INVESTOR PRESENTATION March, 2019 2 POLYMETAL INTERNATIONAL PLC - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION March, 2019 2 POLYMETAL INTERNATIONAL PLC - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION March, 2019 2 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION POLYMETAL TODAY 9 OPERATIONS ACROSS 2 COUNTRIES 2 nd LARGEST GOLD PRODUCER IN RUSSIA FTSE 250 & MSCI CONSTITUENT Competence center Development

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SLIDE 1

INVESTOR PRESENTATION

March, 2019

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SLIDE 2

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POLYMETAL TODAY

2

Competence center

Development Operations

9

OPERATIONS ACROSS 2 COUNTRIES

2nd LARGEST GOLD PRODUCER IN RUSSIA FTSE 250 & MSCI CONSTITUENT

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SLIDE 3

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

STRATEGY

3

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

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SLIDE 4

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

PROVEN TRACK RECORD OF GROWTH Exceeding production guidance for 7 consecutive years

4

885 1090 1190 1220 1260 1400 1550 952 1168 1312 1267 1269 1433 1562

2012 2013 2014 2015 2016 2017

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.

+8% +7% +10% +4% +1% +2%

+64%

Guidance Actual 2018

+1%

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SLIDE 5

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 5

FOCUS ON GRADE

AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE

Source: Company data. Gold, silver, copper proved and probable reserves as at 01.01.2019. *Company data as at 01.01.2018.

4.1 3.8 2.8 2.6 2.0 1.8 1.8 1.7 1.5 1.4 1.4 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 Fresnillo Centamin IAMGOLD Petropavlovsk* Centerra Yamana Kinross

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SLIDE 6

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 6

31 30 23 22 18 18 17 15 14 13 12 11 10 10 10 9 9 9

Newcrest Goldcorp Goldfields* Polyus* Centerra IAMGOLD Petropavlovsk* Anglogold Centamin Polymetal Barrick Newmont* Yamana Acacia Kinross Agnico Eagle B2 Gold* Fresnillo

FOCUS ON LOM

AVERAGE LIFE OF MINE, YEARS

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

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SLIDE 7

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 7

TRANSLATING PRODUCTION INTO DIVIDENDS

Source: Companies’ data and Bloomberg.

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

Polymetal Centamin Goldcorp Pan American Polyus Fresnillo Agnico-Eagle Randgold Yamana Eldorado Newmont Acacia Barrick Gold Newcrest Centerra Goldfields Iamgold Hochschild Kinross Anglogold B2 Gold Endevaour

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SLIDE 8

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 8

DIVIDEND YIELD Competitive shareholder returns

DY: 5-YEAR AVERAGE (SINCE JAN 2014), %

Source: Company and RBC data (as at market close 17.01.2019) 1) Based on dividends paid (including declared final dividend for FY2018)

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 Pan American Acacia Kinross Goldcorp Yamana Fresnillo Gold Fields FTSE GM Barrick Gold Agnico Eagle Newmont Newcrest Anglogold Eldorado B2Gold Petropavlovsk Polyus Iamgold

2018 DIVIDEND YIELD $1,407m PAID OUT SINCE IPO

1

50%

OF UNDERLYING NET INCOME (REGULAR)

5%

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SLIDE 9

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 9

3-YEAR TSR, %

Source: RBC data (as at market close 28.02.2019)

46% 42% 42% 41% 38% 27% 20% 20% 18% 15% 15% 10% 3%

  • 2%
  • 2%
  • 4%
  • 13% -14% -22%

Polymetal Newcrest Iamgold Pan American Newmont Agnico Eagle FTSE 250 Anglogold FTSE GM Centamin Kinross Petropavlovsk Gold Fields Centerra Yamana Barrick Gold Fresnillo Acacia Goldcorp

TOTAL SHAREHOLDER RETURNS 3-year and 5-year TSR

5-YEAR TSR, %

77% 62% 53% 39% 37% 25% 14% 4% 2%

  • 5%
  • 5%
  • 10%
  • 18%
  • 24% -30% -35%
  • 36%
  • 36% -58% -72%
  • 81%

Newcrest Centamin Newmont Agnico Eagle Polymetal Centerra Gold Fields FTSE 250 Pan American FTSE GM Gold Iamgold Anglogold Fresnillo Silver Barrick Gold Kinross Acacia Goldcorp Yamana Petropavlovsk

