Investor Presentation February 2018 Kyzyl Disclaimer ward-looking - - PowerPoint PPT Presentation

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Investor Presentation February 2018 Kyzyl Disclaimer ward-looking - - PowerPoint PPT Presentation

Investor Presentation February 2018 Kyzyl Disclaimer ward-looking statements that involve know n and unknown risks and uncertainties, many of which are beyond the Companys control and all of which are This presentation includes for based on


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February 2018

Kyzyl

Investor Presentation

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Disclaimer

This presentation includes for ward-looking statements that involve know n and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the directors’ beliefs and expectations about future events. These forward-looking statements include statements concerning plans, objectives, 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. For ward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures; gro wth in demand for products; economic outlook and industry trends; developments of markets; the impact of regulatory initiatives; and the strength of competitors. The for ward-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 w ere reasonable w hen 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 for ward-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 obligation 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 w hich 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 own internal research and estimates based on the know ledge and experience of the Company's management in the market in w hich the Company operates. 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 of 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

  • pinions 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 w hatsoever (in negligence or otherw ise) forany loss howsoeverarising fromany information contained in the presentation.

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Polymetal today

High-quality operating assets and outstanding growth pipeline

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Notes: *As at market close 22.01.2018

FTSE 250 with US$ 5.2 billion* market cap 2nd largest gold producer in Russia 8 operations across 3 countries

1 POX facility & 4 major development projects

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> Deliver a significant and sustainable dividend > Ensure significant and profitable growth > Control costs and replace reserves at

  • perating mines

> Ramp up Kyzyl > Build and advance a long-term growth pipeline > Maintain best practices in corporate governance and sustainable development

Simple strategic objectives and clear execution priorities

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4.4% 4.0% 1.1% Polymetal FTSE 350 FTSE Gold Mines

3-year average dividend yield

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61% 39% 17% 10% 8% Polymetal FTSE Gold Mines FTSE 350 Gold Silver

3-year TSR

3-year results: We have consistently outperformed gold and the majority of gold equities

Notes: Company and Bloomberg data as at market close 29.12.2017. Poly metal DY – by pay ment date.

> US$ 1 billion paid out since IPO

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We deliver stable and reliable growth

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885 1,090 1,190 1,220 1,260 1,400 952 1,168 1,312 1,267 1,269 1,433

2012 2013 2014 2015 2016 2017

Guidance Actual

+7% +10%

Annual production based on 80:1 Ag/Au ratio (Koz of GE)*

+4%

* Company historical gold equiv alent guidance recalculated using 80:1 Ag oz/Au oz conv ersion ratio.

+1% +8% +2%

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| 7 1,433 1,470 1,420 1,470 80 280 330 1,433 1,550 1,700 1,800 2017А 2018E 2019E 2020E

Kyzyl Existing

  • perations

75% 82% 87% 87% 2017A 2018E 2019E 2020E

Gold production, Koz of GE1

Notes: GE at 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conv ersion ratios.

Share of gold in production1

We have robust growth profile

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6.9 4.2 3.7 6.3 2.8 2.8 2.4 2.4 1.7 1.7 1.5 1.4 1.3 1.3 1.3 1.3 1.1 1.1 1.0 1.0 1.0 0.9 0.9 0.9 0.8 0.6

Hochschild Acacia Average Underground Open-pit Goldfields Agnico Eagle Randgold Polyus Pan American Goldcorp* IAMGOLD Anglogold Barrick Eldorado Fresnillo Newcrest Newmont Centamin New Gold Centerra Petropavlovsk Yamana Nordgold Kinross Coeur

We consistently pursue high-grade assets

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Average reserve grade (2P reserves), g/t GE

Source: Company data. Gold, silv er, copper prov ed and probable reserv es as of 01.01.2017 GE at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conv ersion ratios.

