Polus · RUS:PLZL
Polus — Polyus Gold — MINEX'09 (October 2009)
15 slides from Polus's conference presentation, October 2009
Slide 1: Polyus Gold MINEX'09
Polyus Gold MINEX’09 Moscow, October 2009
Slide 2: Cautionary Statements
Cautionary Statements The information contained herein has been prepared using information available to Polyus Gold Group at the time of preparation of the presentation. External or other factors may have impacted on the business of the Polyus Gold Group and the content of this presentation, since i
Slide 3: Overview: key operations and facts
Overview: key operations and facts Polyus Gold key facts and operations 2008 1H2009 Gold sales, $M 1,062 442 Gold production, M OZ 1.2 0.4 TCC, $/OZ 392 361 EBITDA, $M 436 218 EBITDA margin, % 41 48 JORC 2P, M OZ 74.1 74.1 Hedge free, Debt free Natalka Nezdaninskoye Blagodatnoe Titimuk
Slide 4: Recent developments: KazakhGold acquisition
Recent developments: KazakhGold aquisition Partial offer completed 50.1% acquired for $256M($191M cash+0.9%PLZL shares) Complex and novel transaction; Offer value decreased three times since the start of negotiations. Deal favorable conditions $13 per oz of reserves; Attractive pricing. KZ
Slide 5: Recent developments: 1H09 results
Recent developments: 1H09 results Gold production, k oz Total: 470 559 477 600 11 31 500 68 17 16 37 11 34 Titimukhta In the first half of 2009 69 74 400 Zapadnoye mine the Polyus Group Alluvials 300 Kuranakh mine produced and sold 449 200 347 341 Olimpiada mine 477 k oz 100 of refined gold. - 1H200
Slide 6: Recent developments: 1H09 results
Recent developments: 1H09 results TCC and cash margin* of world’s Peer comparison – gross margin, % leading producers in 1H2009, USD/oz 1000 565 542 484 456 562 556 479 476 420 421 316 900 56% 55% 54% 800 60% 52% 50% 49% 49% 700 45% 50% 600 40% 35% 33% 500 400 30% 300 599 467 492 20% 200 427 427 442
Slide 7: Projects update: Titimukhta
Projects update: Titimukhta Highlights of the feasibility study: Facts: Mine life 2009 – 2021 9 km from the Olimpiada mine; P&P reserves 2.2 m oz at 3.3 g/t Nov 2007 – the feasibility study approved Mill capacity 2.2 mtpa by the BoD; Recovery 88% July 2008 – JORC reserves audit completed; Aver
Slide 8: Projects update: Blagodatnoye
Projects update: Blagodatnoye Highlights of the feasibility study: 1H2009 CAPEX update: Mine life 2010 – 2031 Mill construction in progress; P&P reserves 9.9 m oz at 2.3 g/t* Site for tailings dam and diversion facilities Mill capacity 6 mtpa prepared; Recovery 88.6% Mining and transport equip
Slide 9: Projects update: Verninskoye
Projects update: Verninskoye Highlights of the feasibility study: 1H2009 CAPEX update: Mine life 2011 – 2024 P&P reserves 1.7 m oz at 3.0 g/t Mining started; (exploration underway) Camp and canteen construction completed; Mill capacity 2.2 mtpa Works on main building and crushing plant in prog
Slide 10: Projects update: Natalka
Projects update: Natalka New development plan In Feb 2009 the amended plan of Natalka development prepared by Polyus team, approved by the BoD in Mar 2009. Mine life 2013 – 2041 P&P reserves 40.8 m oz at 1.13 g/t Rationale for the staged development: Mill capacity 10 mtpa (2013-2017), 20 mtpa Insu
Slide 11: Projects pipeline
Projects pipeline Approximately 140% output increase is expected to come from existing and approved development projects, excluding KazakhGold m oz 3.0 2.9 2.6 FURTHER 2.5 1.0 UPSIDE 1.9 0.7 POTENTIAL: 2.0 1.8 + Nezhdaninskoye, 1.5 0.2 0.2 0.2 + Chertovo Koryto, 1.5 ∑=1.3 0.4 0.4 0.4 0.4 0.2 1.2 0.2
Slide 12: World's champion in long-term 2P growth
World’s champion in long-term 2P growth Top-10 countries, reserve base 31.0 (thousand tonnes)* 2005- 2009 2P additions (m oz) 7.0 +60.8 6.0 6.0 5.5 4.2 4.1 3.4 3.4 2.7 +49.9 SA RU AU ID US CA CN CL MX GH +23.3 Top-10 countries, production (tonnes)* +17.5 288 +12 +11.9 +11.9 232 234 211 183 -3.9 -6.7
Slide 13: Promised growth delivery
Promised growth delivery PROJECT STATUS ● Commissioning of Mill-3 at Olimpiada ;Done ● Commissioning of Titimukhta ;Done ● Expansion to CIS ; Done ● Construction of Blagodatnoye Near completion ● Construction of Verninskoye Underway ● Construction of Natalka FS underway 13
Slide 14: Share performance vs. strong financials
Share performance vs. strong financials Sales, USD M 849 Sales, USD M 1 062 Sales, USD M 442 USD/share EBITDA margin, % 39 EBITDA margin, % 41 EBITDA margin, % 48 80,00 TCC, USD/oz 306 TCC, USD/oz 392 TCC, USD/oz 361 Av.gold price, USD/oz 695 Av.gold price, USD/oz 872 Av.gold price, USD/oz 915 70,00
Slide 15: Conclusions
Conclusions Successful completion of KazakhGold acquisition: Polyus Gold becoming an international mining company with FSU focus; Attractive deal conditions and excellent growth potential; Strong and experienced new management appointed at KZG; Strong operational and financial results; I