Slide 1: aie ye —~
aie ye —~ — =) > - =
Slide 2: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 3: Natalka: Production Profile Overview
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (one of the largest globally) 190 moz gold MI&I Resources (one of the largest globally) Average life of mine: above 30 years 100% open pit operations Moving from ca. 2.16 moz in 2017 to 2.8 moz in 2019 Producti
Slide 4: Polyus asset map and 2017 gold output
PROJECTS UPDATE Natalka: Production Profile Overview MAGADAN CLUSTER KRASNOYARSK 6 CLUSTER YAKUTIA 2 CLUSTER 1 7 8 5 3 4 Polyus gold output (2017): IRKUTSK 2,160 koz Natalka CLUSTER Kuranakh 0.2% Alluvials 8% 7% 5 6 Olimpiada 3 54% Verninskoye PRODUCTION DEVELOPMENT EXPLORATION 10% 4 1. Olimpiada 6.
Slide 5: Krasnoyarsk cluster reserves and resources vs peers
PROJECTS UPDATE Natalka: Production Profile Overview 68 moz gold P&P Reserves (#2 globally) 190 moz gold MI&I Resources Average life of mine: above 30 years 69 68* 65 62 50 48 100% open pit operations 44 26 26 23 95% of Reserves attributable to operating assets Goldcorp Sibanye Newcrest Ba
Slide 6: Production growth and largest gold operations
PROJECTS UPDATE Natalka: Production Profile Overview Moving from ca. 2.16 moz in 2017 to 2.8 moz in 2019 Production at Natalka to be fully ramped-up in 2H 2018 5.3 5.2 A suite of low risk and cost-efficient brownfield 3.8 projects 2.7 2.6 2.3 2.2 2.2 1.7 1.4 Anglogold Sibanye Newcrest Agnico B
Slide 7: Lowest cost producer among top gold miners
PROJECTS UPDATE Natalka: Production Profile Overview The lowest cost producer among top-10 gold mining companies globally -5% 5% 15% 25% 35% 45% 55% 65% TCC and AISC in the 1st decile of global cost curves Polyus 63% 100% open-pit operator with grades typical for Global gold peers 31% 51% unde
Slide 8: Production, TCC and EBITDA trends
2,160 1,702 1,968 1,536 1,652 1,696 1,763 1,278 917 1,018 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 0 50, 000 100 ,000 150 ,000 200 ,000 250 ,000 0 5,0 00 10, 000 15, 000 20, 000 25, 000 30, 000 35, 000 707 2013 125,019 2013 22,480 585 2014 140,630 2014 23,743 424 389 364 2015 147,206 2015 2
Slide 9: Corporate Governance
2. CORPORATE GOVERNANCE POLYUS
Slide 10: Board of Directors
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 11: ICMM membership and safety performance
Since June 2015, Polyus has been Member of the Uralkali 0.08 International Council on Mining and Metals (ICMM) Rangold 0.09 Polyus 0.13 ICMM is an international organization dedicated to Polymetal 0.19 a safe, fair and sustainable mining industry Severstal 0.24 Rio Tinto 0.26 Bringing together
Slide 12: Dividend policy and leverage
FY 2017 and FY 2018 dividend: 30% of EBITDA but not less than $550 million Post FY 2018: 30% of EBITDA incl. special dividend of ca. Threshold for the dividend policy: $845 3.7% $100 mln $762 Net Debt/EBITDA < 2.5x 2.3% If Net Debt/EBITDA > 2.5x, BoD will $340 $239 exercise discretion on div
Slide 13: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 14: 100% open-pit operations
100% open-pit operations 2017 highlights: 224 mt of rock moved1 on an annual basis 7 ore processing mills1 with a total capacity above 28 mt (excl. the Natalka Mill) 2.7 g/t in ore processed Transportation costs savings Economies of scale on infrastructure 3 mills at Olimpiada within
Slide 15: Guidance track record and ore processed
2,125 2,160 1,968 2,075 1,900 1,763 1,800 1,870 1,696 1,710 1,652 1,650 1,760 1,630 1,580 2013 2014 2015 2016 2017 Production guidance Actual production Ore processed Recovery 2014: Guidance surpassed by 5% 2013: 22,480kt 2013: 79.3% 2015: Guidance surpassed by 6% 2017: 28,663kt 2017: 83.4% 2016: In
Slide 16: 1Q 2018 operating results
1Q'18 4Q'17 Q-o-Q 1Q'18 1Q'17 Y-o-Y Olimpiada 213.1 297.9 -28% 213.1 219.1 -3% Blagodatnoye 91.4 126.7 -28% 91.4 108.2 -16% Verninskoye 58.6 45.6 29% 58.6 53.7 9% Alluvials - 29.8 n/a - - n/a Kuranakh 46.5 48.4 -4% 46.5 41.0 13% Natalka 22.5 3.3 582% 22.5 - n/a Refined gold, koz 432.1 551.7 -22% 432