Polymetal

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$1,444 $549 $425 $359 $323

Fresnillo Randgold Large producers Mid-tier producers Polymetal (average) (average)

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Source: Company reports, BMO Capital Markets, SNL Large producers (production > 1000 Koz), Medium (Production > 200 Koz)

EV / Reserves (US$/oz)

EV / Reserves

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617 759 740-770 787 779 790 760 - 800 850 820 - 870 850 - 900 900 890 - 910 880 – 920 940 900 - 950 940 - 970 925 - 1025 1,010 – 1,030 1,000 – 1,080 1,050 – 1,100 1,025 - 1,125 1,115 - 1,140

1,050 - 1,150

1,182 Polyus Centerra Randgold Barrick Newcrest Fresnillo Centamin New Gold Goldcorp Agnico-Eagle Polymetal Eldorado Yamana ACACIA Hochschild Newmont B2Gold Kinross Gold Fields IAMGOLD Anglogold Detour Gold Sibanye-Stillwater Tahoe Harmony 705-741

All-in sustaining cash cost guidance for 2017, US$/oz of GE

Source: Companies’ guidance data on co-product basis (Harmony , Newcrest – actual data, Poly us, Randgold – BMO estimates, Fresnillo - RBC estimate). Centamin, Centerra Gold, Tahoe: AISC reported on by product basis Hochschild: AISC based on Ag/Au ratio of 74

US$ 1,258 oz – average LBMA gold price in 2017

We control our costs

*

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7.1% 4.6% 3.9% 3.6% 2.7% 2.5% 2.0% 1.3% 1.2% 1.0% 1.0% 1.0% 0.9% 0.9% 0.7% 0.7% 0.7% 0.6% 0.6% 0.5% 0.4%

Centamin Polyus FTSE 350 Tahoe Polymetal Acacia Goldfields Fresnillo Centerra Randgold Anglogold FTSE Gold Mines Agnico Eagle Newcrest Hochschild Yamana Eldorado Barrick Buenaventura Newmont Pan American Silver Kinross New Gold Iamgold

| 11

We continue to provide both valuation upside and meaningful current income

48x 36x 34x 30x 28x 27x 27x 27x 24x 23x 20x 20x 19x 17x 13x 12x 12x 12x 11x 9x 9x 9x 7x Agnico Eagle Hochschild Kinross Newmont Newcrest Goldcorp Fresnillo Yamana New Gold Eldorado Gold Fields Pan American Barrick Centamin Buenaventura Polymetal Tahoe Anglogold Harmony Centerra Randgold Polyus Gold Acacia

2018E P/E

Source: Bloomberg as at market close 29.12.2017. Poly metal div idend include FY2016 f inal and FY2017 interim div idend

2017 Dividend yield

Source: Thomson Reuters as at 16.01.2018

N/A N/A N/A

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Project update

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Kyzyl is one of the best development-stage gold projects in the world

> Large: 7.3 Moz of gold reserves, of which 3.1 Moz is open pit > High-grade: 7.7 g/t with 6.9 g/t in the open pit > Excellent exploration upside: 3.1 Moz of additional resources at 6.8 g/t > LOM: 22 years (first 10 years open pit) > Low capital intensity: US$375M (open pit + flotation + POX expansion) > Robust economics:*

  • US$ 488/oz TCC
  • US$ 518/oz AISC
  • 33% IRR
  • US$ 750M NPV

Notes: *Based on 10% discount rate. the gold price of US$ 1,200/oz, RUB/USD exchange rate of 64 and Tenge/USD exchange rate of 300. .

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| 14 Permitting Engineering Contracting Construction Open pit Processing plant External Infrastructure 100 % 100% 100 % 100 % 100% 100 % 85 % 100 % 100 % 100 % 100 % 100 % Internal Infrastructure Tailings storage 100 % 100 % 100 % 95 % 100 % 100 % 100 % 95 %

Kyzyl

Completion scorecard

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Tailings storage Repair shop Administrative building Pump station Surface drainage pond Processing plant Crushed ore storage

Kyzyl

Site layout

Ore crusher

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Kyzyl open pit

First ore mined in January

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Kyzyl

Crusher

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Kyzyl

Mills

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Kyzyl

Thickener, concentrate filters and dryers

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| 20 > Contracts currently under negotiation and are expected to be signed in Q1 2018 > Strong demand for concentrate from multiple off-takers both in East and West China > Kyzyl offtake terms are better than existing contracts for Mayskoye concentrate offtake

Kyzyl Amursk POX

Routes:

  • Eastern route: railway to Vladivostok, by sea to East China
  • Western route (shorter): railway to Alashankou Railway station (West China)

Highlights:

