Polus · RUS:PLZL
Polus — Polyus Gold — Merrill Lynch Global Metals & Mining Conference 2007
19 slides from Polus's conference presentation, May 2007
Slide 1: Polyus Gold: Growth for Value: Great Discoveries and On-going Delivery
Merrill Lynch Global Metals & Mining Conference, May 2007 POLYUS GOLD GROWTH FOR VALUE: GREAT DISCOVERIES AND ON-GOING DELIVERY
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 impacted on the business of Polyus Group and the content of this presentation, since its preparation. In additi
Slide 3: 2006 Performance Update, New Projects Development
2006 PERFORMANCE UPDATE NEW PROJECTS DEVELOPMENT
Slide 4: Polyus Gold: Overview
POLYUS GOLD: OVERVIEW Russia’s largest gold miner – 23% market share by production output, 25 year track record in the Russian gold mining A public company with a free float of approx. 49%, listed and traded in Russia (RTS & MICEX), UK (LSE Main Board) and the U.S. (OTC). Market cap as of April’07 o
Slide 5: The Largest Exploration Portfolio in Russia
THE LARGEST EXPLORATION PORTFOLIO IN RUSSIA Exploration programme 2007-2010: 22 greenfield/ brownfield projects in 5 leading gold mining regions of Russia Diamond drilling of over 1 200 km Growth of up to 119.1 m oz* of Russian C1+C2 reserves Prospecting Exploration Krasnoyarsk Panimba, Zyryanovskii
Slide 6: 2006 Production Update: Meeting the Targets
2006 PRODUCTION UPDATE: MEETING THE TARGETS Total 2005-2006 output, k oz 1 215 Mine-by-mine output, % 1200 1 038 17 % 172 14% 156 212 27 32 13% 800 15 854 783 3% 400 70% Olimpiada Mine Zapadnoye Mine Kuranakh Mine Alluvials 0 2005 2006 17% year-on-year increase of production coming from Kuranakh min
Slide 7: 2006 Performance: Emerging Top Global Player
2006 PERFOMANCE: EMERGING TOP 10 GLOBAL PLAYER 10th largest gold producer 6th largest reserves 2006 top 10 global gold producers, m oz 2006 top 10 global P&P reserves (JORC), m oz 12,0 160 124 9,0 8,6 120 96 93 5,9 5,6 6,0 80 67 4,4 54 51* 51 42 40 3,0 2,4 40 33 1,7 24 1,6 1,5 1,5 1.2 1,2 - - Buenav
Slide 8: Dividend Policy Approved
DIVIDEND POLICY APPROVED Board of Directors recommends the AGM to approve dividends for 2006 Amountof Amount ofUSD24.1 USD24.1million million 100%of 100% ofOJSC OJSCPolyus PolyusGold Goldprofit profit (RuR615,7 (RuR 615,7million) million)announced announcedto to underRAS, under RAS,excluding excludi
Slide 9: Window of Opportunity: Investment Fund
WINDOW OF OPPORTUNITY: INVESTMENT FUND In 2005 Russia’s State Investment Fund Investment Fund of established to finance development projects Private Capital Russian Federation in the regions: 2007 amount estimated as RuR110 billion (US$4.3 billion) ≈20% ≈80% Unique opportunity for business to optimi
Slide 10: Exploration Business: Streamline
EXPLORATION BUSINESS: STREAMLINE Creation of Polyus Exploration – rationale: OJSC Polyus Gold mitigate risks for the shareholders of OJSC Polyus Gold; operational management efforts to concentrate on minex and 100% brownfield; bring more transparency to funds’ allocation OJSC Polyus Exploration crea
Slide 11: Project Development: Nezhdaninskoye
PROJECT DEVELOPMENT: NEZHDANINSKOYE Russia’s 3rd largest gold deposit by GKZ classification (B+C1+C2): Natalka (48 m oz) Sukhoi Log (33 m oz) Nezhdaninskoye (15.3 m oz) Exploration programme 2006-2010 underway: ultimate target of 1005 tonnes (32.3 m oz) of Russian B+С1+C2 set up; total budget of US$
Slide 12: 2007 Milestones
2007 MILESTONES Projects Development Production Development Corporate Development Submit exploration results at Chertovo Implementation of the Launch of Mill-3 Koryto and Titimukhta to comprehensive cost the State Committee at Olimpiada cutting programme Pre-Feasibility Study for Natalka Scoping Stu
Slide 13: Case Study: Natalka Great Discovery
CASE STUDY: NATALKA GREAT DISCOVERY
Slide 14: Natalka Discovery
NATALKA DISCOVERY Located in Magadan region, underground mine KUBAKA since 1945 2003: license acquired from the Government DUKAT for US$34.5 million 2004: production shut down to make a way to a NATALKA large scale exploration effort 2004-2006: exploration programme carried out: Drilling grid - 200x
Slide 15: Natalka Area and Pit Outline
NATALKA AREA AND PIT OUTLINE 15
Slide 16: Natalka Discovery: Russia's Largest
NATALKA DISCOVERY: RUSSIA’S LARGEST … Large scale exploration programme resulted in listing with GKZ Rosnedra (State Commission on Reserves Evaluation)*, of 1500 tonnes (48 mln oz) of balance reserves (Russian classification). January 2007 GKZ listed reserves and scoping study: Grade 1.7 g/t Balance
Slide 17: And World's #3 Gold Deposit
… AND WORLD’S #3 GOLD DEPOSIT # Deposit / Group of Country Owner P&P Reserves By-product / Status Deposits Co-product Grade, g/t Gold, mln oz 1 Grasberg Indonesia Freeport-McMoran 0,9 83,5 Copper In production 2 Muruntau Uzbekistan Navoy GMK 2,5 48,2 In production 3 Natalka* Russia Polyus Gold 1,7 4
Slide 18: Natalka: Next Stages of the Project
NATALKA: NEXT STAGES OF THE PROJECT Development of Pre-Feasibility (PFS) and Feasibility (FS) studies: Pre-Feasibility, 1H 2007 Feasibility, 2H 2007 – 1H 2008 International tender on the development of PFS and FS was held, consortium of the experienced contractors was tendered New audit of reserves
Slide 19: Summary
SUMMARY Leading Russian gold producer in high growth potential market Proven industry leadership Significant mineral resources – six out of ten largest Russian gold deposits Extensive greenfield/exploration portfolio – new potential discoveries Ambitious strategy to become Top 5 global gold producer
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