Seligdar · RUS:SELG
Seligdar — Investor Day (July 2022)
34 slides from Seligdar's investor day presentation, July 2022
Slide 1: Seligdar Polymetallic Holding Investor Day
‘Action is born as a thought’ Seligdar Polymetallic Holding Investor Day on Moscow Exchange July 2022 1
Slide 2: Seligdar today
Seligdar today IN TOP-10 GOLD MINING COMPANIES LARGEST TIN-IN-CONCENTRATE IN TOP–5 RUSSIAN COMPANIES WITH LARGEST GOLD IN RUSSIA PRODUCER IN RUSSIA RESERVES IN TOP-5 WORLD COMPANIES WITH LARGEST TIN PRODUCTION PRODUCTION RESERVES RESERVES 79 50 t Gold reserves, t Tin reserves, thousand t kg Au Sn 7,
Slide 3: Gold division: key changes over year
Gold division: key changes over year Operating assets Growth projects Samolazovskiy production complex July 2021 – won auction for Kuryinskiy allotment in the Altai region. Preliminary thermal ore treatment facility is into pilot operation. October 2021 – won auction for Kyuchus gold ore depos
Slide 4: Tin division: key changes over year
Tin division: key changes over year Operating assets Growth projects Pravourmiyskiy production complex Pyrkakay Stockworks deposit Ore X-ray transmission sorting facility is put into pilot In 2021, exploration started, first assays for technological tests operations. were taken. Construction of
Slide 5: Corporate events
Corporate events Shares and dividend Credit ratings 4.5 RUB/share – dividend for 2021 Expert RA December 2021 – conversion of preferred shares into ordinary Confirmed at ‘ruА+’, stable outlook March 2022 – shareholders approved placement of 37,645,270 National Credit Ratings ordinary share
Slide 6: Share capital
Share capital Moscow Exchange Indices Shares outstanding 992 354 730 • Broad Market Index Ticker SELG • Small and Medium Capitalisation Stock Index Exchange Moscow Exchange • Metals and Mining Index Free float 26% Over 37 thousand shareholder accounts Market price as at 30.06.22, RUB 40.8 Conv
Slide 7: Investment performance
Investment performance Best performing stock among Russian gold mining companies in 2021 Regular dividend payments and high yield Total shareholder return (TSR) for 2021 Dividend for 2021 – 4.5 RUB/share, 8.6% yield Dialogue with investors Ordinary shares 31% Investor day, Investment forums an
Slide 8: Operating and financial results
Operating and financial results
Slide 9: Gold division
Gold division Change 2021 2020 y-o-y Ore mined, million tonnes 16.7 11.2 48% Gold produced, kg 7,218 7,018 3% Gold sold, kg 7,047 7,317 -4% Gold sold recorded in IFRS consolidated financial statements*, kg 6,520 6,340 3% Gold produced, tonnes Gold production breakdown by production complex, 2021 7.0
Slide 10: Tin division
Tin division Change 2021 2020 y-o-y Ore mined, thousand tonnes 585 499 17% Tin in concentrate produced, tonnes 2,908 2,539 15% Tungsten in concentrate produced, tonnes 47 72 -35% Copper in concentrate produced, tonnes 366 236 55% Tin in concentrate produced, Tin production breakdown by tonnes produc
Slide 11: Reserve base growth
Reserve base growth 01.01.2021 Balance reserves’ changes 01.01.2022 - 0.8 175 7 - 16 277 277 tonnes of gold 111 tonnes of gold 111 In TOP–5 Russian companies with Reserves as of 01.01.2021 New deposits Exploration Termination of licenses Gold mined Reserves as of 01.01.2022 largest gold reserves 405
Slide 12: Financial results
Financial results Change Change RUB million 2021 2020 2019 y-o-y y-o-y Revenue 35,616 7% 33,314 51% 22,072 Gold sales 27,604 2% 27,022 48% 18,289 Tin, tungsten and copper concentrates sales 5,948 115% 2,763 35% 2,040 Other revenue 2,064 -42% 3,529 102% 1,743 Gross profit 16,927 16% 14,589 59% 9,187
