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08Ambrian Capital plcAnnual Report & Accounts 2009Chief Executive’s report (continued)Ambrian Metals LimitedLeft to right:Mark HomerOwen Benninson246,296tTotal tonnage tradedin 2009Ambrian Metals LimitedAmbrian Metals globally sources non-ferrousmetals, with a particular focus on LME-grade coppercathode and copper wire-rod, from producers fordistribution primarily on a matched and hedged basisto an international client base. Headquartered inLondon, and with an office in Shanghai, AmbrianMetals has agents in New York, Santiago, São Paulo,Seoul and Tokyo.Ambrian Metals does not speculate on movementsin metals prices but generates revenue by chargingits clients a market-based “premium” over the metalprice for providing them with a consistently high qualityproduct and logistics services.Ambrian Metals manages all facets of marketingand distribution. The growth in tonnage handledby Ambrian Metals has been supported by majorinternational banks that have been prepared to providegrowing amounts of trade finance. These banksinclude BNP Paribas, ING, Standard Chartered,Credit Suisse and Banque Cantonale Vaudoise.At the year end, Ambrian Metals had US$200 millionin uncommitted trade financing facilities comparedwith US$120 million at the end of 2008.Ambrian Metals benefited during 2009 from recordflows of refined copper into China. The total volume ofrefined copper imported into China in 2009 rose by 29%to 3.1 million tonnes from 2.4 million tonnes in 2008.Chinese demand for copper was particularly strongduring the first half of 2009 and was fuelled by strategicstockpiling but also, in large part, by the RMB 4 trillion(US$585 billion) stimulus package announced by Chinain November 2008. Approximately US$450 billionwas targeted for investment in infrastructure, ruraldevelopment and other fixed asset investments whichare large consumers of raw materials. Refined copper,for example, is converted into a range of productswithin the building, construction and electrical sectors.The effect of increased Chinese demand for refinedcopper was to push up worldwide market premiumsper tonne. Premiums per tonne “CIF Shanghai” rosesharply from approximately US$38/tonne at the startof 2009 to a high of approximately US$170/tonne inApril. Premiums fell back to around US$40/tonne inthe second half of the year but rebounded at the yearend to approximately US$100/tonne in anticipationof further Chinese demand and a recovery in globaleconomies in 2010.In 2009, Ambrian Metals handled 246,296 tonnesof physical metals. This included 213,382 tonnes ofrefined copper, which was equivalent to approximately6.9% of China’s total imports of refined copper in thatyear. In 2008, Ambrian Metals handled 79,573 tonnesof physical metals. Total sales of physical metals in 2009were $1,238 million compared to $630 million in 2008.Approximately 39% of Ambrian Metals’ tonnage volumein 2009 was to customers located in the Middle East and37% was sold to Chinese customers through AmbrianMetals’ office in Shanghai. The balance was primarilytaken up by customers in Europe and North America.Financial events in Dubai in the second half of 2009 hadonly a limited impact on the tonnages sold by AmbrianMetals into the Middle East.During 2009, Ambrian Metals sourced refined copperfrom producers located around the world, includingRussia, Kazakhstan, Japan, Zambia, Brazil, Indiaand Chile.