PRESENTATION September 2019 POLYMETAL INTERNATIONAL PLC INVESTOR - - PowerPoint PPT Presentation

September 2019

INVESTOR PRESENTATION

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POLYMETAL TODAY

2

Competence center

Development Operations

9

OPERATIONS ACROSS 2 COUNTRIES

2nd

nd LARGEST GOLD PRODUCER IN RUSSIA

FT FTSE SE 100 100 & & MSCI MSCI CONSTITUENT

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

• f less than 1.5x

CAPEX hurdle rate - 12% real unlevered CAPITAL ALLOCATION PRINCIPLES Significant nificant sus ustaina ainable ble divid vidend nd Meanin ningful gful growth Stab able le lice cenc nce e to opera rate Robus ust balan lance sheet et Reduc uction ion of env nvir ironmen

• nmental

al foot

• tpr

print int DESIRED OUTCOMES

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

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

4

885 1,090 1,190 1,220 1,260 1,400 1,550 952 1,168 1,312 1,267 1,269 1,433 1,562

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 64%

Guidance Actual 2018

+1%

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

FOCUS ON GRADE

5

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 1.7 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 Fresnillo Centamin IAMGOLD Petropavlovsk* Centerra Yamana Kinross

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

FOCUS ON LOM

6

31 30 23 21 18 18 17 15 14 13 13 12 10 10 10 9 9 8

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

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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

GROWING ASSET BASE

7

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

20.9 24.0 2018 2019 18.2 26.3 2018 2019

+44 +44% +15 +15%

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

TRANSLATING PRODUCTION INTO DIVIDENDS

8

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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

SIGNIFICANT SUSTAINABLE DIVIDEND YIELD

$1,

1,40 407m 7m

PAID OUT SINCE IPO

9

DY: 5-YEAR AVERAGE, %

Source: Company and RBC data (as at market close 13.08.2019) 1) Including declared interim dividend for 1H 2019

50 50% %

OF UNDERLYING NET INCOME (REGULAR)

4.8 4.3 4.2 3.5 3.2 2.1 2.0 1.7 1.6 1.6 1.6 1.3 1.2 1.1 1.1 1.0 1.0 0.7 N/A N/A N/A N/A

Centamin FTSE 100 Polymetal Polyus FTSE 250 Centerra Pan American Acacia Goldcorp Yamana Fresnillo Gold Fields FTSE GM Newcrest Barrick Newmont Agnico Eagle Anglogold IAMGOLD Kinross Petropavlovsk B2Gold

LTM DIVIDEND YIELD1

4.8 4.8%

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

TOTAL SHAREHOLDER RETURN

10

82% 71% 70% 54% 50% 42% 29% 22% 21% 20% 15% 12% 1%

• 1% -5% -11% -26%-44% -48%-60%

0%

Newcrest Polymetal Centerra Centamin Agnico Eagle Newmont Mining Gold Fields B2Gold Kinross FTSE Gold Mines Pan American Gold ($/oz) AngloGold FTSE 250 Barrick FTSE 100 IAMGOLD Acacia Petropavlovsk Fresnillo Yamana Polyus

156%

5-YEAR TSR, %

Source: Company and RBC data (as at market close 13.08.2019)

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

Firs rst t and only Russian member

ESG LEADERSHIP

11

RECOGNITION OF OUR EFFORTS TO DATE 5/5 in Corporate Governance 5/5 for Anti-Corruption 5/5 in Risk Management & Labor Standards 94 94th

th Percentile

4.4/5.0 total ESG score ESG rating A Member of ESG Leaders index Leader in M&M 1st

st among 47 mining

companies 100 percentile Firs rst sustainability-linked loan in CIS STAFF TURNOVER