Kyzyl

Concentrate logistics

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| 21 Permitting Engineering Contracting Construction

Hydrometallurgical plant

Oxygen station 2 Other processing

  • bjects

100 % 100% 100% 90% 100% 100% 75% 100 % 100% 100% 75% 100 % Infrastructure 100 % 100% 100% 80%

Amursk POX expansion project

Completion scorecard

Ramp up to full expanded capacity by Q4 2018

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Amursk POX debottlenecking project

Oxygen Plant No 2

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Further Growth Opportunities

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Conceptual project development schedule

| 24 2016 2017 2018 2019 2020 2021 2022 2023 2024

Kyzyl Construction Operation POX debottlenecking Construction Operation Nezhda Exploration Feasibility Construction Operation New POX-2 Feasibility Construction Ram p-up Operatio n Prognoz Exploration/ Feasibility Construction Operatio n Viksha Exploration Pilot testing/ Feasibility / Reserve estimate Construction Operatio n

No more than two large projects in the construction stage at the same time

Final Board decision

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Nezhda – Russia’s 4th largest gold deposit

> Large open-pittable reserves: 2.0 Moz of GE at 4.0 g/t (JORC) > Excellent exploration upside: 8.9 Moz of additional resources at 5.0 g/t (JORC) > Throughput: 1,500 Kt per annum / 85% recovery to concentrate > Technology: Flotation followed by concentrate offtake or POX processing > Annual production: 150 Koz gold > LOM: 11 years open pit followed by underground > Low capital intensity: US$249M (open pit + flotation + pre-stripping) > Robust economics:*

  • ~ US$ 590-640/oz TCC
  • ~ US$ 650-710/oz AISC
  • 20% IRR
  • US$ 132M NPV

Notes: *Based on 10% discount rate. the gold price of US$ 1,200/oz, 60 RUB/USD exchange rate

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| 26 Yantai Yakutsk Nizhnyi Bestyakh Nezhda Amursk (POX) Nakhodka Magadan

> Trucking from Nezhda to railway station Nizhniy Bestyakh – 650 km. > Railway transportation from Nizhniy Bestyakh:

  • a. To Amursk (processing at Amursk

POX Au GC) – 2,510 km.

  • b. To Nakhodka (Au FC/Ag FC) –

3,415 km. > Sea transportation from Nakhodka to Yantai – 1,800 km.

650 2,200 1,215 1,800

Nezhda

Concentrate logistics

310

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POX 1

Low-carbon concentrates

Albazino, Mayskoye (underground), Kyzyl* (partially), 3rd parties

Full scale of refractory ores processing

POX 2

High-carbon pregrobbing concentrates

Kyzyl, Mayskoye (open- pit), Nezhda, 3rd parties

Amursk POX Hub

*after completion of the ongoing debottlenecking project in Q3 2018

Second POX line

New POX for high-carbon pregrobbing concentrates*

US$400M order-of- magnitude CapEx estimate for the second POX line

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Second POX line

Amursk POX Capacity

13 80 17 50 Original POX Debottlenecking 2nd POX line Total

Sulphur, Kt

155 454 49 250 Original POX Debottlenecking 2nd POX line Total

Concentrate, Kt

Albazino, Mayskoye Kyzyl and Mayskoye low-carbon Kyzyl and Mayskoye high-carbon, Nezhda, 3rd party

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Second POX line

Economic rationale for in-house processing

$160 $70 $60 $40 $220 $110 Off-take In-house

Significant cost savings

Processing cost/oz. Transportation cost/oz. 90% 93-96% Off-take In-house

Improvement in Au recovery

~ US$ 100/ oz cost economy ~ US$ 40-80/ oz to revenue

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Prognoz – the largest undeveloped primary silver deposit in Russia

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* Estimated by Micon in 2009

Key facts Ownership: > 5% with an option to increase stake to 50% (investment decision to be made no later than Q1 2020) > the other 50% owned by financial investor and potentially available Mineral resources: 292 Moz at 586 g/t* silver, 3% lead 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%)

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Top silver development projects globally

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Source: Company reports, BMO Capital Markets

Silver grade, g/t 200 400 600 800 1000 200 400 600 800

Mangazeiskiy Juanicipio Prognoz Silvertip Los Gatos Webbs Terronera Fuwan Navidad La Preciosa Corani

