ANALYST AND INVESTOR DAY
27 April 2021 POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 2
TABLE OF CONTENTS
01 INTRODUCTION
02 CORPORATE GOVERNANCE UPDATE
03 OPERATIONS UPDATE
04 PROJECTS UPDATE
05 BROWNFIELD PROJECTS UPDATE
06 OUTLOOK 01 INTRODUCTION POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 4
POLYMETAL TODAY Top-10 WORLD GOLD & SILVER PRODUCER nd 2 LARGEST GOLD PRODUCER IN RUSSIA
9 OPERATIONS ACROSS 2 COUNTRIES
FTSE 100 & MSCI CONSTITUENT
Competence center
Development
Operations POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 5
STRATEGIC VISION 1
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 base spending Reduction of environmental 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 Long-term cash flow/earnings Vertical integration visibility Organic growth POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 6
ESG LEADERSHIP
RECOGNITION OF OUR EFFORTS TO DATE
Member of DJSI World and Russia indices ESG rating A 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 100 percentile 4% y-o-y score improvement Score linked to the loan margin ESG score С+
ESG score A- Climate Change Score: B- POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 7
2020 ACHIEVEMENTS Strong performance in challenging times
ESG OPERATIONS & FINANCIALS DEVELOPMENT
Safety improve: Production 4% y-o-y to Record FCF of $610m, Zero fatalities 1.56 Moz and guidance 138% y-o-y outperformance LTIFR 38% y-o-y to Record dividend of 0.12 Reserves per share 10%. $1.29/share with sector- Total reserves of 27.9 Moz leading proposed dividend Environmental footprint yield of 6.3% reduction: No interruptions due to GHG intensity 4% COVID Net Debt/EBITDA ratio y-o-y down to 0.8x
Water withdrawal Development projects according to schedule 29% POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 8
SECTOR-LEADING DIVIDEND YIELD
DY PAID: 2020 AVERAGE, %
5.7
4.3 4.2 4.0 2.8 2.2 1.7 1.5 1.4 1.3 1.3 1.2 1.2 1.0 1.0 1.0 1.0 0.9 0.7 0.7
0.4 0
Pan
Polyus
Barrick
Star
B2Gold
Kinross
Yamana
Kirkland
Fresnillo
Centerra
Eldorado
American
FTSE GM FTSE
Newmont
Centamin
FTSE 100 FTSE
Northern
Polymetal
Evolution
Anglogold
Endeavour
Hochschild
Gold Fields Gold AgnicoEagle
DY PAID: 2016-2020 AVERAGE, %
5.7 4.4 4.1 3.6 2.7 2.2 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
Polyus
Barrick
B2Gold
Kinross
Yamana
Fresnillo
Centerra
Eldorado
FTSE GM FTSE
Newmont
Centamin
FTSE 100 FTSE
Polymetal
Evolution
Anglogold
Endeavour
Hochschild
Gold Fields Gold
AgnicoEagle
Pan American Pan NorthernStar
Source: Company, Thomson Reuters and Bloomberg data POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 9
TRANSLATING PRODUCTION INTO DIVIDENDS
DIVIDENDS PAID PER GOLD EQUIVALENT PRODUCED IN 2020, $/oz
308 305 287 283
170 150 115 111 108 86 85 85 82 69 62 61 48
32 12
Pan
Polyus
Star
Barrick
B2Gold
Kinross
Yamana
Fresnillo
Kirkland
Centerra
Northern
American
Newcrest
Newmont
Centamin
Polymetal
Evolution
Anglogold
Hochschild
Gold Fields Gold AgnicoEagle
DIVIDENDS PAID PER GOLD EQUIVALENT PRODUCED IN 2016-2020, $/oz
234 181 178 129 127 101 83 61 56 54 46 43 41 31 30 28
17 8 6
Polyus
Barrick
B2Gold
Kinross
Yamana
Fresnillo
Kirkland
Centerra
Newcrest
Newmont
Centamin
Polymetal
Evolution
Anglogold
Hochschild
Gold Fields Gold
AgnicoEagle
Pan American Pan NorthernStar
Source: Bloomberg and Companies’ data POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 10
SECTOR-LEADING RETURN
TSR: 10Y
1,754%
169%
130% 113%
69% 52% 39% 34% 15% 14% 10%
2% -24% -32% -35%-44%-45%-47%-49%-50%-64% -88%
Barrick
B2Gold
Kinross
Fresnillo
Yamana
FTSE GM FTSE
Centerra
Eldorado
Centamin
FTSE 100 FTSE
FTSE 250 FTSE
Polymetal
Newcrest
Newmont
Evolution
Gold ($/oz) Gold
AngloGold
Gold Fields Gold
Endeavour
AgnicoEagle
NorthernStar Pan American Pan
Source: Company, Thomson Reuters and Bloomberg data POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 11