Slide 13: Sales and revenue
Sales and revenue RUB 35.6 billion – Seligdar PJSC’s consolidated Expenses and profitability revenue for 2021, +7% y-o-y Largest expense items – payments for labour and third party mining services Factors of the 2021 revenue growth: EBITDA margin increased by 10.5 p.p. up to 54% in Gold sales
Slide 14: Debt and leverage
Debt and leverage Credit ratings Debt as at December 31, 2021: Financial debt RUB 39.1 billion Agency Rating Net debt RUB 38.5 billion National Credit Ratings А+ru (stable) Net debt/EBITDA - less than 2.0x Expert RA ruА+ (stable) Key instrument – gold nominated loan. Amount as at 31.12.202
Slide 15: Implementation of Sustainable development strategy
Implementation of Sustainable development strategy A new chapter of strategic planning 15
Slide 16: Strategy-2024 Implementation (1/5)
Strategy-2024 Implementation (1/5) Gold division throughout 2018-2021: Run-of-mine, million m3 CAGR = 11% 26.8 Run-of-mine increased by 51%; 26.1 29.1 CAGR = 28% 21.6 compound annual growth rate decreased 17.8 13.9 to 11%. 6.7 8.7 10.0 Ore mining grew by 146%; compound 2013 2014 2015 2016 2017 2
Slide 17: Strategy-2024 Implementation (2/5)
Strategy-2024 Implementation (2/5) Tin division throughout 2018-2021: Ore mined, thousand tonnes CAGR 28% 585 Ore mining increased by 172%; 499 compound annual growth rate 459 320 decreased to 28%. CAGR = 49% 215 104 95 Tin production soared by 188% and 44 74 reached 2.9 thousand tonnes in 2021;
Slide 18: Strategy-2024 Implementation (3/5)
Strategy-2024 Implementation (3/5) AISC stands at level over Strategy targets All-in sustaining cost (AISC), USD/oz (target for 2024 – 700 USD/oz). CAGR = 5% 857 Main contribution to AISC growth is large 900 920 CAGR = -6% 990 expenditures on renewal of property, 667 669 706 731 780 plant and eq
Slide 19: Strategy-2024 Implementation (4/5)
Strategy-2024 Implementation (4/5) Financial results of the Group throughout 2018- Revenue, RUB billion CAGR = 32% 35.6 2021: 33.3 Group revenue increased by 207%, mainly CAGR = 22% 15.9 22.1 driven by sales prices growth and Russian 8.1 11.3 11.6 5.2 5.5 rouble depreciation. Compound annual growt
Slide 20: Strategy-2024 Implementation (5/5)
Strategy-2024 Implementation (5/5) Key operating and financial results of Seligdar Holding Change Change 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013-2017 2017-2021 Run-of-mine, million m³ 6.7 8.7 10 13.9 17.8 166% 21.6 26.1 29.1 26.8 51% Ore mined (gold), million tonnes 3.1 2.7 3.2 5.5 6.8 119
Slide 21: Stages of Seligdar Holding business growth
Stages of Seligdar Holding business growth 2013-2017 2018-2021 2022-2030 Middle-size gold producer TOP-10 gold producer TOP-10 gold producer (1.5% of gold production in Russia including (2.5% of gold production in Russia including (10% of gold production in Russia production of tin in gold equivalen
Slide 22: Revision of Strategy Objectives up to 2030
Revision of Strategy Objectives up to 2030 Shareholder value creation Sustainable business growth Improved financial and operating efficiency Lower leverage Key Parameters Reserves Production Maintaining the reserve base for at least 15 years of Gold production at 20 tonnes per year oper
Slide 23: Kyuchus deposit
Kyuchus deposit Second largest gold deposit in the Republic of Sakha (Yakutia) Ust-Yanskiy and Verkhoyanskiy district of the Republic Location of Sakha (Yakutia) Reserves 175 tonnes of gold Not less than 10 tonnes of gold per year after full Expected production ramp-up in 2029 October, 2021 - White
