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transcript
August 2020
INVESTOR
PRESENTATION
01INTRODUCTION
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
POLYMETAL TODAY
3
Competence center
Development
Operations
9 OPERATIONS ACROSS 2 COUNTRIES
2nd LARGEST GOLD PRODUCER IN RUSSIA
FTSE 100 & MSCI CONSTITUENT
Top-10 WORLD GOLD PRODUCER
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
STRATEGY
4
SCOPE OF ACTIVITY
Regular dividend is
shareholder’s right,
comes before growth
spending
Target Net Debt/EBITDA
of below or equal to 1.5x
Maintain high standards
of ESG through impact
assessment
CAPITAL ALLOCATION PRINCIPLES
Significant sustainable dividend
Meaningful growth
Reduction of environmental
footprint
Social license to operate
Robust balance sheet
DESIRED OUTCOMES
Russia and FSU
Focus on gold, silver
and possibly other
base metals
ESG best practice
Medium-sized high-
grade deposits
Leadership in
refractory ore
processing
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
5.6
3.7
2.9 2.82.4
2.21.9 1.8
1.5 1.5 1.4 1.4 1.3 1.2 1.2 1.1 0.90.7
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FOCUS ON GRADE
5
AVERAGE RESERVE GRADE (2P RESERVES), g/t of GE
Source: Companies’ data for FY2019.
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 6
GROWING ASSET BASE
Ore Reserves as at 01.01.2020
25.2 Moz
+1.2 Moz / +5% y-o-y
2019 RESERVE PER SHARE, y-o-y change
Source: Companies’ data
29%
7% 5% 3% 0%
Ne
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POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
SIGNIFICANT SUSTAINABLE DIVIDEND YIELD
7
5.2% 5.1%4.3% 4.1%
3.2%
2.0%1.6% 1.6%
1.3% 1.3% 1.2% 1.2% 1.2% 1.1% 1.0% 0.9% 0.6%0.3% 0% 0%
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AVERAGE 5-YEAR DY, %
5.4%50% OF UNDERLYING NET INCOME
(+ Board discretion to increase the final dividend to a maximum annual payout of 100% of FCF)
PAID OUT SINCE IPO
$2.0bn
Source: Bloomberg data * DPS declared for 1H 2020 ($0.4) + Final 2019 DPS ($0.42) + Special 2019 DPS ($0.2) divided by YTD average share price ($18.8)
YTD DIVIDEND YIELD*
0%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
ESG LEADERSHIP
8
First and only Russian member
RECOGNITION OF OUR EFFORTS TO DATE
ESG rating A
Member of ESG Leaders index
1st among 55 precious metalscompanies
100 percentile
First sustainability-linked loan in CIS
ESG score A- ESG score С+
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
ESG PERFORMANCE
9
GHG Intensity (t of CO2e per Kt of ore processed)
75.1 t/Kt-1% y-o-y
Energy Intensity (GJ per Koz of GE produced)
4.2 TJ/Koz-1% y-o-y
Share of Water Recycled and Reused
87%+5 pps y-o-y
Share of Dry Stacking
10%Amursk and Voro
2019 KEY SUSTAINABILITY METRICS
SAFETY
Fatalities
2 in 2019
0 in 1H 2020
LTIFR
0.19 in 2019+111% y-o-y
0.07 in 1H 2020-70% y-o-y
Our key strategic goals are:
Zero fatalities
Further decrease of GHG emissions and energy consumption
Continued reduction of fresh water use per unit of production
Further implementation of dry stack storage method across the Group (extension to Nezhda, Prognoz, POX-2 sites and Omolon)
RECENT TRANSPARENCY PROGRESS
Scope 3 downstream and upstream emissions disclosure
Disclosure in line with SASB and TCFD in 2019 Sustainability Report
Permafrost FAQs disclosure
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
COVID-19 UPDATE
10
No interruptions in production, supply chain or sales due to COVID-19 yet
No material COVID-19 outbreaks have so far occurred at our operations