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SLIDE 10

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

ESG LEADERSHIP

First and only Russian member

10

RECOGNITION OF OUR EFFORTS TO DATE 5/5 in Corporate Governance 5/5 for Anti-Corruption 5/5 in Risk Management & Labor Standards 94th Percentile 4.4/5.0 total ESG score ESG rating BBB Leader in M&M 1st among 47 mining companies 100 percentile First sustainability-linked loan in CIS STAFF TURNOVER

5.8%

FEMALE QUALIFIED PERSONNEL

40% 10,551

EMPLOYEES $10m COMMUNITY INVESTMENTS MAJOR ENVIRON- MENTAL INCIDENTS

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SLIDE 11

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

8 3 11 12 15 0.4 0.3 0.6 1.4 3.2

2014 2015 2016 2017 2018

SHAREHOLDER STRUCTURE

11

SHARES OUTSTANDING 469 MILLION

60%

FREE FLOAT Institutional investors and HNWI* 54% Otkritie 7% PPF Petr Kellner 12% ICT Group Alexander Nesis 27% Management & Directors 1% ADTV, $m

Notes: Shareholder structure data as of 30 January 2019

MOEX LSE

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SLIDE 12

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

BOARD OF DIRECTORS

12

INDEPENDENT DIRECTORS NON-INDEPENDENT DIRECTORS CHAIR

BOBBY GODSELL Chair Chairman of Business Leadership SA ex-CEO of AngloGold Ashanti OLLIE OLIVEIRA SINED Chair of the Nomination Committee, Chairman of Audit Committee at Antofagasta plc JONATHAN BEST INED Chair of the Audit and Risk Committee ex-CFO of AngloGold Ashanti TRACEY KERR INED Chair of the Safety & Sustainability Committee, Group Head of Safety and Sustainable Department in Anglo American plc GIACOMO BAIZINI INED General Manager and ex-CFO of EVRAZ Group S.A. CHRISTINE COIGNARD INED Chair of the Remuneration Committee ex-MD HCF International Advisors VITALY NESIS Group CEO KONSTANTIN YANAKOV ICT Group Ltd ex-CFO of Polymetal JEAN-PASCAL DUVIEUSART PPF Group ex-Managing Partner at McKinsey

IAN COCKERILL, NEW INED

Mr Cockerill will be nominated to succeed Bobby Godsell as Chair at next AGM Blackrock World Mining Trust, Chair, since 2016 Ivanhoe Mines Ltd, Lead Independent Director, since 2011 Ex-President and CEO of Goldfields, Ex-CEO of AngloCoal

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SLIDE 13

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 13

PRODUCTION OUTLOOK 2018-2023

1466 1250 1270 1240 1230 1260 96 300 330 330 340 330 30 180 180 80**

2018 2019 2020 2021 2022 2023 GOLD PRODUCTION, GE Koz1 1562 1550 1600 1600 1750 1850 PRODUCTION UPSIDE:

18%

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

POX-2 Nezhda Kyzyl Existing assets*

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SLIDE 14

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

CAPITAL EXPENDITURE

14

196 194 200 200 220 240 108 53 85 100 64 20 83 83 133 101 31 18 15 20 20 20 20

2018 2019 2020 2021 2022 2023 CAPEX, $m 395 377 403 417 341 291 Long-term projects1 POX-2 Nezhda Kyzyl/POX-1 Stay-in-business

Notes: With the addition of loans that were extended to Nezhda and Prognoz before consolidation of these assets 1) Prognoz, Viksha, greenfield exploration

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SLIDE 15

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 15

BALANCE SHEET Ample liquidity and a comfortable maturity profile

Net Debt/Adjusted EBITDA of 1.95x as at year end well below hard ceiling of 3.25x (banks) and 2.5x (regular dividends) Robust liquidity profile: $1.3 bn of undrawn credit facilities Net debt of $1.5 bn as of 31 Dec Strong cash position of $379m Low cost of debt at 4.2% with 100% of loans on bilateral basis and denominated in US dollars MATURITY PROFILE, $m INTEREST RATE BREAKDOWN (long-term loans only) 117 264 500 447 469 104 2019 2020 2021 2022 2023 2024 Fixed 49% Floating 51%

