Slide 1: Polyus
POLYUS
Slide 2: Disclaimer
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
Slide 3: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 4: Polyus asset clusters and production growth since 2013
Rock moved1 2013: 125,019kt MAGADAN CLUSTER 2018: 300,648kt KRASNOYARSK 6 YAKUTIA +141% CLUSTER 2 1 CLUSTER 7 8 4 5 3 IRKUTSK CLUSTER Ore processed Natalka 2013: 22,480kt Alluvials 5% 6% 2018: 38,025kt PRODUCTION 6 Olimpiada Kuranakh 5 1. Olimpiada 8% 54% +69% 4 2. Blagodatnoye 3. Verninskoye Vernin
Slide 5: Natalka: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves1 (the 2nd largest globally) 190 moz gold MI&I Resources1 (the 2nd largest globally) Average life of mine: above 30 years 100% open pit operations Moving from ca. 2.44 moz in 2018 to ca. 2.8 moz in 2019 Natalka
Slide 6: Board of Directors and shareholder structure
9 members, including 4 Independent Directors Independent Chairman: Edward Dowling 4 BoD Committees, including Audit and Nomination & Remuneration All committees headed by Independent Directors Independent Directors professional experience covers: Natural Resources: Metals & Mining Oi
Slide 7: Health and safety and environmental management
Randgold 0.03 Automated HSE data and processes management Polyus 0.09 system launched across Polyus’ operations Uralkali 0.11 Polymetal 0.18 Polyus’ integrated HSE management system Severstal 0.19 certified in accordance with ISO 14001 and Glencore 0.20 45001. Polyus became the first Russian com
Slide 8: ESG ratings and performance
Score: 71 out of 100 Polyus was upgraded from “Average performer” to “Outperformer” in November 2018 #2 within Russian Metals & Mining universe Score: “C”(medium) obtained in July 2018 Score: “BB” (average) obtained in November 2018 #2 in the 2018 WWF and UN Russian Metals & Mining Compa
Slide 9: ESG ratings versus peers
• 3.9 • BB • No score 71 C 2 - No • Constituent • Not in index • Not in index • 4.4 • No score • 61 77 (93rd N/A 4 C Yes • Constituent • Constituent • Constituent percentile) • 3.1 • B • 37 58 C- 9 F Yes • Constituent • Not in index • Not in index • 3.2 • BB • No score 65 N/A 10 F No • Constituent •
Slide 10: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 11: Total gold output increased 13% y-o-y to 2,440 koz
Olimpiada 293.3 283.0 4% 276.0 213.1 297.9 -2% 1,065.4 1,007.3 6% Blagodatnoye 112.3 110.1 2% 102.0 91.4 126.7 -11% 415.8 456.7 -9% Verninskoye 51.7 59.7 -13% 53.3 58.6 45.6 13% 223.3 205.7 9% Alluvials 40.3 83.7 -52% 23.7 - 29.8 35% 147.7 145.7 1% Kuranakh 64.4 43.9 47% 44.1 46.5 48.4 33% 198.9 171
Slide 12: Key operating and financial highlights
Gold production (doré) (koz) 585 699 -16% 555 5% 2,450 2,162 13% Gold production (refined) (koz) 640 691 (8%) 580 10% 2,440 2,160 13% Average realised refined gold price excl. SPPP ($/oz) 1,229 1,209 2% 1,275 (4%) 1,263 1,260 0% Average realised refined gold price incl. SPPP) ($/oz) 1,232 1,213 2% 1
Slide 13: Quarterly adjusted EBITDA and free cash flow
691 383 580 602 640 324 345 345 331 507 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 231 206 537 465 457 484 165 387 149 70 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Source: Company data 1 calculated on an unlevered basis 13
Slide 14: Leading Reserves and Resources Base
a ij a. 3. LEADING RESERVES AND | or RESOURCES BASE
Slide 15: Reserves and resources compared with global peers
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves1 (#2 globally) 190 moz gold MI&I Resources1 (#2 globally) Average life of mine @ above 30 years2 vs. 16 years on average (among the largest producers globally) 68 68 64 62 54 50 49 26 26 23 1 Sibanye Newmont Newcrest
Slide 16: Open-pit operator with grades typical for underground mining