There are currently 72 employees across all operations tested positive with the vast majority of confirmed cases occurring during intra-shift breaks or mandatory 14-days observatory period
Strict precautionary procedures are maintained at all production sites
The additional COVID-related costs are estimated at approximately $2.5m per month
Polymetal provides financial support to all regions of operations. In 1H, the Company purchased various critical medical supplies for 25 regional and municipal hospitals, and volunteers for the total amount of RUB 129 million (US$ 1.8 million)
02CORPORATE GOVERNANCE UPDATE
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
BOARD COMPOSITION
12
INDEPENDENT DIRECTORS DEPARTED DIRECTORSCHAIR
IAN COCKERILLChair (N, S)Chair of the Nomination Committee, Non-Executive Director at BHP, Ex-President and CEO of Gold Fields, ex-CEO of AngloCoal
OLLIE OLIVEIRA SINED (N, A, R)Chair of the POLYs Remuneration Committee, Chair of Audit Committee at Antofagasta plc, ex-Executive Director at De Beers
TRACEY KERRINED (S, R)Chair of the Safety & Sustainability Committee, Group Head of Safety and Sustainable Department in Anglo American plc
GIACOMO BAIZINI INED (A, N)Chair of the Audit and Risk Committeeand ex-CFO of EVRAZ Group S.A.
ANDREA ABTINED (A)Ex-Chief Procurement Officer at Siemens AGNED at John Laing Group, Petrofac Ltd. and Gerresheimer AG
VITALY NESISGroup CEO, S
KONSTANTIN YANAKOVICT Group LtdEx-CFO of Polymetal
ITALIA BONINELLIINED (R)Ex-Executive VP for Organizational Development at AngloGold Ashanti.
VICTOR FLORESINED (A, S)Director of Strategic Projects, Orion Resource Partners (USA) Inc
NON-INDEPENDENT DIRECTORS
CHRISTINE COIGNARDINED since 2014
JEAN-PASCAL DUVIEUSARTNED since 2011PPF Group
JOINED
N – Nomination Committee R – Remuneration CommitteeA – Audit and Risk CommitteeS – Safety and Sustainability Committee
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
Management& Directors 0.9%
SHAREHOLDER STRUCTURE
13
SHARES OUTSTANDING 472 MILLION
71%FREE FLOAT
Institutionalinvestorsand individuals 63.4%
PPFPetr Kellner
3.8%
Otkritie3.9%
ICT GroupAlexander Nesis
28.0%
8.9
7.5
3.1 3.0
Polymetal Polyus Fresnillo Centamin
FREE FLOAT, $bn
29
10
1328
4238
18
12
Polymetal Polyus Fresnillo Centamin
LTM ADTV, $m
MOEX
LSE
PPF’s stake is now part of the Free Float as Jean-PascalDuvieusart (PPF) left the Board at the last AGM on April 27, 2020
Previous free float – 65%
03OPERATIONS
UPDATE
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 15
1H 2020 – PRODUCTION Strong performance at Kyzyl compensated for the planned decline at Svetloye and Voro
GE PRODUCTION RECONCILIATION, Koz
694 -21 -3723+53
1H 2019 Kyzyl Other assets Discontinued operations
1H 2020
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 16
1H 2020 – FINANCIAL HIGHLIGHTSRobust growth of all profitability metrics driven by higher prices and production at stable unit costs
1H 2020 1H 2019 Change
Revenue, $m 1,135 941 +21%
Adjusted EBITDA, $m 616 403 +53%
Adjusted EBITDA margin 54% 43% +11%
Total cash cost, $/GE oz 638 667 -4%
All-in sustaining cash cost, $/GE oz 880 904 -3%
Underlying net earnings, $m 373 188 +98%
Underlying EPS, $/share 0.79 0.40 +98%
Dividends proposed for 1H, $/share 0.40 0.20 +100%
Net operating cash flow, $m 300 127 +136%
Capital expenditure, $m 248 189 +31%
Free cash flow (pre M&A), $m 53 -63 NA
Net debt, $m 1,690 1,4791 +14%
Net debt/Adjusted EBITDA, x 1.31 1.38 -5%
Notes:1) As at 31/12/2019
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 17
AISC – POLYMETAL VS GLOBAL PEERS
1H 2020 ALL-IN SUSTAINING CASH COSTS, $/oz YEAR-ON-YEAR CHANGE IN AISC, %
717
790
880
880
899
902
