INVESTOR PRESENTATION
March 2021 01 INTRODUCTION POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 3
POLYMETAL TODAY Top-10 WORLD GOLD PRODUCER nd 2 LARGEST GOLD PRODUCER IN RUSSIA
9 OPERATIONS ACROSS 2 COUNTRIES
FTSE 100 & MSCI CONSTITUENT
Competence center
Development
Operations POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 4
STRATEGY
CAPITAL ALLOCATION SCOPE OF ACTIVITY DESIRED OUTCOMES PRINCIPLES
Russia and FSU Regular dividend is Significant sustainable dividend shareholder’s right, Focus on gold, silver comes before growth Meaningful growth and possibly other spending Reduction of environmental base metals Target Net Debt/EBITDA footprint ESG best practice of below or equal to 1.5x Social license to operate Medium-sized high- Maintain high standards Robust balance sheet grade deposits of ESG through impact assessment Leadership in refractory ore processing POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 5
FOCUS ON GRADE
AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE
4.1 3.8
2.2 1.9 1.7
1.1 1.1 0.9 0.8 0.7
0.6
Barrick
Kinross
Yamana
Centerra
Newcrest
Newmont
Polymetal
Anglogold
Hochschild
AgnicoEagle Pan American Pan
Source: 2020 Companies’ data POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 6
GROWING ASSET BASE
Ore Reserves 27.9 Moz
+2.7 Moz / +10% y-o-y
2020 RESERVE PER SHARE, y-o-y change
73%
22%
10% 8% 6%
Barrick Fresnillo Newcrest Newmont Anglogold 0% American Pan -4% -4%
-7% -11% -13%
Kinross Yamana
Centerra -33%
Polymetal
Hochschild AgnicoEagle
Source: Companies’ data POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 7
SIGNIFICANT SUSTAINABLE DIVIDEND YIELD
50% $1.29 6.3% OF UNDERLYING NET INCOME (+ Board discretion to increase 2020 DECLARED DPS 2020 the final dividend to a maximum annual payout of DIVIDEND YIELD (based 100% of FCF) +57% y-o-y on declared DPS)
DY PAID1: 5-YEAR AVERAGE, %
5.7
4.4 4.1 3.6
1.8 1.7 1.5 1.4 1.4 1.2 1.1 1.0 0.9 0.9 0.8 0.7 0.7 0.6 0.6
0
Pan
Polyus
Barrick
B2Gold
Kinross
Yamana
Fresnillo
Centerra
Eldorado
American
FTSE GM FTSE
Newmont
Centamin
FTSE 100 FTSE
Polymetal
IAMGOLD
Anglogold
Endeavour
Hochschild
Gold Fields Gold AgnicoEagle
Source: Company, Thomson Reuters and Bloomberg data 1) Accounts for dividends paid only POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 8
TRANSLATING PRODUCTION INTO DIVIDENDS
DIVIDENDS PAID PER GOLD EQUIVALENT PRODUCED IN 2020, $/oz
308 305 287
150 115 108 86 85 82 69 61 48
32 12
Pan
Polyus
Barrick
Kinross
Yamana
Fresnillo
Centerra
American
Newcrest
Newmont
Centamin
Polymetal
Anglogold
Hochschild AgnicoEagle
DIVIDENDS PAID PER GOLD EQUIVALENT PRODUCED IN 2016-2020, $/oz
234 181 178 129 83 61 56 54 46 43 28
17 8 6
Polyus
Barrick
Kinross
Yamana
Fresnillo
Centerra
Newcrest
Newmont
Centamin
Polymetal
Anglogold
Hochschild
AgnicoEagle Pan American Pan
Source: Bloomberg and Companies’ data POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 9
SAFETY Marked performance improvement with zero fatalities
FATALITIES DIS (days lost due to work-related injuries Employees Contractors 1,760 4 1,583 3 2 2 1 1 1 0 - -
2016 2017 2018 2019 2020 2019 2020
In 2020, there were zero fatalities and LTIFR LTIFR for employees decreased by 38% y-o-y, with 11 out of 13 injuries classified as minor. The two severe 0.19 0.19 injuries were related to falls from height and hits by cargo when 0.15 loading vehicles 0.12 0.09 Among contract workers, there were zero fatalities and 12 minor injuries (2019: 10), with vehicle collision being 2016 2017 2018 2019 2020 the most frequent cause
Notes: LTIFR per 200,000 hours worked. For Pollymetal employees only. POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 10