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SLIDE 16

FY2018 Results

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SLIDE 17

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 17

2018 – CONTINUED DELIVERY, COMPETITIVE RETURNS TO SHAREHOLDERS

GE Production

1,562 Koz

+9% 2018 Dividend Yield

5%

+1% Underlying EPS

$1.00

+14% AISC

$861/oz

  • 4%

Adjusted EBITDA

$780m

+5% 2018 DPS

$0.48

+9%

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SLIDE 18

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

2018 – SAFETY

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Significant reduction in injury frequency rates (down 40% y-o-y) 1 fatal accident in 2018 at Kapan

0.09 0.15 0.19 0.22 0.13 2018 2017 2016 2015 2014

LTIFR

Notes: LTIFR per 200,000 hours worked

3 6 4 2 1 2014 2015 2016 2017 2018

FATALITIES

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SLIDE 19

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

2018 – EXCELLENT EXPLORATION RESULTS

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Ore Reserves

+ 3.2 Moz

+15% y-oy Mineral Resources

+ 8.1 Moz

+44% y-o-y Exploration drilling

350 km

GE Reserves per share

+6%

0%

  • 1%
  • 1%
  • 2%
  • 2%
  • 3%
  • 4%
  • 4%
  • 5%
  • 6% -10% -13%
  • 21%
  • 34%

Polyus B2 Gold Goldcorp Kinross Barrick Newmont Centerra Yamana Goldfields Fresnillo Centamin Pan American Newcrest Acacia

23% 6% 6% 2% 1%

IAMGOLD Agnico Eagle Polymetal Petropavlovsk Anglogold

2018 RESERVE PER SHARE, y-o-y change

Source: Companies’ data

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SLIDE 20

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 1,057 1,051 994 994 981 976 965 955 951 950 909 905 884 874 861 851 843 835 825 754 IAMGOLD New Gold Hochschild Eldorado Gold fields Anglogold Kinross Buenaventura Fresnillo* Agnico-Eagle Newmont ACACIA Centamin Pan American Polymetal Goldcorp Yamana Newcrest Barrick Gold Centerra 20

2018 – AISC BELOW GUIDANCE At the lower end of the global cash cost curve

2018 ALL-IN SUSTAINING CASH COSTS, $/oz

Source: Companies’ data. Centamin and Eldorado reported on by product basis. Hochschild: AISC based on Ag/Au ratio of 80 * BMO data

15 13 12 12 10 8 8 7 6 5 4 3 3 3 2 2 1

  • 4
  • 5
  • 7

New Gold Fresnillo Buenaventura Centamin Pan American Eldorado Agnico-Eagle Barrick Gold Newcrest IAMGOLD Centerra Gold fields ACACIA Goldcorp Hochschild Newmont Kinross Polymetal Yamana Anglogold

YEAR-ON-YEAR CHANGE IN AISC, %

Further decrease expected in 2019

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SLIDE 21

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 21

PRO FORMA AISC IMPROVEMENT, $/oz

KYZYL EXPECTED TO FURTHER DRIVE DOWN COSTS

2018 w/ low-cost production from Kyzyl

  • Excl. high-cost

mines 2019 guidance

861 825

  • 24
  • 12
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SLIDE 22

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 22

2018 Actual 2019 Guidance Production, Koz of GE 1562 1550 TCC, $/oz of GE 649 Down to 600-650 AISC, $/oz of GE 861 Down to 800-850 Capital expenditure, $m 395* 377 Free cash flow 176 Growth Regular dividend $0.48/share 50% of underlying net income Net Debt/ Adjusted EBITDA 1.95 Down Assumptions 2018 Actual 2019 Budget Gold, $/oz 1271 1200 Silver, $/oz 15.7 15.0 RUR/USD rate 63 65 Oil 68 70

2019 GUIDANCE

Further improvement in costs - first year of Kyzyl production at full design capacity Higher FCF yield - above 5% Stable and meaningful income to shareholders Reduced leverage

Notes: *With the addition of loans that were extended to Nezhda and Prognoz before consolidation of these assets

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SLIDE 23

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 23

2019 – KEY MILESTONES AND NEWS FLOW

Corporate

23 April AGM 24 April CMD in London 24 May Final dividend pay-out August Interim dividend announcement Q3 Financing updates (refinancing of short-term debt)