918
964
965
970
988
1,015
1,020
1,031
1,061
1,074
1,093
1,118
1,210
1,370
B2 Gold
Centerra
Polymetal
Newcrest
Centamin
Eldorado
Endeavour
Fresnillo
Hochschild*
Gold Fields*
Kinross
Barrick Gold
Petropavlovsk*
AngloGold
Newmont***
Yamana
Pan American**
Agnico Eagle
IAMGOLD
New Gold
Buenaventura
-18.7
-7.7
-6.0
-5.0
-4.0
-2.7
-1.1
-0.8
2.9
6.8
7.7
10.0
10.0
11.0
11.4
12.0
18.0
18.7
24.9
26.3
75.7
B2 Gold
Eldorado
Fresnillo
Petropavlovsk
Centamin
Polymetal
Gold Fields
Hochschild
AngloGold
Kinross
IAMGOLD
Newmont
Yamana
Endeavour
Pan American
Centerra
Newcrest
Barrick Gold
Agnico Eagle
New Gold
Buenaventura1,815
Source: Companies’ data. * 2019 data used** Au/Ag rate calculated based on the Company’s average realised prices*** Gold segment data
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 18
DPS DYNAMICS BY PEER
Source: Thomson Reuters
167%
121%
100%
88%
79%
60%
50%
43%
26%
13%
-18%
-100%
Gold Fields
Yamana
Polymetal
Barrick
Newmont
AgnicoEagle
Centamin
Pan American
Gold
Newcrest
Fresnillo
Hochschild
Endeavour
Kinross
B2Gold
DECLARED DPS CHANGE (H1 2020 vs H1 2019)
No dividends paid
No dividends paid
No dividends paid
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
BALANCE SHEETNet Debt/EBITDA down to 1.3x
19
Net debt of $1.7bn as of 01 July 2020 with 1.3x Net Debt/EBITDA, below 2019 year-end number of 1.4x and our mid-term target of 1.5x
INTEREST RATE BREAKDOWN2
Fixed73%
Floating27%
-
422
216
264 287
2
127 127 127 127
ACTUAL MATURITY PROFILE1, $m
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Notes: 1) Net of cash2) Excluding short-term (up to 6 months) loans
Low cost of debt at 3.6%, a decrease over 1H 2019 number of 4.5% supported by lower benchmark interest rates and our ability to negotiate competitive margins given the solid financial position of the Company and its excellent credit history
04PROJECTS
UPDATE
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 21
NEZHDACompletion scorecard
PermittingEngineering ContractingEquipment
delivery
Processing plant
main building
Crusher
Site roads and bridges
95% 80%
100%
100% 100%
Power complex 100%
Infrastructure and camp
100% 100% 100%
Construction
65%
90%
95%
25%
95%
100% 100%
100%
100% 95%
100%
Tailings storage facility #1
80% 70% 50% 50%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 22
NEZHDAPhoto update: concentrator building completed
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 23
NEZHDAPhoto update: SAG and ball mills installed
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 24
NEZHDAPhoto update: pit #2
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 25
NEZHDAKey project milestones
Start of construction
First ore mined
Plant framework construction and winterization
Start of equipment installation
• Commissioning of diesel power plant completed
• Mechanical completion
• Start of commissioning activities
• End of commissioning activities and first production
• Full ramp-up
• Grid power to the production site
Q1 2019
Q3 2019
Q4 2019
Q1 2020
Q4 2020
Q2 2021
Q3 2021
Q4 2021
Q2 2022
Q3 2022
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 26
POX-2Completion scorecard
Basic engineering
Detailed engineering
Contracting Construction
POX area(Hatch scope)
Other processing areas (Polymetal
scope)
Cryogenic oxygen plant
100%
Internal and external
infrastructure
65% 95% 15%
85% 50% 85% 10%
100% 95% 95% 10%
80% 50% 25% 15%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 27
POX-2Photo update: autoclave installed
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 28
POX-2Photo update: site view
