƒ CPM Group’s founder and Managing Director, Jeffrey M. Christian, is known as one of the most
informed authorities on the precious metals markets. CPM Group is comprised of experts in
precious metals, base metals, and other commodities markets, economic and econometric analyses
of commodities, and financial engineering – the use of derivatives to structure advantageous
hedging and investment instruments.
2 CPM Group
 TABLE OF CONTENTS

Page
Research Driven Financial Services …………….…………………………… 4

Commodities Research …………………….………………………………… 5

Commodity Price Projections …………..……………………………….. 7

Research Relationships …………………..……………………………… 8

Consulting ………………………………………….………………………… 9

Commodities Management ………………………………………………… 10

Investment Banking ………………………………………………………… 11

Asset Management …………………………………………………………. 13

For information purposes only. CPM Group is not soliciting any action based on the information contained in this document. CPM Group
 RESEARCH DRIVEN FINANCIAL SERVICES

Producers
Development
Stage Consumers
Companies Investment
Consulting
Banking Refiners
Producers
Smelters
Refiners
• Corporate financial •Short to long term
advisory advisory services Financial
Institutions
• Risk management •Independent market
consulting services Institutional
• Debt and equity Investors
fund raising services • Open consulting
access to analysts on Hedge Funds
Commodities exchange traded
Research commodities and Private Clients
specialty metals.
Governments
• Weekly Report
International
• Monthly Advisories Organizations

• Annual Precious
Metals Yearbooks
Producers Institutional
Commodities Asset Investors
•Annual Precious
Consumers Management Metals Long-Term Management
Studies Hedge Funds
Institutional
Investors Private Clients
• Principal advisor •Special Studies •CPM Fund
and hedging manager
International •Client Specific •Managed Accounts
Organizations Research
• Advisor to help
management teams •Non-Exchange
Governments
choose or execute Traded Metals
their actions Management

•A strategic advisor,
managing hedging on
an ongoing basis

4 CPM Group
 COMMODITIES RESEARCH

SPECIAL STUDIES LONG TERM OUTLOOKS ANNUAL YEARBOOKS MONTHLY ADVISORIES WEEKLY REPORT

5 CPM Group
 COMMODITIES RESEARCH (CONT.)

Client Specific Reports Special Studies

CPM Group produces reports for individual CPM Group produces special studies on non-
clients’ internal and external distribution and exchange traded metals. These reports contain
use. CPM Group's work has appeared in ten year projections for supply, demand, and
reports produced by the World Bank and the prices and are use by mining companies and
International Monetary Fund, as well as in the investors looking to obtain comprehensive
annual reports of various mining companies, research, data, and analysis on these markets.
refiners, investment banks, brokerage Topics of recent and past reports include:
companies, metals dealers, and others. Client
specific research includes the following. ƒ Molybdenum ƒ Rhodium
ƒ Vanadium ƒ Ruthenium
ƒ The Long-Term Sustainability of Recent ƒ Tungsten ƒ Iridium
Commodity Price Strength ƒ Titanium ƒ Niobium
ƒ Gold, Silver, and Platinum Group Metals ƒ Lithium ƒ Uranium
Production Costs ƒ Cobalt ƒ Diamonds
ƒ The Outlook for Base and Precious Metals ƒ Indium ƒ Tellurium
ƒ Comparative Currency Volatilities ƒ Rhenium ƒ Tantalum
ƒ Sourcing Finished Nickel
ƒ Econometric Analysis of Precious Metals
Markets
ƒ Fuel Cells
ƒ Central Bank Gold Valuation Methods
ƒ Precious Metals As Competing Assets
ƒ Gold's Purchasing Power

6 CPM Group
 COMMODITY PRICE PROJECTIONS

CPM Group’s reports contain price projections, ranging from weekly to more than ten years
forward.
2-Year More than
1-Week 1-Month 3-Month 1-Year Qtly. Avg. 10 Years 10 Years

Weekly
Report
Monthly
Advisories

Yearbooks

Long Term
Outlooks
Special
Studies

Short term Short and medium term trading Budgeting Feasibility studies
trading and investing
Strategic planning
Market timing
Offering documents
Investment valuation

7 CPM Group
 RESEARCH RELATIONSHIPS

CPM Group offers clients the ability to choose between three unique service packages or tailor a custom
package to a client’s specific needs and requirements.

Precious and Commodities Outsourced

Base Metals Research and Commodities
Research Consulting Research

Weekly Commodities Views:

Monthly Precious Metals Advisory:
Monthly Base Metals Advisory:
Monthly Soft Commodities Advisory:
Precious Metals Yearbooks
Precious Metals Long-Term Outlooks:
Special Studies:
Client Specific Research:
Open Consulting Access:
Access to Deal Flow:
Data Access:

8 CPM Group
 CONSULTING

CPM Group provides consulting services designed to meet a need for information, investment, and trading
decisions related to commodities.

MARKET CONSULTANT FINANCIAL CONSULTANT ANALYST

CPM Group provides a range of
consulting services to
corporations with large financial
exposures to commodities. For
example, CPM Group works
with mining companies by
providing detailed market
studies including commodity
price projections for inclusion in
offering documents.
CPM Group works with corporate
and investment clients to help
them better understand the metals
and commodities markets. This
allows for institutions to make
decisions based on comprehensive
and unbiased information. Clients
benefit from dialogue with CPM
Group analysts that allow them to
unlock the complexities of the
markets.
Clients also utilize CPM Group’s
expertise in assessing business
plans as well as our
comprehensive understanding of
the technical and financial
workings that are required to
make sound investment decisions
in exploration or production
companies.