PROJECTS UPDATE Natalka: Production Profile Overview 100% open-pit operator with grades typical for underground mining 95% of Reserves attributable to operating assets 80 60 40 20 0 Newmont Polyus Barrick Newcrest Goldcorp Anglogold Gold Fields Sibanye Kinross Harmony Open pit Underground Averag
Slide 17: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 18: Production growth to 2.8 moz in 2019
PROJECTS UPDATE Natalka: Production Profile Overview Moving from ca. 2.44 moz in 2018 to 2.8 moz in 2019 A suite of low risk and cost-efficient brownfield projects The Company has completed the ramp-up of Natalka to annualised name-plate throughput capacity of 10 mt. 5.1 4.5 3.4 Sukhoi Log h
Slide 19: 100% open-pit operations and economies of scale
100% open-pit operations 2018 highlights: 301 mt of rock moved1 on an annual basis 8 ore processing mills1: 38 mt of ore processed in 2018 2.4 g/t in ore processed Transportation costs savings Economies of scale on infrastructure 3 mills at Olimpiada within a 5-km radius Constructi
Slide 20: Production guidance track record and outlook
PROJECTS UPDATE Natalka: Production Profile Overview Actual production Guidance ca.2,800 ca. 2,800 Platform for the next development stage of the Company 2,440 First gold at Sukhoi Log 1,652 expected around 2026 2013 … 2018 2019 2020 … LT Guidance Initial guidance revised 6% Guidance Guidance su
Slide 21: Recovery rates and mill throughput
1,3 50 1,302 1,075 1,3 00 1,241 110 .0 1,017 1,213 1,218 964 1,1 00 939 110 .0 1,2 50 853 855 100 .0 1,0 00 100 .0 1,122 1,2 00 900 90. 0 1,1 50 1,066 90. 0 800 1,1 00 80. 0 700 88.2 88.0 87.9 88.0 87.8 87.5 80. 0 81.0 80.7 1,0 50 80.1 79.3 600 1,0 00 73.6 75.9 70. 0 500 70. 0 950 60. 0 60. 0 400 90
Slide 22: Value accretive growth: project pipeline
VALUE ACCRETIVE GROWTH PROJECT PIPELINE 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 OLIMPIADA MILL-1 (SF ANTIMONY (708 ot RECONFIGURATION\ <7) PROJEC BIO-4 AT OLIMPIADA COMPLEX KRASNOYARSK BUSINESS UNIT PIADA MILLS EXPANSION be BLAGODATNOYE MILL Fae BZ EXPANSION [STAGE 2) KURANAKH MILL. BLAGODATN
Slide 23: Blagodatnoye mill expansion potential
Following the completion of the expansion project to 2.95 mtpa, Polyus’ technical team identified a potential for a further capacity expansion up to 3.5 mtpa, which might be achieved by debottlenecking of certain circuits. The project may involve an expansion of the milling circuit by installati
Slide 24: Focus on low-risk high-return projects (IRR)
Focus on low-risk high-return projects with expected IRR of over 20% under the following assumptions: 100 Gold price: $1,050/oz; FX: 60 RUB/USD 80 Expansion projects must meet both Completed projects capital and cost efficiency criteria Ongoing projects 60 More than 150 projects implemente
Slide 25: 2018 capex versus guidance
1,432 804 850 736 525 466 268 2013 2014 2015 2016 2017 2018F 2018A 2018 Initial Capex 850 Olimpiada Guidance 200 182 -18 (incl.Titimukhta) Natalka 150 169 19 Higher capex at Natalka 19 Natalka 150 59 -91 capitalisation Accelerated procurement Others of mining equipment 15 (including IT, 140 106 -34
Slide 26: 2019 capex guidance revised to $725 mln
Capex roll over from 2018, related to a recalibration of Other brownfield projects $140mln KBU $235mln Delayed construction of some infrastructure projects at Natalka Sukhoi Log Additional spending on new mid-sized projects (in PFS $35mln and FS stages) and efficiency improvement initiatives A
Slide 27: IT infrastructure and automation spending 2019
42 Other projects 6 26 5 Maintenance and repair management 5 Other IT projects 5 platform 4 Data transmission networks Manufacturing execution system (MES) / 5 Laboratory information management Equipment and software for 26 system (LIMS) workstations ERP 12 IT infrastructure development 2019F 2019F