4.0 .0% 0. 0.2

LTIFR (2 FATALITIES) FEMALE QUALIFIED PERSONNEL

40% 0% 11,459 11,459

EMPLOYEES $5m COMMUNITY INVESTMENTS MAJOR ENVIRON- MENTAL INCIDENTS 1H 2019 HIGHLIGHTS

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

PRODUCTION OUTLOOK

12

1,466 1,250 1,270 1,240 1,230 1,260 96 300 330 330 340 330 30 180 180 80**

2018 2019 2020 2021 2022 2023 GOLD PRODUCTION, GE Koz1 1,562 1,550 1,600 1,600 1,750 1,850 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*

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

CAPITAL EXPENDITURE

13

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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

83 214 408 363 369 304

BALANCE SHEET On track to meet mid-term target of 1.5x

14

Lo Low co cost st of debt t at 4.5% % with 100% of loans on bilateral basis and denominated in US dollars Net Debt/Adjusted EBITDA of 1.93x as at 1H end well below hard ceiling of 3.25x (banks) and 2.5x (regular dividends). Our mid-ter erm m target rget is 1.5x Robust liquidity profile: $1 bn bn of undrawn credit facilities and strong cash position of $201 m Net debt of $1.7 bn as of 30 Jun 2019 In 2019, the company successfully rolled-over $100 m from 2021 to 2024 and another $100 m from 2023 to 2024 2 sustainability-linked loans providing incentive for future ESG development Further refinancing updates are expected in Q3 ACTUAL MATURITY PROFILE, $m INTEREST RATE BREAKDOWN (long-term loans only) 2019* 2020 2021 2022 2023 2024 Fixed ed 58 58% Floati ting ng 42% NET DEBT / EBITDA 2.19 1.75 2.19 1.91 2.08 1.95 1.92 1.50

30.06.16 31.12.16 30.06.17 31.12.17 30.06.18 MT Target 31.12.18 30.06.19

Notes: * Net of cash as at 01.08.2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

SUSTAINABILITY-LINKED FINANCING

15

9% of our Net Debt ($155m) is now linked to the sustainability performance, including:

$80m facility, signed in Apr. 2018 The margin linked to the Group’s performance estimated by Sustainalytics (base score 77/100) September 2018 – 8% progress in Sustainalytics score to 85/100. Highest available discount in the interest rate achieved $75m facility, signed in Sep. 2019 The margin linked to to the 5 ESG KPIs:

Env nvir iron

• nment

mental Social

• 1. Implementing climate management system
• 2. Ensuring tailing dams safety
• 3. Reduction of fresh water use
• 4. Occupational H&S maintenance
• 5. Support the local communities

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 1,109 1,085 1,033 1,026 1,008 1,002 987 977 977 973 940 936 925 904 882 855 720 705 682 586 IAMGOLD New Gold Buenaventura Fresnillo* Hochschild Anglogold Newmont* Eldorado Agnico-Eagle Gold fields Centamin Yamana Kinross Polymetal B2Gold Barrick Gold Newcrest** Centerra Highland*** Polyus

COMPETITIVE COST LEVELS

16

1H 2019 ALL-IN SUSTAINING CASH COSTS, $/oz

Source: Companies’ data. * by-product measure; ** Q2 2019 data *** FY 2018 data

• 10.3
• 9.5
• 5.5
• 2.3
• 1.8
• 1.2
• 0.1

0.1 0.7 0.8 1.1 2.7 2.9 4.0 4.6 9.6 19.7 24.0 41.9 Centerra New Gold Newcrest** Polyus Yamana Anglogold Agnico-Eagle Kinross Barrick Gold Polymetal Gold fields Centamin Highland*** Newmont* Hochschild Eldorado IAMGOLD B2Gold Fresnillo* Buenaventura

YEAR-ON-YEAR CHANGE IN AISC, %

• 27.1

We retained our AISC at $904/oz and were able to improve the TCC by 3% to $667/oz year-on-year On track to meet FY AISC guidance of $800-850/oz

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

FY2019 OUTLOOK

Traditional seasonality of FCF towards 2H Better than expected performance at Kyzyl Meaningful gold and silver price upside

17

Higher income and higher final dividends Robust FCF generation, including seasonal working capital release Reduced leverage, improved maturity profile Further improvement in costs - first year

