INVESTOR PRESENTATION February 2020
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 2 POLYMETAL TODAY 9 OPERATIONS ACROSS 2 COUNTRIES 2 nd nd LARGEST GOLD PRODUCER IN RUSSIA FT FTSE SE 100 100 & & MSCI SCI CONSTITUENT Competence center Development Operations
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 3 STRATEGY CAPITAL ALLOCATION SCOPE OF ACTIVITY 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 8 consecutive years Actual Guidance +70 70% +4% +1% 1,614 1,562 1,550 1,550 +2% 1,433 +10% 1,400 +1% +4% 1,312 1,269 1,267 1,260 +7% 1,220 1,190 1,168 1,090 +8% 952 885 2012 2013 2014 2015 2016 2017 2018 2019 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 Petropavlovsk Centerra Kinross Fresnillo IAMGOLD Yamana Centamin Source: Company data for FY2018. * Acquired by Barrick in 2019
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 6 FOCUS ON LOM AVERAGE LIFE OF MINE AS OF 01.01.2019, YEARS 31 30 23 21 18 18 18 15 14 13 13 12 10 10 10 9 9 9 8 Anglogold Newmont Agnico Eagle Newcrest Goldcorp Goldfields Polyus Centerra 2014 2019 Barrick Acacia* Kinross Pan American IAMGOLD Petropavlovsk Yamana Fresnillo Centamin Polymetal Notes: P+P reserves as of 01.01.2019 divided by 2018 depletion. * Acquired by Barrick in 2019
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. * Acquired by Barrick in 2019
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 8 SIGNIFICANT SUSTAINABLE DIVIDEND YIELD 50% 50% 5.4 .4% $ 1, 1,501m 501m OF UNDERLYING LTM DIVIDEND NET INCOME PAID OUT SINCE IPO YIELD* (REGULAR) DY: 5-YEAR AVERAGE, % 5.1 4.3 4.1 3.2 3.1 2.0 1.6 1.6 1.3 1.3 1.2 1.2 1.1 1.0 0.9 0.6 0.3 N/A N/A N/A Centamin FTSE 100 Polymetal FTSE 250 Polyus Centerra Fresnillo Pan American Silver Yamana Gold Gold Fields Newmont Goldcorp FTSE GM Newcrest Mining Barrick Agnico Eagle Anglogold B2Gold IAMGOLD Kinross Petropavlovsk Source: Company and RBC data (as at market close 03.02.2020) * Including $0.2 per share special dividend declared on 31 January 2020, to be paid on 5 March 2020 **Polyus didn’t pay out dividends in 2014 and 2015
Source: Company and RBC data (as at market close 03.02.2020 TOTAL SHAREHOLDER RETURN POLYMETAL INTERNATIONAL PLC 125% 252% Petropavlovsk Petropavlovsk 1-YEAR TSR, % 5-YEAR TSR, % 131% 124% 120% 106% 99% 73% Gold Fields B2Gold 52% 52% 51% Pan American Polymetal Polyus Centamin Polymetal Pan American 51% 50% 49% 49% 42% 39% 38% 36% 32% Centerra Gold Newmont Mining Kinross 91% Agnico Eagle AngloGold Ashanti 90% Newcrest Mining Yamana Gold 60% AngloGold Ashanti Agnico Eagle 53% Kinross Newmont Mining 52% Barrick Barrick 49% FTSE GM B2Gold 41% Centerra Gold FTSE GM 26% FTSE 250 INVESTOR PRESENTATION 20% 17% 15% Gold ($/oz) 25% Gold ($/oz) Centamin 17% Gold Fields FTSE 250 13% 12% IAMGOLD Newcrest Mining 12% 9% FTSE 100 FTSE 100 -22% -33% 5% Yamana Gold IAMGOLD -33% Fresnillo Fresnillo 9
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 10 20 YEARS OF SUSTAINABLE DEVELOPMENT 2019 2019 highli highlights ghts RECOGNITION OF OUR EFFORTS TO DATE 11, 11,616 616 EMPLOYEES Firs rst t and only Russian member ESG rating A MAJOR 0. 0.2 ENVIRON- Member of ESG Le Leader ers s index ex MENTAL INCIDENTS LTIFR 0 (2 FATALITIES) st among 55 precious metals 1 st COMMUNITY $ 15 15 m ESG score B+ B+ INVESTMENTS companies 100 percentile STAFF FEMALE Firs rst sustainability-linked TURNOVER MANAGERS loan in CIS ESG score С+ 5.8% 22% 22