Slide 17: Recovery rates and mill throughput
1,241 1,255 1,029 1,017 1,3 00 1,213 1,218 110 .0 1,1 00 964 1,2 50 1,0 00 939 110 .0 1,2 00 1,122 100 .0 900 853 855 100 .0 1,1 50 1,1 00 1,066 90. 0 800 90. 0 88.2 88.0 87.9 88.0 87.8 87.2 700 80. 0 1,0 50 80. 0 80.1 81.0 80.7 80.0 600 75.9 1,0 00 70. 0 73.6 70. 0 500 950 60. 0 60. 0 400 900 300 5
Slide 18: Efficiency improvement program
Program launched in 2015 at KBU and extended to other business units during 2016-2017 539 Investments < RUB 35 mln per initiative Payback period of < 2 years 369 252 Focused on: Equipment productivity Recovery rate improvement Consumables use optimization 2015 2016 2017 239 143 94 2015
Slide 19: Efficiency initiative examples
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 20: Infrastructure 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 21: Brownfield expansions and growth to 2.8 moz
Brownfield expansions supported a 31% growth in gold output since Panimba Razdolinskoye 2013 Further expansion initiatives and Natalka ramp-up facilitate production growth to Sukhoi Log Chertovo Koryto 2.8moz in 2019 Olimpiada Alluvials Kuranakh Sukhoi Log and Chertovo Blagodatnoye Natalka Verninsko
Slide 22: Operational Performance
3. OPERATIONAL PERFORMANCE
Slide 23: Brownfields development project pipeline
BROWNFIELDS DEVELOPMENT PROJECT PIPELINE EVOLUTION KRASNOYARSK BUSINESS UNIT YAKUTIA BUSINESS UNIT IRKUTSK BUSINESS UNIT MAGADAN BUSINESS UNIT POLYUS i} 2016 | 2017 | I 2018 I 2015 OLIMPIADA MILL-1 (> cok fo RECONFIGURATION PROJECT &@ BIO-4 AT OLIMPIADA COMPLEX OLIMPIADA MILLS seh EXPANSION st BLAGO
Slide 24: Brownfield projects capex and incremental gold
$21 mln YE 2016 3.0 mtpa ca. 160 koz on budget on time $33 mln 1Q 2018 ca. 1,400 t/d2 ca. 35 koz3 on budget on time $14 mln YE 2017 8.1 mtpa ca. 70 koz on budget on time $30 mln YE 2017 5.0 mtpa ca. 35 koz vs $21 mln budget on time $30 mln Q3 2017 1.5 mtpa ca. 20-25 koz on budget vs Q2 2017 $15 mln
Slide 25: BIO-4 at Olimpiada
Polyus implemented an innovative for this climate open air 2,138 BIO units lay-out with total construction savings of ca. $5 mln 1,400 Polyus continues its research on further BIO technology 960 820 790 improvements (both capacities and recoveries) 520 404 211 158 Kokpatas Olimpiada Ashanti Bogo
Slide 26: Column leaching tests at Blagodatnoye
Column leaching tests at Blagodatnoye Blagodatnoye low-grade ore column leaching tests identified several technological issues Low ore permeability and the necessity of agglomeration result in lower recovery and higher project risks Exploration at Blagodatnoye identified increased reserves all
Slide 27: 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 28: Antimony properties 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 29: Global antimony mine supply
Global mine supply is dominated by China 69% / 82kt in 2017E 8% Chinese official and unofficial production combined 9% account for 91% of total primary supply (excl. recycling) 45% 18% SEA, Russia and Tajikistan contribute in total another 28 kt or 22% of the official mine supply, mostly expor
Slide 30: Antimony demand and prices
Fire-retardant 177 177 173 production has 10 11 11 3 3 3 16 15 15 2% been the major 19% area of antimony 62 62 60 usage, currently accounting for 49% 86 86 84 17% 62% 2015 2016 2017E Others Glass and ceramics Asia Europe Chemical alloys and plastics Batteries Fire retardant North America Other A
Slide 31: Antimony ore processing at Olimpiada
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 32: Blagodatnoye mill expansion
Mill expansion project from 6.8 mtpa to 8.1 mtpa has been successfully completed in 2014-2017 The project consisted of upgrading and debottlenecking the existing flowsheet Blagodatnoye Mill operated at above 8.1 mtpa in 2017 with 457 koz produced Total capex1: ca. $14 mln Incremental volumes:
Slide 33: Blagodatnoye further expansion
Blasting and Crushing: Reconfiguration and increase of availability of existing Blagodatnoye Mill operated at above 8.1 mtpa equipment in 2017 with 457 koz produced Ore feed optimization via Mine-to-Mill Gradual roll-out of the Mine-to-Mill from 2018 Grinding: 1 unit of Flash flotation
