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 Company’s control and all of which are This presentation includes for 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 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 w hatsoever (in negligence or otherw ise) forany loss howsoeverarising fromany information contained in the presentation. | 2

Polymetal today High-quality operating assets and outstanding growth pipeline 1 POX facility & FTSE 250 with 2 nd largest gold 8 operations across 4 major development US$ 5.2 billion* 3 countries producer in Russia projects market cap Notes: *As at market close 22.01.2018 | 3

Simple strategic objectives and clear execution priorities > Control costs and replace reserves at operating mines > Deliver a significant and > Ramp up Kyzyl sustainable dividend > Build and advance a long-term growth > Ensure significant and pipeline profitable growth > Maintain best practices in corporate governance and sustainable development | 4

3-year results: We have consistently outperformed gold and the majority of gold equities 3-year average dividend yield 3-year TSR 61% > US$ 1 billion paid out since IPO 39% 4.4% 4.0% 17% 10% 1.1% 8% Polymetal FTSE Gold FTSE 350 Gold Silver Polymetal FTSE 350 FTSE Gold Mines Mines Notes: Company and Bloomberg data as at market close 29.12.2017. Poly metal DY – by pay ment date. | 5

We deliver stable and reliable growth Annual production based on 80:1 Ag/Au ratio (Koz of GE)* +2% +10% +1% +4% +7% +8% 1,433 Guidance 1,400 1,260 1,269 1,312 Actual 1,267 1,220 1,190 1,168 1,090 952 885 2012 2013 2014 2015 2016 2017 * Company historical gold equiv alent guidance recalculated using 80:1 Ag oz/Au oz conv ersion ratio. | 6

We have robust growth profile Gold production, Koz of GE 1 1,800 1,700 Kyzyl 1,550 330 280 1,433 80 Existing operations 1,470 1,470 1,433 1,420 2017А 2018E 2019E 2020E Share of gold in production 1 87% 87% 82% 75% 2017A 2018E 2019E 2020E 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. | 7

We consistently pursue high-grade assets Average reserve grade (2P reserves), g/t GE Polymetal 6.9 6.3 4.2 3.7 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 Open-pit Goldfields Agnico Eagle Polyus Goldcorp* Anglogold Barrick Newcrest Newmont New Gold Nordgold Kinross Underground Centerra Randgold Pan American IAMGOLD Eldorado Fresnillo Petropavlovsk Yamana Coeur Centamin 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. | 8

EV / Reserves EV / Reserves (US$/oz) $1,444 $549 $425 $359 $323 Fresnillo Randgold Large producers Mid-tier producers Polymetal (average) (average) Source: Company reports, BMO Capital Markets, SNL Large producers (production > 1000 Koz), Medium (Production > 200 Koz) | 9

We control our costs All-in sustaining cash cost guidance for 2017, US$/oz of GE * Harmony 1,182 Tahoe 1,050 - 1,150 Sibanye-Stillwater 1,115 - 1,140 Detour Gold 1,025 - 1,125 1,050 – 1,100 Anglogold 1,000 – 1,080 IAMGOLD 1,010 – 1,030 Gold Fields Kinross 925 - 1025 B2Gold 940 - 970 Newmont 900 - 950 US$ 1,258 oz Hochschild 940 – average 880 – 920 ACACIA LBMA gold Yamana 890 - 910 price in 2017 Eldorado 900 Polymetal 850 - 900 Agnico-Eagle 820 - 870 Goldcorp 850 New Gold 760 - 800 Centamin 790 Fresnillo 779 Newcrest 787 740-770 Barrick Randgold 759 705-741 Centerra Polyus 617 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 | 10