GROWING ASSET BASE
Ore Reserves 27.9 GE Moz
+2.7 Moz / +10% y-o-y
2020 RESERVE PER SHARE, y-o-y change
73% 55% 48%
22% 10%
8% 6%
Pan American Pan Barrick Fields Gold Newcrest Newmont Kirkland Centamin Anglogold 1% 0% B2Gold -2% -4% -4% -4%
-11% -13%
Kinross Yamana
Fresnillo -23%
Centerra Evolution
Polymetal -29%
Endeavour -33%
Hochschild AgnicoEagle
Large-scale M&A
Source: Companies’ data POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 12
GROWING PRODUCTION
2020 GE PRODUCTION PER SHARE, y-o-y change
23%
10%
5% 4% 4%
Evolution Polyus NorthenStar Goldfields AgnicoEagle KinrossGold Endeavour Centamin Anglogold Fresnillo Barrick Newmont Yamana Newcrest Mining American Pan Hochschild
-1% -3% -4% -5% -5%
B2Gold -6% -6% -6% -8%
Centerra Eldorado
Polymetal -9% -13%-14%-14%-14% Kirkland Lake Kirkland -18%
-38%
Source: Companies’ data 02 CORPORATE GOVERNANCE UPDATE POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 14
BOARD INTRODUCTION Polymetal is compliant CHAIR INDEPENDENT DIRECTORS with: the UK Corporate Governance Code (the UK Code) Parker Review (one director of ethnic diversity) IAN COCKERILL Chair (N, S) OLLIE OLIVEIRA TRACEY KERR GIACOMO BAIZINI Hampton- Chair of the Nomination Committee, SID (N, A, R) INED (S, A) INED (A, N) Non-Executive Director at BHP, Ex- Chair of the POLYs Chair of the Safety & Chair of the Audit Alexander Review President and CEO of Gold Fields, Remuneration Sustainability and Risk Committee (33% of the Board ex-CEO of AngloCoal Committee, Chair of Committee, Group and ex-CFO of Audit Committee Head of Safety and EVRAZ Group S.A. female) at Antofagasta plc, Sustainable NON-INDEPENDENT ex-Executive Director Department in Anglo at De Beers American plc Company has also DIRECTORS complied with all applicable regulations of the Moscow Stock Exchange and Russian securities laws and AIX Markets Listing Rules
VITALY NESIS Group CEO (S)
ANDREA ABT ITALIA BONINELLI VICTOR FLORES INED (A, R) INED (R) INED (A, S) Ex-Chief Ex-Executive VP for Director of Strategic Procurement Officer Organizational Projects, Orion 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 ANALYST AND INVESTOR DAY 15
BOARD COMPOSITION: DIVERSITY & SKILLS
BOARD DIVERSITY BOARD INDEPENDENCE
11%
33% 22%
67% 67%
Women Chairman Men Non-independent Director Independent Director
BOARD SKILLS 78% 56% 44% 33% 11%
Mining Business strategy Finance Climate change Governance 03 OPERATIONS UPDATE POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 17
COVID-19 UPDATE
Impact on Risk area Most exposed FCF/Project Implications timeline
Epidemiological situation in the Company remains under control. There were 15 active cases of Health & Safety All Low COVID-19 as at 20.04 across the Group. All precautionary measures effective in 2020 will continue into full year of 2021
Shortages of general construction workforce in Russia and sharp increase in labour costs driven by travel restrictions with Central Asian countries, a traditional source of the majority Cross-border Development Medium of construction workforce travel restrictions projects Significant difficulties in bringing expat representatives of equipment manufacturers on site (POX-2)
Construction of on-site observatory facilities for Remote sites Medium Additional CAPEX personnel POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 18
Q1 RESULTS
ORE PROCESSED PRODUCTION, GE Koz +2% +3% Ore processed, Mt Grade, g/t y-o-y y-o-y 5 4.3 8 477 4.5 4.0 7
4 3.7 3.6 3.4 6 365 358 358 375 3.5
4.2 5 3 3.8 3.8 3.9 3.8
2.5 4
2
3
1.5
2
1
1
0.5
0 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
REVENUE, $m FCF (preliminary estimate), $m +20% y-o-y 884 846 269 259 168 641 593 494 29
-88 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 19
AISC – POLYMETAL VS GLOBAL PEERS
2020 ALL-IN SUSTAINING CASH COSTS, $/oz YEAR-ON-YEAR CHANGE IN AISC, %