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 29
POX-22020 key milestones
H1 2020
H2 2020
Q4 2022
Q3 2023
Q4 2023
Completion of autoclave foundation
Completion of POX building foundation
Construction of new concentrate storage
Autoclave delivery and installation
• Completion of POX-2 building framework
• Mechanical completion
• First production
• Full ramp-up
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 30
VEDUGA Conceptual project highlights
Concentrator capacity 1.5 Mtpa
Ore Reserves 18.7 Mt of ore @ 4.5 g/t containg 2.7 Moz of gold
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 ~ $400m
Processing Conventional flotation + Amursk POX
Tailings Dry cake
* LOM average
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 31
VEDUGA Conceptual project schedule
• Investment decision
• Start of pre-stripping
• Start of construction
• First production. End of construction
• Full ramp-up
Q4 2021
Q1 2022
Q2 2022
Q1 2025
Q2 2025
05OUTLOOK
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 33
PRODUCTION OUTLOOK2020-2025
1,470 1,420 1,440 1,400
30 180 180 180
180
80 120 120
150
1,496 1,500 1,500 1,600
1,700 1,700 1,750
2019 Restated
2020E 2021E 2022E 2023E
GOLD PRODUCTION, GE Koz1
Notes: 1) Gold equivalent (GE) including gold and silver at 120:1 Ag oz/Au oz conversion ratio2) Effect from recoveries increase and 3rd party concentrate processing3) Subject to Board approval in 2021
Veduga3Stay-in-business Nezhda
2024E 2025E
POX-22
1,300
PRODUCTION
UPSIDE:
17%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 34
CAPEX OUTLOOK2020-2025
247
198225 225 235
235 235
133
13083
56 125108
80
25
40
120 160
80
2230
30
30
50
50
436
475
446
375
410
445
365
2019A 2020E 2021E 2022E 2023E 2024E 2025E
CAPEX, $m
Veduga1
Stay-in-business
Nezhda
POX-2 Long-term projects
Notes: 1) Subject to Board approval in 2021
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 35
2020 GUIDANCE
2020 Guidance
1H 2020 Actual
2020Outlook
Production, Koz of GE 1,500 723 On track
TCC, $/oz of GE 650-700 636 On track
AISC, $/oz of GE 850-900 880 On track
Capital expenditure, $m 475 248 On track
Free cash flow (pre M&A) Growth 53 On track
Regular dividend50% of
underlying net income
$189 m
Net Debt/ Adjusted EBITDA
Down1.3x (1.4x as at
2019YE)On track
Assumptions 2020 Budget 1H 2020 Actual Current
Gold, $/oz 1,400 1,661 1,930
Silver, $/oz 17 17 26
RUB/USD rate 63 69 74
Oil 60 42 45
The Company is on track to meet its guidance on all key metrics
Despite 1H 2020 TCC was below the guidance, Polymetal reiterates its full-year guidance range of $650-700/GE oz for TCC and $850-900/GE oz for AISC as depreciation of RUB and Kazakh Tenge is currently counterbalanced by COVID-related costs and increase in mining tax on the back of rising gold and silver prices
Note: the guidance remains contingent on the RUB/USD exchange rate and diesel fuel price
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 36
2020 NEWS FLOW
Corporate
25 September Interim dividend payment
9 November Analyst & Investor day: growth projects
Projects
Q3Tomtor – initial Mineral Resources estimate announcement
Prognoz – initial Ore Reserve estimate announcement
Q4
Kutyn – completion of strategic review
East Bakyrchik – initial Ore Reserve estimate announcement
POX-2 – completion of framework construction
APPENDIX
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 38
FOCUS ON LOM
2826
20
1716 16 16
13 13 1311 11 10
7 76
2
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AVERAGE LIFE OF MINE AS OF 01.01.2020, YEARS
Notes: P+P reserves as of 01.01.2020 divided by 2019 depletion.