Projects

Q2 POX-2 - start of detailed engineering and construction Updated OR and MR estimates at Veduga Q3 First ore mined at Nezhda Updated MR estimate at Viksha Q4 Full revaluation of OR and MR at Kyzyl based on actual operating statistics and exploration results

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SLIDE 24

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

KYZYL Summary

24

Stable low-cost production for > 22 years Very large reserve base - 7.3 Moz of gold at 7.7 g/t Excellent exploration potential - 3.1 Moz of additional resources at 6.8 g/t Full project IRR at 20% at $1,200/oz gold price (including investments and acquisition cost) 3.1 Moz of open-pit reserves at 6.8 g/t 300-330 Koz pa at $500-550/oz AISC Excellent potential to extend open-pit LOM

FIRST 10 YEARS OF OPEN-PIT

Semey Bakyrchik KYZYL Oskemen Bolshevik

Russia Russia Kazakhstan

Ridder Kalbatau Ayagoz

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SLIDE 25

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

74 102 135 124 162 147 169 162

JUN JUL AUG SEPT OCT NOV DEC JAN

25

KYZYL Operating data – full ramp-up achieved in October

ORE PROCESSED, kt AU RECOVERY, % ORE GRADE, g/t GOLD IN CONCENTRATE, Koz

42 71 78 84 86 86 87 87

JUN JUL AUG SEPT OCT NOV DEC JAN

2.6 4.1 5.3 5.8 6.3 6.5 6.8 6.7

JUN JUL AUG SEPT OCT NOV DEC JAN

2 9 17 20 28 27 … 30

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 JUN JUL AUG SEPT OCT NOV DEC JAN

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POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 26

KYZYL Ore Reserves growth potential

3.1 4.0 4.1 7.3 +0.5 +0.4 +1.0 +2.0 +0.2

7.2 11.3

FS (incl. actual as at July 01, 2018) Resource conversion (East Bakyrchik) Resource conversion (Deeps) In-fill drilling Target

ORE RESERVES, Moz of gold Underground Open-pit

~25

YEARS OF UNDER- GROUND MINING

~12

YEARS OF OPEN-PIT MINING

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SLIDE 27

Long-term growth

  • pportunities
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POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 28

NEZHDA Construction started in March 2019, first production expected in Q4 2021

Large: 4.4 Moz of gold at 3.6 g/t, 70%

  • f reserves is open pit

Long life: 25 years LOM, 155 Koz pa Excellent exploration potential: 8.1 Moz at 5.1 g/t Low-cost: $620-670/oz TCC and $700-750/oz AISC during first 19 years of open pit Capital-light: $234 million start-up capex Conventional technology: flotation followed by POX/offtake

ORE RESERVE ESTIMATE AS AT 1 APRIL 2018 Ore Reserves Tonnage, Mt Grade, GE, g/t Content, GE, Moz Proved+Probable 38.0 3.6 4.4 Open Pit 28.1 3.5 3.1 Underground 9.9 4.0 1.3

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SLIDE 29

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

NEZHDA Regional map with access routes

29

Russia

Topolinoe Magadan

Road junction 120 km

Tommot Nizhniy Bestiakh Khandyga Yakutsk Okhotsk

Sea of Okhotsk

Prognoz Svetloye

Yakutia

Dukat Nezhda

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SLIDE 30

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 30

NEZHDA FS study highlights

KEY INPUTS Start-up capex $234m Exchange rate 63 RUB/USD Throughput, ore 1.8 Mtpa Gold recovery to concentrate 85% Gold payable in concentrate sold 90% Annual gold production 155 Koz (180 Koz during first 3 years) FEASIBILITY STUDY HIGHLIGHTS $302m NPV

29%

IRR Gold price $1,000 $1,200 $1,400 10% WACC 103 302 498 NPV SENSITIVITY, $m

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POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 31

NEZHDA Key project milestones

Q4 2018 Q1 2019 Q3 2019 Q2 2020 Q4 2020 Q3 2021 Q4 2021 Q2 2022 Start of mining activities Start of construction First ore mined Processing plant building completed Start of equipment installation Mechanical completion Commissioning and first production Full ramp-up