• f Kyzyl production at full design capacity

WHAT TO EXPECT MACRO AND INTERNAL DRIVERS

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

1H 2018 Actual 1H 2019 Actual 2019 Guidance 2019 Outlook Prod

• duct

uction ion, Koz of GE 619 756 1,550 On track TCC, $/oz of GE 689 667 Down to 600-650 On track AISC, $/oz of GE 898 904 Down to 800-850 On track Capit ital al expendit iture, ure, $m 377 189 377 On track Free cash flow

• 64
• 63

Signific ifican ant posit itive ive FCF On track Regular divid vidend $0.17/share $0.2/share 50% of underlying net income On track Net Debt/ / Adjus justed EBITD TDA 1.95* 1.92* Down On track

2019 GUIDANCE

18

Assu sumpt mption ions 1H 2018 Actual 1H 2019 Actual 2019 Budget Average spot (from 1.7.19 to date) Gold, $/oz 1,313 1,332 1,200 1,467 Silver, $/oz 16.4 15.2 15.0 16.7 RUR/U /USD SD rate 59 65 65 65 Oil 71 66 70 62

Notes: * on a last twelve months basis

GROWTH PROJECTS

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

Kyzyl Nezhda hda POX OX-2

(in (in-hou

• use

se proces cessin sing of refr fract actor

• ry conc.

c.)

Reser erves es 7.2 Moz of gold @ 7.8 g/t 4.4 Moz of gold @ 3.6 g/t Miner eral l resou

• urc

rces (a (addit itio ional l to to reser serves es) 3.1 Moz @ 6.8 g/t 8.1 Moz @ 5.1 g/t Life e of mine e (to total/ l/op

• pen

en-pit it) > 2 25 / >10 years rs 25 / 19 years rs Annual production uction 330 Koz 155-180 Koz AISC $510/oz (actual) $700-750/oz (FS) AISC at our refractory gold mines will ll go down n by $100-150/oz CapEX $319m $234m $431m IRR* 20% 29% 14% 14% NPV at spot $2.5 bn $0.7 7 bn $0.2 2 bn Statu tus Started up in June 2018 Fully ramped-up in October 2018 On track to launch in 2H 2021 On track to launch in 2H 2023

WHAT DRIVES OUR GROWTH

20

Note: * $1200/oz gold price

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 21

KYZYL Design capacity achieved in October 2018

Positive grade reconciliation near surface Softer ore Less stable footwall Lower costs – TCC of $407/oz in 1H 2019 Higher throughput – 2.0 Mtpa Deeper pit – reserves extension expected

KEY LESSONS IMPACT

NEXT STEPS Reserves update with new open pit in Q4 2019 Reserve update for East Bakyrchik in Q4 2020

554 407 829 510 2H 2018 1H 2019 TCC AISC, $/oz

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

361 478 476 512

KYZYL Operating data – full ramp-up achieved in October

22

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

3Q 2018 4Q 2018 1Q 2019

79% 86% 87% 88% 5.1 6.6 6.9 6.6 46 86 92 96

2Q 2019 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2018 3Q 2018 4Q 2018 4Q 2018 1Q 2019 1Q 2019 2Q 2019 2Q 2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

KYZYL Ore Reserves growth potential

~25+

YEARS OF UNDER- GROUND MINING

23

3.1 5.1 4.1 7.1 + 1.5 +0.5 +1.0 +2.0

7.2 12.2

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

ORE RESERVES, Moz of gold Underground Open-pit

~14

YEARS OF OPEN-PIT MINING

Pit re-design

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

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

24

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

• f reserves is open pit

Lo Long life: 25 years LOM, 155 Koz pa Exce celle llent nt ex explor

• rati

ation

• n pot
• tenti

tial: al: 8.1 Moz at 5.1 g/t Lo Low-cos

• st:

t: $620-670/oz TCC and $700- 750/oz AISC during first 19 years of

• pen pit

Capital tal-light: ight: $234 million start-up capex Conve nventiona tional technolog