SUSTAINABILITY Delivering on targets
GHG INTENSITY, t of CO2e per Kt of ore ENERGY INTENSITY, GJ per Koz of GE processed produced -4% -3% 79.8 4,563 4,414 76.3
2019 2020 2019 2020
WATER WITHDRAWN, th. m3 SHARE OF TAILINGS DRY STACKING
-29% +10% 4,919 11%
89% 10%
87% 3,484
2019 2020 2019 2020
Share of Water Recycled and Reused POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 11
ESG LEADERSHIP
RECOGNITION OF OUR EFFORTS TO DATE
Member of DJSI World and Russia indices ESG rating A (improvement from BBB) First and only Russian member Member of ESG Leaders index 8% y-o-y score improvement
Overall Score: 4.4/5.0 1st among 55 precious metals companies Governance: 5 100 percentile Pollution & Resources Score: 5 4% y-o-y score improvement Labour Standards Score: 5 Score linked to the loan margin Climate Change Score: 4
ESG score A- (improvement from B+) ESG score С+ (improvement from C) POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 12
COVID-19 UPDATE
There were 20 active cases of COVID-19 as at 1 March 2021 across the Group. We regret to report that five of our employees (four in 2020 and one in 2021) died of the disease or its consequences
Epidemiological situation remains under control. Operations and development projects are unaffected so far
Strict precautionary procedures are maintained at all production sites
Polymetal provides comprehensive assistance in the voluntary vaccination of its employees and is currently awaiting for the Russian Sputnik-V vaccine to become broadly available
Polymetal provides financial support to all regions of operations in Russia and Kazakhstan. In 2020, the Company purchased various critical medical supplies for 25 regional and municipal hospitals, and volunteers for the total amount of US$ 3.4 million
The Company estimates COVID-related cash expenses in 2021 at approximately US$ 5 million per month with the majority recorded as operating costs. This translates into approximately US$ 35 per GE ounce in AISC 02 OPERATIONS UPDATE POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 14
FY2020 – PRODUCTION Robust performance driven by strong contributions from Kyzyl, Varvara and Albazino
GE PRODUCTION RECONCILIATION, Koz +4%
+ 28 1,559 -3 + 38 1,500 Koz 1,496 initial guidance
2019 Kyzyl Other assets Discontinued 2020 operations POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 15
FINANCIAL HIGHLIGHTS Record earnings and FCF, stable cost performance
2020 20191 Change
Revenue, $m 2,865 2,241 +28% Adjusted EBITDA, $m 1,686 1,075 +57% Adjusted EBITDA margin 59% 48% +11 p.p.
Total cash cost, $/GE oz 638 655 -3% All-in sustaining cash cost, $/GE oz 874 866 +1%
Underlying net earnings, $m 1,072 586 +83% Underlying EPS, $/share 2.28 1.25 +82% Dividends proposed for the FY, $/share 1.29 0.82 +57%
Net operating cash flow, $m 1,192 696 +71% Capital expenditure, $m 583 436 +34% Free cash flow (pre M&A), $m 610 256 +138% Net debt, $m 1,351 1,479 -9% Net debt/Adjusted EBITDA, x 0.80 1.38 -42%
Notes: 1) Excluding Kapan in 2019 (disposed in January 2019) POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 16
AISC – POLYMETAL VS GLOBAL PEERS
2020 ALL-IN SUSTAINING CASH COSTS, $/oz YEAR-ON-YEAR CHANGE IN AISC, %
Buenaventura Buenaventura 1,483 28.8 Newcrest 16.8 New Gold 1,389 Hochschild IAMGOLD 1,232 10.9 Centamin 9.9 Hochschild 1,098 Barrick Gold 9.1 Yamana 1,080 Gold Fields Pan American 1,062 8.9 Pan American 8.4 AngloGold 1,059 Centerra 8.4 Agnico Eagle 1,051 Newmont 8.2 Newmont 1,045 Yamana 8.1 Fresnillo 1,045 IAMGOLD 8.0 Centamin 1,036 1 Endeavour 6.5 Petropavlovsk 1,020 AngloGold 6.1 Barrick Gold 995 New Gold 6.0 Kinross 987 Agnico Eagle 4.1 Gold Fields 977 Polyus 1.7 Eldorado 921 Polymetal 0.9 Polymetal 874 Kinross 0.4 Endeavour 871 B2 Gold -2.5 Newcrest 862 Fresnillo -3.3 Centerra 799 Petropavlovsk -5.5 B2 Gold 774 2 Eldorado -10.9 Polyus 604