+3 years by 2022E
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 39
1H 2020 – PRODUCTION AND COSTS
Mine
Production, GE Koz TCC, $/oz
Comment
1H 2020 1H 2019 Change 1H 2020 1H 2019 Change
Kyzyl 213 159 +33% 386 407 -5%Material positive grade reconciliation anddesign capacity outperformance
Albazino 140 136 +2% 735 754 -2%Grade increase attributable to processing of higher grade ore from Anfisa pit
Dukat 104 108 -4% 9.8 10.0 -2%Moderate decrease in silver grade offset by RUB depreciation
Omolon 88 95 -8% 602 832 -28%Processing of gold-rich ore from Yolochka and Birkachan underground in Q2
Varvara 84 70 +21% 881 708 +24%Treatment of additional volumes of higher cost and gold-rich 3rd party ore
Svetloye 52 61 -15% 410 388 +6%Lower stacking volumes impacted by maintenance shutdown in Q2
Voro 42 56 -25% 440 381 +16% Processing of lower-grade stockpiles
Mayskoye 1 5 -79% Na Nm na
TOTAL (continuing operations)
723 691 +5% 638 667 -4%
TOTAL 723 694 +4%
Strong performance at Kyzyl compensated for the planned decline at Svetloye and Voro and
contributed to the cost dynamics along with RUB/KZT weakness
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 40
TOTAL CASH COSTSDown due to weakness in RUB/KZT supported by change in production structure towards lower cost operations
667
638
-38
-27-19
+18+14
+10 +6+7
1H 2019 FOREX ratechange
Change insales
structure
Changein grade
Domesticinflation
Mining taxchange
COVIDextra costs
Au/Agratio change
Other 1H 2020
TCC RECONCILIATION1, $/oz
Notes: 1) Co-product total cash cost: cost of sales + on-mine part of SG&A – deprecation and amortization. GE (gold equivalent) based on actual realized gold, silver and copper prices
-4%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 41
COST STRUCTURE AND SENSITVITY
RUB/ TengeLabor 19%
DieselFuel 16%
RUB/TengeServices 27%
$ / AuRoyalty 9%
$ / RUB /TengeNon-fuel
consumables 24%
RUB / TengeUtilities 3%
RUB 48%
$ 19%
Diesel 16%
Tenge 17%
2020E CASH COST STRUCTURE, $/oz
67.163.0 62.0
70.4
50
55
60
65
70
75
80
85
Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20
RUB/USD EXCHAGE RATE
1H 2019 average 65.1 2H 2019 average 64.2 1H 2020 average 69.3
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 42
SENSITIVITY ANALYSIS
SENSITIVITY TO RUB/USD AND GOLD PRICE
1 RUB/USD movement in domestic currency
$100/oz movement in gold price
TCC $7-10/oz ~$5/oz
EBITDA $12-17m ~$150m
FCF $13-18m ~$120m
DPS (regular) ~$0.03 ~$0.13
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 43
TAX REGULATION UPDATERussian and Kazakhstan taxation overview
Key taxes imposed Russia Kazakhstan
Income tax
General rate - 20% (since 2008).
Different preferential tax regimes may
decrease the tax rate up to 0%
Paid in 2019 - $85.9m
Effective tax rate 2019 – 14.2%
General rate - 20% (since 2008)
Paid in 2019 - $18.5m
Effective tax rate 2019 – 22.9%
Royalty
(Mineral extraction tax, or MET)
General rate - 6% for Au / 6.5% for Ag
(since 2002). Calculated based on the
realized selling price
Paid in 2019 - $68.0m
General rate - 5% for Au, Ag (since 2011).
