Slide 1: Corporate Presentation November 2019
POLYUS , ys CORPORATE PRESENTATION NOVEMBER 2019
Slide 2: Disclaimer
The information contained herein has been prepared using information available to PJSC Polyus at the time of preparation of the presentation. External or other factors may have impacted on the business of Polyus and the content of this presentation, since its preparation. In addition all relevant in
Slide 3: 1. Overview
1. OVERVIEW ye POLYUS
Slide 4: Asset portfolio and production overview
Natalka Alluvials 5% 6% 6 Kuranakh 5 8% 4 6 Verninskoye Olimpiada 3 9% 1 54% 2 1 7 4 Blagodatnoye 2 8 17% 3 5 1. Olimpiada 4. Kuranakh 7. SUKHOI LOG 2. Blagodatnoye 5. Alluvials 8. Chertovo Koryto 3. Verninskoye 6. Natalka 0 50, 000 100 ,000 150 ,000 200 ,000 250 ,000 300 ,000 350 ,000 0 500 1,0 00
Slide 5: Unique exposure to Russian and gold public markets
LPN UNIQUE EXPOSURE TO RUSSIAN & GOLD PUBLIC MARKETS Ye POLyus STRUCTURAL ADVANTAGES... HIGH-QUALITY GREENFIELDS TIER 1 ASSET OPERATIONAL BROWNFIELD an ae OPPORTUNITIES op PORTFOLIO EXCELLENCE «ENABLE TO ACHIEVE STRATEGIC OBJECTIVES Oo} CD ADHERENCE TO ESG PRINCIPLES ABSOLUTE COST LEADERSHIP SUSTAIN
Slide 6: 2. Sustainability, Health & Safety
2. SUSTAINABILITY, HEALTH & SAFETY
Slide 7: Health, safety and environment performance
Health and safety management system and regulatory compliance audits across the group. Ongoing preparation to get multiple-purpose environmental permits for Olimpiada & Blagodatnoye, Verninskoye, Natalka in accordance with recent changes of the Russian legislation. Waste management: plastic wa
Slide 8: ESG ratings and recognition
2019 score: 45, up from 22 in 2018 Score: 71, upgraded from “Average performer” to “Outperformer” in November 2018 #2 in the 2018 WWF and UN Russian Metals & Mining Companies Environmental Transparency Rating Polyus is a constituent of MSCI EM ESG Leaders Index with an MSCI ESG score of “BBB” obtain
Slide 9: ESG ratings comparison and priorities
71 • 3.9 • BBB • 63rd Climate change: F (renewal 2 • Constituent • Constituent • Not in index Water: F pending) • 4.4 • A • 92nd 85 4 Climate change: C • Constituent • Constituent • Constituent • 3.9 • BBB • 42nd 77 9 Climate Change: F • Constituent • Constituent • Not in index • 3.2 • CCC • 58th 74
Slide 10: Corporate governance and shareholder structure
4 Independent Directors (incl. Chairman) out of 9 All 4 committees headed by Independent Directors Independent Directors professional experience covers: Natural Resources (Metals & Mining; Oil & Gas) Investments and Business Development Capital Markets Top management Treasury shares (via
Slide 11: Free float and index inclusion
Ca 9.0% of share capital sold Priced at US$33.25 per GDS (ca. $879mln in total) 19.0 Free float above 16% PGIL sold ca 3.84% of ownership interest Priced at US$38 per GDS (ca. $390mln in total) 8.0 Free float above 20% 0.1-0.2 3 Eurobonds issues of $1.8 bln combined since 2016 Before SPO Jun-
Slide 12: 12
12
Slide 13: Operating results 3Q 2019
Increase reflects higher rock moved volumes across all assets Increase in ore mined volumes was driven by higher ore volumes mined at Blagodatnoye, Verninskoye and Natalka. Higher ore processed volumes mainly reflect the seasonal ramp up of heap leaching operations at Kuranakh. Decrease in r
Slide 14: Financial results 3Q 2019