Source: Companies’ data. 1) 2019 data; 2) Excluding $155m of COVID-related costs POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 17
BALANCE SHEET Net Debt/EBITDA at the record low of 0.8x
Net debt of $1.35bn as of 1 January 2021 Low cost of debt at 3.4%, a decrease over 4.0% rate a year earlier supported by lower benchmark Net Debt/EBITDA as at the end of 2020 of 0.8x. The interest rates and our ability to negotiate Company expects 2021 Net Debt/EBITDA to remain competitive margins given the solid financial below 1x position of the Company and its excellent credit history Total green and sustainability-linked loan portfolio equals $270m or 16% of the total outstanding debt
ACTUAL MATURITY PROFILE1, $m INTEREST RATE BREAKDOWN2
335
Fixed Floating 256 70% 30%
165 139 133 133 133
50
-
2021 2022 2023 2024 2025 2026 2027 2028 2029
Notes: 1) Net of cash 2) Excluding short-term (up to 6 months) loans POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 18
CAPITAL ALLOCATION
NET DEBT RECONCILIATION, $m
1,479
1,351 1 +481
-610
Net Debt as at Free Cash Flow Dividends M&A1 and other Net Debt as at 31.12.2019 31.12.2020
Notes: 1) Including VTB investment in Veduga ($35m), Tomtor stake acquisition ($20m), investment in JVs ($11m), sale of Sopka ($10m), sale of North Kaluga ($11m) 03 PROJECTS UPDATE POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 20
NEZHDA Russia’s forth largest gold deposit
Large: Reserves of 4.4 Moz of gold at PROJECT TIMELINE 3.6 g/t, 70% open pit 80% completed as of March, 2021 Long life: 25 years LOM, 155 Koz pa Ore mining commenced on average (180 Koz in first 4 years) End of commissioning and first Excellent exploration potential: production in Q4 2021 8.1 Moz at 5.1 g/t Full ramp-up in Q2 2022 Concentrator capacity: 1.8 Mtpa
Conventional technology: flotation followed by POX/offtake
Remaining CAPEX: $85 m POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 21
NEZHDA Completion scorecard
Equipment Engineering Contracting Construction Permitting delivery
Processing plant main building 95% 95% 95% 80%
Crusher 100% 100% 100% 90%
Site roads and bridges 100% 100% 100% 100%
Power complex 100% 100% 100% 80%
Infrastructure 100% 100% 100% 100% and camp
Tailings storage 80% 70% 50% 50% facility #1
Power 100% 95% 90% 10% line POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 22
NEZHDA Photo update: concentrator building completed POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 23
NEZHDA Photo update: equipment installation POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 24
NEZHDA Photo update: pit #2 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 25
NEZHDA Key project milestones
Q1 2019 Start of construction
Q3 2019 First ore mined
Q4 2019 Plant framework construction and winterization
Q1 2020 Start of equipment installation
Q4 2020 Commissioning of diesel power plant completed
Q2 2021 • Mechanical completion
Q3 2021 • Start of commissioning activities
Q4 2021 • End of commissioning activities and first production
Q2 2022 • Full ramp-up
Q3 2022 • Grid power to the production site POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 26
POX-2 Creating substantial value
IRR* NPV 18% $ 296m
Concentrate capacity: 300 Ktpa of refractory Strategic rationale: unlocking value of concentrates refractory reserves (~55% of our reserves are double refractory) Production: up to 600 Koz pa Economic rationale: $100-150/oz cost LoM: 23 years benefit Feed: Kyzyl, Nezhda, Mayskoye, Voro, 3rd CAPEX: $431 m party concentrate