Kirkland Lake Hochschild 1,098 41.8 Newcrest Yamana 1,080 16.8 Northern Star Pan American 1,062 15.4 Hochschild 10.9 AngloGold 1,059 Centamin Agnico Eagle 1,051 9.9 Barrick Gold 9.1 Northern Star 1,047 Gold Fields 8.9 Newmont 1,045 Pan American Fresnillo 1,045 8.4 Centerra 8.4 Centamin 1,036 1 Newmont 8.2 Petropavlovsk 1,020 Yamana 8.1 Barrick Gold 995 Endeavour 6.5 Kinross 987 AngloGold 6.1 Gold Fields 977 Evolution 5.9 Eldorado 921 Agnico Eagle 4.1 Polymetal 874 Polyus 1.7 Endeavour 871 Polymetal 0.9 Newcrest 862 Kinross 0.4 Kirkland Lake 800 B2 Gold -2.5 Centerra 799 Fresnillo -3.3 B2 Gold 774 Petropavlovsk -5.5 Evolution 700 2 Eldorado -10.9 Polyus 604
Source: Companies’ data. 1) 2019 data; 2) Excluding $155m of COVID-related costs POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 20
AISC DYNAMICS
ALL-IN SUSTAINING CASH COSTS, $/oz of GE1
1,231
1,059 1,086 925-975 893 893 864 866 874 776 733
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E
Notes: 1) Co-product AISC: TCC + corporate level 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 POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 21
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%
Royalty rate increase is under discussion by both governments of Russia and Kazakhstan POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 22
SENSITIVITY TO RUB/USD AND GOLD PRICE
A 1 RUB/USD movement in A $100/oz movement in gold domestic currency 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 ANALYST AND INVESTOR DAY 23
BALANCE SHEET Net Debt/EBITDA at the record low of 0.8x
Net debt of $1.32bn as of 1 April 2021 Low cost of debt at 3.2%,
Net Debt/EBITDA as at the end of 2020 of 0.8x. The Total green and sustainability-linked loan Company expects 2021 Net Debt/EBITDA to remain portfolio equals $270m or 16% of the total below 1x outstanding debt
ACTUAL MATURITY PROFILE1, $m INTEREST RATE BREAKDOWN2
256 245 Fixed Floating 188 70% 30% 166 135 135 135
52
-
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 ANALYST AND INVESTOR DAY 24
2021 OUTLOOK
2020 2021 Actual Guidance The expected increase Production, Koz of GE 1,559 1,500 over 2020 cost levels is driven by the assumed TCC, $/oz of GE 638 700-750 appreciation of the Russian Rouble and AISC, $/oz of GE 874 925-975 Kazakhstan Tenge and Capital expenditure, $m 583 560 increased domestic diesel fuel prices compared to Significant positive Free cash flow (pre M&A) 610 2020, as well as above-CPI FCF inflation in the mining Min. of 50% NI – Max. industry and full-year Dividend $1.29 /share of 100% FCF impact of COVID-related measures Net Debt/ Adjusted EBITDA 0.8x Below 1x*
2020 2021 Assumptions Q1 Actual Guidance Gold, $/oz 1,797 1,500 1,760 Silver, $/oz 20.9 20 25 RUR/USD rate 72 70 74 Oil 42 60 61
Note: the guidance remains contingent on the RUB/USD exchange rate and Brent oil price * At spot 04 PROJECTS UPDATE POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 26
NEZHDA Video update
Click on the picture or scan the QR code to play the video on YouTube POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 27
NEZHDA CAPEX update
TOTAL CAPEX: FS vs UPDATED ESTIMATE, $m
+15 +20 345 +26 -20 +30 +40 234
85 -260
FS Additional Mining Scope COVID-19 Raw FOREX Updated Spent Remaining pre-strip unit cost changes material estimate CAPEX as volumes increase and labour as at 1 at 1 Jan. 21 costs Jan. 21 increase POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 28
NEZHDA Key upcoming project milestones
Q2 2021 • Mechanical completion
Q3 2021 • Start of commissioning activities
• Power complex commissioning
Q4 2021 • Dry commissioning
• Wet commissioning
• First production
Q2 2022 • Full ramp-up
Q3 2022 • Power line linkage POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 29
POX-2 Completion scorecard: on track for launch in 2H 2023
