Slide 1: PJSC Polyus 4Q and FY 2017 Financial results
PJSC Polyus 4Q and FY 2017 Financial results
Slide 2: 4Q and FY 2017 key highlights
4Q and FY 2017 key highlights Continued strong top-line performance The Company sold a total of 597 thousand ounces of gold in 4Q 2017, up 3% compared to 3Q 2017. In 2017, the Company sold a total of 2,158 thousand ounces of gold, up 13% compared to the prior-year. In 4Q 2017, revenue totaled $7
Slide 3: Financial results
Financial results a, '~¢
Slide 4: 4Q and FY 2017 financial highlights
Financial Results 4Q and FY 2017 financial highlights Key highlights 4Q 2017 3Q 2017 Q-o-Q 2017 2016 Y-o-Y Gold production, koz 580 642 (10%) 2,160 1,968 10% Average realised refined gold price excl. SPPP, $/oz 1,275 1,279 (0%) 1,260 1,250 1% Average realised refined gold price, incl. SPPP, $/oz 1,2
Slide 5: Revenue analysis
Financial Results Revenue analysis Sales by mine dynamics, koz Revenue breakdown by mine, 4Q 2017, % 400 360 3Q 2017 Other Kuranakh 4Q 2017 0.4% 8% 350 Alluvials 300 281 5% 250 Verninskoye 8% 200 $743 mln 150 Olimpiada 116 113 59% 100 85 53 48 Blagodatnoye Krasnoyarsk cluster 46 43 50 30 20% 79% 0 O
Slide 6: TCC & AISC performance
Financial Results TCC & AISC performance TCC dynamics by mines, $/oz AISC dynamics by mines, $/oz 1,022 1,476 100 0 1,4 00 1,2 00 800 719 961 840 1,0 00 525 790 600 472 800 708 725 406 405 539 552 334 333 600 501 506 400 296 296 400 200 200 0 0 Olimpiada Blagodatnoye Verninskoye Alluvials Kuranakh O
Slide 7: Polyus TCC curve
Financial Results Polyus TCC curve Polyus TCC curve in 4Q 2017 TCC, $/oz 1,000 900 800 700 600 500 The average 4Q 2017 TCC amounted to 324$/oz 400 $324/oz 300 Alluvials 200 Blagodatnoye Olimpiada Verninskoye Kuranakh 100 0 0 100 200 300 400 500 Polyus cumulative production, koz Highlights Global TCC
Slide 8: Polyus AISC curve
Financial Results Polyus AISC curve Polyus AISC curve in 4Q 2017 AISC, $/oz 1,100 1,000 900 800 The average 4Q 2017 AISC amounted to 662$/oz $662/oz 700 600 Kuranakh Alluvials 500 Verninskoye 400 300 Blagodatnoye Olimpiada 200 100 0 Polyus cumulative production, koz 0 100 200 300 400 500 Highlights
Slide 9: Operating cash costs
Financial Results Operating cash costs The Group’s cash operating costs breakdown by item, 3Q 2017 / 4Q 2017 Other Other Outsourced mining services 8% Labour Power 11% 2% 27% Labour 5% Power 2% 35% Fuel 9% Fuel 10% An decrease of 9% y-o-y in the 3Q 2017 4Q 2017 Group’s cash operating costs $211mln $
Slide 10: Adjusted EBITDA performance
Financial Results Adjusted EBITDA performance Adj. EBITDA and adj. EBITDA margin, 4Q 2017 Adj. EBITDA bridge, $ mln 71% 350 80% 500 68% 0.1 1 70% 300 450 (1) (10) 60% 400 250 50% 51% 50% 350 200 40% 300 250 475 465 299 30% 150 200 20% 100 150 5% 10% 100 50 103 0 50 29 2 30 - (10%) - Olimpiada Blagod
Slide 11: Cash flow dynamics
Financial Results Cash flow dynamics 4Q 2017 cash flow bridge, $ mln 1,6 00 344 1,4 00 1,2 00 2 (195) 1,0 00 (68) 1,204 800 1,121 600 400 200 - Cash & CE 30-Sept-17 Operating CF Investing CF Financing CF Effect of foreign Cash & CE 31-Dec-17 exchange rate changes Cash & CE breakdown by currency In
