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 Operations
3 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION STRATEGY SCOPE OF ACTIVITY CAPITAL ALLOCATION DESIRED OUTCOMES PRINCIPLES Regular dividend is Significant sustainable dividend Russia and FSU shareholder’s right, comes Meaningful growth Focus on gold, silver and before growth spending possibly other base metals Stable licence to operate Target Net Debt/EBITDA of Medium-sized high-grade less than 1.5x Robust balance sheet deposits CAPEX hurdle rate - 12% Reduction of environmental Vertical integration real unlevered footprint ESG best practice
4 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 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.
5 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION FOCUS ON GRADE AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE 4.1 3.8 2.8 2.6 2.0 1.8 1.8 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 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.
6 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION FOCUS ON LOM AVERAGE LIFE OF MINE, YEARS 31 30 23 22 18 18 17 15 14 13 12 11 10 10 10 9 9 9 Newcrest Goldcorp Goldfields* Polyus* Centerra Anglogold Polymetal Barrick Newmont* Acacia Kinross Agnico Eagle B2 Gold* 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
7 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 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.
8 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION DIVIDEND YIELD Competitive shareholder returns 1 2018 DIVIDEND YIELD 50% $ 1,407m OF UNDERLYING NET 5% PAID OUT SINCE IPO INCOME (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 3-year and 5-year TSR 3-YEAR TSR, % 46% 42% 42% 41% 38% 27% 20% 20% 18% 15% 15% 10% 3% Polymetal Newcrest Iamgold Newmont FTSE 250 Anglogold FTSE GM Centamin Kinross Petropavlovsk Gold Fields Centerra Yamana Barrick Gold Fresnillo Acacia Goldcorp Pan American Agnico Eagle -13% -14% -22% -2% -2% -4% 5-YEAR TSR, % 77% 62% 53% 39% 37% 25% 14% 4% 2% Newcrest Centamin Newmont Polymetal Centerra Gold Fields FTSE 250 FTSE GM Gold Iamgold Anglogold Fresnillo Barrick Gold Kinross Acacia Goldcorp Yamana Petropavlovsk Agnico Eagle Pan American Silver -5% -36% -10% -24% -30% -35% -5% -36% -58% -72% -81% -18% Source: RBC data (as at market close 28.02.2019)
10 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION ESG LEADERSHIP 10,551 RECOGNITION OF OUR EFFORTS TO DATE EMPLOYEES MAJOR ENVIRON- First and only Russian member ESG rating BBB MENTAL INCIDENTS 0 COMMUNITY $ 10 m INVESTMENTS 5/5 in Corporate Governance Leader in M&M 5/5 for Anti-Corruption 1 st among 47 mining STAFF FEMALE companies 5/5 in Risk Management & Labor TURNOVER QUALIFIED Standards PERSONNEL 100 percentile 94 th Percentile First sustainability-linked 5.8% 40% loan in CIS 4.4/5.0 total ESG score
11 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION SHAREHOLDER STRUCTURE SHARES OUTSTANDING ADTV, $m 469 MILLION MOEX LSE ICT Group 3.2 6 0 % 2018 Alexander Nesis 15 27% 1.4 FREE FLOAT 2017 PPF 12 Petr Kellner 12% 0.6 2016 11 0.3 Otkritie 7% 2015 3 Institutional Management investors 0.4 & Directors 1% 2014 and HNWI* 54% 8 Notes: Shareholder structure data as of 30 January 2019
12 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION BOARD OF DIRECTORS CHAIR INDEPENDENT DIRECTORS BOBBY OLLIE JONATHAN TRACEY GIACOMO CHRISTINE GODSELL OLIVEIRA BEST KERR BAIZINI COIGNARD Chair SINED INED INED INED INED Chairman of Business Chair of the Nomination Chair of the Audit and Risk Chair of the Safety & General Manager Chair of the Remuneration Leadership SA Committee, Chairman of Committee Sustainability Committee, and ex-CFO of EVRAZ Committee ex-CEO of AngloGold Audit Committee ex-CFO of AngloGold Group Head of Safety and Group S.A. ex-MD HCF Ashanti at Antofagasta plc Ashanti Sustainable Department in International Advisors Anglo American plc NON-INDEPENDENT DIRECTORS 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 VITALY KONSTANTIN JEAN-PASCAL Independent Director, since 2011 NESIS YANAKOV DUVIEUSART Ex-President and CEO of Group CEO ICT Group Ltd PPF Group ex-CFO of Polymetal ex-Managing Partner Goldfields, Ex-CEO of AngloCoal at McKinsey
13 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 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
14 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 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
15 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 of 1.95x as at year end well below hard ceiling of 3.25x (banks) and 2.5x Strong cash position of $379m (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
FY2018 Results
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 17 2018 – CONTINUED DELIVERY, COMPETITIVE RETURNS TO SHAREHOLDERS GE Production Adjusted EBITDA Underlying EPS $780m 1,562 Koz $1.00 +5% +9% +14% AISC 2018 Dividend Yield 2018 DPS $861/oz 5% $0.48 -4% +1% +9%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 18 2018 – SAFETY Significant reduction in injury frequency LTIFR rates (down 40% y-o-y) 1 fatal accident in 2018 at Kapan 0.22 0.19 0.15 0.13 0.09 2014 2015 2016 2017 2018 FATALITIES 6 4 3 2 1 2014 2015 2016 2017 2018 Notes: LTIFR per 200,000 hours worked
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 19 2018 – EXCELLENT EXPLORATION RESULTS Ore Reserves Mineral Resources + 3.2 Moz + 8.1 Moz +15% y-oy +44% y-o-y GE Reserves per share Exploration drilling 350 km +6% 2018 RESERVE PER SHARE, y-o-y change 23% Pan American Goldfields Centamin Newmont Newcrest Goldcorp Centerra Yamana Fresnillo B2 Gold Kinross 6% Barrick 6% 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
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