Polus · RUS:PLZL
Polus — Polyus Gold — Deutsche Bank BRICS Metals & Mining Conference 2006
20 slides from Polus's conference presentation, Nov 13, 2006
Slide 1: Polyus Gold: The Leading Russian Gold Miner
POLYUS GOLD THE LEADING RUSSIAN GOLD MINER Deutsche Bank BRICS Metals & Mining Conference London, 13-14 November, 2006
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been prepared using information available to Polyus Group at the time of preparation of the presentation. External or other factors may have impact on the business of Polyus Group and the content of this presentation, since its preparation. In addition
Slide 3: Polyus Gold: Map of Operations
POLYUS GOLD: MAP OF OPERATIONS Operating mines 3 producing mines Alluvial operations 1 alluvial operation Greenfield/Brownfield Projects 18 greenfield/brownfield projects Natalka Natalka Vostochnaya Vostochnaya Degdekan Degdekan Omchack Omchack Tchay-Yurja Tchay-Yurja Blagodatnoye, 5 Blagodatn
Slide 4: Polyus Gold: Leaders in Russia
POLYUS GOLD: LEADERS IN RUSSIA Annual Gold Production, k oz (2005) JORC Reserves, k oz (2006) Polyus 1076 25124 Polyus 249,3 8392 Peter Hambro Bema Gold 243 7970 Polymetal Highland Gold 160 3199 Highland Gold Polymetal 134,54 1980 * High River Gold Peter Hambro 90,1 * 1885 Bema Gold High River Gold
Slide 5: Polyus Gold: H1 2006 Production Update
POLYUS GOLD: H1 2006 PRODUCTION UPDATE 502 k oz Alluvials 413 k oz Zapadnoe Kuranakh Olimpiada 1H 2005 1H 2006 Y-on-Y 22% increase due to organic growth and Kuranakh mine (Aldanzoloto) consolidation 5
Slide 6: Remarkable Growth of Reserves
REMARKABLE GROWTH OF RESERVES Successful exploration at Natalka resulted in doubling the Group’s P&P in 2006 October 2006*** & P JORC of P RESERVES se nc rea x 4i 50.8 January 2006** mln. oz JORC RESERVES January 2005* 25.1 Exploration JORC mln. oz at Natalka RESERVES Discovery 23.1 13.3 of Blagodat
Slide 7: Costs: Peer Comparison for 2005
COSTS PEER COMPARISON FOR 2005 Harmony Gold Gold Fields Barrick Gold Favorable position AngloGold Ashanti vs. global peers Kinross Gold (Top10 largest gold producers by market cap) Newmont Mining Polyus PolyusGold Gold US$ 236 Glamis Gold Newcrest Mining Goldcorp -0 50 100 150 200 250 300 350 400 45
Slide 8: Strategy 2006-2015: Key Elements
STRATEGY 2006-2015: KEY ELEMENTS 8
Slide 9: Strategy 2015: Exploration and Production Targets
STRATEGY 2015: EXPLORATION AND PRODUCTION TARGETS Key target for 2015: Become a TOP-5 global gold producer Proven and Probable (JORC) t io n 3933 reserves of at least 68 m oz ro d uc n p 3475 s ei ea Annual production volume of at x in cr 2847 3.3 2485 least 3.9 m oz 2165 1940 Production capex
Slide 10: Strategy 2015: Production Plans
STRATEGY 2015: PRODUCTION PLANS 4500 k oz total 3.9 million oz 4000 Kyutchus To be added if positive exploration Nezhdaninskoye findings are provided Quarts Mountain 3500 Bamskoe Natalka 3000 Kuranakh 2500 Alluvials Chertovo Koryto 2000 Verninskoe 1500 Zapadnoe Blagodatnoe 1000 Olimpiada 500 L
Slide 11: Strategy 2015: Financial Targets
STRATEGY 2015: FINANCIAL TARGETS Key target for 2015: Become a TOP-5 global gold producer EBITDA of US$710 - US$900 million Net cash flow of US$600 - US$710 million Net debt not over US$100 million Note: effective at a gold price of 550-600 US$/oz 11
Slide 12: New Corporate Initiatives for 2006
NEW CORPORATE INITIATIVES FOR 2006 12
Slide 13: Shares Buy-Back: Underway
SHARES BUY-BACK: UNDERWAY Equal treatment for ADR and local shares holders provided. Tender offer compliant with SEC and FSA rules. Fairness opinion issued by Deutsche Bank. Offer commenced on October 4th, expired on November 3rd. Holders of 147 428 703 shares applied (representing approx 77
Slide 14: London Stock Exchange Listing
LONDON STOCK EXCHANGE LISTING Intention to list on LSE Why London? Listing only: no funds to be raised Delivery of a promise made at the spin-off 9 One of the world’s leading stage – listing of ADRs on a major exchanges international stock exchange 9 Most international stock exchange Independe
Slide 15: Projects Execution Update
PROJECTS EXECUTION UPDATE 15
Slide 16: Delivery on Promises: Olimpiada Expansion
DELIVERY ON PROMISES: OLIMPIADA EXPANSION Rationale for expansion: depletion of oxide ores vs. increasing volumes of sulfides Construction is well on track for launch summer 2007 Unique in-house bio-oxidation technology is applied the largest bio-ox operations in the Northern hemisphere re
Slide 17: Delivery on Promises: Natalka Exploration
DELIVERY ON PROMISES: NATALKA EXPLORATION Target set up back in 2004: ≥ 1000 tonnes (≥ 32 million oz) of Geology and cross section of the deposit gold in P&P to explore >US$65 million invested to date (the world’s largest single site exploration budget) Total cost of P&P reserves explored – US
Slide 18: Blagodatnoye: Development Schedule
BLAGODATNOYE: DEVELOPMENT SCHEDULE 2006 2007 2008 2009 2010 Feasibility preparation Supply of mining equipment Developing infrastructure Pit preparation and mill construction Launch Located in Severo-Yeniseisk district of Krasnoyarsk region of Russia, 26 km to the north of Olimpiada deposit Bala
Slide 19: Verninskoye: Development Schedule
VERNINSKOYE: DEVELOPMENT SCHEDULE 2006 2007 2008 2009 Feasibility preparation Supply of mining equipment Infrastructure development Pit development and mill Launch construction Located in Bodaibo area of Irkutsk region of Russia, in a 52 km proximity to Sukhoi Log deposit Reserves (JORC) – 1100
Slide 20: Summary
SUMMARY Leading Russian gold producer in high growth potential market Proven industry leadership Significant mineral resources – six out ten largest Russian gold deposits Extensive greenfield/exploration portfolio – new potential discoveries Ambitious strategy to become Top 5 global gold produ
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