Slide 28: Exploration drilling programs and spend
100 km (step out and infill drilling) Geometallurgy drilling and sampling Resource and Reserve upgrade: 2020. 50 km (in fill drilling - Vostochniy, Promezhutochniy, deep levels, flanks). Resource and Reserve upgrade: 2020 100 km (in fill, Geomet and Geotech drilling and sampling) Resou
Slide 29: Natalka Update
5. NATALKA UPDATE —_ | | POLYUS
Slide 30: Natalka mining activity
Mining activity restarted in early 2017. In 4Q 2018, volumes of rock moved totaled 15,707 kt, while volumes of ore mined amounted to 2,564 kt. In 4Q 2018, average grades in ore mined were 1.07 g/t, as mining works were concentrated on lower grade zones of the ore body, in line with the mine pl
Slide 31: Natalka mill at design flowsheet
Natalka is now operating at a design flowsheet following the completion of repair works at the ball mill and scheduled maintenance works at the end of 2018. The Natalka Mill is now running at annualised name-plate throughput capacity of 10 mt. The Mill’s recovery rate is gradually increasing t
Slide 32: Natalka power grid and infrastructure
Minor auxiliary equipment is still working The Grid is supposed to link Ust-Srednekanskaya HPP in a test mode with Natalka, increasing available power capacity Tailings facility to be expanded (in stages) Grid length: 120 km Timeline: 2018-2020 Capex: RUB 8.8 bln (state subsidy) Timeli
Slide 33: Sukhoi Log
3. OPERATIONAL PERFORMANCE
Slide 34: Sukhoi Log: large undeveloped gold deposit
One of the largest undeveloped gold deposits globally with 63 moz of gold Chertovo Koryto, Vysochayshy, JORC resources @ 2.1 g/t 100 km 30 km Zapadnoye Close proximity to other Polyus assets Sukhoi Log creates opportunities for: Optimisation of processing facilities and potential economies of
Slide 35: Sukhoi Log Mineral Resources update
An update on Mineral Resources estimates for Sukhoi Log has been conducted by AMC in compliance with JORC Code 2012. As at 30 October 2018 Inferred Resources 588 1.9 35 The estimated Mineral Resources at Indicated Resources 374 2.4 28 Sukhoi Log stand at 962 mt, with an Total Mineral Resources 9
Slide 36: Sukhoi Log compared with global deposits
106 South Deep 66 98 Sukhoi Log 63 63 45 41 Lihir 52 35 33 28 25 20 Mponeng 50 Pebble KSM Sukhoi Donlin Reko Snowfield Cerro La Caspiche Frieda Log Diq Casale Colosa River Muruntau 48 Olimpiada 44 Klerksdorp 40 2.1 2.2 ERPM 39 Snowfield 35 0.8 0.3 0.4 0.2 0.5 0.5 0.5 0.2 Cadia East 35 Pebble KSM Suk
Slide 37: Sukhoi Log scoping study results
Run-of-mine Crushing Milling (2 lines x 15 mtpa) Gold SAG mill Ball mill Extraction Gravity Flotation Cyanidation Carbon-in-leach Smelting Electrowinning pebble crusher (SABC) Scoping study resulted in 3 potential processing schemes, which will be The estimates are at the scoping study level of
Slide 38: Sukhoi Log drilling stages
3. Deep levels and flanks step-out Этап бурения и назначение скважин 2. In-fill Drilling for open pit ore drilling resource/reserve estimation: 1st stage 2nd stage Участок создания разведочной сети для подсчета запасов по категории В 1. Verification drilling Участок создания разведочной сети для
Slide 39: Sukhoi Log pre-feasibility study timeline
Mineral resource Mineral reserve estimate estimate 1 Engineering completed Investment Decision Mill launch Key pre-feasibility study sections are: 1 1. Detailed open pit design and mining schedules 2. Detailed design of processing plant 3. Review of infrastructure 4. Detailed estimation of pro
Slide 40: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 41: Financial results and cost position 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 Capex2,$ 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%
