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Slide 2: Disclaimer
The information contained herein has been prepared using information available to PJSC Polyus at the time of preparation of the presentation. External or other factors may have impacted on the business of Polyus and the content of this presentation, since its preparation. In addition all relevant in
Slide 3: ICMM membership and safety record
International organization dedicated to a safe, fair Randgold 0.03 and sustainable mining industry Polyus 0.11 Uralkali 0.11 27 mining companies and 36 regional and Polymetal 0.15 commodities associations Severstal 0.19 Polyus is the first ICMM member from Eastern Glencore 0.20 Centamin 0.26 E
Slide 4: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview Rock moved1 2013: 125,019kt MAGADAN CLUSTER 2017: 224,423kt KRASNOYARSK 6 YAKUTIA +80% CLUSTER 2 1 CLUSTER 7 8 5 4 3 IRKUTSK CLUSTER Ore processed Natalka 2013: 22,480kt Kuranakh 0.2% 8% 2017: 28,663kt Alluvials 7% 5 6 Olimpiada 4 54% +27% Vernins
Slide 5: SPO completed in June 2017; free-float and shareholders
SPO completed in June 2017 Free-float at above 16% Treasury shares Listing on MOEX (local shares) and LSE (0.91%) (depositary receipts) Constituent of MSCI Russia & FTSE All-World Said Free float index Kerimov (16.34%) (82.44%) Active participant on debt capital markets Top management (via
Slide 6: Reserves, resources and cost leadership
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (the 2nd largest globally) 190 moz gold MI&I Resources (the 2nd largest globally) 100% open pit operations 7-8th largest gold producer globally (2.16 moz in 2017) Moving from ca. 2.16 moz in 2017 to 2.8 moz in 20
Slide 7: Resources and production versus global peers
Barrick 2,312 Nevada 58 South Deep Newmont Nevada 1,760 Operations 52 Grasberg Polyus Krasnoyarsk 1,634 cluster PROJECTS UPDATE 39 KSM Olimpiada 1,177 Donlin 34 Pueblo Viejo Gold 1,083 Source: Metals Focus, companies’ data 28 Carlin Olimpiada 972 Lihir 940 25 Lihir Natalka: Production Profile Overvi
Slide 8: Production guidance and track record
PROJECTS UPDATE Natalka: Production Profile Overview Actual production Guidance Platform for the next 2,800 2,800 development stage of 2,425 the Company 2,375 2,160 First gold at Sukhoi Log expected around 1,652 2026 2013 … 2017 2018 2019 2020 … LT Initial guidance revised 6% Guidance Guidance G
Slide 9: Cost position: AISC and TCC versus peers
$/oz 2017 average gold price = $1,257/oz 1,250 1,000 Polyus AISC @ $621/oz 750 500 Polyus TCC @ $364/oz 250 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% below below below 100% 450 450 425 $683/oz 90% 364 87% 80% 70% $725/oz 60% 63% $363/oz 50% 46% 40% 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H
Slide 10: Dividend policy and yield
FY 2017 and FY 2018 dividend: 30% of EBITDA but not less than $550 million 400 10. 00% Post FY 2018: 30% of EBITDA $340 mln $311 mln 9.0 0% 350 8.0 0% $253 mln 300 Threshold for the dividend policy: $239 mln 7.0 0% Record date: 250 6.0 0% Net Debt/EBITDA < 2.5x 200 3.7% 3.8% 5.0 0% 18-Oct-2018
Slide 11: Project pipeline evolution
PROJECT PIPELINE EVOLUTION KRASNOVYARSK BUSINESS UNIT YAKUTIA BUSINESS UNIT IRKUTSK BUSINESS UNIT POLYUS 2015 2018! OLIMPIADA MILL-1 (>; ANTIMONY P RECONFIGURATION PROJECT (z I BIO-4 AT OLIMPIADA COMPLEX I 2016 | 2017 OLIMPIADA MILLS y << EXPANSION BLAGODATNOVE MILL (2 BLAGODATNOVE MILL & > EXPANSIO
Slide 12: IRR and cumulative capex
100 80 IRR, % 60 40 20 0 0 50 100 150 1 on gold equivalent basis Cumulative CAPEX, $ mln 12
Slide 13: IRR and cumulative capex
100 80 IRR, % 60 40 20 0 0 50 100 150 Cumulative CAPEX, $ mln 13
Slide 14: Natalka: Site View
NATALKA: SITE VIEW PROCESSING MILL POLYUS
Slide 15: Natalka ramp-up and capacity
PROJECTS UPDATE Natalka: Production Profile Overview Natalka is currently operating at above 90% of its design capacity of 10 mt on an annualised basis The construction works at the 62.9% 65.5% Natalka Mill’s auxiliary and 37.9% infrastructure facilities are in progress 4Q'17 1Q'18 2Q'18 1,893 1
Slide 16: Sukhoi Log: large undeveloped gold deposit
One of the largest undeveloped gold deposits globally with 58 moz of gold Chertovo Koryto, Vysochayshy, 100 km 30 km JORC resources @ 2.0 g/t Zapadnoye Sukhoi Log Close proximity to other Polyus assets creates opportunities for: Optimisation of processing facilities and potential economies of
Slide 17: Sukhoi Log versus global gold deposits
South Deep 66 Sukhoi Log 58 106 98 45 Lihir 52 58 41 35 33 28 25 20 Mponeng 50 Pebble KSM Sukhoi Donlin Reko Diq Snowfield Cerro La Colosa Caspiche Frieda Log Casale River Muruntau 48 Olimpiada 44 2.2 Klerksdorp 40 2.0 ERPM 39 0.8 Snowfield 35 0.4 0.5 0.5 0.5 0.3 0.2 0.2 Cadia East 35 Pebble KSM Suk
Slide 18: Sukhoi Log drilling stages
3. Deep levels and flanks step-out Этап бурения и назначение скважин 2. In-fill Drilling for open pit ore drilling resource/reserve estimation: 1st stage 2nd stage Участок создания разведочной сети для подсчета запасов по категории В 1. Verification drilling Участок создания разведочной сети для
Slide 19: Scoping study estimates and throughput
Run-of-mine Crushing Milling (2 lines x 15 mtpa) Gold SAG mill Ball mill Extraction Gravity Flotation Cyanidation Carbon-in-leach Smelting Electrowinning pebble crusher (SABC) The estimates are at the scoping study level of accuracy Throughput capacity: 30 mtpa TCC ($/oz): 420-470 Project Co
Slide 20: Pre-feasibility study timeline
Mineral resource Mineral reserve estimate estimate 1 Engineering completed Investment Decision September 2018 Mill launch 1 Key pre-feasibility study sections are: 1. Detailed open pit design and mining schedules 2. Detailed design of processing plant 3. Review of infrastructure 4. Detailed es
Slide 21: Guidance and track record YTD 2018
GUIDANCE & TRACK RECORD YTD 2018 2017 2018F 2019F 2020F GOLD PRODUCTION, MOZ 2.16 2.375-2.425 2.8 2.8 BELOW 425 BELOW 450 BELOW 450 TCC, $/OZ 364 CAPEX, SMLN 804 i 850 650 550 2017 ... 2020 | { 1H 2018 PERFORMANCE IN LINE WITH GUIDANCE || | PRODUCTION GROWING 30% | H17_ | HIB | v-o-v,% | toe VO Biss