MetalsPlus The New Metals Consultancy

M E T A L S
Research and Consulting
MetalsPlus
The New Name in Metals Consultancy

M E T A L S
MetalsPlus in Brief

M E T A L S
MetalsPlus
The new name in metals consultancy
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 Client Focussed Metals Sector Consultancy at its Very Best
 MetalsPlus, new name in metals consultancy with a long track record
• We have decades of metals-specific experience
 MetalsPlus offers clients tailor-made solutions to problems
 MetalsPlus also offers direction to company aspirations
 We cover the complete supply chain
• From mine through to end-product markets

M E T A L S
Our Vision
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 We listen carefully to our clients’ needs
 We address needs fully without compromise with results that are:
• Clear
• Concise
• Complete
• Accurate and
• Actionable
 We work from a secure base of sector-specific knowledge and
analytical tools
 We never resort to stock answers to a client request
 Our clients’ needs will always come first
 Our clients’ success is our success

M E T A L S
Sectors Served
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 Metals
• from mine through to metals market dynamics and pricing
 Industry
• from materials input
• to sector-specific market analysis and interpretation
Overview

M E T A L S
Who We Are

M E T A L S
Who We Are
 MetalsPlus is owned and operated by Paul Dewison.
 Projects will be run by Paul Dewison
• in many cases they will also be fulfilled exclusively by him
 With deep industry links
• to other consulting firms
• to expert individuals
 Outside data and consulting expertise will be brought in as appropriate
 For each project, we will make clear about
• the composition of the project team
• the information resource base to be employed
 To be sure that we fulfil all of your expectations
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M E T A L S
Profile of Paul Dewison
 Having graduated from Sidney Sussex College, Cambridge University with a degree in
Geography, Paul Dewison followed on to work for a number of the big names in metals
consulting. These included Commodities Research Unit and Brook Hunt (now Woodmac). More
recently, having run his own consulting firm Metalica Ltd., Paul moved on to Bloomsbury
Minerals Economics (BME) where he ran the copper publications and downstream consulting
sides of the business.
 In 2013 BME’s reports and consulting business was bought by Intierra, a business that became
a part of SNL Metals & Mining in 2014. At SNL, Paul managed a commodity reports business,
initiating the roll out of multi-metals and single metals publications similar to those in copper
as well as continuing to work for single clients. In May 2015, Paul left full time employment at
SNL to set up MetalsPlus Research & Consulting. 8
 Paul is a leading base metals industry consultant, focussing in
particular on copper, nickel and on their downstream markets.
Expertise spans other metals as well, including iron ore / steel,
aluminium and zinc. Paul’s work ranges from commodity market
analysis and forecasting to highly granular analysis of the industries
that use metals.
 Clients worked for include mining companies, financial interests,
metals processors and industrial companies, and industry associations.
As well as hands on research, Paul has been successful in business
development and in managing a consulting and publications business
in both large and small firms

M E T A L S
What We Do

M E T A L S
MetalsPlus Offering in Brief
 Our expertise spans across metals markets to the industries that use metals
• from mine through to final assembled industrial product
 Our breadth of coverage has benefits for both ends of the spectrum
• and all in between
 To mine interests we offer
• a true understanding of where your product is destined.
 To industry we offer
• an understanding of materials content dynamics
• sophisticated, granular industry-specific analysis
 Our approach is market dynamic focussed
 We assess value chain links and industry structure components
• to find advantage for our clients where this can best be found.
 To May 2015, the MetalsPlus expertise was resident within other research firms
• Now we are able to give a better value offering
• more accurately targeted at achieving your goals
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M E T A L S
Types of Assignment
 Supply, demand and price analysis and forecasting
 Supply chain mapping using zero-sum analysis techniques
 Value chain dynamics, identifying apportionment of value
 Mined and refined product differentiation and the implications
 Scrap in the supply chain
 Routes to market
 Mine development pipeline in its market context
 Smelter and refinery development in the market context
 Granular demand sector analysis and forecasting by fabricated product
 Granular demand sector analysis and forecasting by manufactured
product 11
Metals Sector (1)

M E T A L S
Types of Assignment
 Granular demand sector analysis and forecasting by industry sector
 Inter-materials competition and the implications
 Materials substitution, miniaturisation and other threats to metals use
 Emerging technologies and new opportunities for metals
 Promotional opportunity and leverage for metals / metals products
 Mine sector industry analysis and competitor appraisal
 Trends in mining and industry structure and the implications
 Trends in metals processing industry structure and the implications
 The ramifications of technology change
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Metals Sector (2)

M E T A L S
Types of Assignment
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Industry (1)
 Materials use and materials options in industrial products
 Market segmentation and shares analysis
 Supply, demand and price analysis and forecasting
 Supply and value chain mapping, identifying apportionment of value
 Routes to market, options compared
 Granular demand sector analysis and forecasting by manufactured
product
 Granular demand sector analysis and forecasting by industry sector

