NON-FERROUS METALLURGY: PRECIOUS METALS FACTS AND FIGURES
2014
ABOUT THE RUSSIAN DIRECT INVESTMENT FUND
The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
I RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY
1.1 WORLD GOLD RESERVES BY COUNTRY
Ranking of countries based on volume of gold reserves* 2013, thousand tonnes 9.9
6 5 3.9 3 3
1. Australia 2. South Africa 3. Russia 4. Chile 5. USA 6. Indonesia
* Source: USGS data * Source: USGS data
6 WWW.INVESTINRUSSIA.COM 1.2 GLOBAL GOLD MINING Leading countries*, 2013, tonnes
420
255 229 227
150 120
1. China 2. Australia 3. Russia 4. USA 4. Peru 6. Canada
* Source: USGS data * Source: USGS data
WWW.RDIF.RU 7 RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY
1.3 WORLD SILVER RESERVES BY COUNTRY
Ranking of countries based on volume of silver reserves* 2013, thousand tonnes
88 87 85 77 66.7
43
1. Australia 2. Peru 3. Poland 4. Chile 5. Russia 6. China
* Source: USGS data
8 WWW.INVESTINRUSSIA.COM 1.4 GLOBAL SILVER MINING Leading countries*, 2013, tonnes
5,400 4,000 3,500
1,700 1,700
1,200
1. Mexico 2. China 3. Peru 4. Russia 5. Australia 6. Bolivia
* Source: USGS data
WWW.RDIF.RU 9 RUSSIA IN THE GLOBAL PRECIOUS METALS INDUSTRY
1.5 MAJOR GLOBAL PLAYERS 2013, % of global gold production
7.3 5.2 4.2 2.7 2.6 1.8 1.39
1. Barrick Gold 2. Newmont 3. AngloGold 4. Goldcorp 5. Kinross 8. Polyus 10. Polymetal Canada USA South Africa Canada Canada Gold International plc Russia Russia
10 WWW.INVESTINRUSSIA.COM MAJOR GLOBAL PLAYERS 2013, % of global silver production
4.5 4.25 4 3.3 2.9 2.7
1. KGHM Polska 2. BHP Billiton 3. Fresnillo plc 4. Goldcord 5. Polymetal 6. Pan American Miedz S.A. plc UK Inc. International plc Silver Corp. Poland Australia Canada Russia Canada
WWW.RDIF.RU 11
II RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS
2.1 GOLD MINING
Gold mining in Russia and globally 2009-2013, tonnes*
2,660 2,690 2,770 2,450 2,560 191 192 200 218 229
2009 2010 2011 2012 2013
7.7 7.5 7.5 8.1 7.9
in Russia globally Russia’s share of global extraction volumes, %
* Source: USGS data
14 WWW.INVESTINRUSSIA.COM 2.2 GOLD PRODUCTION
Gold production in Russia 2009-2013, tonnes, including associated and secondary metals
112.5
106.8 104.3
100 98.8
205 202.6 211.4 221.8 247.7 2009 2010 2011 2012 2013
Production in Russia, % change from previous period
WWW.RDIF.RU 15 RUSSIAN GOLD INDUSTRY: CURRENT ISSUES AND TRENDS
2.3 DOMESTIC GOLD CONSUMPTION IN RUSSIA
Jewelry industry: gold consumption Gold purchases by Russian banks 2009-2013, tonnes 2009-2013, tonnes
60.95 181.4
CAGR 5% CAGR 12.1% 48.5 167.5 156.2 43 42.9 148.8 38.6 148.7