Concentrate Production, GE Koz processed, Kt PROJECT TIMELINE
POX-1 450-500 850-1,000 30% completed as of March, 2021 POX-2 End of commissioning and first 211 430 production in Q3 2023 Full ramp-up in Q4 2023 2019 With POX-2 2019 With POX-2
Notes: *Risked upside case ($1,500/oz gold price) POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 27
POX-2 Completion scorecard
Basic Detailed Contracting Construction engineering engineering
POX area 100% 95% 95% 30% (Hatch scope)
Other processing areas (Polymetal 100% 70% 95% 25% scope)
Cryogenic oxygen 100% 100% 100% 30% plant
Internal and external 100% 100% 55% 45% infrastructure POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 28
POX-2 Photo update: site view POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 29
POX-2 Photo update: site view (2) POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 30
POX-2 Key milestones H1 2020 Completion of autoclave foundation
Completion of POX building foundation
Construction of new concentrate storage
H2 2020 Autoclave delivery and installation
Cryogenic oxygen plant equipment delivery
Completion of POX-2 building framework
Q4 2022 • Mechanical completion
Q3 2023 • First production
Q4 2023 • Full ramp-up POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 31
VEDUGA Conceptual project highlights
Concentrator capacity 1.5 Mtpa
Gold grade* 5 g/t
Recoveries in dore* 88%
Annual production* 220 Koz of gold
TCC/AISC* $600-650 per oz / $700-750 per oz
LOM 20+ years (combined open-pit and underground)
CAPEX ~ $450m
Processing Conventional flotation + Amursk POX
Tailings Dry cake
Ownership 59.4% with an option to increase the stake to 100%
* LOM average POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 32
VEDUGA Conceptual project schedule
Q4 2021 • Investment decision
Q1 2022 • Start of pre-stripping
Q2 2022 • Start of construction
Q1 2025 • First production. End of construction
Q2 2025 • Full ramp-up 04 OUTLOOK POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 34
PRODUCTION OUTLOOK 2021-2025
GOLD PRODUCTION, GE Koz1
Stay-in-business POX-22 Nezhda Veduga3 PRODUCTION UPSIDE: 12%
1,750 1,700 1,700 1,600 1,559 80 150 1,500 120 180 180 120 30 180 1,440 180 1,470 1,420 1,400 1,300
2020A 2021E 2022E 2023E 2024E 2025E
Notes: 1) Gold equivalent (GE) including gold and silver at 120:1 Ag oz/Au oz conversion ratio 2) Effect from recoveries increase and 3rd party concentrate processing 3) Subject to Board approval in 2021 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 35
CAPEX OUTLOOK 2021-2025 The Company will continue to prioritize timely project execution and stands ready to incur reasonable additional costs to avoid project schedule slippage
CAPEX, $m Stay-in-business POX-2 Veduga1 Nezhda LT projects and other 583 16 560 21 30 125 30 140 445 400 410 50 129 30 30 160 365 120 85 65 50 80 80 292 275 25 235 235 225 235
2020A 2021E 2022E 2023E 2024E 2025E Notes: 1) Subject to Board approval in 2021 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 36
2021 GUIDANCE
2020 2021 Actual Guidance The expected increase over Production, Koz of GE 1,559 1,500 2020 cost levels is driven by TCC, $/oz of GE 638 700-750 the assumed appreciation of the Russian rouble and AISC, $/oz of GE 874 925-975 Kazakhstan Tenge and increased domestic diesel Capital expenditure, $m 583 560 fuel prices compared to 2020, Significant as well as above-CPI inflation Free cash flow (pre M&A) 610 positive FCF in the mining industry and full-year impact of COVID- Min. of 50% NI – Dividend $1.29 /share Max. of 100% FCF related measures.
