PRESENTATION February, 2019 POLYMETAL INTERNATIONAL PLC INVESTOR - PowerPoint PPT Presentation

INVESTOR PRESENTATION February, 2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 2 POLYMETAL TODAY 2 nd 9 1 FTSE 250 POX FACILITY MSCI RUSSIA 3 MAJOR DEVELOPMENT OPERATIONS ACROSS LARGEST GOLD 2 COUNTRIES PRODUCER IN RUSSIA PROJECTS CONSTITUENT Competence center Development Processing

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 3 STRATEGY CAPITAL ALLOCATION SCOPE OF ACTIVITY DESIRED OUTCOME PRINCIPLES Russia and FSU Regular dividend is Significant sustainable shareholder’s right, comes dividend Focus on gold, silver and before growth spending possibly other base metals Meaningful growth Target Net Debt/EBITDA of Medium-sized high-grade Stable licence to operate less than 1.5x deposits Robust balance sheet CAPEX hurdle rate - 12% real Vertical integration unlevered Reduction of environmental ESG best practice footprint

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 4 PROVEN TRACK RECORD OF GROWTH Exceeding production guidance for 7 consecutive years Actual Guidance +64% +1% 1562 1550 +2% 1433 +10% 1400 +4% +1% 1312 1269 1267 1260 +7% 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 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 96 340 300 330 1466 1270 1260 1250 1240 1230 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 6 FOCUS ON GRADE AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE 4.1 3.9 2.6 2.6 2.0 1.8 1.8 1.8 1.7 1.5 1.4 1.3 1.3 1.2 1.2 1.0 1.0 0.9 0.7 0.7 Acacia Polymetal Goldfields Agnico Eagle Polyus Barrick Gold Newcrest Goldcorp B2 Gold Anglogold Newmont Centerra Kinross Eldorado Fresnillo IAMGOLD Petropavlovsk Yamana Pan American Centamin Source: Company data. Gold, silver, copper proved and probable reserves as at 01.01.2018.

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 7 STABLE AND SIGNIFICANT FREE CASH FLOW 5-YEAR AVERAGE FCF YIELD, % 10.8 8.0 8.0 7.2 5.9 5.9 5.5 5.2 3.8 3.0 3.0 2.8 2.2 1.0 0.0 Centerra Centamin Polymetal Anglogold Newcrest FTSE 250 FTSE 350 Newmont Gold Fields Barrick Gold Polyus Kinross FTSE GM Fresnillo Pan American Yamana Goldcorp Acacia Iamgold B2Gold Petropavlovsk Eldorado Agnico Eagle (0.5) (1.5) (4.3) (0.1) (6.8) (8.6) (13.0) (13.7) Source: Company and RBC data (as at market close 17.01.2019). Polyus yield shown based on data since their relisting on LSE, reported FCF values were adjusted for interest payments which were relocated from financing cash flow to operating cash flow to align them with other companies’ FCF reported numbers

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 8 DIVIDEND YIELD Sector-leading shareholder returns DY: 2018 , % 7.9 6.1 4.9 4.2 4.1 3.2 2.7 1.9 1.4 1.3 1.2 1.1 1.1 1.0 0.8 0.7 0.7 0.7 N/A N/A N/A N/A N/A Centamin Polyus Polymetal Acacia FTSE 350 FTSE 250 Fresnillo Gold Fields Newcrest Eldorado FTSE GM Newmont Barrick Gold Pan American Yamana Anglogold Goldcorp Kinross Centerra Iamgold Petropavlovsk Agnico Eagle B2Gold 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)

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 9 TRANSLATING PRODUCTION INTO DIVIDENDS DIVIDENDS PER GOLD EQUIVALENT PRODUCED FOR 5-YEAR PERIOD, $/oz 167 126 114 80 68 64 55 54 36 33 32 22 18 17 17 7 4 0 0 0 Centamin Polymetal Polyus Goldcorp Pan American Centerra Agnico Eagle Newmont Fresnillo Barrick Gold Acacia Newcrest Eldorado Gold Fields Kinross Anglogold Iamgold B2 Gold Petropavlovsk Yamana Source: Company data and Bloomberg.

