Slide 1: Operating results for FY 2013 and Natalka update
Polyus Gold International Operating results for FY 2013 and Natalka update 30 January 2014 1
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared using information available to Polyus Gold International Limited (“PGIL”) at the time of preparation of the presentation. External or other factors may have impacted on the business of PGIL and the content of this presentation, since its
Slide 3: 1. Operating results
1. Operating results r-¥ POLYUS GOLD INTERNATIONAL
Slide 4: Continuing production growth
Continuing production growth 35% production growth 2013/2008 Refined gold production in 2008-2013, koz +5% 2,000 +14% +8% +81 koz +191 koz +103 koz +4% 1,650 1,569 1,600 +1% +44 koz +9 koz 1,378 1,231 1,275 1,222 1,200 800 400 0 2008 2009 2010 2011 2012 2013 In 2013, the Company produced 1,650 tho
Slide 5: Highlights of 4Q 2013 and FY 2013
Highlights of 4Q 2013 and FY 2013 Key operating statistics FY2012 FY2013 Change, % 4Q2012 4Q2013 Change, % Total rock moved, mln m3 66.7 66.4 -1% 17.3 16.9 -2% Average stripping ratio, m³/tonne 2.4 1.8 -25% 3.0 1.8 -40% Ore mined, mt 23.5 30.0 28% 5.0 7.7 53% Ore processed, mt 21.8 22.4 3% 5.8 5.7 0
Slide 6: Strong operational performance: Ore mining
Strong operational performance Ore mining – increased volumes and stable grades at most mines Ore mining, mt +28% 30.0 23.5 +44% +6% +4% +89% +4% 2012 11.6 8.1 6.5 6.8 2.6 4.9 4.0 4.1 2013 2.4 2.5 Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Group total Stripping ratio, m3/t -4% -33% 3.9 3
Slide 7: Strong operational performance: Ore processing
Strong operational performance Ore processing – higher volumes and stable gold grades Ore processing, mt +3% 22.4 21.8 -3% +4% 8.1 +12% +23% +2% 7.8 6.8 2012 6.5 3.8 2.4 3.7 2013 2.1 1.6 1.3 Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Group total Average gold grade in ore processed, g/t +
Slide 8: Strong operational performance: 2013 results
Strong operational performance 2013 results – increasing gold output on improving recoveries Recovery rate, % +1.1 pp +0.8 pp1 +1.9 pp +2.8 pp -2.6 pp +6.6 pp 86.4 88.3 85.0 86.6 84.0 81.1 73.7 74.5 82.2 80.0 70.8 64.2 2012 2013 Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Group average2 +
Slide 9: 2. Natalka update
2. Natalka update r-¥ POLYUS GOLD INTERNATIONAL
Slide 10: Natalka current status and reasons to re-sequence
Natalka update Natalka current status and reasons to re-sequence Stage 1 Capacity: 10 mtpa 2011 – Gold production: 0.5 moz p.a. 2015 Grade: 2.1 g/t CapEx: $1.7-1.9 bln in 2011 – 2015 Stage 2 Capacity: 20 mtpa 2016 – Gold production : 1.0 moz p.a. 2017 Grade: 2.1 g/t Stage 3 Capacity:
Slide 11: Natalka geology
Natalka update Natalka geology JORC audit conducted by Micon International in February 2012 ■ Proven and probable reserves: o 613.8 mln t of ore; o Average grade: 1.6 g/t; o Contained gold 31.6 mln oz. ■ Measured and Indicated resources: o 773.3 mln t of ore; o Average grade: 1.7 g/t; o Contained go
Slide 12: Natalka operational review
Natalka update Operational review ■ During 2013 total rock moved at Natalka amounted to 5.317 mln m3; ■ Striping ratio for the year totalled 0.9 m³/tonne with stripping in the amount of 3.783 mln m3; ■ Ore mined for the period totalled 4.1 mln t, including: o Ore with grade 2.0 g/t – 947 kt; o Ore w
Slide 13: Building 1, Processing Plant
Natalka update Building 1, Processing Plant Current progress: ■ Most of processing equipment including mills was delivered to site. Haulage trucks, loaders, gravity concentrators, flotation, CIL, desorption, carbon regeneration equipment were also delivered; ■ SAG mill: installation of steel frame i
Slide 14: Tailings and water facilities
Natalka update Tailings and water facilities Current progress: ■ At the tailings thickening circuit, reinforced concrete frames have been built up to the lower mark of thickener’s bowl. Support columns and walls of the thickener were embedded in concrete; ■ Pump foundations are 100% complete at the
Slide 15: Energy infrastructure
Natalka update Energy infrastructure Current progress: ■ Installation of power line poles for a double 110 kV high- voltage power line and construction of main step-down substation 1 have been initiated to provide power for the processing plant. Installation of piles for the boiler room is complete;
Slide 16: Shift camp
Natalka update Shift camp Current progress: ■ Camp for builders (6 buildings for 1,404 persons, one building for engineers) and accommodation facilities at “Omchak” (6 units for 999 persons) have been commissioned and populated; ■ At building 1, steel frame was erected; wall panels were installed al
Slide 17: Construction, mining and processing equipment
Natalka update Construction, mining and processing equipment As of 31/12/13, the following construction equipment Open pit mining – August 2013 was on site: Trucks 131 Bulldozers 90 Various cranes 51 Excavators 39 Loaders 36 Drilling rigs 5 By 31/12/13 the following mining equipment was on site: Tru
Slide 18: Optical sorting (Photometric Separation)
Natalka update Optical sorting (Photometric Separation) ■ PGIL has already conducted 2 stages of pilot tests of new photometric separation technology as a way to pre-concentrate the ore. Pilot tests have confirmed positive results of this technology and its viability due to the fact that high contra
Slide 19: Conclusions
Natalka update Conclusions Key reasons for Natalka re-sequencing: Material gold price decline resulting in the need to minimize financial risks and achieve funding stability/keep acceptable leverage; Aggressive original construction schedule including active work in the winter period potentially