Increase reflects higher average realised gold price and higher total gold sales volumes. TCC increase was mainly driven by higher seasonal output at the structurally higher cost Alluvials, scheduled maintenance works across the group and higher MET expenses, reflecting the increase in average r
Slide 15: 9M performance vs FY2019 guidance
a 9M PERFORMANCE VS FY2019 GUIDANCE %e POLvus GOLD 2.04 MOZ fou 2010 CA. 2.8 ee PRODUCTION > “Moz py PRODUCTION GUIDANCE $376/0Z e ve TCC ——— (oy ty _— “<n? eed $375/0Z $425/0Z Toc GUIDANCE $410 MLN 9M 2019 CAPEX ———| => $650 MLN $700 MLN CAPEX GUIDANCE 15
Slide 16: 3. Polyus vs peers
vs POLYUS
Slide 17: Reserves and grade versus peers
3.8 4.0 140 118 3.0 2.7 2.5 120 2.0 2.0 1.7 1.4 100 1.2 1.2 1.0 0.7 80 75 0.0 64 60 54 48 -1.0 44 -2.0 40 26 24 21 -3.0 20 -4.0 0 -5.0 2 Newmont Barrick Polyus Newcrest Gold Fields Anglogold Kinross Polymetal Agnico Goldcorp Eagle Open pit Underground Average grade, g/t reserves, moz reserves, moz 2
Slide 18: Largest gold mines and reserve decline
Grasberg 1,964 Grasberg 2,416 Newmont Nevada 1,735 Barrick Nevada 2,100 Yanacocha 1,462 Polyus Krasnoyarsk KBU (Olimpiada, Blagodatnoye) 1,738 * Barrick Nevada 1,239 Newmont Nevada 1,697 Veladero 1,121 Olimpiada 1,322 Polyus Krasnoyarsk Polyus Krasnoyarsk… (Olimpiada, Blagodatnoye, Titimukhta) 933 L
Slide 19: Gold production versus peers
Guidance range Barrick 7.2 Newmont 5.1 Newmont GoldCorp 7.4 7.6 Newmont 5.1 Barrick 4.5 Barrick3 5.1 5.6 Anglogold 4.1 Anglogold 3.4 Anglogold 3.25 3.45 Goldcorp 2.7 Kinross 2.5 Polyus 2.8 Kinross 2.6 Polyus 2.4 Kinross 2.5 2 Newcrest 2.4 Newcrest 2.4 Newcrest 2.4 2.6 Gold Fields 2.0 Goldcorp 2.29 G
Slide 20: Production growth track record and guidance
Platform for the next ca.2,800 ca. 2,800 development stage of the Company 2,440 First gold at Sukhoi Log expected around 2026 1,652 2013 … 2018 2019 2020 … LT Guidance Initial guidance revised 6% Guidance Guidance surpassed by 6% upward in October 2016; Initial surpassed by 3% surpassed by 2% gu
Slide 21: Natalka mill throughput record
1,343 1,075 1,091 1,095 1,098 1,302 1,328 1,316 1,4 50 964 1,017 110 .0 1,1 00 939 1,213 1,218 1,241 110 .0 1,3 50 1,2 50 100 .0 1,0 00 853 855 100 .0 1,122 900 90. 0 90. 0 1,066 800 1,1 50 88.2 80. 0 81.0 80.8 82.1 82.5 700 88.0 87.9 88.0 87.8 87.5 87.5 87.5 87.7 80. 0 1,0 50 80.1 80.7 79.3 600 75.
Slide 22: Completed and ongoing projects
Completed projects Ongoing projects
Slide 23: Project performance by asset
1 Including Titimukhta (Mill-1) 2Temporary decline in grades in 2018 3Excluding heap leaching facilities
Slide 24: Debottlenecking projects
Capex-light debottlenecking of crushing, grinding, flotation and hydrometallurgy circuits. Feasibility study has been completed. Equipment procurement is underway. The Company continues construction works at the extension to the main building, where an additional grinding circuit will be ins
Slide 25: Potential new projects, source of further expansion
a POTENTIAL NEW PROJECTS - SOURCE OF FURTHER EXPANSION Ye POLyus INVESTMENT CRITERIA AND ASSUMPTIONS INTACT SINCE 2015 @ GOLD PRICE: $1,050/0Z e@ FX: 60 RUB/USD r IRR >20% BLAGODATNOVE: EXPANSION TO 15 MTPA KEY HIGHLIGHTS: » CONSTRUCTION OF AN ADDITIONAL 6 MTPA MILL ON SITE » PROCESSING CAPACITY INC
Slide 26: Blagodatnoye expansion to 15 mtpa
Reserve base (LoM > 23 years) allows Polyus to evaluate further expansion options for Blagodatnoye, which current processing capacity is approaching 9 mtpa. The Company is now considering a construction of a new 6 mtpa mill (Mill-5), bringing Blagodatnoye total processing capacity to 15 mtpa.