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
16 WWW.INVESTINRUSSIA.COM 2.4 RUSSIAN GOLD EXPORTS 2013, tonnes, by major importing coutries
China Switzerland
UK
1.5 69.2 0.05 42.7 10.9 2.9
0.3 Thailand
UAE Singapore
Hong Kong
WWW.RDIF.RU 17
III RUSSIAN GOLD INDUSTRY: GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE
3.1 MAIN GOLD DEPOSITS RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE Khabarovsk Krai Magadan Region
Krasnoyarsk Krai Irkutsk Region 3 10
1 1 6 3 Republic of Sakha 5 7 8 (Yakutia) 1 Chukotka AO 9 5 3 4 8
3 3
9 9
Orenburg Region
Republic of Amur Region Bashkortostan 5 2 7 7 Jewish Autonomous Region Chelyabinsk Region Khakassia Republic 6 3 Kemerovo Region Zabaykalsk Krai 7 Sverdlovsk Region 5 Buryat Republic Reserves, tonnes: <100 100-500 500-1000 >1000
20 WWW.INVESTINRUSSIA.COM MAIN GOLD DEPOSITS 3.2 RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE Magadan Region
1 ZDK Polyus 2 Petropavlovsk GC
Olimpiadskoe Chertovo Koryto Pioner Albinskoe Blagodatskoe Kanavnoe Pokrovskoye Tokurskoe Titimukhta Yakokutskoe placer deposits of Amur Novogodnee-Monto placer deposits of Severnoe Region Petropavlovskoe Irkutsk Region Nezhdaninskoe Malomyrskoe Vysokoe Verninskoe Natalkinskoe Verkhne-Alminskoe Peresnets Bamskoe Zapadnoe 4 Chukotskaya GGK (Kinross Gold)
3 Polymetal Kupol Dvoynoe
Dukatskoe Mayskoye 5 Nordgold N.V. Lunnoe Albazinskoe Vorontsovskoe Kubaka Tabornoe Samartinskoe Khakandzhinskoe Birkachan Pogromnoe Smezhnoe Yuryevskoe Sopka Kvartsevaya Zun-kholbinskoe Pionerskaya placer Irokindinskoe, deposit 6 Russdragmet (Highland Gold Mining) Pravoberezhnoe Berezitovoe
Novo-Shirokinskoe Taseevskoe, Sredne- 7 Mnogovershinskoe golgotayskoe Yuzhurapzoloto GC Belaya Gora Kurosan Zapadny Berendzhak placer Kurosan Yuzhny deopsits 8 Vysochayshy Svetlinskoe Izekyul placer deposits Kochgarskoe placer deposits of Golets Vysochayshy Ykamkoe Bereznyakovskoe Krasnoyarsk Krai Ozherele Placer deposits of Kommunarovskoe Darasunkoe Drazhnoe Bolshaya Kuranakh River Oktyabrskoye Tapatuyskoe
9 Sovrudnik 10 Susumanzoloto Sovetskoye Dobroe Eldorado Vershinka Vetrenskoe Deposits of Magadan Region
WWW.RDIF.RU 21 GEOGRAPHY AND CORPORATE STRUCTURE
RUSSIAN GOLD INDUSTRY: CORPORATE STRUCTURE
Polyus Gold International LT D. Petropavlovsk
Polyus ZDK CJSC Pokrovsky Rudnik OJSC Lenzoloto ZDK CJSC Malomyrsky Rudnik LLC Pervents OJSC Albynsky Rudnik LLC Sukhoy Log GRK CJSC Tokursky Rudnik LLC Tonoda CJSC Jamalzoloto OJSC Aldanzoloto GRK OJSC Ilinskoe LLC Yuzhno-Verkhoyansk Mining Company OJSC Omchak Gold Mining Company CJSC Matrosov Rudnik OJSC Amurskaya GRP LLC
Polymetal International plc Kinross Gold Corp.