Slide 34: Verninskoye mill expansion
Following a full audit of the mill in 2014-2015, Polyus identified opportunities to improve the mill Capacity expansion Capacity expansion performance with limited capital expenditures to 2.75 mtpa to 2.9 mtpa Blasting: Incremental gold: Incremental gold: Ore feed optimization via Mine-to-Mill
Slide 35: Kuranakh mill expansion
Kuranakh Mill, operating since 1960s, was constructed in Soviet times with significant spare capacity Prior to launch of the expansion project 1 out of 3 milling lines was operating less than 10% of the total available time The buildings of the milling complex had extensive space for additiona
Slide 36: Kuranakh heap leaching
Heapleaching facility at Kurankah has been constructed First gold produced in October 2017 Operations are currently stopped for winter period. Ore stacking and leaching will recommence in Q2’18 Heap leaching operations at Kuranakh are seasonal (April to October) due to low temperatures in wi
Slide 37: Natalka Update
5. NATALKA UPDATE —_ | | POLYUS
Slide 38: Natalka mining update
Ore body model by Micromine has demonstrated high consistency with the actual mining and verification drilling P&P Reserves under JORC Code estimated at 16 moz of gold at 1.58 g/t Mining activity restarted in early 2017 In 2017, volumes of rock moved totalled 21.8 mt, while the volumes of or
Slide 39: Natalka processing ramp-up
The entire processing flow sheet is fully operational, including primary crushing, SAG and ball milling circuits, three stages of gravity separation, intensive cyanidation, CIL circuit, electrowinning and smelting facilities The construction works at auxiliary facilities are ongoing with a freig
Slide 40: Natalka processing flowsheet
Crushing Grinding – SAG mill Grinding – Ball mill 3-stage gravity concentration Carbon-in-Leach Electrowinning Smelting Recovery at stage 1: ca. 72% Recovery at stage 2: ca. 5% Recovery at stage 3: ca. 1% InLine Leach Reactor 40
Slide 41: Natalka forecast TCC vs other assets
With forecast TCC of $550-600/oz1 vs $364/oz group 550-600 534 average1, Natalka is likely to become the highest cost 403 Group 341 308 asset of the group ex. Alluvials avg 364 Higher TCC is explained by relatively lower grades Natalka LoM1 Kuranakh Verninskoye Olimpiada Blagodatnoye and recover
Slide 42: Natalka infrastructure: power grid and tailings
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 43: Greenfield Projects
6. GREENFIELD PROJECTS —_ | | POLYUS
Slide 44: Sukhoi Log overview
One of the largest undeveloped gold Pebble Initiating permitting procedures (NDM) 107.7 for construction deposits globally with 58 moz of gold KSM JORC resources @ 2.0 g/t (Seabridge Gold) 83.6 Additional drilling Close proximity to other Polyus assets Sukhoi Log (Polyus/RT) 58.0 Scoping study c
Slide 45: Sukhoi Log camp and core storage
GREENFIELD PROJECTS jee eee ee ee He Ke KK KK CORE STORAGE AND SAMPLING FACILITY CONSTRUCTION OF CAMP SITE, INCLUDING CORE STORAGE AND SAMPLING FACILITIES, IS COMPLETED —_—e ee eee wee eee ee DORMS Ss POLYUS ‘s
Slide 46: Sukhoi Log drilling campaign
Detailed plan for exploration was completed in September 2017 In November 2017, the Group started a 180,000 meter drilling campaign, which is scheduled to last 2 years: 30 ths m already drilled as of the end of 1Q 2018 2018 plan – 110 ths m AMC Consultants has been engaged for supervising
Slide 47: Sukhoi Log scoping study
Hatch engaged as a contractor for Scoping Study development SRK engaged as a contractor for Scoping Study Open-pit review Tailing Storage Facility Mill Scoping study will be followed by a Pre- Feasibility and Feasibility Studies which are currently expected to last through 2020 3 types of pr
Slide 48: Sukhoi Log processing schemes
• Scoping study resulted in 3 potential processing schemes, which will be evaluated further at pre-feasibility and feasibility stages Identical across the Variable across options Similar across the options: gravity, options: SAG mill, ball flotation, cyanidation, CIL, mill and pebble crusher electro