Slide 27: Chertovo Koryto development
In late 2018 Polyus entered the Pre-feasibility Study stage, which will include: Open pit modelling and mine schedule Preliminary engineering of the crushing and grinding Category Tonnes (mt) Grade (g/t) Gold (moz) Indicated 67 1.5 3.3 circuits Inferred 7.8 1.3 0.33 Evaluation of ore process
Slide 28: Olimpiada processing and bio-oxidation
Over the course of 2019 Polyus has been expanding its processing capacities at Olimpiada (mills 1,2,3), which resulted in higher ore processing volumes. Also, high temperatures in Krasnoyarsk region in July and August alongside greater pyrite ore content had a negative impact on bio-oxidation ef
Slide 29: Revised 2019 capex guidance
Below $725 mln $700 mln $650 mln - $700 mln $650 mln $410 mln Initial guidance for 2019 Revised guidance 9M 2019 Capex for 2019 In November, Polyus revised its capex estimate for FY2019. New guidance mainly reflects capex roll-over from 2019 to 2020, related to several infrastructure development
Slide 30: IT and digital transformation projects
Production and economic planning Accounting & IFRS reporting Production Processes Transformation program (MES/LIMS) Controlling, treasury and contracts Automated Inventory Management System Multifunctional Center Automated Consolidation & Budgeting System Automated Budgeting System; Automated Consol
Slide 31: IT infrastructure development
GPS 26 5 Other IT projects Robotic automation 4 Data transmission networks 5 Equipment and software for workstations 12 IT infrastructure development 2019F Corporate and regional data processing centers • External Data Processing Center in Krasnoyarsk • Mobile Data Processing Center at Olimpiada Wir
Slide 32: Wireless communication infrastructure
Polyus is establishing wireless communication infrastructure at Olimpiada and Natalka to enable reliable data transfer from operating vehicles to the dispatch management system in control rooms.
Slide 33: Exploration drilling programs
83 km (exploration, hydrogeology and geotechnical Resource and Reserve update: 2020. 50 km (in fill drilling - Vostochniy, Promezhutochniy, deep levels, flanks). Resource and Reserve update: 2020 Geology exploration drills Grid densification (50x100 / 50x200 grid) (50x50 / 50x100 grid) 100
Slide 34: 5. Natalka update
5. NATALKA UPDATE => on a SE JS-POLVUS
Slide 35: Natalka ramp-up recovery and throughput
71.7% 71.4% 71.6% 4,191 4,534 62.9% 65.5% 65.1% 3,960 55.1% 37.9% 2,564 1,998 1,436 942 663 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 Currently, the Company is implementing a set of 4,5 00 1,533 180 0 initiatives, aimed at gradual recovery 1,43
Slide 36: Natalka improvement initiatives
• Introduction of the fourth stage of gravity concentration • Expansion of the first stage of gravity concentration • Commissioning of an additional CIC column • Transition to new milling balls at SAG and ball mills • Installation of enhanced heat exchangers at ball and sag mills’ engines • Installa
Slide 37: Natalka infrastructure update
Polyus The Grid is supposed to link commissioned the Ust-Srednekanskaya HPP with assay laboratory Natalka, increasing available in 1Q 2019 power capacity Grid length: 120 km Capex: RUB 7.9 bln (state subsidy) Completion of construction in 1Q 2020 Polyus proceeds Construction with dam w
Slide 38: 6. Sukhoi Log
* * 6. SUKHOI LOG a
Slide 39: Sukhoi Log location and proximity to assets