Equipment Engineering Contracting Construction delivery
POX area (Hatch scope) 95% 100% 30% 40%
Down stream 80% 100% 25% 30% circuit
CIL 75% 100% 15% 15%
Neutralization 90% 100% 70% 30%
Cryogenic oxygen 100% 100% 90% 35% plant
Power supply 100% 100% 10% 15%
Water and heat 80% 90% 10% 10% supply POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 30
POX-2 Video update
Click on the picture or scan the QR code to play the video on YouTube POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 31
REFRACTORY CONCENTRATES: MARKET UPDATE
Chinese demand is still very strong due to:
Unprecedented tightness of the copper concentrates market (globally)
Anticipation of arsenic restrictions in imported materials (locally)
Though, it is very likely that strict and explicit As restrictions will be introduced within 3 years significantly restraining the demand from Chinese smelters
The Russian government intends to curb export of gold refractory concentrates (among other materials containing precious metals) to support local production and refineries POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 32
PACIFIC POX – CONCEPT
Polymetal will meet its needs and be ahead of the curve with the development of a global processing hub – Pacific POX
Conceptual start-up: 2027 Russia Magadan
Feed: 3rd party Au Krasnoyarsk concentrates AMURSK POX Vanino Flowsheet: Identical to POX-2 Sovetskaya gavan’ Khabarovsk Mongolia PACIFIC POX Capacity: ~250-300 Ktpa Nakhodka
China Japan Location: Located next to Sovetskaya Gavan’ sea port Railway and road access 570 km from the Amursk POX / 581 km from Khabarovsk
HUB POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 33
VEDUGA Exploration update: MR extension
CENTRAL ZONE Legend, Au m*g/t W E
5-10 50 – 100
10 – 20 100-200
20 – 50 > 200
Pit
2020 MR increase 906 Koz GE POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 34
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 05 BROWNFIELD PROJECTS UPDATE POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 36
VORO FLOTATION Project snapshot
VORO FLOTATION CONSTRUCTION PESHERNY: DRILLING AND BLASTING
Construction is progressing on schedule. At Pesherny mine, design documentation is Concentrator foundation is completed. completed, detailed engineering Metal frameworks installation, and SAG documentation is 40% finalized. Drilling and mills and rotary dryers foundation work is blasting commenced. Wood cutting, ongoing. The majority of main equipment driveway and power line construction are in has arrived on site progress
Start-up is scheduled for Q1 2023 Open-pit mining is expected to commence in Q3 2021 LOM, Average annual AISC, CAPEX, $m years production, Koz $/oz Average annual production, Koz LOM
90 9 70 500-550 55 7 POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 37
KUTYN Project snapshot
Project CAPEX - $80m CONSTRUCTION SITE AND ACCESS ROAD LOM – 8 years Average annual production – 90 Koz @ $590/oz AISC Start-up in Q2 2023. Pre-stripping is expected to commence in Q3 2021 Basic site infrastructure construction and access road completed
MINE CAMP POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 38
MAYSKOYE CONVEYOR Project snapshot
Project CAPEX – $30m AISC effect – down by $150
Start-up in Q2 2022 GHG intensity – 60% reduction
Linear conveyor installation commenced (-100/-40 level) POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 39
MAYSKOYE BACKFILL Project snapshot
Project CAPEX – $40m Backfill plant design
Production – +30 Koz
AISC effect – down by $100
3 Start-up in Q1 2023 4
Basic engineering
completed. Start of 2 construction scheduled for 2021 5
LEGEND 1 8 1. Cement big bags unloading 2. Cement silos 3. Hydrocyclone 6 4. Filters 5. Mixer 6. Piston pump 7. Boreholes 8. Waste conveyor 7 06 OUTLOOK POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 41