Net Debt/ Adjusted EBITDA 0.8x Below 1x
Assumptions 2020 2021 Actual Guidance Gold, $/oz 1,797 1,500 Silver, $/oz 20.9 20 RUR/USD rate 72 70 Oil 42 60
Note: the guidance remains contingent on the RUB/USD exchange rate and Brent oil price 05 CORPORATE GOVERNANCE UPDATE POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 38
BOARD COMPOSITION Polymetal is CHAIR INDEPENDENT DIRECTORS compliant: with the UK Corporate Governance Code (the UK Code)
IAN COCKERILL Chair (N, S) OLLIE OLIVEIRA TRACEY KERR GIACOMO BAIZINI with Parker Chair of the Nomination Committee, SINED (N, A, R) INED (S, R) INED (A, N) Review since Non-Executive Director at BHP, Ex- Chair of the POLYs Chair of the Safety & Chair of the Audit President and CEO of Gold Fields, Remuneration Sustainability and Risk Committee one of our ex-CEO of AngloCoal Committee, Chair of Committee, Group and ex-CFO of Board members, Audit Committee Head of Safety and EVRAZ Group S.A. at Antofagasta plc, Sustainable Victor Flores, is NON-INDEPENDENT ex-Executive Director Department in Anglo of ethnic at De Beers American plc DIRECTORS diversity. Company has also complied with all applicable regulations of the
VITALY NESIS Moscow Stock Group CEO, S Exchange and Russian securities ANDREA ABT ITALIA BONINELLI VICTOR FLORES laws and AIX INED (A) INED (R) INED (A, S) Ex-Chief Ex-Executive VP for Director of Strategic Markets Listing Procurement Officer Organizational Projects, Orion Rules at Siemens AG Development at Resource Partners NED at John Laing AngloGold Ashanti. (USA) Inc Group, Petrofac Ltd. KONSTANTIN YANAKOV and Gerresheimer AG N – Nomination Committee ICT Group Ltd R – Remuneration Committee Ex-CFO of Polymetal A – Audit and Risk Committee S – Safety and Sustainability Committee POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 39
SHAREHOLDER STRUCTURE
SHARES OUTSTANDING 2020 FREE FLOAT, $bn 472 MILLION 7.8 6.4 75% FREE FLOAT ICT Group 2.9 Alexander Nesis 1.8 24.0%
PPF Polymetal Polyus Fresnillo Centamin Petr Kellner 3.8% 2020 ADTV, $m
Management LSE & Directors 51 MOEX 0.9% 18 45 34 Institutional investors 34 and individuals 19 71.3% 13 11
Polymetal Polyus Fresnillo Centamin APPENDIX POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 41
FY2020 – PRODUCTION
Production, GE Koz Mine Comment 2020 2019 Change
Kyzyl 382 343 +11% Material positive grade reconciliation
Low base effect (concentrate processed at the Amursk Albazino 261 241 +8% POX in Q4 2019) Processing of gold-rich ore from Yolochka and Birkachan Omolon 210 196 +7% underground Planned decline in silver grade at the Omsukchan Dukat 199 206 -3% concentrator and higher gold grades in ore at Omsukchan
Varvara 159 137 +16% Treatment of additional volumes of gold-rich 3rd party ore
The increase was driven by higher grade attributable to Mayskoye 139 129 +8% lower dilution and increased recoveries. Larger volumes of ore from the Emmy pit Svetloye 120 134 -11% with lower recoveries and slower kinetics
Voro 89 106 -16% Processing of lower-grade stockpiles
TOTAL (continuing 1,559 1,493 +4% operations)
TOTAL 1,559 1,496 +4% POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 42
CASH COST STRUCTURE
2021E CASH COST STRUCTURE, $/oz
RUB 47% $ / Au Royalty 9% RUB/Tenge Services 29% Diesel 17% RUB/ Tenge Labor 19% Diesel Fuel 17% $ 18% RUB / Tenge $ / RUB /Tenge Utilities 3% Non-fuel consumables 23% Tenge 18% POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 43
SENSITIVITY ANALYSIS
A 1 RUB/USD movement in A $100/oz movement in domestic currency gold price
Effect on TCC $7-9 per oz ~$5 per oz
Effect on EBITDA $14-18m ~$150m
Effect on FCF $17-21m ~$130m
Effect on DPS ~$0.02 per share ~$0.12 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 44
TAX REGULATION UPDATE Russian and Kazakhstan taxation overview
Key taxes imposed Russia Kazakhstan
General rate - 20% (since 2008). Different preferential tax regimes may General rate - 20% (since 2008) decrease the tax rate up to 0% Income tax Paid in 2019 - $18.5m Paid in 2019 - $85.9m Effective tax rate 2019 – 22.9% Effective tax rate 2019 – 14.2%
General rate - 6% for Au / 6.5% for Ag General rate - 5% for Au, Ag (since 2011). Royalty (since 2002). Calculated based on the Calculated based on the market price of precious (Mineral extraction tax, realized selling price metals contained in the ore extracted or MET) Paid in 2019 - $68.0m Paid in 2019 - $45.4m
WHT on intragroup General rate - 15% (since 2002) General rate - 15% (since 2008) dividends Applicable Russia-Cyprus rate - 5% Applicable Kazakhstan-Cyprus rate - 5% POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 45