Slide 49: Sukhoi Log exploration program
1 2 Engineering completed Mill launched 1 Exploration program 2 Metallurgical sampling Drilling Scope, ’000 m Pilot mining and Verification 43 processing (Verninskoye processing In fill 105 plant as an option) Deep levels and flanks 31 Flowsheet parameters Total exploration drilling 180 deve
Slide 50: Technological Advancement
4. TECHNOLOGICAL ADVANCEMENT
Slide 51: Mining fleet upgrade
Since 2013 Polyus has upgraded mining fleet 247 194 228 across all assets, decreasing a share of trucks 181 65 176 175 7 38 with small payload capacities from more than a 169 2 half mining fleet to below one third in 2017, 79 98 105 106 99 95 104 while large CAT and Komatsu trucks are being introd
Slide 52: Mining fleet automation with Wenco
Mining fleet automation employs Wenco Mining System aimed at: Optimisation of mine fleet schedules and tie-down times to increase average truck speed and payloads and improve fuel Drilling rigs positioned based on time- consumption consuming surveys Real-time monitoring to allow better contr
Slide 53: Machine guidance
Machine guidance allows for high-precision digging, dozing and contouring that establish accurate grade control and optimal quality of ore mined Clear-cut and pinpointed ore mining data is combined with dumping positioning and used afterwards for accurate stockpile maps Precise control over st
Slide 54: 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 55: Mill automation at Olimpiada
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 56: Froth and particle size analyzers
Measures several properties of froth appearance, including: froth speed direction bubble size froth stability Provides statistical data related to these variables On-line analyzer system for mineral slurries Automatically takes samples from one to three process streams and measures P
Slide 57: 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 58: BIO technology
BIO is a process to treat refractory ore using special endemic bacteria 92 92 92 Polyus’ in-house developed BIONORD technology fits best chemical 89 parameters of refractory ore at Olimpiada 87 82 83 Polyus is one of the largest operators of BIO globally Polyus has already spent $30 mln on e
Slide 59: Financial Performance
7. FINANCIAL PERFORMANCE POLYUS
Slide 60: Financial highlights
Gold sales, koz 1,631 1,691 1,768 1,915 2,158 13% Revenue, $ mln 2,327 2,239 2,188 2,458 2,721 11% Total cash costs, $/oz 707 585 424 389 364 (6%) EBITDA adjusted, $ mln 917 1,018 1,278 1,536 1,702 11% EBITDA adjusted, margin % 39% 45% 58% 62% 63% 1 ppts Capex2,$ mln 1,432 525 268 466 804 72% FCF1,
Slide 61: Costs and EBITDA margin vs peers
1,150 1,054 917 954 955 804 824 860 750 621 792 948 558 693 690 669 645 364 526 499 Polyus Barrick Agnico Eagle Goldcorp Newcrest Newmont Kinross Goldfields AngloGold Sibanye 2017 TCC, $/oz 2017 AISC, $/oz -5% 5% 15% 25% 35% 45% 55% 65% Polyus 63% Global gold peers 31% 42% 51% Russian M&M companies
Slide 62: TCC and AISC reduction since 2013
Since 2013 Polyus has decreased TCC and AISC to 110% historical lows 100% Successful implementation of cost-cutting 90% 84% 80% 76% program helped Polyus to outperform other 70% 71% Russian gold peers in TCC reduction since 2013 60% 46% 50% Polyus’ Olimpiada and Blagodatnoye (75% of the 40% Co
Slide 63: TCC breakdown
Outsourced Other 500 below 450 below 450 mining services 10% Consumables below 425 450 1% and spares 400 364 34% 350 300 250 200 150 100 Power Labour 50 5% 39% Fuel 0 11% 2017 2018 2019 2020 1 TCC breakdown ex-MET 2 At spot gold price $1,330/oz and RUB/USD fx rate 60 63
Slide 64: Consumables price inflation
200% 162% 2018 CPI inflation in Russia is expected 159% at around 3.5% vs estimated 3.7% in 100% 117% 2017 Despite slowing local inflation Polyus 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 expects that prices on most key Brent oil prices, $/bbl Ammonium nitrate, $/t FOB Black Sea consumables will g