Development projects – Ranked by Silver Grade

P+P M+I Inf. Ag grade, g/t Silver content, Moz

(BCM) (CDE) (CDE) (FRES;MAG) (POLY) (SBR) (DOWA) (Silv er Mines) (EXK) (MSV) (PAAS)

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Viksha – our first PGM asset

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Gram-meter (gm-m)

One of the largest open pittable PGM resources in the world

Consistent gram-meter (gm-m) down dip (Pd eq.* ore body width)

˃ 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

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| 33 145 155 170 80 85 70 160 100 30 30 30 60 415 400 300 2017A 2018E 2019E

Nezhda POX-2 Kyzyl and POX expansion Exploration Stay-in-business CapEx

Capital expenditures, US$M

Getting ready for the new investment and growth phase

Notes: * subject to positiv e inv estment decision. ** Exploration includes Viksha, Prognoz

*

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Operating assets review

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Operating assets review (1/4)

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Asset Mine Capacity (Ktpa) Grade milled (g/t) Reserve grade (g/t 2017A

  • utput

(koz) Outlook Priorities AISC $/oz (2017E)

Dukat UG 2,300- 2,350 4.7 4.7

(374 g/t Ag)

322 ˃ Stable production and costs for the next 5 years ˃ Extend LOM to 2027 while maintaining stable costs

  • Start of production from high-grade

satellite deposits

  • Step-out exploration at deeper

flanks of Dukat and Lunnoye ˃ Slow down grade erosion and production decline ˃ Improve processing capacity utilization 10.1- 10.3 Albazino / Amursk OP/ UG 1,700 4.9 4.2 269 ˃ Stable production and costs for the next 10-12 years ˃ Continued presence on the market for 3rd party concentrate ˃ Completion of the POX debottlenecking project in Q3 2018 ˃ Acceleration of satellite open-pit development: 2.4 Mt at 3.2 g/t GE ˃ Continued resource-to-reserve conversion in the underground mine ˃ Continued near-mine exploration 830- 860

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Operating assets review (2/4)

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Asset Mine Capacity (Ktpa) Grade milled (g/t) Reserv e grade (g/t 2017A

  • utput

(koz) Outlook Priorities AISC $/oz (2017E)

Omolon OP/ UG 850 CIP + 1,000 HL 7.8 /1.3 6.8 CIP 1.3 HL 202 ˃ Stable production and costs for the next 7-8 years ˃ Advancing LOM extension options ˃ Continued resource and reserve accretion at Olcha, Sopka, Nevenrekan, Yolochka ˃ Achieve target productivity at Birkachan HL 870- 910 Mayskoye UG/ OP 850 5.9 6.9 124 ˃ Stable production for the next 8-10 years ˃ Debottlenecking of the CIP section to achieve design recovery levels for

  • xidised ore from the open pit

˃ Maintain safety, productivity and grade control underground ˃ Accelerate resource-to-reserve conversion both in the open pit and underground 1,140- 1,170 Varvara OP 2,500 Leach 1,000 Flotati

  • n

1.3 1.6 130 ˃ Stable production for the next 10-12 years ˃ Optimisation of the long-term mine plan for the hub as a whole with evaluation

  • f strategic options for assets on the

Russian side of the border (Tarutin, Maminskoye) ˃ Rail and process >2 Mtpa of Komar ore ˃ Continued active presence on the market for 3rd party ore 1,020- 1,060

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Operating assets review (3/4)

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Asset Mine Capacity (Ktpa) Grade milled (g/t) Reserve grade (g/t 2017A

  • utput

(koz) Outlook Priorities AISC $/oz (2017E)

Voro OP 950 3.3 2.5 120 ˃ Declining medium- term production and the cessation

  • f mining at Voro

in 2019 ˃ Stockpile processing in 2019-2027 ˃ Reserve estimate for Saum and Tamunier in 1H 2018 ˃ Feasibility study for the joint development of Saum, North Kaluga and Tamunier with an upgrade of the existing CIP plant to include flotation circuit in Q3 2018 ˃ Continue regional exploration and evaluation of bolt-on M&A opportunities 480- 520 Kapan UG 750 4.0 4.0* 50 ˃ 10-15% production growth in 2018 driven by improved processing capacity utilisation ˃ Carry on with improvement measures aimed at debottlenecking the underground mine ˃ Continue active exploration activities in the region 1,100- 1,200