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 10 FOCUSING ON LOM POLYMETAL LOM, YEARS AVERAGE LIFE OF MINE, YEARS NEZHDA EFFECT: +3 YEARS 16 13 39 2017 Proforma with Nezhda* 27 24 22 17 16 16 15 14 13 12 12 12 12 11 10 9 9 9 Newcrest Goldcorp Goldfields Polyus Centerra Petropavlovs Barrick Polymetal Agnico Eagle Anglogold Newmont Eldorado American B2 Gold Acacia IAMGOLD Yamana Fresnillo Centamin Pan k Notes: P+P reserves as of 01.01.2018 divided by 2017 depletion. * Proforma for Nezhda, without Kapan and Okhotsk

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 11 PORTFOLIO REVIEW UPDATE Shrinking the footprint Asset TCC Value, $m Asset TCC Value, $m ~10 50% in Sold in Q2 2018 17 Lichkvaz Under 6-month RoFR from Dolinnoye buyer of Kapan Sale expected in Q4 2019 Sold in January 2019 55 Kapan ~ 100 74% in Ownership streamlined, sale Veduga process to re-commence in Svetlobor Sold in Q4 2018 6 Q1 2019 Okhotsk Sold in Q4 2018 30 Maminskoye Non-core, options evaluated Uncertain Kutyn Non-core, options evaluated Uncertain $108 m PROCEEDS AMBITIOUSLY $150+ m TARGETING DEALS FOR ANOTHER BY 2020

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 12 KYZYL – OUR FLAGSHIP OPERATING ASSET Summary Russia Russia Stable low-cost production for > 22 years Very large reserve base - 7.3 Moz of gold Semey at 7.7 g/t Ridder Excellent exploration potential - 3.1 Moz of KYZYL additional resources at 6.8 g/t Oskemen 20% IRR at $1,200/oz gold price Bakyrchik Bolshevik Kalbatau FIRST 10 YEARS OF OPEN-PIT 3.1 Moz of open-pit reserves at 6.8 g/t Kazakhstan 300-330 Koz pa at $500-550/oz AISC Excellent potential to extend open-pit LOM Ayagoz

13 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION KYZYL Ore Reserves growth potential ORE RESERVES, Moz of gold Underground 11.3 +0.2 Open-pit ~25 7.3 +0.4 +2.0 YEARS OF UNDER- GROUND +1.0 MINING 7.2 +0.5 4.1 4.0 ~12 3.1 YEARS OF OPEN-PIT MINING FS (incl. actual as at Resource conversion Resource conversion In-fill drilling Target july 01, 2018) (East Bakyrchik) (Deeps)

14 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION KYZYL Site layout CONCENTRATE WATER STORAGE MAINTENANCE RESERVOIR ORE SHOP ADMINISTRATIVE CRUSHER BUILDING PUMP BOILER STATION CRUSHED HOUSE ORE STORAGE PROCESSING SURFACE PLANT DRAINAGE POND

15 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION KYZYL Operating data – full ramp-up achieved in October ORE PROCESSED, kt AU RECOVERY, % 169 87 87 162 162 86 86 84 147 78 135 71 124 102 42 74 JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN ORE GRADE, g/t GOLD IN CONCENTRATE, Koz 6.8 6.7 6.5 6.3 … 5.8 30 5.3 28 27 4.1 20 17 2.6 9 2 JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN JUN JUL AUG SEPT OCT NOV DEC JAN

16 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 2018 OUTLOOK AND ACTUAL GUIDANCE Higher production, improved costs 2018 Guidance 2018 Outlook 2019 Guidance Production, Koz of GE 1550 Above guidance , 1562 1550 TCC, $/oz of GE 650-700 On track , lower end Down to 600-650 875-925 On track , lower end Down to 800-850 AISC, $/oz of GE 400 Below guidance 380 Capital expenditure, $m Free cash flow Positive On track Positive Regular dividend 50% of underlying On track 50% of underlying net income net income Assumptions 2018 Budget 2018 Actual 2019 Budget Gold, $/oz 1200 1271 1200 Silver, $/oz 16.0 15.7 15.0 RUR/USD rate 60 63 65 Oil 60 68 70

17 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION COST DYNAMICS PRO FORMA AISC IMPROVEMENT, $/oz 875 -35 825 -15 2018E w/ Kyzyl AISC at Excl. high-cost 2019 Guidance $529/oz mines

18 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION CAPITAL EXPENDITURE CAPEX, $m Long-term Nezhda projects 1 Kyzyl/POX-1 POX-2 Stay-in-business 417 403 20 377 20 365 133 83 15 341 30 83 20 30 291 101 30 100 20 95 85 64 31 220 240 194 200 200 180 2018 2019 2020 2021 2022 2023 Notes: 1) Prognoz, Viksha, greenfield exploration

19 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION BALANCE SHEET Ample liquidity and a comfortable maturity profile Net debt of $1.5 bn as of 31 Dec Net Debt/Adjusted EBITDA is expected at ~ 1.9x* as at year end well below hard ceiling of 3.25x (banks) Strong cash position of $383 m and 2.5x (regular dividends) Low cost of debt at 4.2% with 100% of loans on Robust liquidity profile: $1.3 bn of undrawn credit bilateral basis and denominated in US dollars facilities MATURITY PROFILE, $m INTEREST RATE BREAKDOWN (long-term loans only) 500 469 Fixed Floating 447 49% 51% 264 117 104 2019 2020 2021 2022 2023 2024 Notes: *As at 30.09.2018