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SLIDE 32

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2

Unlock value of Polymetal’s substantial refractory reserve base (55%) by de-risking asset base Significant long-term economic benefits to in- house processing vs offtake Strategic security of downstream processing

  • n the back of current state initiative to

potentially ban export of concentrates and a tightening Chinese market Positive environmental, social and economical impact Globally competitive technical capability New assets with refractory reserves 3rd party feedstock Use of hydromet competence in other commodities

32

STRATEGIC IMPORTANCE OPPORTUNITIES

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SLIDE 33

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POLYMETAL ORE TYPES POX-2 will unlock value of refractory reserves

33

67% 49% 33% 22% 14% 12% 11% 38% 55% 2018A Production 2023E Production Ore Reserves

55% of our reserves are double refractory (~14 Moz of GE) In 5 years, almost 40% of annual Au eq. production will be double refractory

7.2 Kyzyl 4.4 Nezhda 2.2 Mayskoye 2.9 Single refractory 8.3 Non-refractory RESERVES, Moz of GE Double refractory Non-refractory Single refractory 2018A Production 2023E Production Ore Reserves

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SLIDE 34

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2 Feasibility study highlights

34

A total of 4.3 Mt of concentrate containing 9.3 Moz of gold to be processed from Kyzyl, Nezhda, Mayskoye, and Voro

  • ver a period of 23 years

Initial capex of $431m fully funded with the Group’s

  • perating cash flow

4.5 years construction period First production in Q3 2023 Full ramp-up by end of Q4 2023 Generation of a post-tax IRR of 14% and NPV of $112m Starting from 2024: +$80-100m to FCF ($0.2 per share) +$100-110m to EBITDA Long-term benefits (in-house vs offtake): Processing costs benefits: $230-290/t of conc Transportation cost benefits: $30-60/t of conc 5-6% improvement in gold recovery from concentrate: + 30-35 Koz of gold per annum

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SLIDE 35

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 35

500-550 400-450 700-750 550-600 920-960 800-850 Impact on AISC of refractory gold deposits, $/oz

Average impact on costs: $100-150/oz

Notes: Processing and transportation costs

Processing costs benefits: $230-290/t of conc Transportation cost benefits: $30-60/t of conc + 30-35 Koz of gold per annum

Kyzyl OP 100% concentrate processed in-house Nezhda OP 100% concentrate processed in-house Mayskoye UG actual 100% concentrate processed in-house

POX-2 Economic rationale for in-house processing

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SLIDE 36

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 36

180

  • 9
  • 11
  • 30
  • 10

120 POX-1 In-house lime Improved flowsheet and vessel Effect of scale Tax incentives POX-2 PROCESSING COST, $/t POX-1 In-house limestone and lime Improved flowsheet and vessel Effect of scale Tax incentives POX-2

POX-2 Anticipated cost improvement

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SLIDE 37

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

OVER 23 YEARS Kyzyl, Mt 1.4 Myskoye, Mt 1.2 Nezhda, Mt 1.6 Voro, Mt 0.1 CONCENTRATE PROCESSING VOLUMES, Mt 4.3 TOTAL GOLD PRODUCTION, Moz 9.0 INCREMENTAL BENEFITS (VS OFFTAKE) Additional production, Koz 580 Additional revenue, $m 697 Transportation cost benefits, $m 112 Processing cost benefits, $m 1,107 TOTAL BENEFITS (PRE-TAX), $m 1,916

37

POX-2 Incremental benefits

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SLIDE 38

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 38

EFFECT ON NPV, $m

(10% discount rate)

112 52 69 90 70 393

  • 40
  • 67
  • 42

244

+US$50/t to offtake charges Penalties for As > 5% Reasonable upside case 3rd party conc processing Reasonable reserve expansion 1Y delay CAPEX +20% OPEX +10% Risked upside case NPV

Reasonable upside case Risked case scenario

POX-2 Key project risks and opportunities

18% IRR

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SLIDE 39

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

ENVIRONMENTAL IMPACT

No impoundments or dam structures required: Tailings from the plant will be in the form of dry cake Recycled water: Zero water discharge off-site. Process water will be fully recycled or permanently entrained in dry cake. Minimal CO2 discharge and no SOx or AsOx discharge: A heat and gas absorption circuit will be implemented, ensuring that impurities from autoclave gases and the vapor phase go through the circulating water coolant

