INVESTOR PRESENTATION August , 2019
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 2 POLYMETAL TODAY 9 OPERATIONS ACROSS 2 COUNTRIES 2 nd nd LARGEST GOLD PRODUCER IN RUSSIA FT FTSE 250 SE 250 & & MSCI MSCI CONSTITUENT Competence center Development Operations
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 3 STRATEGY SCOPE OF ACTIVITY CAPITAL ALLOCATION DESIRED OUTCOMES PRINCIPLES Regular dividend is Significant nificant sus ustaina ainable ble divid vidend nd Russia and FSU shareholder’s right, Meanin ningful gful growth Focus on gold, silver and comes before growth possibly other base spending Stable able licence to opera rate metals Target Net Debt/EBITDA Robus ust balan lance sheet et Medium-sized high-grade of less than 1.5x deposits Reduc uction ion of env nvir ironmen onmental al CAPEX hurdle rate - 12% foot otpr print int Vertical integration real unlevered ESG best practice
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 4 PROVEN TRACK RECORD OF GROWTH Exceeding production guidance for 7 consecutive years Actual Guidance +64 64% +1% 1562 1550 +2% 1433 +10% 1400 +4% +1% 1312 1269 1267 +7% 1260 1220 1190 1168 1090 +8% 952 885 2012 2015 2016 2013 2014 2017 2018 Notes: *Historical gold equivalent guidance recalculated using 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conversion ratios.
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 5 FOCUS ON GRADE AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE 4.1 3.8 2.8 2.6 2.0 1.8 1.7 1.7 1.5 1.4 1.3 1.3 1.3 1.2 1.2 1.1 1.0 0.9 0.8 0.7 Acacia Polymetal Agnico Eagle Goldfields Barrick Pan American Polyus Eldorado Goldcorp Anglogold B2 Gold Newcrest Newmont Centerra Kinross Fresnillo IAMGOLD Petropavlovsk* Yamana Centamin Source: Company data. Gold, silver, copper proved and probable reserves as at 01.01.2019. *Company data as at 01.01.2018.
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 6 FOCUS ON LOM AVERAGE LIFE OF MINE, YEARS 31 30 23 21 18 18 17 15 14 13 13 12 10 10 10 9 9 8 Newcrest Goldcorp Goldfields Polyus Centerra Anglogold Newmont Polymetal Barrick Acacia Kinross Agnico Eagle Pan American IAMGOLD Petropavlovsk* Yamana Fresnillo Centamin Notes: P+P reserves as of 01.01.2019 divided by 2018 depletion. * P+P reserves as of 01.01.2018 divided by 2018 depletion
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 7 TRANSLATING PRODUCTION INTO DIVIDENDS DIVIDENDS PER GOLD EQUIVALENT PRODUCED IN 2012-2018, $/oz 156 132 92 88 86 85 68 67 64 59 49 43 42 42 40 38 25 22 15 11 0 0 Polymetal Centamin Goldcorp Pan American Polyus Fresnillo Agnico-Eagle Randgold Eldorado Newmont Acacia Barrick Gold Newcrest Centerra Goldfields IAMGOLD Hochschild Kinross Anglogold B2 Gold Endevaour Yamana Source: Companies’ data and Bloomberg.
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 8 DIVIDEND YIELD Competitive shareholder returns 50% 50 % $ 1, 1,40 407m 7m 2018 DIVIDEND 1 YIELD OF UNDERLYING 5% NET INCOME PAID OUT SINCE IPO (REGULAR) DY: 5-YEAR AVERAGE (SINCE JAN 2014), % 4.6 4.1 4.0 3.1 2.3 2.2 1.7 1.7 1.7 1.7 1.7 1.3 1.2 1.1 1.1 1.1 1.1 0.8 0.6 N/A N/A N/A N/A Centamin FTSE 350 Polymetal FTSE 250 Centerra Acacia Kinross Goldcorp Yamana Fresnillo Gold Fields FTSE GM Barrick Gold Newmont Newcrest Anglogold Eldorado Petropavlovsk Polyus IAMGOLD Pan American Agnico Eagle B2Gold Source: Company and RBC data (as at market close 17.01.2019) 1) Based on dividends paid (including declared final dividend for FY2018)
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 9 TOTAL SHAREHOLDER RETURNS 1-year and 5-year TSR 1-YEAR TSR, % 98% 48% 40% 38% 25% 12% 10% 10% 5% 5% -2% Gold Fields Acacia Polymetal Barrick B2Gold FTSE GM Agnico Eagle Gold Kinross Fresnillo IAMGOLD AngloGold Centerra Newmont Eldorado Yamana Pan American -6% -25% -29% -31% -33% -50% 5-YEAR TSR, % 66% 60% 56% 46% 43% 10% 10% 5% 3% -8% Polymetal Gold Fields Agnico Eagle FTSE GM B2Gold Barrick Kinross Fresnillo IAMGOLD Acacia Newmont Centerra Gold AngloGold Pan American Yamana Eldorado -13% -14% -20% -24% -41% -72% -86% Source: RBC data (as at market close 17.06.2019) * Randgold adjusted for merger with Barrick
