Polus · RUS:PLZL

Polus — Polyus Gold — Deutsche Bank Russia One-on-One Conference 2009

26 slides from Polus's conference presentation, Feb 4, 2009

  1. Slide 1: Polyus Gold

    Polyus Gold Deutsche Bank Russia One-on-One Conference London, February 04-05, 2009

  2. Slide 2: Contents

    Contents Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 2

  3. Slide 3: Overview: Key Operations

    Overview: Key Operations Operating mines Operating mines ƒ 3 producing mines Alluvial operations Alluvial operations ƒ 1 alluvial operation Greenfield/Brownfield ƒ 26 greenfield/brownfield projects Greenfield/Brownfield Projects Projects Natalka Natalka 6 OUT OF RUSSIA’S 10 Nezhdaninskoye Nezhdanins

  4. Slide 4: Key operations

    Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 4

  5. Slide 5: 2008 operating results: refined gold production

    2008 operating results: refined gold production Gold production, k oz Total: 1 215 1 214 1 222 In 2008 1400 32 32 24 the Group 1200 156 142 144 172 179 181 produced 1000 800 1 222 k oz 600 854 861 873 of gold 400 showing a 200 0 slight growth. 2006 2007 2008 The sales amounted to Олимпиадинский Olim

  6. Slide 6: 2008 operating results: ore mined and ore processed

    2008 operating results: ore mined and ore processed Ore mined, k tonnes Ore processed, k tonnes Total: 12 672 9 377 6 575 Total: 8 809 10 654 10 814 14 000 12 000 518 495 790 12 000 10 000 522 3 847 750 3 905 3 696 10 000 8 000 8 000 3 737 4 154 950 6 000 6 000 8 035 3 899 4 000 6 623 4 000 6 231 4

  7. Slide 7: 2008 operating results: volume of drilling decrease and mineral resources growth

    2008 operating results: volume of drilling decrease and mineral resources growth The volume of drilling, thousand meters 500 365.6 332.1 The total volume of drilling equaled to 400 332.1 thousand meters (-9.1%). The decrease is 192.1 300 a result of the completion of the fist stage of the 200 long-t

  8. Slide 8: Key operations

    Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 8

  9. Slide 9: 1H2008 financials: Revenue and EBITDA reached their historical maximum

    1H2008 financials: Revenue and EBITDA reached their historical maximum Sales EBITDA 1H2006-08 1H2006-08 CAGR = 37% CAGR = 30.5% 240 506 600 250 500 mln USD mln USD 200 309 297 127 400 124 150 300 100 200 50 100 0 0 1H2006 1H2006 1H2007 1H2007 1H2008 1H2008 1H2006 1H2006 1H2007 1H2007 1H2008 1H2008 S

  10. Slide 10: 1H2008 financials: 91% 2-year CAGR in operating cash flow

    1H2008 financials: 91% 2-year CAGR in operating cash flow Net income Operating cash flow 1H2006-08 CAGR = 91% 128 1H2006-08 140 mln USD CAGR = 61% 113 132 120 140 mln USD 120 100 100 80 80 57.6 50.9 60 35 60 40 40 20 20 0 0 1H2006 1H2007 1H2008 1H2006 1H2007 1H2008 Net income* of the group increased

  11. Slide 11: 1H2008 financials: Expenses – one of the lowest TCC but extensive Capex

    1H2008 financials: Expenses – one of the lowest TCC but extensive Capex TCC Capex 1H2006-08 CAGR = 29% 431 450 400 300 268 335 333 246 mln USD 350 USD/oz 250 300 260 181 181 250 200 1H2006-08 134 134 200 CAGR = 13% 150 150 100 100 50 50 0 0 Less 1H2008 1H2006 1H2007 1H2008 Excessive 1H2006 1H2007 1H

  12. Slide 12: 1H2008 financials: Comparison with peers

    1H2008 financials: Comparison with peers “Gold-only” TCC, USD/ounce* Profitability 600 578 60% 550 Less excessive stripping 506 47% 500 469 472 50% 447 450 431 40% 450 414 39% 400 30% 26% 333 350 20% 300 10% 250 0% i o s nt 200 t ds y ss ck on G lyu on ha -10% el p ro rri m K ld ti or m Po H lds Fi