39

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SLIDE 40

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 40

POX-2 Key project milestones

Q2 2019 Q1 2020 Q3 2020 Q3 2021 Q1 2022 Q3 2022 Q4 2022 Q3 2023 Q4 2023 Start of detailed engineering and construction Receipt of all permits Delivery of the autoclave on-site Completion of civil construction works Completion of main equipment installation Completion of external infrastructure Mechanical completion and start of commissioning activities End of commissioning and first production Full ramp-up

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SLIDE 41

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 41

KEY FACTS Ownership: 100% JORC resources*: 252 Moz at 789 g/t Ag eq Additional mineral potential: 7.9-18.1 Mt of ore at 469 g/t silver for 119-273 Moz of silver contained* Mining method: Open-pit (5-8 years), followed by underground Throughput: ~1 Mtpa Production: 20 Moz of silver per annum (100%) Capex: ~$250m (100%) Next steps: Initial Ore Reserve estimate by end of 2019

Notes: * Estimated by Polymetal, audited by SRK consulting in 2018

PROGNOZ – THE LARGEST UNDEVELOPED PRIMARY SILVER DEPOSIT IN RUSSIA

Topolinoe

Magadan Road junction 120 km

Tommot Nizhniy Bestiakh Khandyga

Yakutsk Okhotsk Sea of Okhotsk

Nezhda

Svetloye

Yakutia

Prognoz

Dukat

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SLIDE 42

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

VIKSHA – ONE OF THE LARGEST OPEN PITTABLE PGM RESOURCES IN THE WORLD

42

20-year mining licence granted on July 18, 2016 for a project area of 47km2 Mineral Resources: 213 Mt at 0.98 g/t of combined precious metals, total content at 6.6 Moz Processing: conventional flotation processing to produce bulk copper-PGM sulphide concentrate + off-take Average thickness: 7 m Depth of open pit: 150 m

CONSISTENT GRAM-METER DOWN DIP (Pd eq.* ore body width)

KEY FACTS

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SLIDE 43

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 43

2018 – RESERVES & RESOURCES Center of gravity shifting to new high grade and lower cost assets

24.0

12.5 7.2 4.4 31.9 11.7 3.1 8.1 3.4 5.6 LEGACY ASSETS KYZYL NEZHDA PROGNOZ VIKSHA Reserves Resources PRODUCTION START 2018 2021 24.2 10.3 12.5 3.4 5.6 55.9 TOTAL

Notes: Reserve and resource statement (JORC 2012) as at 01.01.2019. Gold and silver price assumptions of $ 1,200/oz and $ 16/oz respectively.

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SLIDE 44

Appendix

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SLIDE 45

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

2018 – FINANCIAL HIGHLIGHTS

45

2018 2017 Change Revenue, $m 1,882 1,815 +4% Adjusted EBITDA, $m 780 745 +5% Adjusted EBITDA margin 41% 41% +0.4% Total cash cost, $/GE oz 649 658

  • 1%

All-in sustaining cash cost, $/GE oz 861 893

  • 4%

Underlying net earnings, $m 447 376 +19% Underlying EPS, $/share 1.00 0.88 +14% Dividends proposed for the FY, $/share 0.48 0.44 +9% Net operating cash flow, $m 513 533

  • 4%

Capital expenditure, $m 344 383

  • 10%

Free cash flow (ex M&A), $m 176 143 +23% Net debt/Adjusted EBITDA 1.95 1.91 +2% Net debt, $m 1,520 1,420 +7%

Strong growth of all profitability metrics

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SLIDE 46

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 46

SENSITIVITY TO RUB/USD EXCHANGE RATE AND OIL PRICE

Over 2018, the Russian Rouble depreciated 17% y-o-y from 57.6 RUB/USD to 69.8 RUB/USD as at 31 December 2018 Average rate in 2018 was 62.9 RUB/USD Actual rate - 65.6 RUB/USD CASH COST STRUCTURE (2019E), $/oz RUB/ Tenge Labor 20% Oil Fuel 15% RUB / Tenge Services 30% $ / Au Royalty 9% $ / RUB / Tenge Non-fuel consumables 22% RUB / Tenge Grid power 4% RUB 50% A 1 RUB movement in domestic currency will have: $5-6/oz effect on TCC $8-10m impact on EBITDA $10-11m effect on FCF (assuming 60% of capex is in foreign currencies) US$ 20% Oil 15% Tenge 15%