• logy:

y: flotation followed by POX/offtake

$302

302m

NPV

29% 29%

IRR IRR

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 25

NEZHDA UPDATE Open pit

Open-pit stripping and access road construction is underway

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

NEZHDA UPDATE Processing plant building

26

Plant building frame is constructed. Full winterisation of the concentrator will start in November

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

NEZHDA UPDATE Infrastructure

27

Explosives storage Fuel and lubricants storage Mine camp building Reagent storage

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

 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

NEZHDA: KEY PROJECT MILESTONES

28

Q4 2018 Q1 2019 Q3 2019 Q2 2020 Q4 2020 Q3 2021 Q4 2021 Q2 2022

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2: STRATEGIC RATIONALE POX-2 will unlock value of refractory reserves

29

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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX OPERATING STATISTICS 2013-2019

30

CONCENTRATE PROCESSED, Kt GOLD PRODUCTION, Koz

159 227 220 225 217 256 203 13 40 29 11 7 18 55 52 40 178

159 240 260 273 283 322 421

2013 2014 2015 2016 2017 2018 2019

Mayskoye Albazino Kyzyl 3rd Party

127 154 143 137 137 147 140

10 22 17 6 5 11 16 23 16

51

128 164 165 166 160 176 207

2013 2014 2015 2016 2017 2018 2019

2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 31

POX-2: ECONOMIC RATIONALE FOR IN-HOUSE PROCESSING

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

Average impa verage impact on ct on cos costs ts: : $1 $100 00-150 50/oz

• z

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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2: INCREMENTAL BENEFITS VS OFFTAKE

32

1,107 697 112 1,916 INCREMENTAL BENEFITS OVER 23 YEARS, $m

Based on 0.6 Moz additional production

Processing costs benefits Additional revenue Transportation cost benefits Total

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX: ENVIRONMENTAL BENEFITS vs BIOX and ROASTING

33

2 40 5 POX BIOX Roasting 0.1 5 100 POX BIOX Roasting 100 80 70 POX BIOX Roasting 70 100 80 POX BIOX Roasting

CYANIDE CONSUMPTIONS, Kg/t of conc CAPEX INTENSITY, % OPEX INTENSITY, % SO2 AND As2O3 EMISSIONS, %

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2: CLOSING REMARKS

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 on 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

34

STRATEGIC IMPORTANCE OPPORTUNITIES

POLYMETAL INTERNATIONAL PLC POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2: UPSIDE SCENARIO

35

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

18 18% % IRR

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

POX-2: CONSTRUCTION UPDATE

36

Detailed engineering in full swing. All long-lead equipment was contracted Autoclave foundation ditch has been excavated. Foundation concrete bed is being prepared.

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 37

POX-2: KEY PROJECT MILESTONES

Q2 2019 Q4 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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

Project Start- up LOM Annual production, Koz AISC, $/oz Target

Pere revaln lnoy

• ye

2020 4 70 600-700 Dukat LOM extension Primo imorsk rskoye 2021 4 60 700-800 Dukat LOM extension Maysk skoy

• ye

backfill fill 2022 10+ +30 AISC down by $100 Reduce dilution, improve grade Maysk skoy

• ye

haulage 2023 10+ None AISC down by $150 Conveyors plus electric fleet to reduce ventilation, fuel consumption and carbon footprint Elev evator

• r

2022 5 30 700-750 Replace low-grade Varvara ore Voro undergro rground nd 2022 5 30 800-900 Replace low-grade stockpiles Voro flota tatio ion 2022 10+ 80 500-600 Refractory processing to complement ore stockpiles treatment

BROWNFIELD PROJECTS OUTLOOK LOM extension projects

38

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

LT GROWTH OPTIONS

39

PROGNOZ VIKSHA VEDUGA

Owner ership ship: 100% Miner eral l reso sour urces: es: 252 Moz at 789 g/t Ag eq Additi tion