Calculated based on the market price of precious
metals contained in the ore extracted
Paid in 2019 - $45.4m
WHT on intragroup dividends
General rate - 15% (since 2002)
Applicable Russia-Cyprus rate - 5%
General rate - 15% (since 2008)
Applicable Kazakhstan-Cyprus rate - 5%
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 44
TAX REGULATION UPDATELatest tax initiatives
Latest tax initiatives Status
RUSSIA
Proposal to increase withholding tax rate on dividends under DTT with Cyprus in the light of COVID-19 economic impact mitigation measures
Current lowest available rate for the Group: 5% WHT
After amendments: 15% WHT
Timing: to be enacted 1 Jan 2021
Details still to be clarified - Cyprus might want to negotiate some exemptions, e.g. to listed
entities
Certain
Potential increase of income tax rate for mining companies rather than oil and gas sector
As an alternative mechanism an introduction of an additional income tax is discussed (already applied for closed list of oil and gas projects) with excess profit withdrawal based on EBITDA margin
Under discussion
KAZAKHSTAN
Potential increase of the income tax rate for companies of mining sector by 7% (to 27%)
Under discussion
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 45
BROWNFIELD PROJECTS
ProjectStart-up
CAPEX,$m
LOMAverage annual
production, Koz
AverageAISC,$/oz
Target
Primorskoye 2022 7 4 30 750-800 Dukat LOM extension
Mayskoyehaulage
2022 30 10+ -AISC down
by $150
Conveyors plus electricfleet to reduce ventilation,
fuel consumption andcarbon footprint
Mayskoyebackfill
2023 40 10+ +30AISC down
by $100Reduce dilution,improve grade
Voroflotation plant
2022 90 9 70 500-550Refractory processing to
complement ore stockpiles treatment
Nevenrekan 2023 7 3 50 700-750 Omolon LOM extension
Elevator 2024 20 4 50 800-850Replace low-grade
Varvara ore
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 46
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 capacity, Ktpa
225 300 500
Capacity utilization100% in 2019
100% in H1 2020NA
40% in 2019;52% in H1 2020
Production, Koz of gold430 in 2019
260 in H1 2020
500
annual average !180 in 2019;
178 in H1 2020
Operational temperature, ˚С 200 240 ! 225
Pressure, bar 22 45 ! 35
Tailings storage Dry stacking Dry stacking ! Downstream TSF
Fresh water consumption, % of total water consumption
23% in 2019 25% target ! 50% target
CAPEX, USD m 272 431 310
COMPARISON OF RUSSIAN POX PROJECTS
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 47
VEDUGA Long section
IntermediatepitWestern pit Central pit
South Easternpit 1
South Easternpit 2
Arrowpit
Indicated MR
Inferred MR
W
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 48
VEDUGA Ore Reserve increase potential
CENTRAL PIT
True width, mGrade, g/t
XXXX
Design Pit Actual Pit
18.17.6
45.610.5
66,36,7
11/13.6
5.57.8
12.38.4
38.66.9
30.66.6
16.76.9
15.77.2
16.66.6
17.85.5
3.54.1
5.24.415.4
5.0
13.86.2
26.94.4
50.97.3
12.78.7
14.36.5
7.87.8
49.75.6
8.38.9
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION
PROGNOZ VIKSHA
Ownership: 100%
Mineral Resources: 256 Moz at 789 g/t Ag eq
Capacity: 1 Mtpa
Mining: ~8 years of open pit followed by ~10 years of underground
Processing: Flotation + Leaching + Merrill-Crowe
Production: ~20 Moz of Ag eq per annum
CAPEX: ~$250m
Next steps: Initial Ore Reserves estimate in 2H 2020; Investment decision in 2H 2021
Ownership: 100%
Mineral Resources: 165 Mt at 1.1 g/t, total content of 5.7 Moz of PdEq (6.1 Moz of 3E)
Mining: Open-pit (300 m pit depth, 8 m average reef width)
Processing: Flotation
Next steps: Initial Ore Reserves estimate in 2H 2021
49
LONG-TERM GROWTH PIPELINEConceptual projects highlights
POLYMETAL INTERNATIONAL PLC INVESTOR PRESENTATION 50
DISCLAIMER
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technological and market change in the industries in which the Company operates, as well as other risks specifically related to the Company and its operations. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Neither the Company, nor any of its agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. to reflect any change in their expectations or any change in events, conditions or circumstances on which such statements are based
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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
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