Serebro Magadana CJSC Chukotka GGK CJSC Zoloto Severnogo Urala CJSC Severnoe Zoloto LLC JV Okhotskaya GGK OJSC Mayskoe ZRK LLC Resursy Albazino LLC Omolenskaya Gold Mining Company LLC OJSC Vysochaishy
CJSC GMC Aldgold
22 WWW.INVESTINRUSSIA.COM Nord Gold N.V. JSC Yuzhuralzoloto GC
Neryungi Metallik LLC Etkulzoloto OJSC Rudnik Appurlovo CJSC Kommunarovsky Rudnik OJSC Buryatzoloto OJSC Artel Stareteley Priisk Drazhny LLC Berezitovy Rudnik LLC Darasunsky Rudnik LLC
Highland Gold Mining LT D. Seligdar Gold Mining Holding
Novo-Shirokinskoe Rudnik OJSC Zoloro Seligdara OJSC Mnogovershinsky CJSC Artel Stareteley Poisk LLC Taseevskoe LLC Artel Stareteley Sininda-1 LLC Belaya Gora LLC Ryabinovoe LLC Lunnoe CJSC Orenburgskaya GK LLC
WWW.RDIF.RU 23 GEOGRAPHY AND CORPORATE STRUCTURE
3.3 POLYUS GOLD: LEADER IN GOLD MINING IN RUSSIA
Polyus Gold capitalization Polyus gold capitalization Nov 2013- Nov 2014, % USD bln
- 7.3%
Newmont Mining Corp. - 0.04% 9.4 Nov. 13 Polyus Gold Int. 8.7 - 7.3% Nov. 14 POLYUS GOLD POLYUS
Turquoise Hill Resources + 13.3%
Zhongjin Gold Corp. 0%
Sources: Bloomberg, Reuters, Company data Sources: Bloomberg, Reuters, Company data
24 WWW.INVESTINRUSSIA.COM MAJOR GLOBAL INDUSTRY PLAYERS
Country Company Sales, Market USD mln capitalization, USD mln
3 USA Newmont Mining Corp. 8,350.00 9,741.49
4 Russia Polyus Gold Internationsl Ltd. 2,466.89 8,712.00
5 Canada Turquoise Hill Resources Ltd. 106.86 6,986.22
6 Australia Newcrest Mining Ltd. 3,810.93 6,963. 72
7 UK Randgold Resources Ltd. 1,205.09 6,547.49
8 Canada Agnico Eagle Mines Ltd. 1,589.34 5,472.26
9 Canada Eldorado Gold Corp. 1,090.33 4,733.79
10 China Zhongiin Gold Corp. 5,034. 60 4,645.76
11 USA Royal Gold, Inc. 237.16 4,565.60
12 Russia Polymetal International Plc 2,171. 70 3,987.73
Sources: Bloomberg, Reuters, Company data Sources: Bloomberg, Reuters, Company data
WWW.RDIF.RU 25 GEOGRAPHY AND CORPORATE STRUCTURE
POLYUS GOLD: KEY FINANCIAL INDICATORS 2009-2013
Adjusted EBITDA USD mln
557 5.8 6944.2 1,082 1,303 910
2009 2010 2011 2012 2013
POLYUS GOLD POLYUS Gold saled revenue USD mln 2013
2012
2011 1,172 5.8 1,5974.2 2,180 2,618 2,259 2010 2009 2010 2011 2012 2013 2009
26 WWW.INVESTINRUSSIA.COM POLYUS GOLD: KEY PERFORMANCE INDICATORS AND RESERVES 2009-2013 Gold production k oz
1,2315.8 1,2754.2 1,378 1,569 1,649
2009 2010 2011 2012 2013
Polyus Gold - JORC proved and Leading companies in the world in terms of gold probable reverves reserves (proved and probable reserves (P&P, JORC) mln oz at the end of 2013, mln ounces
2013 83.1 Barrick 104
2012 87.5 Newmont 88
2011 90.5 Polyus Gold 83.1
2010 78.2 Newcrest 78
74.1 2009 Anglogold 68
WWW.RDIF.RU 27
IV RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS
4.1 SILVER MINING
Silver extraction in Russia and globally 2009-2013, tonnes*