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Operating assets review (4/4)

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Asset Mine Capacity (Ktpa) Grade milled (g/t) Reserve grade (g/t 2017A

  • utput

(koz) Outlook Priorities AISC $/oz (2017E)

Khakanja UG 600 6.1 5.3 110 ˃ Full depletion of the reserves (200 Koz) in 2019 ˃ Gradual decline in grade and production ˃ Continued exploration at smaller high- grade satellite deposits potentially providing feedstock at Khakanja ˃ Evaluation of strategic options for the Khakanja plant and associated smaller deposits 640- 670 Svetloye OP 1,000 4.4 2.8 107 ˃ Stable production at low costs for the next 7-8 years ˃ De-bottlenecking heap leach stacking capacity given significant expansion in

  • re reserves following positive grade

reconciliation after in-fill drilling and positive exploration results on the flanks

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Ample liquidity and comfortable maturity profile

| 39 Robust liquidity profile: US$ 1.3 bn of undrawn credit facilities Net Debt/ Adjusted EBITDA below 2.0x Low cost of debt below 4% with an average maturity of >4 years Net debt at US$ 1.42 bn*, 100% bilateral and denominated in US dollars

Notes: *As at 31.12.2017

New maturity profile, US$M

(long-term loans only)

26 106 248 513 414 100 50 2018 2019 2020 2021 2022 2023 2024 48% 52% Fixed Floating Interest rate breakdown

(long-term loans only)

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FY2017 FY2017 (revised) FY2018 Production, GE Koz 1,400 1,433 1,550 TCC, US$/GE oz 600-650 650-675 650-700 AISC, US$/GE oz 775-825 850-900 875-925 Capital expenditure, US$M 370 415 400 Free cash flow, US$M Positive 76 Positive Regular dividend US$ 138 million paid 50% of underlying net income

FY2017 and FY2018 Outlook

Assumptions Budget Actual Budget Gold, US$/oz. 1,200 1,237 1,200 Silver, US$/oz. 16.0 16.1 16.0 RUR/USD rate 60 58 55-60 Oil 60 56 55-70

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Appendix

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Sustainability highlights

| 42 strikes and lockouts major environmental incidents

4.2%

staff turnover

0.14

LTIFR (2 fatalities in 2017)

42%

female qualified personnel

12,355

employees

Member 2016/2017

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We are committed to delivering sustainable value

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2017 Sustainability highlights

> General improvement in safety performance during the year, significant decrease in injury frequency and level of risk exposure > FTSE4Good: the highest score (5/5) in Corporate Governance and Anti-Corruption, with the ESG Percentile of 84/100 > Sustainalytics: Polymetal in the 93rd percentile, outperformer in the metals and mining industry, 1st among its peers and 4th among the 44 mining companies > Leaderfor Environmental management in WWF/UN rating > Signatory to the International Cyanide Management Code > EBRD Environmental and Social Policy implemented at Kyzyl > Renewable energy generation project launched CarbonManagementStrategy is being developed > Over 50 social service institutions renovated or upgraded in host communities

  • \

*The ESG Rating ICB Supersector Relativ e Percentile

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We operate in stable low-risk jurisdictions

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Russia/ Armenia/ Kazakhstan High-risk jurisdictions

> No material regulatory matters, no instances of government

  • verreach or licensing issues in hard rock mining in more than 10

years > T anzania (export ban) > Indonesia (resource nationalism) > Greece, Philippines, Columbia (bans on mining and mine closures/ suspensions > Stable tax regime, relatively low corporate and sector tax levels > No recent changes to royalty rates and mineral extraction tax > Corporate tax rates stable at 20% since 2009 in Russia and Kazakhstan, and since 2006 in Armenia > Burkina Faso > South Africa > Zambia > Congo > No significant labor or community issues > Unemployment rates at a low 5.3% in Russia, 4.9% in Kazakhstan and 17.4% in Armenia > Labour strikes extremely rare; labour unions only traditionally influential in coal mining > Africa