Slide 12: Net working capital dynamics
Financial Results Net working capital dynamics 4Q 2017 net working capital bridge, $ mln 800 Cash outflow $29 mln 56 700 3 2 600 (32) 500 (25) 400 578 582 300 200 100 0 31-Sep-17 NWC Inventories Deferred expenditures Receivables Payables Translation + 31-Dec-17 NWC non-OCF items The Group register
Slide 13: Capex analysis
Financial Results Capex analysis Capex breakdown, $ mln $ million 4Q 2017 3Q 2017 Q-o-Q 2017 2016 Y-o-Y Natalka, including Purchase of equipment 54 69 (22%) 226 109 107% Capitalisation of borrowing costs 16 23 (30%) 93 80 16% Capitalisation of operating costs 24 15 60% 59 24 146% Natalka, total 94 1
Slide 14: Natalka: mining
Financial Results Natalka: mining Key highlights Volumes of ore mined at Natalka, kt In 2017, volumes of rock moved totalled 21.8 million tonnes, while the volumes 1.01 0.95 0.96 of ore mined amounted to 2.9 million tonnes 0.88 Average grades in ore mined were 0.96 g/t, as mining works were conc
Slide 15: Natalka: processing Mill
Financial Results Natalka: processing Mill Processing flowsheet Ramp up status 3-staged Gravity Intensive The entire processing flow sheet is fully operational Separation Cyanidation Electrowinning Conc. PLS Rostechnadzor conducted an industrial audit, with a Ore positive resolution issued stock
Slide 16: Debt maturity profile as of the end of 2017
Financial Results Debt maturity profile as of the end of 2017 Polyus has comfortable debt maturity profile and proactively manages upcoming redemptions. As of the end of 2017, the debt portfolio is represented by $1.25 bln Sberbank loan (2023), Eurobonds (2020, 2022 & 2023) in the overall amount
Slide 17: Debt structure and interest rate dynamics
Financial Results Debt structure and interest rate dynamics1 Debt breakdown Debt breakdown Debt breakdown by source by interest rates by currency2 Bank loans $1.25 bln Floating (17%) Sberbank loan (2023) rate (29%) 31% RUB 22% RUB bonds (6%) Fixed rate 69% USD Eurobonds 78% (48%) Debt outstanding an
Slide 18: Net debt position
Financial Results Net debt position By the end of 2017, the Group’s net debt stood at $3,077 mln, down 5% from $3,241 mln as of 31 December 2016. The net debt/adjusted EBITDA ratio as at 31 December 2017 decreased to the level of 1.8x compared to the end of 2016, reflecting a decrease in the net
Slide 19: Operating results
Operating results a, '~¢
Slide 20: Operational Performance: Key highlights
Operational Performance Key highlights In 2017, the Company produced 2,160 koz of gold (including 170 koz of gold contained in concentrate from Olimpiada), 10% higher y-o-y as a result of increased throughput capacity at the Company’s core assets and higher grades in ore processed An 8% y-o-y in
Slide 21: Olimpiada
Operational Performance Olimpiada Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y TCC 2016 – 2017, $/oz Total rock moved, kt 24,108 20,812 16% 76,067 51,917 47% Stripping ratio, t/t 6.7 5.9 14% 5.2 4.3 22% (16%) Ore mined, kt 3,149 3,035 4% 12,184 9,782 25% Grade in ore mined, g/t 3.90 4.19 (7%) 4.08 3
Slide 22: Blagodatnoye