Close proximity to other Polyus assets creates opportunities for: Optimisation of processing facilities and potential economies of scale Utilisation of existing infrastructure (including the Peleduy – Mamakan grid) Amenable to mining via large-scale open-pit operations
Slide 40: Sukhoi Log versus largest undeveloped gold projects
106 106 58 63 41 45 28 35 19 20 Rosia Montana Far Southeast La Colosa Snowfield Reko Diq Donlin Norte Abierto Sukhoi Log2 Pebble KSM (Gabriel (Gold Fields) (AngloGold) (Pretium) (Barrick/ (Barrick/ (Barrick/ (Polyus) (Northern (Seabridge) Resources) Antofagasta) Novagold) Newmont) Dynasty) Goldrush
Slide 41: Sukhoi Log versus largest gold mines
63 66 48 50 50 42 31 33 34 34 8 Evander Tujuh Bukit Natalka Cadia East Obuasi Olimpiada Muruntau Mponeng Lihir Sukhoi Log South Deep (Pan African) (PT Merdeka) (Polyus) (Newcrest) (AngloGold) (Polyus) (Navoi M&M) (AngloGold) (Newcrest) (Polyus) (Gold Fields) Mponeng (AngloGold) 11.7 South Deep (Gold
Slide 42: Global gold production outlook
3,478 3,456 3,425 3,411 3,326 3,351 3,354 3,287 3,207 3,138 3,075 2,942 2,848 2,761 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Operating & Historic Commissioning stage Construction stage Assessment stage (Scoping Study, Feasibility & Pre-Feasibility) In 2020’s, analysts fo
Slide 43: Sukhoi Log drilling campaign
Drilled to date Geotechnical 10.5 km 1st stage completed (5.1 km) Hydrogeology 7.5 km 1st stage completed (4.7 km) Exploration 204 km In-fill drilling, Drilled flanks samples In order to further update and upgrade the estimation of Indicated Mineral Resources at Sukhoi Log, the Company decid
Slide 44: Sukhoi Log PFS and scoping study parameters
Run-of-mine Crushing Milling (2 lines x 15 mtpa) Gold Extraction SAG mill Ball mill Gravity Flotation Cyanidation Carbon-in-leach Smelting Electrowinning pebble crusher (SABC) PFS will be finalized in 1H 2020, followed by FS The estimates are based on the scoping study completed in which is expe
Slide 45: Sukhoi Log infrastructure
Polyus owns a 60% stake in a local center Existing electricity facilities enable airport, Bodaybo. Polyus to launch the construction at Sukhoi Log. Bodaybo is located 145 km south-west of Sukhoi Log. The Company is considering options Airport runaway is owned by federal for providing Sukho
Slide 46: Sukhoi Log PFS progress and timeline
Polyus continues to work on the Pre-Feasibility Study jointly with international engineering consultants. Development of geological, geophysical, hydrometeorological surveys were completed. Trade-off studies on throughput capacity and comminution circuits design are being finalized. Mineral re
Slide 47: Absolute cost leadership
Slide 48: Cost and margin leadership versus peers
Total cash costs, $/oz 585 424 389 364 348 (4%) EBITDA adjusted, $ mln 1,018 1,278 1,536 1,702 1,865 10% EBITDA adjusted, margin % 45% 58% 62% 63% 64% 1 ppts Capex,$ mln 525 268 466 804 736 (8%) FCF1, $ mln 282 351 902 610 672 10% Net debt / EBITDA adjusted, “x” 0.3 0.3 2.1 1.8 1.7 (6%) -5% 5% 15% 2
Slide 49: Cost curve position
110% 100% 90% 85% 80% 75% 70% 73% 60% 50% 47% 40% 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Polyus Polymetal Highland Gold Petropavlovsk $/oz 1,750 1,500 1,250 1,000 750 Polyus 3Q’19 AISC @ $628/oz 500 Polyus 3Q’19 TCC @ $412/oz 250 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