Slide 65: Currency structure of costs and capex
USD USD USD ~25% ~40% ~35% ~60% ~65% ~75% RUB RUB RUB Consumables and spare parts (ca. 32% of TCC excl. Investments are dominated by RUB MET) split roughly equally on USD-linked components expenditures – mostly in and RUB items construction and maintenance Although fuel (ca. 15% of TCC excl. M
Slide 66: Capex guidance
Alluvials Sukhoi Log $20mln $30mln Verninskoye $40mln 850 804 Kuranakh $40mln 650 550 Natalka $300mln Blagodatnoe $80mln $850 mln Others (including IT, 2017 2018F 2019F 2020F R&D, Logistics, Exploration) Actual capex Guidance capex $140mln Olimpiada (incl.Titimukhta) $200mln 75 850 150 75 30 610 (90
Slide 67: Project IRR and capex
IRR, % 100 Focus on low-risk high-return projects with expected IRR of over 20% under the following assumptions: 80 gold price: $1,050/oz; FX: 60 RUB/USD Completed projects Expansion projects must meet both capital Ongoing projects 60 and cost efficiency criteria 40 Capex, Project examples P
Slide 68: Debt offerings and facilities
The lowest-ever Strong investor demand with The largest offering by a Russian Non- spread for Polyus the book covered within Investment grade company since April 2013 ~4x 3 hours after launch ~2x oversubscription oversubscription Priced: January 2018 Priced: February 2017 Priced: Jan
Slide 69: Debt maturity schedule
In February 2017, Polyus priced $800 Maturity schedule as of 31 December 2016, $ mln mln Eurobond due 2023 @ 5.250% 1,748 In the 2Q17, the proceeds combined with 937 956 777 571 cash on balance were spent on prepayment 32 21 of bank loans maturing in 2021-23 2017 2018 2019 2020 2021 2022 2023
Slide 70: Debt structure pro-forma
Pro-forma as of 31 Dec 2017 post As of 31 Dec 2016 refinancing1 Eurobonds Eurobonds Bank loans Bank loans 25% 59% 70% 29% Share of public $4,981 mln $4,281 mln debt increased RUB from 30% to 71% bonds Convertibles 5% 6% RUB bonds 6% 30% 70% 71% 29% Public debt Private debt Public debt Private debt F
Slide 71: Credit ratings
Jun-2016 Dec-2016 Jun-2017 Dec-2017 Mar-2018 BBB- Fitch RatinSovereign Negative Fitch Ratin Sovereign Stable Fitch Ratin Sovereign Stable Fitch Ratin Sovereign Positive S&P Globa Sovereign Stable /Baa3 Fitch Ratin Sovereign Positive BB+ S&P GlobaSovereign Negative S&P Globa Sovereign Stable S&P Glob
Slide 72: Free cash flow
- 400 600 800 200 1,000 1,200 1,400 OCF 1,178 Purchase of PP&E (405) Other ICF items 129 Unlevered FCF 902 Interest (201) Levered FCF 701 OCF 1,292 Purchase of PP&E (831) Other ICF items 149 Unlevered FCF 610 Interest (249) Levered FCF 361 72
Slide 73: Guidance
GUIDANCE 2018 2019 2020 GOLD PRODUCTION, MOZ 2.375-2.425 2.8 2.8 TCC, $/OZ BELOW 425 BELOW 450 BELOW 450 CAPEX, SMLN 850 650 550 2017 ... 2020 psp SSS SSS 5 S555 SSS 5S S595 SS SS 59559555 5555555 a TCC REMAINING AT BELOW $450/0Z TERRITORY ! rrr 1 i} ! POLvUS | L_2 See eel 73
Slide 74: Appendix
3. OPERATIONAL PERFORMANCE
Slide 75: Mining equipment introduction
Two new TYHI WK-20 shovels with 20 m3 34 load, have been introduced at KBU in 2017 and another four WK-35 are being 18 introduced in 2018, gradually replacing 11 8 11 small-scale OMZ EKG-10 with 10 m3 load 5 5 4 6 2 and decreasing unit loading cost – more details on the next slide 1H17 2H17 1H18 2
Slide 76: WK-20 shovel performance
New WK-20 shovel was introduced in July 2017 6,685 6,000 5,917 and has already reached its planned capacity of 600 th. m3 per month by October 2017. The 22 annual capacity of 6.7 mln m3 is above 10% 13 more efficient than Russian OMZ EKG-18 and 8 three EKG-10 units combined OMZ EKG-10 OMZ EKG-18 W
Slide 77: Olimpiada mills 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 78: Brownfields development: heap leaching
BROWNFIELDS DEVELOPMENT AGGLOMERATION UNIT STACKING CONVEYORS PADS Ss POLYUS 78
Slide 79: Verninskoye debottlenecking
Crushing and grinding is a major bottlenecking factor at +11% 374 Verninskoye, which is one of the most capital intensive 357 and complicated engineering-wise to expand 351 352 353 353 356 346 356 352 342 336 335 Typically it costs up to 50% of the total capex for the construction of a processin