Slide 42: Lowest cost producer: global cost curve
PROJECTS UPDATE Natalka: Production Profile Overview The lowest cost producer among top-10 gold mining companies globally 110% TCC and AISC in the 1st decile of global cost curves 100% 90% 87% 80% 78% 70% 60% 50% 45% 40% 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Polyus Polymeta
Slide 43: TCC structure and currency breakdown
Outsourced mining services Other Initial guidance: 1% 4% Consumables 450 below 425 and spares 400 MET 29% Revised guidance: 350 18% below 400 300 250 Actual TCC : 200 348 150 Power 100 Labour 5% 50 32% Fuel 0 11% 2018 Consumables and spare parts split roughly equally on USD USD-linked components a
Slide 44: 2019 cost inflation expectations
Initial guidance: 500 30% below 450 450 400 Revised guidance: 23% 350 below 425 18% 18% 19% 300 348 250 12% 13% 200 11% 9% 9% 150 5.0% 5% 6% 6% 100 4.3% 50 1% 0 2018 2019F CPI Labor Sulfuric Tyres Sodium Milling Amonium Diesel 2 Russia acid cyanide balls nitrate fuel Source: Company’s data 2018A 201
Slide 45: 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 for tax benefits for the projects in the Far
Slide 46: Mineral extraction tax by sector
8% MET payments for gold and diamond companies are 6% linked to underlying commodity prices (6% for gold). MET payments for other sectors are either calculated of the cost of mining (iron ore, base metals, potash etc.) or 1% 1% represent an absolute amount on a per tonne basis (coal). Diamond Go
Slide 47: Focus on Shareholder Returns
8. FOCUS ON SHAREHOLDER RETURNS
Slide 48: Dividend policy and payouts
FY 2017 and FY 2018 dividend: 30% of EBITDA but not less than $550 million $340 mln 400 10. 00% Post FY 2018: 30% of EBITDA 350 $311 mln $296 mln 9.0 0% 300 $239 mln $264 mln 8.0 0% 7.0 0% Threshold for the dividend policy: 250 200 3.7% 3.8% 6.0 0% 5.0 0% Net Debt/EBITDA < 2.5x 150 2.3% 3.0% 4
Slide 49: Debt Management
9. DEBT MANAGEMENT —_ | | POLYUS
Slide 50: Convertibles and Eurobonds repurchases
In April 2018, Polyus conducted repurchase of convertibles for $50 mln nominal or 20% of In September 2018, Polyus conducted the total issue, taking into account significant repurchase of 2020, 2022, 2023 and 2024 market dislocation. notes in aggregate principal amount of $132 The convertibles
Slide 51: Debt maturity profile
The Company plans to repay the 1,313 principal amount and liabilities 985 28 2 under cross-currency swaps in the 697 2 614 amount of ca. $1.0 bln in April 463 448 2 15 2019, utilizing a credit facility with 3 8 Sberbank in a total amount of 2018 2019 2020 2021 2022 2023 2024 RUB 65 bln due i
Slide 52: Debt breakdown
As of 30 Sep 20181 As of 31 Dec 20182 Eurobonds Eurobonds Bank loans 59% Bank loans 60% 30% 30% $4,029 mln $3,982 mln Convertibles Convertibles 5% 5% RUB bonds RUB bonds 6% 5% 70% 30% 70% 30% Public debt Private debt Public debt Private debt Floating rate Floating rate 2% 2% $4,029 mln $3,982 mln Fi
Slide 53: Guidance Overview
GUIDANCE OVERVIEW —_ | | POLYUS
Slide 54: Guidance overview 2019
GUIDANCE OVERVIEW 2018 2019F GOLD PRODUCTION, MOZ 2.440 CA. 2.8 TCC, $/OZ 4 aa 348 BELOW 425 APEX, SMLN 7 c $ 36 725 2018 ... 2019 PRODUCTION GROWING 15% TO CA. 2.8 MOZ ee TCCREMAINNGAT =i ! BELOW $425/0Z TERRITORY I I BOTH CAPEX & TCC FORECASTS ARE BASED ON THE 1 ASSUMPTION OF FOREIGN EXCHANGE RATE
Slide 55: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 56: Large-scale mining equipment delivered
Polyus has already delivered all units of large-scale mining equipment planned for 34 2018. Four WK-35 were introduced in 2018, 18 14 gradually replacing small-scale OMZ EKG- 8 11 5 5 4 6 2 10 with 10 m3 load and decreasing unit loading cost 1H17 2H17 1H18 2H18 Shovels: WK-20 and WK-35 Dozers: K
