Long mining history and very high-quality PGM reserves

Russia hosts palladium-rich PGM ore-bodies mined as a by-product of nickel and copper mining from open-cast, underground and alluvial mining methods. There are only a few companies that produce palladium, the largest being Nornickel, which is undergoing a long transformational process to become more environmentally compliant by upgrading its processing facilities across its Kola and Polar Divisions which is where are where the majority of Nornickel’s PGM assets are located. From 2013, Nornickel embarked on an environmentally friendly processing strategy across its value chain, covering concentrators, smelters and refineries to expand processing throughput, raise recoveries and halt its legacy of being one of the most polluting mining companies in the world. Nornickel is the lowest-cost palladium producer on an equivalent ounce basis. Russia's 4E basket price closely aligns with North America, and historically been lower than South Africa.