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 11 PRODUCTION OUTLOOK GOLD PRODUCTION, GE Koz 1 POX-2 Kyzyl PRODUCTION Nezhda Existing assets (including Kyzyl starting from 2020) UPSIDE: 15% 1,850 1,750 80** 1,614 1,600 1,600 180 180 348 30 1,590 1,570 1,570 1,266 2019 2020E 2021E 2022E 2023E Notes: 1) Gold equivalent (GE) at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conversion ratios * Continuing operations ** Includes recovery improvement and long-term 3rd party contracts
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 12 CAPEX OUTLOOK CAPEX, $m Long-term Nezhda projects 1 Kyzyl/POX-1 POX-2 Stay-in-business 475 442 20 20 83 377 133 346 15 130 20 83 285 101 64 20 85 30 242 235 225 225 194 2019E 2020E 2021E 2022E 2023E
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 13 BALANCE SHEET Net Debt/EBITDA below our mid-term target of 1.5x Net debt of $1.5 bn as of 0 01 Jan 20 2020 20, below our mid Lo Low co cost st of debt t at 4% with 100% of loans on bilateral term target of 1.5x Net Debt/Adjusted EBITDA basis and denominated in US dollars 2 sustainability-linked loans providing incentive for Robust liquidity profile: $1.8 bn of undrawn credit future ESG development facilities and strong cash position of $256 m New $500m fixed rate loan agreed with Sberbank in October. Full drawdown is expected before year-end INTEREST RATE BREAKDOWN ACTUAL MATURITY PROFILE, $m 242 241 258 279 214 Fixed ed Float ating ing 73% 73 27% 125 125 125 125 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 14 COMPETITIVE COST LEVELS 1H 2019 ALL-IN SUSTAINING CASH COSTS, $/oz YEAR-ON-YEAR CHANGE IN AISC, % IAMGOLD 1,109 Buenaventura 41.9 New Gold 1,085 Fresnillo* 24.0 Buenaventura 1,033 19.7 B2Gold Fresnillo* 1,026 IAMGOLD 9.6 Hochschild 1,008 Eldorado 4.6 Anglogold 1,002 Hochschild 4.0 Newmont* 987 Newmont* 2.9 Eldorado 977 Highland*** 2.7 Agnico-Eagle 977 Centamin 1.1 Gold fields 973 Gold fields 0.8 Centamin 940 Polymetal 0.7 Yamana 936 Barrick Gold 0.1 Kinross 925 Kinross -0.1 Polymetal Agnico-Eagle 904 -1.2 B2Gold 882 Anglogold -1.8 Barrick Gold Yamana 855 -2.3 Polyus Newcrest** 720 -5.5 Centerra Newcrest** -9.5 705 New Gold Highland*** 682 -10.3 Centerra Polyus 586 -27.1 Source: Companies’ data. * by -product measure; ** Q2 2019 data *** FY 2018 data
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 15 2020 GUIDANCE 2019 2020 Guidance Guidance Prod oduct uction ion, Koz of GE 1,614 (Actual) 1,600 TCC, $/oz of GE ~650 650-700 AISC, $/oz of GE ~850 850-900 Capit ital al expendit iture, ure, $m ~377 ~475 Free cash flow Significant positive FCF Significant positive FCF Regul ular ar divid vidend 50% of underlying 50% of underlying net income net income Net Debt/ / Adjus justed EBITD TDA Below 1.5x 1.5x 2019 2019 2020 Assu sumpt mption ions Actual Budget Guidance Gold, $/oz 1,377 1,200 1,400 Silver, $/oz 15.8 15.0 17.0 RUR/U /USD SD rate 65 65 63 Oil 66 70 60
GROWTH PROJECTS
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 17 KYZYL Design capacity achieved in October 2018 KEY LESSONS IMPACT Positive grade reconciliation near Lower costs – TCC of $407/oz surface in 1H 2019 Softer ore Higher throughput – 2.0 Mtpa Less stable footwall Deeper pit contributed to reserves extension 1H 2019 2H 2018 829 554 NEXT STEPS 510 407 Reserve update for East Bakyrchik in Q4 2020 AISC, $/oz TCC, $/oz
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 18 KYZYL Key driver behind excellent FY 2019 production results ORE PROCESSED, Kt AU RECOVERY, % 512 510 88% 88% 88% 502 87% 478 476 86% 3Q 2019 4Q 2019 3Q 2019 4Q 2019 4Q 2018 1Q 2018 2Q 2019 4Q 2018 1Q 2018 2Q 2019 ORE GRADE, g/t GOLD IN CONCENTRATE, Koz 110 106 7.6 7.5 96 92 86 6.9 6.6 6.6 3Q 2019 4Q 2019 4Q 2018 1Q 2018 3Q 2019 4Q 2019 2Q 2019 4Q 2018 1Q 2018 2Q 2019
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