Slide 57: Throughput and blasting optimization initiatives
Before 250 mm 5m After 150 mm 4m At Mill-4, the installation of an additional Old drilling pattern at Alluvials required high explosive consumption at blasting conveyor to transport pebble to the large stage cone crusher bypassing the first stage Optimized drilling pattern allowed to pebble crus
Slide 58: Infrastructure maintenance and consumables cost savings
Lack of strategic approach to Consumables (e.g. diesel oil and PREVIOUSLY infrastructure-related issues, ad- Suboptimal standard quality of ammonia nitrate) procured on spot hoc maintenance of supporting consumables and relatively high basis, which is inefficient due to high mining facilities
Slide 59: Mine-to-Mill technology
Mine-To-Mill technology aims to modify blasting and processing practices to achieve a more suitable mill feed size and can provide for an increase in throughput 1 2 3 4 5 Review of detailed RC drilling with a Test explosions with Mathematical Ore feed to the exploration data pattern of 10*
Slide 60: Automation at Olimpiada Mills
Automation introduced at Olimpiada Mills-1,2,3 in 2015-17 has paved the way for throughput increase and allowed to increase recovery, with the following automation processes involved: Dispatched control over main equipment: conveyors, feeders, mills, pumps, agitators Analysis of technological
Slide 61: Flash flotation
Unit operation designed to remove fine valuable mineral particles otherwise returned to a new processing cycle Improved Minimized Improved concentrate Minimizes overgrinding and improves overall mill overgrinding recovery quality throughput, recovery and optimizing water cycles Improves flotat
Slide 62: Olimpiada mills expansion
Crushing: Ore feed optimization via Mine-to-Mill Further Olimpiada mills expansion is a Grinding: complex set of small & medium-scale Equipment modernization initiatives aimed on throughput capacity Gravitation / Flotation: increase and recovery stabilization (more Introduction of flas
Slide 63: Olimpiada mill modernization initiatives
1 2 3 Introduction of Lokotrack Replacement of SAG Mill at mobile crusher and cone Mill-3 Flash flotation at Mills-1,2,3s crusher at Mill-2 Replacement of pumps and Installation of Jameson flotation cells Mine-to-Mill introduction cyclones 4 5 BIO-1,2,3 modernization1 High-temperatur
Slide 64: Blagodatnoye mill expansion
Blasting and Crushing: Reconfiguration and increase of availability of existing Blagodatnoye Mill operated at above 8.7 mtpa in 2018 with 416 koz produced equipment Ore feed optimization via Mine-to-Mill Mine-to-Mill from 2018 Grinding: 2 Flash flotation units were installed in 2018
Slide 65: Antimony overview and applications
Refined Antimony Antimony Concentrates Minor metal, elementally a brittle silvery-white shiny metalloid The content of antimony in the earth Superfine Crude crust is only 0.0001%. Sodium Antimony Antimony Antimonate White (Sb2O3) Antimony Antimony mainly occurs in deposits with White (Sb2O3) l
Slide 66: Olimpiada antimony ore processing
Low content antimony ore High content antimony ore current reserves Potential Mill-2,3 ore processing Mill-1 ore processing LoM – 8 years reserves to be (gravitation and flotation) (gravitation and flotation) mined below 4th cut back Concentrate Au-Sb FC Flotation tailings BIO and hydrometallurgy Fi
Slide 67: Sukhoi Log mineralization and mining capacity comparison
229 Mining Capacity, 2016 MTPA Material (LHS) Stripping ratio, t/t (RHS) 250 5 Similarly to porphyry deposits, Sukhoi Log has the 200 4 following features: 180 177 166 156 137 134 Disseminated quartz-sulphide mineralization in 150 3 110 102 carbonaceous shales 97 100 2 Large and giant scale of t