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 ANALYST AND INVESTOR DAY 42
UPDATED CAPEX OUTLOOK 2021-2025
Up to 25% increase in 2022-2025 expected due to: Macro fluctuations COVID-driven additional costs (applicable to 2022) GHG reduction projects (decarbonisation)
CAPEX, $m
Stay-in-business POX-2 Veduga1 Nezhda LT projects and other Expected increase2
583 560 16 555 21 30 500 510 +25% 30 +25% 445 455 125 140 +25% 400 410 50 365 +25% 129 30 30 160 85 65 120 50 80 292 80 275 25 235 235 225 235
2020A 2021E 2022E 2023E 2024E 2025E Notes: 1) Subject to Board approval in 2021 2) Will be later allocated among outlined categories POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 43
2020 – KEY MILESTONES AND NEWS FLOW
Corporate
28 May Final dividend pay-out
25 August 1H 2020 financials and interim dividend announcement
17 November CMD
Projects
Nezhda start-up and first production
Q4 Veduga updated Ore Reserves and investment decision
Prognoz investment decision APPENDIX POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 45
2020 PERFORMANCE ON KEY OPERATIONAL TARGETS
Key operational targets for 2020 Execution Comment
Kyzyl throughput extension to 2.1 Mtpa 2.2 Mtpa planned for 2021
Start of construction of ore conveyor transportation system at Tunnel driving for conveyor completed Mayskoye
Slurry conditioning at POX
Stoping commenced at Ekaterina. Start of OP at Farida and UG at Ekaterina-2 (Albazino) / Mining planned for 2021
Start of new TSF construction at Varvara Mining waste for a TSF construction
Start of flotation plant construction and completion of UG PFS at The decision on Voro UG is postponed Voro /
in progress POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 46
2020 PRODUCTION BY MINE
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 ANALYST AND INVESTOR DAY 47
RESERVES RECONCILIATION An increase driven by initial reserve estimates
Ore Reserves increased by 10% y-o-y to 27.9 Moz of GE driven by initial Ore Reserve estimates at East Bakyrchik (Kyzyl), Prognoz, and Pesherny (Voro hub). This has more than compensated for depletion and ownership dilution at Veduga
Share of silver in Ore Reserves increased by 5 p.p. to 11% on the back of the significant contribution from Prognoz
ORE RESERVES RECONCILIATION, GE Moz +10%
27.9 +4.8 -0.4
25.2 +0.6
-1.9 -0.6
OR Revaluation Depletion Change in Initial OR Exclusion of OR as at ownership estimate base metals as at 01.01.2020 01.01.2021 POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 48
JUNIOR JV APPROACH
As a part of the Company’s strategy to build and advance long-term growth pipeline, Polymetal is pursuing grassroots, greenfield exploration through joint ventures with junior explorers in order to access promising, untested mineral properties for a reasonable price
Typical JV structure:
Staged approach (3-5 years) to funding of exploration campaigns via earn-in equity and / or debt financing.
Polymetal is granted a call option to acquire a remaining stake.
Exit based on JORC-compliant resources or reserves at pre-agreed market valuation.
Operatorship left to juniors to enhance decision making process until the controlling stake is acquired POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 49
JV PORTFOLIO OVERVIEW Matenvunay RIRGS** Pevek + Taymyr Porphyry, Pekinskaya Cu-Au Porphyry, Cu-Au
Evensk +
Saint-Petersburg + Magadan + Moscow Russia Yakutsk + Okhotsk + + Ulya
+ Ekaterinburg
Southern Urals + + Amursk Sovetskaya gavan’ VMS* Baksy + + Kostanay Krasnoyarsk + Porphyry-scarn Khabarovsk Nur-Sultan +
Kazakhstan Oksemen + Nakhodka Vladivostok+ +
Joint ventures Compliance center Mineralization + City / town
* Volcanogenic massive sulfide Country ** Reduced Intrusion-related Gold Systems POLYMETAL INTERNATIONAL PLC ANALYST AND INVESTOR DAY 50
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