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Christine Coignard Senior INED ex-MD HCF International Advisors Chair of the Remuneration Committee Jonathan Best INED ex-CFO of AngloGold Ashanti Chair of the Audit and Risk Committee Russell Skirrow INED ex-Chairman ML Metals/ Mining IB team Leonard Homeniuk INED ex-President of Centerra Gold Chair of the Safety and Sustainability Committee Jean-Pascal Duvieusart PPF Group ex-Managing Partner at McKinsey Konstantin Yanakov ICT Group Ltd ex-CFO of Polymetal Marina Gronberg Vitalbond Ltd Vitaly Nesis Group CEO Bobby Godsell Chair Chairman of Business Leadership South Africa, ex-CEO of AngloGold Ashanti Chair of the Nomination Committee

We are committed to highest standards of corporate governance

INED Non-independent

Board of Directors

The majority of our Board is independent (2 new INED since 2018)

Tracey Kerr INED since Jan 2018 Group Head of Safety and Sustainable Department in Anglo American plc Giacomo Baizini INED since Jan 2018 General Manager and ex-CFO of EVRAZ Group S.A.

59% Free Float 27% ICT Group

(Alexander Nesis)

13% PPF

(Petr Kellner)

Shares outstanding 430,115,480

1% Management & Directors

  • 14% High net worth

individuals

  • 45% Institutional

investors

Shareholder structure

Notes: Shareholder structure data as of October 3, 2017

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Financial performance is heavily dependent on the RUB/USD exchange rate and oil price dynamics

| 46 Labor, 24% Fuel, 20% Services, 23% Grid power, 4% Non-fuel consumables, 21% Royalty, 8% $ / RUB / Tenge RUB/ Tenge Oil $ / Au Oil / RUB / Tenge RUB / Tenge

RUB, 41% Tenge , 9% $, 20% Oil, 30%

OpEx Structure, $/oz

> A 1 RUB movement in domestic currency will have a US$ 9/oz effect

  • n TCC
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Reserves and resources

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2.1 1.5 2.0 1.4 0.8 0.9 3.4 7.3 0.4 0.9 20.6 0.6 0.6 1.7 3.2 0.5 0.8 2.9 3.1 2.5 1.6 0.7 18.3

Dukat Omolon Albazino Mayskoye Okhotsk Voro Varvara Kyzyl Kapan Nezhda Other Total

Reserves Resources

Notes: Reserv e and resource statement (JORC 2012) as at 01.01.2017 including updates f or Dolinnoy e, Nezhda and Komar. Gold and silv er price assumptions of $1,200/oz and $16/oz respectiv ely . *Assuming a reasonable resource-to-reserv e conv ersion, ** open-pit only 1) Includes Kapan and Lichkv az mines 2) Kuty n, Veduga

GE Moz 4.7 3.7 4.2 6.9 3.3 2.5 1.6 3.7

Reserve grade, g/t

2.7 2.0 3.7 4.7 1.4 1.7 6.3 1.7 39.0 2023 2024 2031 2034 2024 2027 2032 LOM 7.7 2039 4.1 10.4 2.5 N/A N/A

* *

1 2

4.0 1.9 2032 **

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| 48 Stage 1:

> On 17 July 2017, Polymetal entered into binding agreement to acquire an additional 7% for a cash consideration of US$ 8M that will see its stake increase to 24.7% > Under the agreement, Polymetal has an option to buyout the remaining 75.3% stake

Stage 2:

˃ Option to acquire the remaining 75.3% is based on the following terms:

  • Option premium will comprise US$ 12M payable upfront
  • Polymetal

to prepare initial JORC-compliant

  • re

reserve estimate for open-pittable reserves

  • Following reserve statement, Polymetal will have the right

to acquire the remaining stake for $US 100/oz

  • f

attributable JORC reserves (equivalent to $US 75.3/oz x total reserve ounces)

  • A hard-cap on the consideration of US$ 180M, but no

less than US$ 105M > Low initial investment to secure clear path to 100% ownership of Nezhda > Optionality to make a “go/no-go” decision based on extensive exploration and a PFS > Capped consideration at US$ 180M with any exploration upside fully attributable to Polymetal > Walkaway clause with no

  • bligation

to exercise if undesired - put option to sell stake for EUR 1 thousand

Key transaction details:

Nezhda

Path to 100% ownership