The London Metal Exchange:

1
The London Metal Exchange Global Risk management
for Non-Ferrous Metals
George Adcock Business Manager Non-Ferrous
Metals 2nd Global Capital Conference and
Exhibition 2008
2
London Metal Exchange Highlights

• Worlds premier industrial metals and industrial
  materials market - Internationally recognised
  prices
• Recognised Investment Exchange (RIE)
• Established for over 131 years
• 30 years of aluminium futures trading
• Highly liquid contracts - 9.5 trillion turnover
  in 2007 (93 million lots 2.2bn tonnes)
• Principal-to-Principal Market
• Central counterparty - LCH.Clearnet

3
Production
Production figures based on annualised Jan-Jun
2008 production data provided by World Bureau of
Metal Statistics.
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Production to trading ratio
Multiples based on trading volumes (futures,
options TAPOs) in tonnes for Jan June 2008,
divided by production over the same period
(WBMS).
5
Exchange volumes
6
LME Volume turnover - Core contracts
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LME Volume turnover Other contracts
8
Price Volatility LME Aluminium, Copper and Zinc
(cash)
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Prompt Date Extensions

• High grade Primary Aluminium and Copper Grade A
  contracts from 63 months to 123 months (ten
  years)
• Special High Grade Zinc and Primary Nickel from
  27 months to 63 months (five years)
• Standard Lead from 15 months to 63 months (five
  years). The Exchange will publish a new 27 month
  official price for Standard Lead
• The LME will establish and publish Closing Prices
  for the additional months

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Aluminium 10 Year Forward Curve
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Zinc 5 Year Forward Curve
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Aluminium and Copper Futures
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Global Delivery Locations LME Approved
EUROPE 16 Locations
NORTH AMERICA 10 Locations
ASIA - 8 Locations
MIDDLE EAST 1 Location
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Exchange Developments 2008/2009

• Steel billet contracts launched H1 2008
  successfully trading on the Ring, LMESelect and
  the telephone market
• Molybdenum and Cobalt H2 2009

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Summary

• 90 of non-ferrous metals traded on the LME
• 9.5 trillion turnover in 2007
• Access via Global Member Firms
• Tools to manage risk in volatile markets
• Highly liquid contracts
• Credibility
• Established
• Global Price Determined

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Disclaimer
George Adcock Business Manager Non-Ferrous
Metals T 44 207 264 5695 E george.adcock_at_lme.c
om
The information contained within this
presentation is for illustrative and educational
purposes only and should not be relied upon in
making any investment decision. Whilst every
effort has been made to ensure the information is
up-to-date and correct, the LME cannot guarantee
that it is completely accurate and free from
human error.