Operational Performance Blagodatnoye Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y TCC 2016 – 2017, $/oz Total rock moved, kt 20,392 20,495 (1%) 75,859 49,021 55% Stripping ratio, t/t 4.7 4.9 (4%) 4.9 3.3 51% 6% Ore mined, kt 3,569 3,477 3% 12,833 11,515 11% Grade in ore mined, g/t 1.90 1.90 0% 1.94
Slide 23: Verninskoye
Operational Performance Verninskoye Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y TCC 2016 – 2017, $/oz Total rock moved, kt 4,504 4,629 (3%) 18,378 16,300 13% Stripping ratio, t/t 3.6 4.5 (20%) 3.9 3.9 1% 4% Ore mined, kt 982 846 16% 3,747 3,355 12% Grade in ore mined, g/t 2.06 2.36 (13%) 2.18 2.20
Slide 24: Alluvials
Operational Performance Alluvials Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y TCC 2016 – 2017, $/oz Sands washed, 000 m³ 1,092 4,999 (78%) 8,342 8,611 (3%) 29% Average grade, g/m³ 0.53 0.55 (5%) 0.54 0.61 (11%) 770 Gold in slime, koz 18.4 88.9 (79%) 145.5 168.3 (14%) Refined gold output, koz 29.8 8
Slide 25: Kuranakh
Operational Performance Kuranakh Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y TCC 2016 – 2017, $/oz Total rock moved, kt 7,795 8,836 (12%) 31,951 25,530 25% Stripping ratio, t/t 4.5 4.2 6% 4.3 5.0 4.3 7% Ore mined, kt 1,424 1,698 (16%) 5,977 4,257 5,977 Grade in ore mined, g/t 1.25 1.16 8% 1.18 1.29
Slide 26: Natalka
Operational Performance Natalka Operations 4Q'17 3Q'17 Q-o-Q 2017 2016 Y-o-Y Total rock moved, kt 6,458 6,772 (5%) 21,766 421 51.8x Stripping ratio, t/t 5.9 8.0 (27%) 6.4 0.6 10.3x Ore mined, kt 942 752 26% 2,938 255 11.5x Grade in ore mined, g/t 0.96 1.01 (6%) 0.96 1.20 (20%) Ore processed, kt 536
Slide 27: Appendix
Appendix af
Slide 28: Balance sheet highlights
Financial Statements Balance sheet highlights Assets, $ mln 31 December 2017 31 December 2016 Non-current assets 4,558 3,371 Property, plant and equipment 4,005 2,938 Derivative financial instruments and investments 38 57 Inventories 300 264 Deferred tax assets 60 75 Other receivables 97 - Other non
Slide 29: Balance sheet highlights (cont.)
Financial Statements Balance sheet highlights (cont.) Equity and Liabilities, $ mln 31 December 2017 31 December 2016 Share capital 5 7 Additional paid-in capital 1,948 2,288 Treasury shares (89) (3,712) Other reserves (2) - Cash flow hedge revaluation reserve - 12 Translation reserve (2,723) (2,720
Slide 30: Profit and loss statement highlights
Financial Statements Profit and loss statement highlights $ mln 2017 2016 Y-o-Y Gold sales 2,684 2,429 10% Other revenue 37 29 28% Total revenue 2,721 2,458 11% Cost of gold sales (969) (891) 9% Other cost of sales (31) (28) 11% Total cost of sales (1,000) (919) 9% Gross profit 1,721 1,539 12% SG&A
Slide 31: Cash flow highlights
Financial Statements Cash flow highlights 2017 2016 Y-o-Y Profit before income tax 1,531 1,771 (14%) Finance costs, net 200 145 38% Interest income (28) (40) (30%) Gain on investments and revaluation of derivative financial instruments, net (118) (119) (1) Depreciation and amortisation 178 148 20% F
Slide 32: Disclaimer
Disclaimer The information contained herein has been prepared using information available to PJSC Polyus (“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 ad