Growth and Dividends Investor Presentation January 2017
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Although the Company believes that these assumptions were reasonable when 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 forward-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. 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Polymetal today > 8 mines with 2016 production of 1.26 Moz of GE > 21.7 Moz of GE in reserves and 16.5 Moz of GE in resources > US$ 5.2 billion Market Cap*, member of the FTSE 250 *Market cap as of January 24, 2017 2
We have simple strategic objectives and clear execution priorities > Control costs and add high- > We want to pay a quality reserve ounces at operating mines significant and sustainable dividend through the cycle > Deliver medium-term growth through building and ramping up Kyzyl > We want to grow our business without diluting its quality > Opportunistically pursue M&A targets and greenfield exploration with high- optionality 3
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 1,267 1,269 1,260 1,220 1,190 1,168 1,090 952 900 2012 2013 2014 2015 2016 * Company historical gold equivalent guidance recalculated using 80:1 Ag oz/Au oz conversion ratio. 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 operations 1,470 1,470 1,420 1,400 1,267 1,269 2015A 2016A 2017E 2018E 2019E 2020E Share of gold in production 1 87% 87% 82% 77% 68% 69% 2015A 2016A 2017E 2018E 2019E 2020E Source: Company information (1) GE at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios. 5
Our business model is capital-light Capital expenditures, US$M 370 310 290 145 120 80 230 230 224 Kyzyl and POX expansion Exploration 32 50 50 50 Stay-in-business CapEx 50 47 50 180 180 175 160 145 140 2015A 2016E 2017E 2018E 2019E 2020E 6
We have high-grade reserves Average reserve grade (2P reserves), g/t GE 4.8 4.0 3.6 2.9 2.4 2.3 1.9 1.8 1.5 1.5 1.4 1.4 1.3 1.2 1.2 1.1 1.1 1.0 0.9 0.9 0.8 Acacia Polymetal Randgold Gold Fields Agnico Eagle Centerra Goldcorp Barrick Eldorado Anglogold Fresnillo Iamgold Newcrest Newmont Centamin New Gold Yamana Buenaventura Tahoe Kinross Pan American Source: Company data. Gold, silver, copper proved and probable reserves as of 01.01.2016 with further updates for Komar GE at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios. 7
We have low costs All-in sustaining cash costs for 1H 2016, US$/oz of GE US$ 1,221/oz – average LBMA gold price for the period 1,099 * 1,023 992 972 941 936 911 887 885 885 868 852 833 * 798 779 770 754 Iamgold Pan American Gold Fields Kinross Acacia Goldcorp Anglogold Agnico Eagle New Gold Centerra Yamana Newmont Eldorado Randgold Newcrest Barrick Polymetal Source: Companies data on a co-product basis. Excluded: Buenaventura, Frensnillo, Tahoe, Centamin, due to AISC reported on by-product basis * Pan American Silver: based on 77 Ag/Au ratio Randgold: BMO estimate of 2016E AISC 8
We generate free cash flow Free с ash flow, US$m Gold price, US$/oz 1,669 1,410 1,266 1,250 1,160 306 263 250 148 129 2012 2013 2014 2015 2016E *Source: Free cash flow (pre-M&A) 9
And we pay dividends Dividends, US$ per share Special at the discretion of the Board Regular at 30% of underlying net earnings 0.70 (1) > LTM yield of 3.3% 0.51 > Average 5-year (2) yield of 4% 0.50 0.37 0.36 0.32 0.30 0.15 0.20 0.32 0.22 0.21 0.20 0.16 2012 2013 2014 2015 2016 1) Based on dividends paid and average stock price for the LTM ending 26 January 2017 (US$ 11.40/share) 2) Based on dividends paid and average 5-year stock price ending 26 January 2017 10
Kyzyl is one of the best development-stage gold projects in the world > Large : 7.3 Moz of gold reserves, of which 2.8 Moz is open pit > High-grade: 7.7 g/t with 6.7 g/t in the open pit > Excellent exploration upside: 3.1 Moz of additional resources at 6.8 g/t > Long LOM : 22 years (first 10 years open pit) > Low capital intensity: US$320M CapEx (open pit + flotation) 11
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