Slide 50: 2019 TCC guidance and cost structure
Other In November, Polyus amended its 2019 TCC guidance and Power 10% Labour now expects the group’s TCC to remain in a range of 5% 30% $375-$425/oz Fuel 425 11% Range: Below 450 375-425 Below 425 375 376 Initial guidance Revised Latest guidance 9M 2019 TCC Tax on mining for 2019 guidance for for
Slide 51: Inflation outlook and cost control
29% 19% 14% 15% 11.7% 12% 13% 11% 11% 5% 6% 7% 4.0% 4.3% 3.7% 2% 3.2% PPI CPI Labor Diesel Sulfuric acid Tyres Calcium Sodium Russia Russia fuel Hypochlorite cyanide 2018A 2019F According to the latest CBR forecast, 2019 inflation in Russia is expected to be in the range of 3.2%-3.7% Tight contr
Slide 52: 8. Focus on shareholder returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 53: Dividend policy and yield
Payout: 30% of EBITDA 400 10. 00% Threshold for dividend policy: Net Debt/EBITDA < 2.5x $340 mln $341 mln $311 mln 9.0 0% 350 $296 mln 8.0 0% If Net Debt/EBITDA > 2.5x, BoD will exercise discretion 300 $239 mln $264 mln 7.0 0% on dividends 250 6.0 0% 200 3.7% 3.8% 5.0 0% Semi-annual dividend
Slide 54: 9. Debt management
wr ee ee — ‘ . 9. DEBT MANAGEMENT
Slide 55: Net debt and maturity profile
By the end of 3Q 2019, net debt 1,580 1,203 1 decreased 9% q-o-q to $3,317 mln, 58 697 from $3,639 mln as of the end of 2Q 1 451 615 472 18 1 2019, reflecting strong FCF generation 6 during the period. 2019 2020 2021 2022 2023 2024 ND/EBITDA ratio went down to 1.5x, from 1.7x as of the end
Slide 56: Debt structure
As of 30 June 2019 As of 30 September 2019 Eurobonds Eurobonds 49% 49% Bank loans Bank loans 42% 42% $4,888 mln $4,855 mln Convertibles RUB bonds Convertibles RUB bonds 4% 4% 5% 5% 58% 42% 58% 42% Public debt Private debt Public debt Private debt Floating rate Floating rate 3% 3% $4,888 mln $4,855 m
Slide 57: Credit ratings upgrades
In November 2018, S&P upgraded Polyus rating from In December 2018, Fitch Ratings has upgraded Polyus’ BB- to BB with a stable outlook rating to ‘BB’ with Stable outlook from previously Upgrade reflects a combination of assigned ‘BB-’ with Positive outlook. S&P’s expectation that the company
Slide 58: 10. Guidance
10;,GUIDANCE
Slide 59: Guidance overview
GUIDANCE OVERVIEW POLYUS ¢, ‘ 2018 2019F GOLD PRODUCTION 2.440 MOZ CA. 2.8 MOZ TCC $348/0Z $375/0Z - $425/0Z NEW CAPEX $736 MLN $650 MLN - $700 MLN) NEW 59
Slide 60: 11. Appendix
ll. APPENDIX ae POLYUS
Slide 61: Regional Investment Project tax regime
% % 8 30 6.0 20 6 20 4 4.8 4.8 10 10 10 10 10 2.4 2.4 3.6 3.6 10 2 1.2 1.2 0.0 0.0 0 0 0 0 0 0 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 RIP regime Base rate Regional Investment Project is a special tax regime, which allows Lower MET rate is applied at Lower MET r
Slide 62: Operating data summary
Total rock moved 000 m3 49,474 50,759 48,477 55,610 53,466 66,703 66,351 71,239 64,505 58,073 88,418 116,987 Stripping 000 m3 44,255 47,543 40,991 46,878 45,317 57,256 54,552 59,448 55,628 46,326 73,420 99,481 Stripping ratio m3/t 4.7 7.2 2.3 2.2 2.2 2.4 1.6 2.0 2.5 1.6 1.9 2.3 Ore mined kT 9,377 6,
Slide 63: Low-risk high-return projects with IRR above 20%
Focus on low-risk high-return projects with expected IRR of over 20% under the following IRR, % assumptions: Completed projects Gold price: $1,050/oz; Ongoing projects FX: 60 RUB/USD 80 Expansion projects must meet both capital and cost efficiency criteria 60 More than 150 projects impleme