TAX REGULATION UPDATE Latest tax initiatives
Latest tax initiatives Status
RUSSIA
Proposal to increase withholding tax rate on dividends under DTT with Cyprus in the light of COVID-19 economic impact mitigation measures Current lowest available rate for the Group: 5% WHT After amendments: 15% WHT Certain Timing: to be enacted 1 Jan 2021 Polymetal is likely to retain 5% WHT rate as new DTT exempts publicly listed companies
Potential increase of income tax rate for mining companies rather than oil and gas sector As an alternative mechanism an introduction of an additional income tax is discussed (already applied for closed list of oil and gas projects) with excess profit withdrawal based on EBITDA Under discussion margin Also amendment to the calculation mechanism of MET rates is mulled by the Government, for now with focus on base metals and fertilizers
KAZAKHSTAN
Potential increase of the income tax rate for companies of mining sector by 7% (to Under discussion 27%) POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 46
BROWNFIELD PROJECTS
Average annual Average Start CAPEX, Project LOM production, AISC, Target -up $m Koz $/oz
Primorskoye 2022 7 4 30 750-800 Dukat LOM extension
Conveyors plus electric Mayskoye AISC down fleet to reduce ventilation, 2022 30 10+ - haulage by $150 fuel consumption and carbon footprint
Mayskoye AISC down Reduce dilution, 2023 40 10+ +30 backfill by $100 improve grade
Refractory processing to Voro 2022 90 9 70 500-550 complement ore stockpiles flotation plant treatment
Nevenrekan 2023 7 3 50 700-750 Omolon LOM extension
Replace low-grade Elevator 2024 20 4 50 800-850 Varvara ore POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 47
COMPARISON OF RUSSIAN POX PROJECTS
Parameters POX-1 POX-2 Petropavlovsk
Construction period 5 years 5 years ! 8 years
Working volume, m3 150 1,100 ! 250 x 4
Concentrate processing 225 300 500 capacity, Ktpa
Capacity utilization 100% in 2020 NA 50% in 2020
500 Production, Koz of gold 487 in 2020 285 in 2020 annual average !
Operational temperature, ˚С 200 240 ! 225
Pressure, bar 22 45 ! 35
Tailings storage Dry stacking Dry stacking ! Downstream TSF
Fresh water consumption, % of 22% in 2020 25% target 50% target total water consumption !
CAPEX, $m 272 431 310 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 48
VEDUGA Long section
W Indicated MR
Inferred MR
Intermediate South Eastern Western pit pit Central pit South Eastern pit 1 pit 2 Arrow pit POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 49
VEDUGA Ore Reserve increase potential
CENTRAL PIT
12.7 50.9 Design Pit 8.7 26.9 4.4 7.3 Actual Pit 14.3 30.6 6.5 18.1 6.6 XX True width, m 7.6 XX Grade, g/t 16.6 16.7 6.6 6.9 15.7 7.2 13.8 11/1 6.2 3.6
8.3 8.9 17.8 5.5
12.3 8.4 5.5 5.2 7.8 15.4 4.4 5.0 45.6 66,3 10.5 6,7 38.6 3.5 6.9 4.1 7.8 7.8 49.7 5.6 POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 50
LONG-TERM GROWTH PIPELINE Conceptual projects highlights
PROGNOZ VIKSHA
Ownership: 100% Ownership: 100%
Open Pit Ore Reserves: 142 Moz at 560 g/t Ag Mineral Resources: 165 Mt at 1.1 g/t, total Additional Mineral Resources: 100 Moz at 552 g/t content of 5.7 Moz of PdEq (6.1 Moz of 3E) Ag
Capacity: 1 Mtpa Mining: Open-pit (300 m pit depth, 8 m average reef width) Mining: ~9 years of open pit based on latest reserve estimate Processing: Flotation Processing: Flotation
Production: ~13.5 Moz of payable Ag per annum Next steps: Initial Ore Reserves estimate in 2H on average 2021
CAPEX: ~$319m in total, including $250m for construction
Next steps: Investment decision in Q4 2021
Fast tracking of the project is under consideration POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 51
DISCLAIMER
This presentation includes forward-looking statements technological and market change in the industries in management in the market in which the Company that involve known and unknown risks and which the Company operates, as well as other risks operates. While the Company believes that such uncertainties, many of which are beyond the specifically related to the Company and its operations. research and estimates are reasonable and reliable, Company’s control and all of which are based on the Past performance should not be taken as an indication they, and their underlying methodology and directors’ beliefs and expectations about future or guarantee of future results, and no representation assumptions, have not been verified by any events. These forward-looking statements include or warranty, express or implied, is made regarding