• nal

l miner eral l potenti ential: l: 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 Thro rough ughput ut: ~1 Mtpa Producti uction

• n: 20 Moz of silver per

annum (100%) Capex: ex: ~$250m (100%) Nex ext t ste steps: s: Initial Ore Reserve estimate in H1 2020 Owner ership ship: 100% Miner eral l Resou

• urc

rces: es: 213 Mt at 0.98 g/t of combined precious metals, total content at 5.6 Moz Mining ng metho hod: open-pit (150 m pit depth, 7 m average ore body thickness) Pr Process essing: ing: conventional flotation processing to produce bulk copper-PGM sulphide concentrate + off-take Nex ext t ste steps: s: Updated Mineral Resource estimate in 2019 Owner ership ship: 74.3% Ore Reser erves: es: 2.8 Moz at 4.6 g/t Au Miner eral l Resou

• urc

rces: es: 0.2 Moz at 3.4 g/t Au Mining ng metho hod: Open-pit Pr Process essing: ing: Ore processing at Dukat and Varvara Nex ext t ste steps: s: Exploration drilling is

• ngoing with further resource and

reserve upgrade expected in Q1 2020

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

LOW CAPITAL INTENSITY OF THE DEVELOPMENT PROJECTS

40

41 45 61 89 121 149 149 156 173 176 197 206 244

Boto Iamgol

• ld

Massawa Barric ick Donlin Barric ick &Novagol gold Crespo Hochs hshil hild Oksut Centerra Wafi Newcrest Natalka Polyus us Amaruq Agnic ico Eagle Obuasi Anglo Gold Juanicipio Fresnil nillo* Nezhda Kyzyl Polym ymetal

Source: Companies’ data Notes: * M+I+I resources

DEVELOPMENT PROJECTS INITIAL CAPEX PER OUNCE OF RESERVES

Cote Iamgol

• ld

Annual production, Koz Project initial CAPEX per ounce of reserves, $/oz

155-180 330 190 375 360 445 140 1,100 150 45 1,100 200 370

1H 2019 UPDATE

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

1H 2019 – PRODUCTION

42

Strong performance driven by the successful ramp-up at Kyzyl and excellent operational results at Omolon, Varvara, Voro and Svetloye GE PRODUCTION DYNAMIC FACTORS, KOZ 619 756 +24 +159

• 46

Mayskoye Voro Svetloye Varvara Omolon Albazino- Amursk Dukat Kyzyl Discont.

• perations

Total Production 5 57 61 76 99 136 158 159 5 756 Change, y-o-y NA +4% +15% +16% +15%

• 11%

+2% NA

• 90%

+22%

GE PRODUCTION BY MINE, KOZ 1H 2018 Existing assets Kyzyl Discont.

• perations

1H 2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

1H 2019 – FINANCIAL HIGHLIGHTS

1H 2019 1H 2018 Change Revenue, $m 946 789 +20% Adjusted ed EBIT ITDA, $m 403 300 +34% Adjusted EBITDA margin 43% 38% +5% Total cash cost, $/GE oz 667 689

• 3%

3% All All-in in sust staining ining cash co cost, st, $/GE oz 904 898 +1% Underlying net earnings, $m 188 155 +21% Under erlyin lying EPS, S, $/share re 0.40 0.35 +14% Inte terim im divid idend end proposed sed, $/shar hare 0.20 0.17 +18% Net operating cash flow, $m 127 93 +37% Capit ital l ex expendit itur ure, $m 189 169 +12% Free ee cash flow w (ex (ex M&A), $m

• 63

63

• 64

64 NM NM Net debt, $m 1,698 1,5201 +12% Net debt/ t/Adjus justed ed LTM EBITDA 1.92 1.95

• 1%

1%

Strong growth of all profitability metrics driven by higher production at lower costs

43

Notes: 1) As at 31 December 2018

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 44

AISC DYNAMICS BY MINE

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

497 494 798 897 11.2 941 898 435 510 552 861 969 12.5 1,187 904

Voro Kyzyl Svetloye Albazino/ Amursk Omolon Dukat Varvara Polymetal 1H 2018 1H 2019

+1 +1%

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.