23,100 23,300 25,500 26,000 21,800 1,400 1,150 1,350 1,500 1,700
2009 2010 2011 2012 2013
6.42 6.42 5.79 5.8 6.4
in Russia globally Russia’s share of global extraction volumes, %
* Source: USGS data * Source: USGS data
30 WWW.INVESTINRUSSIA.COM 4.2 SILVER PRODUCTION
Silver production in Russia 2009-2013, tonnes, including secondary metal
112.2
100.0 97.9 99.1 92.3
1,590 1,557 1,543 1,425 1,660
2009 2010 2011 2012 2013
production in Russia, % change from previous period
* Source: USGS data * Source: USGS data
WWW.RDIF.RU 31 RUSSIAN SILVER INDUSTRY: CURRENT ISSUES AND TRENDS
4.3 DOMESTIC CONSUMPTION OF SILVER IN RUSSIA
Jewelry industry: silver consumption 2009-2013, tonnes
103.0
100.0 99.1 114.8 71.4
159.9 158.5 113.2 130.0 134.0
2009 2010 2011 2012 2013
silver consumption, % change from previous period
32 WWW.INVESTINRUSSIA.COM 4.4 RUSSIA EXPORTS ABOUT 2/3 OF MINED SILVER
Russian silver exports 2013, tonnes, by major importing countries
Switzerland Belarus UK USA Kazakhstan
18.8 252.4 6.3 332.7 52
230.3 160.2
UAE India
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V RUSSIAN SILVER INDUSTRY: GEOGRAPHY AND CORPORATE STRUCTURE GEOGRAPHY AND CORPORATE STRUCTURE
5.1 MAIN SILVER DEPOSITS RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE
Khabarovsk Region
Sverdlovsk Region Yamal-Nenets AO Magadan Region
Murmansk Region Krasnoyarsk Krai 1 Chukonka AO Karelia Republic Irkutsk Region 7 Republic Republic of Sakha of Dagestan 8 (Yakutia) 3 Republic of 4 2 North Ossetia — Alania 5
Karachay- Cherkess Republic
3 Sakhalin Region 9
9 Orenburg Region Amur Region Republic 10 Tyva Republic of Bashkortostan 6 Khakassia Republic Zabaykalsk Krai Chelyabinsk Region 10 Kemerovo Region Primorsk Krai Kabardino-Balkaria Republic Altai Krai Altai Republic Republic of Buryatia
Reserves, thousand tonnes: <5 5-15 15-20
36 WWW.INVESTINRUSSIA.COM MAIN SILVER DEPOSITS 5.2 RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE
Magadan Region
1 Serebro Magadana CJSC 6 Baykalskaya Gornaya Company LLC
Dukatskoe (Magadan Region) Udokanskoe (Zabaykalskty Krai) Lunnoye (Magadan Region) Goltsovoe (Magadan Region) 7 MMC Norilsk Nickel OJSC 2 Okhotskaya GGK LLC Oktyabrskoe (Krasnoyarsk Krai) Talnakhskoe (Krasnoyarsk Krai) Khakandzhinskoe (Khabarovsk Krai)
8 Gorevsky GOK OJSC 3 Chukotskaya GGK CJSC Gorevsky (Krasnoyarsk Krai) Kupol (Chukotka OA)
9 Gaisky GOK OJSC 4 Prognoz-Serebro LLC
Gaisky (Orenburg Region) Prognoz (Republic of Sakha (Yakutia))
5 Yuzhno-Verkhoyanskaya OJSC 10 Uchalinsky GOK OJSC Gornodobyvayushchaya Company Uzelginsky (Chelyabinsk Region) Nezhdaninskoe (Republic of Sakha (Yakutia) Novo-Uchalinsky (Republic of Bashkortostan)
WWW.RDIF.RU 37 GEOGRAPHY AND CORPORATE STRUCTURE
RUSSIAN SILVER INDUSTRY: CORPORATE STRUCTURE
MMC Norilsk Nickel OJSC Kinross gold Corp.