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SLIDE 47

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 47

AISC DYNAMICS BY MINE 2017-2018

ALL-IN SUSTAINING CASH COSTS, $/oz of GE1

426 532 NA 858 846 10.4 952 869 1,236 1,292 893 425 477 829 816 800 10.3 940 846 970 1,131 861 Svetloye Voro Kyzyl Omolon Albazino Dukat Varvara Okhotsk (sold)Mayskoye Kapan (sold) Polymetal

2017 2018

  • 4%

Below the guidance of $875-925/oz

2

Notes: 1) Co-product AISC: TCC + head office SG&A + other expense + current period capex for operating mines. GE (gold equivalent) based on actual realized gold, silver and copper prices 2) Silver equivalent based on average realised prices.

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SLIDE 48

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 48

PORTFOLIO REVIEW UPDATE Shrinking the footprint

Asset TCC Value, $m 50% in Dolinnoye Sold in Q2 2018 17 Kapan Sold in January 2019 55 Svetlobor Sold in Q4 2018 6 Okhotsk Sold in Q4 2018 30 Asset TCC Value, $m Lichkvaz Under 6-month RoFR from buyer of Kapan Sale expected in Q4 2019 ~10 74% in Veduga Ownership streamlined, sale process to re-commence in Q1 2019 ~100 Maminskoye Non-core, options evaluated Uncertain Kutyn Non-core, options evaluated Uncertain

$108m PROCEEDS $150+m

BY 2020 AMBITIOUSLY TARGETING DEALS FOR ANOTHER

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SLIDE 49

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

DUKAT

Location Magadan Region, Russia Life of mine 2027* (9 years) Mining Underground (100%) Processing 2.0 Mtpa concentrator and 450 Ktpa CIP and Merrill Crowe plant Product Silver in concentrate (75%) and Dore bars (25%) Strategy Maintain high production volumes in mid term while continuing to invest in near mine exploration (Perevalnoye, Primorskoye). Advance Prognoz silver project which is expected to replace Dukat as one of the top 3 primary silver mines of the world.

49

1.4 Moz GE at3.7 g/t

2018 RESERVES JORC

1.3 Moz GE at8.2 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

393 369 322 306

2015 2016 2017 2018

Notes: * Assuming reasonable resource-to-reserve conversion

Grade, g/t

6.4 5.6 4.7 4.5 Omsukchan Primorskoye Perevalnoye Terem Arylakh LUNNOYE DUKAT Dukat Goltsovoye

Exploration

Sea of Okhotsk

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SLIDE 50

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

ALBAZINO / AMURSK

Location Khabarovsk Territory, Russia Life of mine 2031 (13 years) Mining Open pit (70%) / Underground (30%) Processing 1.6 Mtpa flotation circuit followed by pressure

  • xidation in Amursk

Product Gold Strategy Maintain high production volumes longer term while increasing underground mine productivity and adding more 3rd party concentrate to the feed at an expanded Amursk POX plant.

50

2.3 Moz GE at4.3 g/t

2018 RESERVES JORC

1.6 Moz GE at4.6 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

220 244 269 308

2015 2016 2017 2018 Grade, g/t

5.2 5.0 4.9 5.3 Amursk AMURSK POX Komsomolsk-on-Amur Oglongi Kherpuchi Nikolaevsk-on-Amur ALBAZINO

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SLIDE 51

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

MAYSKOYE

Location Chukotka, Russia Life of mine 2034* (16 years) Mining Underground (75%) / Open pit (25%) Processing 850 Ktpa flotation concentrator/CIL Product Gold concentrate, activated carbon Strategy Production volumes are expected to improve by 10-15-% in 2019 (thanks to introduction of higher grade oxide ore and commissioning of a combined float-leach circuit) and will remain stable in mid term. Oxide ore treatment will re-commence in Q2 2019.