Slide 24: Pyrkakay stockworks deposit
Pyrkakay stockworks deposit One of the largest tin deposits in Russia Location Chaunskiy district of Chukotka Autonomous Okrug 243 thousand tonnes of tin and 16 thousand tonnes of Reserves tungsten trioxide Expected production 6 million tonnes of ore after full ramp-up August 2020 - Rusolovo PJSC (S
Slide 25: Khvoynoye Investment Project
Khvoynoye Investment Project Strategic Investment Project of Gold Division Construction of a gold processing plant for 3 million tonnes Project of ore per year Khvoynoye deposit (Nizhne-Yakokitskoye ore field) in Aldan Location district of the Republic of Sakha (Yakutia) Balance reserves of 16.8 ton
Slide 26: Modernisation, innovations and automation
Modernisation, innovations and automation HI TECH solutions Technical re-equipment Geological data management system Microminе 4 new mining complexes Geobank purchased Solution for drilling and blasting design and management 1 new dump truck Blast Maker KOMATSU replaces 3 old Automation of
Slide 27: XRT - a revolutionary innovation in tin processing
XRT - a revolutionary innovation in tin processing X-Ray Transmission (XRT) sorting – a processing Project method for preliminary treatment of tin ore in order to improve ore characteristics XRT sorting is based on the attenuation principle of X-ray emission as the radiation passes through Technolog
Slide 28: Innovative technology of ore thermal treatment
Innovative technology of ore thermal treatment Ore thermal treatment facility at the Samolazovskoye deposit Project The facility is designed to increase efficiency of refractory (sulphide) ores processing Under high temperature the crystal structure of a substance is Technology destroyed, and ore be
Slide 29: Social and environmental responsibility
Social and environmental responsibility Employee support RUB 89 million spent on social benefits programmes in 2021 Residential settlement for employees in Aldan town: 22 cottages have already been constructed, phase II of construction began. Expenditures comprised RUB 143 million. Award in the
Slide 30: Corporate governance
Corporate governance KEY PRINCIPLES OF CORPORATE BOARD OF DIRECTORS CORPORATE GOVERNANCE GOVERNANCE Supervisory bodies Respect and protection of shareholder 10 members External auditor Executive bodies rights and interests 4 independent directors General meeting of Social responsibility CEO,
Slide 31: Appendices
ASELIGDAR Appendices 31
Slide 32: Holding structure
Holding structure Seligdar PJSC (MOEX: SELG) Rusolovo PJSC Artel Starateley Choulkovskoye Dvadtsat tretya (MOEX: ROLO) Seligdar Gold JSC Samolazovskoe Ltd OMC Ltd* Sininda-1 Ltd* LLC kontsessionnaya kompaniya LLC 97,79% 100% 100% 100% 100% 65% 51% Tin Mining Company JSC Vostochnaya Gold asset 98,95%
Slide 33: Assets portfolio
Assets portfolio Operating production complexes Nizhne-Yakokitskiy Samolazovskiy Ryabinovy Lunny Nirungan Nizhne-Yakokitskoye Ore Field Samolazovskoye deposit Ryabinovoye deposit Lunnoe deposit Alluvials Reserves: Au 20.7 t Reserves: Au 8.5 t Reserves: Au 11.4 t Reserves: Au 6.9 t Reserves: Au 4.0 t
Slide 34: Disclaimer
Disclaimer Information contained in this document may include estimates and other forward-looking statements regarding intentions, plans, future events, financial, operational or other activities of Seligdar Public Joint Stock Company (herein referred as Seligdar PJSC, Seligdar, Company or Holding)