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 10 ESG LEADERSHIP 10,551 551 RECOGNITION OF OUR EFFORTS TO DATE EMPLOYEES MAJOR ENVIRON- Firs rst t and only Russian member ESG rating BBB MENTAL INCIDENTS 0 COMMUNITY $ 10 10 m 5/5 in Corporate Governance INVESTMENTS Leader in M&M 5/5 for Anti-Corruption st among 47 mining 1 st STAFF FEMALE companies 5/5 in Risk Management & Labor TURNOVER QUALIFIED Standards 100 percentile PERSONNEL th Percentile 94 th 94 Firs rst sustainability-linked 5.8% 40% 0% loan in CIS 4.4/5.0 total ESG score
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 11 PRODUCTION OUTLOOK 2018-2023 GOLD PRODUCTION, GE Koz 1 PRODUCTION POX-2 Kyzyl UPSIDE: Nezhda Existing assets* 18% 1850 1750 80** 1600 1600 180 180 1562 1550 30 330 330 340 96 300 330 1466 1270 1260 1250 1230 1240 2018 2019 2020 2021 2022 2023 Notes: 1) Gold equivalent (GE) at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios * Excludes Okhotsk (sold in December 2019) and Kapan (sold in January 2019) starting from 2019 ** Includes recovery improvement and long-term 3rd party contracts
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 12 CAPITAL EXPENDITURE CAPEX, $m Long-term Nezhda Projects 1 Kyzyl/POX-1 POX-2 Stay-in-business 417 403 395 20 377 20 18 133 83 20 15 341 53 83 20 291 101 108 100 20 85 64 31 240 220 194 200 200 196 2018 2019 2020 2021 2022 2023 Notes: With the addition of loans that were extended to Nezhda and Prognoz before consolidation of these assets 1) Prognoz, Viksha, greenfield exploration
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 13 BALANCE SHEET Ample liquidity and a comfortable maturity profile Net debt of $1.7 bn bn as of 30 Jun 2019 Net Debt/Adjusted EBITDA of approx. 2.0x well below hard ceiling of 3.25x (banks) and 2.5x Strong cash position of $203m m (regular dividends). Our mid-ter erm targ rget et is 1.5x. Low co Lo cost st of debt t at 4.3% % with 100% of loans on Robust liquidity profile: $1 1 bn of undrawn credit bilateral basis and denominated in US dollars facilities INTEREST RATE BREAKDOWN MATURITY PROFILE, $m (long-term loans only) 508 447 369 Fixed ed Floati ting ng 264 204 50% 50% 109 2019 2020 2021 2022 2023 2024 Net Debt / EBITDA 2.19 2.19 2.08 1.83 1.97 1.91 1.95 1.75 1.50 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17 Target 31-Dec-17 30-Jun-18 31-Dec-18
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 14 2018 – EXCELLENT EXPLORATION RESULTS Ore Reserves Mineral Resources + 3 + 3.2 Moz .2 Moz + 8 + 8.1 1 Moz Moz +15% +1 5% y-oy oy +44% +44% y-o-y GE Reserves per share Exploration drilling +6% 350 350 km km 2018 RESERVE PER SHARE, y-o-y change 23% Pan American Goldfields Centamin Newmont Newcrest Goldcorp Centerra Fresnillo 6% B2 Gold Yamana 6% Kinross Barrick Polyus Acacia 2% 1% Agnico Eagle Polymetal Anglogold IAMGOLD Petropavlovsk 0% -1% -1% -2% -2% -3% -4% -4% -5% -6% -10% -13% -21% -34% Source: Companies’ data
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 15 2018 – AISC BELOW GUIDANCE At the lower end of the global cash cost curve 2018 ALL-IN SUSTAINING CASH COSTS, $/oz YEAR-ON-YEAR CHANGE IN AISC, % IAMGOLD 1,057 Anglogold -7 New Gold 1,051 Yamana -5 Hochschild 994 Polymetal -4 Eldorado 994 Kinross 1 Gold fields 981 Newmont 2 Anglogold 976 Hochschild 2 Kinross 965 Goldcorp 3 Buenaventura 955 ACACIA 3 Fresnillo* 951 Gold fields 3 Agnico-Eagle 950 Centerra 4 Newmont 909 IAMGOLD 5 ACACIA 905 Newcrest 6 Centamin Barrick Gold 884 7 Pan American 874 Agnico-Eagle 8 Polymetal Eldorado 861 8 Further Fur ther Pan American Goldcorp 851 10 decr ecrease ease ex expecte ected Yamana Centamin 843 12 in in 201 019 Buenaventura Newcrest 835 12 Fresnillo Barrick Gold 825 13 15 New Gold Centerra 754 Source: Companies’ data. Centamin and Eldorado reported on by product basis. Hochschild: AISC based on Ag/Au ratio of 80 * BMO data
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 16 KYZYL EXPECTED TO FURTHER DRIVE DOWN COSTS PRO FORMA AISC IMPROVEMENT, $/oz 861 -24 825 -12 2018 w/ low-cost Excl. high-cost 2019 guidance production from mines Kyzyl
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