51

2.2 Moz GE at6.9g/t

2018 RESERVES JORC

2.8 Moz GE at11.4 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

138 116 124 117

2015 2016 2017 2018

Notes: * Assuming reasonable resource-to-reserve conversion

Grade, g/t

6.7 5.3 5.9 7.1 Pevek Mayskoye AMURSK POX Nakhodka

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SLIDE 52

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

188 170 202 195

2015 2016 2017 2018

7.5 7.0 7.8 6.9

OMOLON

Location Magadan region, Russia Life of mine 2027* (9 years) Mining Open pit (90%) / Underground (10%) Processing 850 Ktpa CIP/Merrill Crowe, 1000 Ktpa HL (Birkachan low-grade ore) Product Gold with by-product silver Strategy Complete initial reserves estimates at Irbychan and Yolochka in Q1 2019. Mining at Yolochka to start in Q2. Production will remain stable in mid-term

52

1.1 Moz GE at3.6 g/t

2018 RESERVES JORC

0.6 Moz GE at7.1 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

Notes: * Assuming reasonable resource-to-reserve conversion ** Average grade in ore processed at the Kubaka CIP/MC plant

Grade, g/t**

Evensk OMOLON Sopka Dalnee Irbychan Yolochka Birkachan Olcha Burgali Nevenrekan Oroch Tsokol

Exploration

Sea of Okhotsk

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SLIDE 53

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

VARVARA

Location North-western Kazakhstan Life of mine 2032 (14 years) Mining Open pit Processing 3.2 Mtpa CIL / 1.0 Mtpa flotation circuit Product Gold dore bars, Gold-copper concentrate Strategy Process more Komar higher-margin ore

  • tonnes. Improve productivity and cut

haulage cost with commissioning main-line locomotive for railing Komar ore in Q1 2019

53

2.8 Moz GE at1.6 g/t

2018 RESERVES JORC

1.7 Moz GE at1.6 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

72 85 130 142

2015 2016 2017 2018 Grade, g/t

0.9 1.1 1.6 1.7 Kotanay Komar VARVARA Tarutin Komar

Russia Kazakhstan

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SLIDE 54

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

VORO

Location Sverdlovsk Region, Russia Life of mine 2028 CIP (10 years) Mining Open pit Processing 950 Ktpa CIP Product Gold Strategy Addition of a flotation circuit to the existing CIP plant to allow processing

  • f polymetallic ores. Complete initial reserve

estimate for Saum project in Q1 2019 and start oxide ore mining in 2H 2020. Voro open pit is nearing depletion in Q3 2019

54

0.7 Moz GE at2.2 g/t

2018 RESERVES JORC

1.2 Moz GE at6.0 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

141 129 120 107

2015 2016 2017 2018 Grade, g/t

3.7 3.4 3.6 3.7 Ekaterinburg Nizhniy Tagil Serov Krasnoturyinsk VORO Saum Tamunyer Peshcherny

Exploration

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SLIDE 55

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

SVETLOYE

Location Khabarovsk region, Russia Life of mine 2024 (6 years) Mining Open pit Processing 1400 Ktpa heap leaching plant Product Gold Strategy Maintain high production levels for the next years. Step-out drilling at the Emy pit and positive met test work for the material from the nearby Levoberezhny property indicate potential to extend the life-of-mine by ~4 years to 2028.

55

0.4 Moz GE at2.6 g/t

2018 RESERVES JORC

0.4 Moz GE at3.4 g/t

2018 RESOURCES JORC PRODUCTION, GE Koz

23 106 135

2016 2017 2018 Grade, g/t

3.6 4.4 3.7

ORE STACKED, Kt

428 1,054 1,378

2016 2017 2018

Okhotsk Ulya Levoberezhny Svetloye

Exploration

Sea of Okhotsk

slide-56
SLIDE 56

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 56

DISCLAIMER

This presentation includes forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all

  • f which are based on the directors’ beliefs and

expectations about future events. These forward-looking statements include statements concerning plans,

  • bjectives, 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. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures; growth in demand for products; economic

  • utlook and industry trends; developments of markets; the

impact of regulatory initiatives; and the strength of

  • competitors. The forward-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 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. Neither the Company, nor any of its agents,

employees or advisors intend or have any duty or

  • bligation 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 which 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

  • wn internal research and estimates based on the

knowledge and experience of the Company's management in the market in which the Company

  • perates. 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

  • f 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 whatsoever (in negligence or otherwise) for any loss howsoever arising from any information contained in the presentation.