PRESENTATIONS

Clients retain CPM Group analysts to give public and private presentations to industry groups, institutional
investors, private clients, hedge funds, corporate management teams, and boards of directors.

9 CPM Group
 COMMODITIES MANAGEMENT

CPM Group works with producers, consumers, institutional investors, governments, and international
organizations to manage commodity price risks. Our independence affords clients an unbiased assessment of
hedging structures and terms.
Participatory Options
35
Spot Sales
HEDGING MANAGER 30
Participatory Options
25
ƒ Analyze a company’s commodity price risk. 20

Revenue
ƒ Structure and execute strategies to manage price risks. 15
10

ƒ Use hedging to optimize financial leverage. 5

0
ƒ Provide price protection while preserving exposure to 0 3 6 9 12 15 18 21 24 27 30
higher prices for producers, or lower prices for consumers. Prices

CPM Group structures alternative strategies such as

ƒ Analyze and modify existing hedge books. participatory options which present effective solutions that
protect end users or producers from negative revenue or
cost exposures and credit risks while still allowing for
MATERIALS MANAGEMENT CONSULTANT participation in favorable price movements.
ƒ Solve complex problems related to commodity price risks. Typical Revenue Profile and Credit Exposure
ƒ Evaluate proposals presented by counterparties. 30
Spot Sales
25
ƒ Act as agent to maintain anonymity and obtain optimal 20
Forwards

price discovery.

Revenue
15

10
ONGOING PROCESS 5

ƒ Offer advice on an ongoing basis. 0

0 3 6 9 12 15 18 21 24 27 30

ƒ Train and educate company professionals on mechanics of Prices

A traditional revenue stream can be turned into a more

hedging. dynamic and effective revenue profile than traditionally
ƒ Provide research and analyst market opinions. available, most importantly while simultaneously reducing
credit exposure.

10 CPM Group
 INVESTMENT BANKING
Investment Banking Services Tailored to Commodity Sector
BACKGROUND
ƒ Provide corporate financial advisory, risk
management, and fund raising services to
companies that produce and consume
commodities.
ƒ Industry experts advise companies on how to
approach their financial development needs
with innovative solutions.
ƒ Services are delivered without limiting clients
to a specific financial institution, an
important distinction between CPM Group
and investment banks.
11
APPROACH
ƒ Vest control of the financing process with the
client and truncate the financing timeline.
ƒ Leverage our team’s experience at major
financial institutions to develop offering
materials that translate feasibility level
technical information into a digestible format
for investors.
ƒ Deliver the marketplace a “fully baked”
transaction that creates an auction process
among capital providers.
ƒ Instill confidence in financing sources to
offer their best terms.
CPM Group
 INVESTMENT BANKING (CONT.)

RESOURCES

ƒ Senior level industry professionals manage the relationships with our investment banking clients,
are involved in day-to-day execution of the investment banking advisory program, and provide
unlimited access to client management teams.
ƒ Global network of financing sources among institutional investors and the capital markets.
ƒ Access to CPM Group’s research across metals and other related commodity markets.

Investment
Banking

Incorporate independent
long-term price
projections in financial
models and transaction
offering documents

CPM Research Client

Conducts long-term Obtains a project

studies of metals markets, valuation supported by
projecting supply, comprehensive
demand, and prices ten or independent market
more years forward analysis

12 CPM Group
 ASSET MANAGEMENT
MANAGED ACCOUNTS
CPM offers discretionary managed accounts, in
which our professionals manage investments in
accordance with the market views and direction of
our experienced research analysts. In addition to
investments in structured products, futures, and
options, CPM invests in natural resource oriented
equities.
FUNDS
CPM Group also will manage funds for individual or
groups of investor clients. CPM Group presently
manages some specialty funds as sub-advisors to
institutional and high net worth individual investors.
CPM also is moving toward starting a CPM Fund,
which would be a long-short commodities hedge
fund investing in a range of commodities oriented
assets across a wide time horizon.
13
NON-EXCHANGE TRADED METALS MANAGEMENT
CPM Group manages accounts consisting of but not
limited to off-exchange metals for clients. Services
include, but are not necessarily limited to:
ƒ Conducting comprehensive studies of off-exchange
metals, assessing opportunities for investment.
ƒ Arranging and maintaining secure and confidential
storage of the metal.
ƒ Arranging and maintaining insurance, accounting,
and auditing of the metal.
ƒ Purchasing, storing, selling, and leasing metal.
CPM Group
 YEARBOOK SPONSORSHIP PROGRAM

The CPM Yearbooks have been published since the early 1970’s, independently since 1986. The
Yearbooks are now published by John Wiley & Sons.

DISTRIBUTION
More than 1,000 copies of each Yearbook are distributed annually throughout the
world. The Yearbooks are distributed via bookstores and online on Amazon.com
and CPMGroup.com. CPM Group also mails a copy of each Yearbook directly to
hundreds of institutional investors in the natural resource sector, analysts, and
asset managers at major global financial institutions as well as every central bank
February throughout the world.

SPONSORSHIP BENEFITS
• Your company’s name on the cover and corporate profile inside of the Yearbook.
• Complimentary Yearbook copies.
• Exposure to retail investors on Kitco.com and other precious metals websites as
well as in a full page color advertisement in Commodities Now magazine
April published in London.
• Access to use CPM Group’s data, charts, and tables for your company’s website
or presentations.
• Invitation to your company and guests on your behalf to attend a market briefing
and Yearbook release in New York.
• Preferred client rates on all of CPM Group’s research and consulting services.
June
CPM Group