independent source for accuracy or completeness and statements concerning plans, objectives, goals, future performance. Neither the Company, nor any of are subject to change without notice. Accordingly, strategies, future events or performance, and its agents, employees or advisors intend or have any undue reliance should not be placed on any of the underlying assumptions, predictions and other duty or obligation to supplement, amend, update or industry, market or competitive position data statements, which are other than statements of revise any of the forward-looking statements contained in this presentation. The information historical facts. The words “believe,” “expect,” contained in this presentation. to reflect any change contained in this presentation has not been “anticipate,” “intends,” “estimate,” “forecast,” in their expectations or any change in events, independently verified. Neither the Company, any of “project,” “will,” “may,” “should”, “shall”, “could”, “risk”, conditions or circumstances on which such its affiliates, subsidiaries or subsidiary undertakings “aims”, “plans”, “predicts”, “continues”, “assumes”, statements are based nor any of their respective advisors or representatives “positioned” and similar expressions or the negative makes any representation or warranty, express or thereof identify certain of the forward-looking Nothing in this presentation constitutes an offer, implied, and no reliance should be placed on the statements. Forward-looking statements include invitation, recommendation to purchase, sell or fairness, accuracy, completeness or correctness of the statements regarding: strategies, outlook and growth subscribe for any securities in any jurisdiction or information or opinions contained in this presentation. prospects; future plans and potential for future solicitation of any offer to purchase, sell or subscribe Percentages and certain amounts included in this growth; liquidity, capital resources and capital for any securities in any jurisdiction and neither the presentation have been rounded for ease of expenditures; growth in demand for products; issue of the information nor anything contained herein presentation. Accordingly figures shown as totals in economic outlook and industry trends; developments shall form the basis of or be relied upon in connection certain tables may not be the precise sum of the of markets; the impact of regulatory initiatives; and with, or act as any inducement to enter into, any figures that precede them. Neither the Company, or the strength of competitors. The forward-looking investment activity. any of its affiliates, advisors or representatives statements in this presentation are based upon accepts any liability whatsoever (in negligence or various assumptions and predictions, many of which To the extent available, the industry, market and otherwise) for any loss howsoever arising from any are based, in turn, upon further assumptions and competitive position data contained in this information contained in the presentation. predictions, including, without limitation, presentation come from official or third party sources. management’s examination of historical operating Third party industry publications, studies and surveys trends, data contained in the Company’s records and generally state that the data contained therein have other data available from third parties. Although the been obtained from sources believed to be reliable, Company believes that these assumptions were but that there is no guarantee of the accuracy or reasonable when made, these assumptions are completeness of such data. While the Company inherently subject to significant uncertainties and believes that each of these publications, studies and contingencies which are difficult or impossible to surveys has been prepared by a reputable source, the predict and are beyond its control, and the Company Company has not independently verified the data may not achieve or accomplish these expectations, contained therein. In addition, certain of the industry, beliefs or projections. Many factors could cause the market and competitive position data contained in this actual results to differ materially from those contained presentation come from the Company's own internal in predictions or forward-looking statements of the research and estimates based on the knowledge and Company, including, among others, general economic experience of the Company's conditions, the competitive environment, risks associated with operating in Russia and Kazakhstan, rapid