Economic appraisal

In-depth analysis of spent autocatalyst recycling and value chain

SFA (Oxford) provided an independent view of the PGM value chain for spent autocatalyst recycling, highlighting the indicative cost and value addition at each stage (removal, collection, pre-processing, smelting, and refining).

Strategic evaluation

The PGM recycling sector: A guide for the new entrant

The SFA team completed an overview and evaluation of opportunities within the PGM recovery/recycling sector, defining the barriers to entry confronting a newcomer to the sector, identifying the main players in the value chain, and forecasting regional collection rates and volumes of spent autocatalysts, as well as appraising other market sources of secondary PGMs.

Global volumes and new market direction

Regional survey on spent autocatalysts for a major PGM refining company

SFA (Oxford) produced a concise overview of automotive catalyst end-use, including PGM requirements, industry trends, emission legislation and inter-related metal substitution.

The review calculated current average regional volumes of platinum, palladium and rhodium arising from spent autocatalysts, and estimated historical and future regional collection rates of spent autocatalysts by ceramic and metal substrate.

We quantified the numbers of ceramic and metal substrates available for recycling in the selected regions and identified the main players in the value chain, including processors and, where possible, collectors.

Investment/disinvestment

Strategic options review for a major PGM recycler

SFA (Oxford) assisted in the derivation of a high-level, practicable, and viable scaling-up of business strategy (or disinvestment case) within an 18-month timeline. Detailed PGM market intelligence was provided, covering primary and secondary supply and demand. The review contextualised assets/ operations against those of local peers and global competitors, and offered an independent view on the metal price dynamics of platinum-group markets, so as to determine a robust window of economic opportunity for the company’s PGM business.

Contextualisation of autocatalyst, jewellery, and WEEE recycling

The viability of PGM recycling as a strategic investment by a major metal refining company

SFA (Oxford) articulated the challenges surrounding PGM recycling, clearly defining the opportunities it offered. The report contextualised the sources of PGM scrap arising from traditional sources such as the jewellery sector, the growing autocatalyst market, and the emerging lower-grade sources of PGMs from electronic waste.

Each PGM end-use market was defined in terms of its relevant volumes, the availability of scrap for recycling, and recovery rates, so as to determine potential business opportunities. Prices and payment terms offered to collectors, metal recoveries offered, and the types of metal accepted were quantified.

Geographical, environmental and political issues were covered, along with the technologies, people, and skills required, as well as legislative environment.

Supply security

Long-term forecast of PGM volumes available for recycling/PGM primary and secondary refinery capacity estimates for a major corporation involved in recycling

The SFA team supplied comprehensive forecasts of recycled PGMs from autocatalysts (covering gross weights of ceramics and PGM content), jewellery, electronic scrap, chemical and petrochemical catalysts, petroleum catalysts, fabricated metal scrap and other uses.

Asset divestment

Due diligence study on a European PGM recycling operation for a major conglomerate

SFA (Oxford) carried out an indicative financial evaluation, taking into account volume, revenue, and cost projections, whilst also considering two proposed options: no investment in WEEE capacity, and investment in WEEE capacity. The report included:

• A cash flow and valuation model.
• Volumetric forecasts, per segment (traditional, WEEE (with/without investment), and autocatalysts) on a tonnage per year basis.
• Forecast revenues excluding precious metals, and predicted operational costs.
• Projected capital expenditure requirements for strategic scenarios, including fixed asset depreciation for the valuation period.
• Historical summarised financial statements.
• Actual PGM metal settlements on a per segment/product group basis.

Economic appraisal

Business valuation of a major PGM recycler

SFA (Oxford) assessed the overall competitiveness of a refinery operation involved in recycling by conducting a benchmarking exercise, comparing the plant to other global refineries, and considering the following factors: recoveries, operating costs, location, quality of assets, and external and internal negotiated tolling terms.

We conducted a market valuation, considering all relevant qualitative and quantitative factors of the existing operation, on a standalone basis, and identified and analysed the operation’s value, determining the net asset value versus sale options.