Mining companies Mining companies
Polar Division Kolskaya MMC OJSC Chukotkaya GGK CJSC
Refineries Russian Mining Company OJSC Kombinat Severonikel OJSC Mining companies
Ural Mining and Metallurgical Company OJSC MMC Dalpolimetall OJSC Mining companies
Gaysky GOK OJSC Safyanovskaya Med LLC Merkury GC Bashkirskaya Med LLC Siberi-Polymetal OJSC Urupsky GOK CJSC Svyatogor OJSC Mining companies Uralelectromed OJSC Gorevsky GOK OJSC Refineries
Uralelectromed OJSC
38 WWW.INVESTINRUSSIA.COM Russian Copper Company CJSC
Refineries
Kyshtym Copper Electrolyte Plant Rytvina Supermetall NP Complex OJSC Krastsvetmet OJSC Ural Innovative Technologies CJSC Novosibirsk Refinery OJSC Sibproekt LLC Kopymsky Refinery OJSC FG UP Prioksky Nonferrous Metals Plant Ekaterinburg plant OCM OJSC Shchelkovsky Secondary Precious Metals Plant OJSC
Polymetal OJSC
Mining companies
Serebro Magadana CJSC Uralskoe GRP LLC Okhotskaya GGK LLC Resursy Albazino LLC Omolonskaya ZRK LLC Zoloto Severnogo Urala CJSC
WWW.RDIF.RU 39 GEOGRAPHY AND CORPORATE STRUCTURE
5.3 POLYMETAL INTERNATIONAL: MARKET CAPITALIZATION
Polymetal International capitalization Polymetal international capitalization Nov 2013- Nov 2014, % USD bln
+17%
Henan Yuguang Gold 3.99 Nov. 14 & Lead Co. 3.7 +48% Mar. 14 3,5 June 14 Polymetal Int. 3.4 +17% Nov. 13
Allgemeine Gold und POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL Silberscheideanstalt AG + 2.9%
Stillwater +22%
Sources: Bloomberg, Reuters, Company data
40 WWW.INVESTINRUSSIA.COM MAJOR INDUSTRY PLAYERS
Country Company Sales, Market USD mln capitalization, USD mln
10 China Shandong Humon Smetting Co Ltd. 1,955.63 1,277.61
11 South Africa Sibanye Gold Ltd. 1,842.93 1,749.23
12 Russia Polymetal International Plc 2,171.70 3,987.73
13 Canada Yamana Gold Inc. 1,784.49 3,692.90
14 Canada Agnico Eagle Mines Ltd. 1,589.34 5,472.26
15 South Africa Harmony Gold Mining Co. Ltd. 1,474.11 756.86
16 Hong Kong Lingbao Gold Co. Ltd. 1,292.34 128.14
17 Netherlands Nord Gold NV 1,271. 25 491.56
18 UK Petropavlovsk Plc 1,270.87 56.97
19 UK Randgold Resources Ltd. 1,205.09 6,547.49
Sources: Bloomberg, Reuters, Company data
WWW.RDIF.RU 41 GEOGRAPHY AND CORPORATE STRUCTURE
POLYMETAL INTERNATIONAL: ONE OF THE LEADING COMPANIES IN RUSSIA AND GLOBALLY IN GOLD AND SILVER MINING
Leading gold mining companies globally 2013, mln ounces
7.3 5.2 4.2 2.7 2.6 1.28
1. Barrick 2. Newmont 3. AngloGold 4. Goldcorp 5. Kinross 10. Polymetal International plcs
Leading silver mining companies globally 2013, mln ounces POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL
40.9 38.9 36.9 30.5 27.2 25.1
1. KGHM Polska 2. BHP 3. Fresnillo 4. Goldcord 5. Polymetal 6. Pan American Miedz S.A. Billiton plc plc Inc. International Silver Corp. plcs
42 WWW.INVESTINRUSSIA.COM POLYMETAL INTERNATIONAL: KEY FINANCIAL INDICATORS 2010-2013
Revenue USD mln
925 1,326 1,854 1,707
2010 2011 2012 2013
EBITDA USD mln
425 624 932 598
2010 2011 2012 2013
WWW.RDIF.RU 43 GEOGRAPHY AND CORPORATE STRUCTURE
POLYMETAL INTERNATIONAL: KEY PERFORMANCE INDICATORS AND RESERVES 2010-2013
Mining thousand tonnes
7 ,474 11, 002 12, 591 10 ,379
2010 2011 2012 2013
POLYMETAL INTERNATIONAL INTERNATIONAL POLYMETAL Ore processing thousand tonnes
7 ,845 8, 821 9, 808 10 ,749
2010 2011 2012 2013
44 WWW.INVESTINRUSSIA.COM NOTES
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