M E T A L S
Types of Assignment
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Industry (2)
 Emerging technologies and new opportunities
 Promotional opportunity and leverage by product
 Competitor appraisal
 Market appraisal relating to capacity expansion
 Market appraisal relating to product development
 Industry structure trends and the implications
 The ramifications of technology change

M E T A L S
Assignment Snapshots

M E T A L S
Building Wire
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 Accounting for around 15% of copper use, building wire is
the largest of copper’s markets. Yet, it is often poorly
understood, assumed to be a constant part of the
building industries’ output of new built structures with
few developments of interest in the wire market itself.
 In fact, quite the reverse is true. In this analysis we
carried out a detailed market segmentation by major
country and region, identifying the unique characteristics
of residential and non-residential sectors, of new building
and refurbishment activity, and the relation of building
wire to each. The survey looks at building wire in the
context of wiring structures within buildings and the
regulations attached to them. We also assessed the
characteristics of different types and sizes of wire.
 Through this process we discovered important regional
differences between market segments and regions, in
particular differences in intensity of use measured against
floorspace in place and floorspace newly built. We also
discovered a few important emerging trends, not least
the penetration of 8000 series aluminium products
Market appraisal and forecast

M E T A L S
Transformers
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 Transformers form a crucial market for copper,
aluminium, electrical steel and mineral oil. The scope of
this research encompassed products from distribution
transformers of 5 kVA to the largest power transformer of
over 1,000 MVA, measuring the market in MVA, value,
and materials content. The dynamics of incremental and
replacement demand were assessed separately.
 Though transformer design fundamentals changed little
for decades, we found this to be an industry in that is
now in flux. Faced by ever-tougher efficiency legislation,
shifts in the structure of the emerging power network
and gyrations in the cost of major materials, transformer
manufacturers are making big changes to their product
line up. As well as having major implications for materials
suppliers, the industry itself is undergoing big changes.
 The larger global players in the transformer industry,
perhaps better able to cope with the demands of a
changing market, often have a quite different design
philosophy from their smaller counterparts. The research
shows clearly that this is a business in a process of change
that is by no means over
Industry analysis and forecast
Source: ABB

M E T A L S
Electrical Steel and Copper
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 Commissioned by a major industry body, this was a detailed review and forecast of the
electrical materials used for their magnetic properties in motors, generators and
transformers, namely electrical steel and conductor material (copper or aluminium).
 The research involved a detailed analysis of the material content of electrical products, the
design options applying, the logic of material choice and what this means for the volume and
grades of material chosen.
 In particular, for electrical steel the designer has a wide variety of material grade options, in
general the choice of higher quality meaning lower volume but better margins.
The market interface
 These margins, though, vary over time
and relate to the relative bargaining
power of suppliers and consumers. We
took a close look at this evolution,
taking into account the relative market
position of different material grades of
steel and also of copper, which if used
in more volume may allow less or lower
grade steel to be used.
 The project required us also to carry
out a detailed appraisal of the supply
side of the electrical steel equation.

M E T A L S
Promotion Opportunity
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 Commissioned by a major industry body, the purpose was
firstly to identify how product specification decisions are
made, and who makes them. Here, we looked at the
parties involved within a corporate structure (including
engineering, procurement and marketing), the relative
position of plant location and head office, and the
relative importance of different companies along a
complex supply chain from basic manufactured product
through to final assembly and then final consumer.
 The second part was then to identify applications which
offered the greatest opportunity for promotion (or
marketing) leverage. Part of this is about access, and thus
falls out of the decision making work. Other issues are
the intrinsic merit of a marketing argument, the nature of
inter-materials competition and technology change and
the market volume open to being gained or alternatively
saved from being lost to competition.
 In the process of doing this work, we developed a unique
In house methodology for ranking promotional and
marketing opportunities for basic materials.
An appraisal for all copper products

M E T A L S
Nickel Marketing Plan
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 In some ways, nickel straddles the divide between metals
and industrial products. At the outset, the mining
company may have a technical choice as to what product
to make. The option chosen has deep implications for the
markets to be addressed, the routes to market and the
potential revenue stream of a mine project. Should the
mining company focus on the most obvious market
choice – stainless steel – or have the flexibility to address
nickel’s more esoteric markets?
 This research formed part of a feasibility study for a 60
ktpy nickel mine. The task was to decide what product to
make from the options available (nickel cathode,
rondelles, briquettes or other pure nickel, ferronickel or
intermediates), what grade, which markets to address
and to define the routes to market.
 The project required a detailed market segmentation
analysis, research into the differentiation in the products
available from different mines, prices premia and
discounts applying, customer requirements and ease of
entry into the different market sectors.
Marketing plan for a new mine

M E T A L S
For further information please contact
Paul Dewison at:
pdewison@MetalsPlus.co.uk

MetalsPlus The New Metals Consultancy

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