Slide 80: Mine-to-Mill test results
In April 2017, Polyus processed 72 kt of ore employing Mine-to-Mill technology jointly developed with Hatch W/O M2M Difference M2M In October, Polyus tested Mine-to-Mill technology on larger volume of ore (700 kt) with the results showing Ore processed per shift, 11,912 12,954 +1,042 above 8.5 m
Slide 81: Small-scale mill measures
Additional mill installation 3 new automated hydrocyclones (Stage 2) (Stage 1) Grinding Crushing and ore feed Agitative leaching Hydrocycloning Replacement of ore feeders Additional thickener Thickening (Stage 2) (Stage 2) Extra units (Stage 3) + Automation (Stage 2) Small-scale measures requiring l
Slide 82: Chertovo Koryto
Chertovo Koryto deposit is located in a remote area of Irkutsk Region approximately 140 km northeast of Verninskoye Category Tonnes (mt) Grade (g/t) Gold (moz) Deposit lies in an area of high terrain where several gold rich Indicated 67 1.5 3.3 placer deposits have been mined, some mineralized g
Slide 83: Razdolinskoye and Panimba
Field exploration at Razdolinsky ore cluster was Category Tonnes (mt) Grade (g/t) Gold (moz) completed in 2017 increasing accuracy of grade Indicated 37 3.2 3.9 forecasts and ore zones delineation Inferred 4.4 2.9 0.42 Polyus plans to prepare a strategy for next steps Total Mineral 42 3.2 4.3 an
Slide 84: Quarterly financial data 2017
475 465 380 379 380 383 379 324 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2017 2Q 2017 3Q 2017 4Q 2017 181 2.0 1.9 1.9 1.8 182 149 98 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Source: Company data 1 calculated on unlevered basis 2 ex. Sukhoi Log license acquisition costs 84
Slide 85: Cost and margin trends
666 479 442 541 345 416 405 290 308 341 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 869 1,085 868 594 417 598 534 389 403 499 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 85
Slide 86: Capital expenditures 2017
2017 capital expenditures increased to $804 million, reflecting construction works at Natalka and brownfield development projects Capital expenditures at Natalka, the Group’s main development project, totaled $378 million in 2017, reflecting intensified construction activities during the year
Slide 87: Net working capital
+ + 2013 2014 2015 2016 2017 Kept the same level, except receivables for flotation concentrate sales + Inventories 32,632 37,510 34,933 38,411 42,306 304 303 238 237 273 133 127 107 Days 278 303 238 237 273 89 90 7 171 176 149 147 166 5 Trade and + other 787 590 1,732 3,558 5,839 2013 2014 2015 2016
Slide 88: IT platform renovation
The company has been rebuilding & renovating its IT platform since the arrival of new management in 2014 Treasury 100% Accounting System Investment management platform Tax Accounting 95% 5% Centralised Treasury Financial Accounting 74% 26% Maintenance and repair management platform Fixed A
Slide 89: ERP business transformation project
… and will continue their optimization by implementing business transformation project, which is expected to last from 2017 till 2022 Horizontal and vertical integration of business processes and information flows in the Company Efficient tool for a timely decision-making at operational and st
Slide 90: SPO investor participation
More than 80 unique investors participated in the offering 1*1 meetings 60 Largest Gold mining company IPO 1*1 conference calls 15 since 2010 Group meetings 5 Investment funds covered >100 Largest fully marketed follow-on London; offering in Russia Continental Largest internationally markete
Slide 91: SPO completed June 2017
SPO completed in June 2017 The total size of the offering was $858 mln or 9.7% of the share capital on a fully diluted Treasury shares basis Said (0.91%) The primary component of the offering Kerimov Free float amounted to $400 mln (82.44%) (16.65%) Polyus shares are listed on MOEX (local sh
Slide 92: 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