  13. Slide 13: Key operations

    Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 13

  14. Slide 14: Nezhdaninskoye deposit: possible creation of JV with Kinross Gold

    Nezhdaninskoye deposit: possible creation of JV with Kinross Gold Nezhdaninskoye deposit (pre-feasibility study): Kinross Gold: Reserves (B+C1+C2) 15 mln oz Canadian gold producer Ranks 8th in the world gold mining industry Average gold grade 3.86 g/t Mines 8 deposits in the USA, Brazil, Russia and

  15. Slide 15: Projects update: Blagodatnoe

    Projects update: Blagodatnoe Highlights of the feasibility study:* 2008 CAPEX update Mine life 2010-2031 ƒ Mill construction in progress (main building, P&P reserves 9.9 m oz at 2.3 g/t crushing plant, hydrometallurgy house, weigh Mill capacity 6 mtpa house, chemicals storage etc.); Recovery 88.6% A

  16. Slide 16: Projects update: Titimukhta

    Projects update: Titimukhta Highlights of the feasibility study: Mine life 2009 – 2021 P&P reserves 2.2 m oz at 3.3 g/t Mill capacity 2.2 mtpa Recovery 88% Average annual gold production 170 k oz Capex (ex VAT) US$ 98.7 m Average TCC 260 US$/oz 2008 CAPEX update: ƒ Mill-1 reconstruction completed; ƒ

  17. Slide 17: Projects update: Verninskoe

    Projects update: Verninskoe Highlights of the feasibility study: Mine life 2010 - 2024 P&P reserves 1.7 m oz at 3.0 g/t (additional exploration underway) Mill project capacity 2.2 mtpa Average annual gold production 218 k oz Estimated Capex US$212 m Average TCC 253 US$/oz 2008 CAPEX update: ƒ Mining

  18. Slide 18: Projects update: Natalka. Pilot plant

    Projects update: Natalka. Pilot plant To minimize metal risks and to speed up the achievement of target July 24, 2008: parameters Polyus Gold management decided to construct a 120- The pilot plant 130 ktpa pilot plant. launched 06 06 07 07 7 07 08 08 8 r 06 ct n r l0 ct n r l0 Ap l O Ja Ap Ju O Ja A

  19. Slide 19: Projects update: Natalka. Pilot plant

    Projects update: Natalka. Pilot plant ƒ P&P – 40.8 mln oz at 1.13 g/t ƒ Mill project capacity: 2013 – 10 mtpa plant (projected gold output of 30-35 tpa), 2017 - 2021 – 20 mtpa plant to be constructed, further capacity increase for up to 40 mtpa is planned in 2022 – 2041. ƒ Expected annual gold produ

  20. Slide 20: Key operations

    Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 20

  21. Slide 21: Deal with Kazakhgold: Kazakhgold - basic information

    Deal with Kazakhgold: Kazakhgold - basic information* ƒ Kazakhgold is the largest mining market player in Kazakhstan. The company includes 3 mining factories (producing mines Aksu, Bestobe and Zholymbet) and more than 10 exploration projects. ƒ Kazakhgold owns some assets in Eastern Kazakhstan, Roma

  22. Slide 22: Deal with KazakhGold: Overview

    Deal with KazakhGold: Overview ƒ With acquisition of Kazakhgold, a mining leader of Kazakhstan, Polyus Gold increases its mineral resources base; ƒ The Company uniting two regional leaders, №1 in Russia and №1 in Kazakhstan, will be geographically balanced concerning mining, P&P reserves and MI&I re

  23. Slide 23: Key operations

    Key operations Key operations 2008 operating 2008 operating results results 1H2008 financials 1H2008 financials Projects update Projects update Deal with Deal with KazakhGold KazakhGold Kazakhstan Current macroeconomic Current macroeconomic situation situation 23

  24. Slide 24: Current macroeconomic situation

    Current macroeconomic situation 2 macroeconomic scenarios were presented by the Center for Macroeconomic Analysis and Short-term Forecasting: Soft landing Hard landing Real landing 2009 2010 2011 2009 2010 2011 03/02/2009 Gold price (consensus- forecast) 930 900 860 930 900 860 918 RUR/ USD exchange

  25. Slide 25: Conclusion

    Conclusion The company shows record financials. Polyus revenues and EBITDA are on historically high levels; Polyus Gold continues to be one of the most profitable gold producers in the World; The Company successfully meets all the operating targets previously declared; Polyus is prepared for crisis

  26. Slide 26: Investor Relations

    Investor Relations Tel.: +7 (495) 785 40 31 E-mail: ir@polyusgold.com 26

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