Growth and Dividends Investor presentation September 2017 Kyzyl processing plant construction
Disclaimer ward-looking statements that involve know n and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are This presentation includes for based on the directors’ beliefs and expectations about future events. These forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions, predictions and other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should”, “shall”, “could”, “risk”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned” and similar expressions or the negative thereof identify certain of the forward-looking statements. For ward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures; gro wth in demand for products; economic outlook and industry trends; developments of markets; the impact of regulatory initiatives; and the strength of competitors. The for ward-looking statements in this presentation are based upon various assumptions and predictions, many of which are based, in turn, upon further assumptions and predictions, including, without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions w ere reasonable w hen made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. Many factors could cause the actual results to differ materially from those contained in predictions or for ward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia and Kazakhstan, rapid technological and market change in the industries in which the Company operates, as well as other risks specifically related to the Company and its operations. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Neither the Company, nor any of its agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. to reflect any change in their expectations or any change in events, conditions or circumstances on w hich such statements are based Nothing in this presentation constitutes an offer, invitation, recommendation to purchase, sell or subscribe for any securities in any jurisdiction or solicitation of any offer to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as any inducement to enter into, any investment activity. To the extent available, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this presentation come from the Company's own internal research and estimates based on the know ledge and experience of the Company's management in the market in w hich the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. The information contained in this presentation has not been independently verified. Neither the Company, any of its affiliates, subsidiaries or subsidiary undertakings nor any of their respective advisors or representatives makes any representation or warranty, express or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Percentages and certain amounts included in this presentation have been rounded for ease of presentation. Accordingly figures shown as totals in certain tables may not be the precise sum of the figures that precede them. Neither the Company, or any of its affiliates, advisors or representatives accepts any liability w hatsoever (in negligence or otherw ise) forany loss howsoeverarising fromany information contained in the presentation. | 2
Polymetal today High-quality operating assets and growth projects ˃ 6 operations in Russia, 1 in Kazakhstan and 1 in Armenia ˃ 1 POX facility and 4 major development projects ˃ Market cap of US$ 4.7 billion*, FTSE 250 constituent Notes: *As at market close 20.09.2017 | 3
Simple strategic objectives and clear execution priorities > Control costs and replace reserves at operating mines > Deliver a significant and > Deliver medium-term growth at Kyzyl sustainable dividend > Build and advance a long-term growth > Ensure significant and pipeline profitable growth > Maintain highest standards of corporate governance and sustainable development | 4
We have robust growth profile Gold production, Koz of GE 1 1,800 1,700 Kyzyl 1,550 330 280 80 1,400 Existing 1,269 operations 1,470 1,470 1,420 1,400 1,269 2016A 2017E 2018E 2019E 2020E Share of gold in production 1 87% 87% 82% 77% 69% 2016A 2017E 2018E 2019E 2020E Notes: GE at 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conv ersion ratios. | 5
5-year results: we deliver on production Annual production based on 80:1 Ag/Au ratio (Koz of GE)* +10% +4% +1% +7% Guidance +6% Actual 1,312 1,269 1,267 1,260 1,220 1,190 1,168 1,090 952 900 2012 2013 2014 2015 2016 * Company historical gold equiv alent guidance recalculated using 80:1 Ag oz/Au oz conv ersion ratio. | 6
5-year results: dividend yield and TSR 5Y Sector-leading dividend yield 4.4% 3.1% 2.9% 3% 2.4% 2.3% 2.1% 2% 2.0% 1.9% 1.7% 1.7% 1.6% 1.5% 1.5% 1.5% 0.8% 0.7% 0.0% Polymetal FTSE 250 Centamin Pan American Acacia Yamana Tahoe Barrick FTSE GM Agnico Eagle Eldorado New Gold Centerra Kinross Newmont Goldfields Anglogold Newcrest Randgold 5Y* TSR 27% 23% 5% Agnico Eagle Centamin Fresnillo Gold Silver FTSE GM Barrick Acacia New Gold Polymetal Randgold Newmont Newcrest Centerra Goldfields Kinross Tahoe Anglogold Yamana Eldorado -25% -15% -6% -49% -50% -55% -39% -62% -65% -66% -68% -71% -71% -78% -76% -81% -89% Notes: Bloomberg data as at market close 29.08.2017 *since POLY IPO | 7
We have high-grade reserves Average reserve grade (2P reserves), g/t GE Polymetal 6.3 4.2 3.8 3.6 2.9 2.8 2.3 1.9 1.7 1.6 1.4 1.4 1.4 1.3 1.3 1.3 1.1 1.1 1.1 1.0 0.9 0.9 0.7 Acacia Randgold Gold Fields Agnico Eagle Goldcorp Eldorado Iamgold Anglogold Fresnillo Barrick Newmont Newcrest Centamin Buenaventura Kinross Average Underground Open-pit Yamana New Gold Tahoe Centerra Pan American Source: Company data. Gold, silv er, copper prov ed and probable reserv es as of 01.01.2017 GE at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conv ersion ratios. | 8
We control our costs All-in sustaining cash costs for 12 months ending 30 June 2017, US$/oz of GE US$ 1,259 oz – average LBMA gold price for the period 1,182 1,063 1,002 974 964 937 931 906 879 869 863 854 844 836 789 787 779 750 728 725 664 597 Kinross Eldorado Centamin Polyus Harmony Anglogold IAMGOLD Gold Fields Yamana Newmont Agnico- New Gold Tahoe Polymetal Goldcorp Newcrest Randgold Fresnillo Barrick Centerra ACACIA Hochschild Eagle Source: Companies’ data on co-product basis f or the 12 months ending 30 June 2017. Centamin, Centerra Gold, Tahoe: AISC reported on by -product basis Hochschild: AISC based on Ag/Au ratio of 74 | 9
Our business model is capital-light Capital expenditures, US$M 370 30 310 288 30 145 250 Long-term growth projects 86 224 80 30 Kyzyl and POX expansion 32 Exploration 50 45 50 50 Stay-in-business CapEx 47 170 157 150 145 145 2015A 2016A 2017E 2018E 2019E Notes: Long-term growth projects include Prognoz, Viksha and Nezhda. Total capital expenditure in 2015-2016 includes amounts pay able at the end of the period. On a cash basis, capital expenditure was US$ 271 million in 2016 (2015: US $ 205 million). | 10
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