AISC were up 1% mainly due to on-off investments at Varvara (locomotive and mining fleet) and Dukat (tailings dam upgrade) The share of production at lower cost is expected to increase due to growing Kyzyl output The reported number is above the full-year guidance of $800-850/oz due to the seasonality of sales and is expected to decline in the 2H

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

OPERATIONAL PRIORITIES 2019

45

DUKAT

Prepare for the closure

• f

Goltsovoye in 2020 Start of stoping at Perevalnoye in Q4 2019 Add reserves at lower levels Reduce dilution by the introduction

• f

smaller-size equipment and partial transition to partially consolidated backfill

OMOLON SVETLOYE

Start

• pen-pit

mining at Yolochka, resume mining at Birkachan Add resources at Nevenrekan and Tsokol deeps Commence the project to convert to dry-stack tailings by 2022 Ramp up crushing capacity to 1.4 Mt Assess the economics

• f

another pushback in the main pit Include Levoberezhnoye into the LOM

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

OPERATIONAL PRIORITIES 2019

46

ALBAZINO VARVARA MAYSKOYE

Ramp up underground mine at Ekaterina-2 Add resources and reserves Determine the strategy for the long-term upgrade

• f

the underground mine materials handling system from lower levels (con convey veyor

• re

re haulage lage sy syst stem em was was sel select ected ed. Th The pro roject ct IR IRR is is esti estimated ed at at 45 45% wi with th tota tal invest vestmen ents ts esti estimated ed at at $45 45m in in 2020- 2022) Evaluate

• ptions

regarding conversion from conventional tailings to cemented paste backfill. Potential benefits include lower dilution in flat- dipping

• re

bodies and the reduction

• f

surface waste disposal. Continue resource-to-reserve conversion Cut Komar haulage costs by commissioning the new loco Ramp up the new Riverside

• pen pit at Varvara

VORO

Exploration drilling identified substantial mineralisation below the

• pen

pit with technical studies currently underway to determine the feasibility

• f

underground mining.

APPENDIX

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

2019 – KEY MILESTONES AND NEWS FLOW

48

Corporat

• rate

27 September Inter erim im divid viden end d pay-ou

• ut

30 September – 2 October Amursk POX Site Trip 11 November Analyst and Investor Day in London - key projects update (Kyzyl, Nezhda, POX-2)

Pr Projects cts

Q3 First ore mined at Nezhda Updated MR estimate at Viksha Q4 Full revaluation of OR and MR at Kyzyl based on actual

• perating statistics and exploration results

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

2018 AND 1H 2019 ACHIEVEMENTS

49

MANAGEMENT AND BOARD DIVERSITY: SUCCESSION PROGRAM:

CORPORATE GOVERNANCE ESG

EMPLOYEE ENGAGEMENT IN BOARD ACTIVITY: INCREASED ESG TRANSPARANCY AND RECOGNITION: DISCLOSURE ENVIRONMENTAL SOCIAL IMPROVED GOVERNANCE:

• 3 new INEDs and Chair
• Avg board tenure reduced to 6 years
• Board skills further enhanced
• 25% board female
• 23% management female
• First female MD appointed at Svetloye
• Board leadership
• Board independence
• Remuneration disclosure
• Auditor fees
• Young Leaders’ engagement program with the Board

fully established

• MSCI ESG Rating upgrade to A – the highest among

Russian miners

• Environmental policy & biodiversity programs
• Mineral waste, air emissions, water management

programs

• GHG reduction
• Updated discrimination and freedom of association

policies

• Supply Chain Monitoring and supplier social

standards

• Human Rights and Indigenous Rights Policies
• Published Modern Slavery Act Statement
• Started trainings on Human Rights
• Full disclosure of TSF management
• First ESG Day and NDR with Board engagement
• Improvement of ESG rankings in the following

categories:

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 50

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

25.1

13.6 7.2 4.4 31.8 11.6 3.1 8.1 3.4 5.6 LEGACY ASSETS KYZYL NEZHDA PROGNOZ VIKSHA Reserves Resources PRODUCT CTIO ION START RT 2018 2021 25.1 10.3 12.5 3.4 5.6 56.9 TOTAL

Notes: Reserve and resource statement (JORC 2012) as at 01.01.2019 including an updated Veduga’s reserve and resource statement as at 01.03.2019. Gold and silver price assumptions of $ 1,200/oz and $ 16/oz respectively. *2019 guidance

as of 01.01.2019

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

CASH COST STRUCTURE AND SENSITIVITY

51

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% $ 20% Oil 15% Tenge 15% 2019 CASH COST STRUCTURE, $/oz Total Cash Cost EBITDA Free Cash Flow 1 RUB/USD movement in domestic currency $5-6/oz $8-10m $10-11m $100/oz movement in gold price $140m $110m SENSITIVITY TO RUB/USD & GOLD PRICE Average rate in 1H 2019 depreciated 10% to 65.3 RUB/USD from an average of 59.3 RUB/USD in 1H 2018. Current spot – 66 RUB/USD

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

SAFETY PERFORMANCE VS PEERS Better than the industry average

52

LTIFR (per 200,000 hours worked)

0.28 0.1 0.47 0.37 1.2 0.25 0.86 0.23 0.74 0.2 0.25 0.38 0.34 1.6 0.25 0.84 0.18 0.45 0.21 0.07 0.38 0.33 1.74 0.27 0.88 0.15 0.19

16 12 6 11 6 1 7 1 9 7 10 9 4 1 1 2 2 13 9 10 5 4 3 2 1 1

FATALITIES

2016 2017 2018

Glencore Vedanta Evraz Anglo American KAZ Minerals Rio Tinto BHP Billiton Polymetal Acacia Mining Glencore Vedanta Evraz Anglo American KAZ Minerals Rio Tinto BHP Billiton Polymetal Acacia Mining

Notes: Including contractors

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

BOARD OF DIRECTORS

53

INDEPENDENT DIRECTORS NON-INDEPENDENT DIRECTORS CHAIR

IAN COCKERILL Chair Non-Executive Director at BHP, Ex-President and CEO of Gold Fields, ex- CEO of AngloCoal OLLIE OLIVEIRA SINED Chair of the Nomination Committee, Chairman of Audit Committee at Antofagasta plc, ex- Executive Director at De Beers TRACEY KERR INED Chair of the Safety & Sustainability Committee, Group Head of Safety and Sustainable Department in Anglo American plc GIACOMO BAIZINI INED Chair of the Audit and Risk Committee and ex-CFO of EVRAZ Group S.A. CHRISTINE COIGNARD INED Chair of the Remuneration Committee, NED at Eramet, 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

POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION

INCREASED STOCK LIQUIDITY

54

ADTV, $m

Notes: Shareholder structure data as of August 2019

12.3 15.3 19.1 8.1 3.9 6.3 21.6 17.5 15.7 1.4 3.2 2.9 2.3 3.5 8.3

2017 2018 2019 2017 2018 2019 2017 2018 2019

MOEX LSE

Polymet metal Polyus us Fresn esnill illo SHARES OUTSTANDING 470 MILLION

65%

FREE FLOAT Institutional investors and HNWI 57%

PPF PPF Petr Kellner 7% Otkritie ritie 7% ICT Group Alexander Nesis 27% Manag nagement ement & Direc ecto tors s 1%

18.4 21.9 10.4 14.6 13.7 7.4

POLYMETAL INTERNATIONAL PLC POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 55

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 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. 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 outlook and industry trends; developments

• f 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

• ther 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

• r guarantee of future results, and no representation
• r 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 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 own 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 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 whatsoever (in negligence or

• therwise) for any loss howsoever arising from any

information contained in the presentation.