Polus · RUS:PLZL
Polus — Polyus — Investor Presentation (August 2021)
97 slides from Polus's investor presentation, August 2021
Slide 1: Corporate Presentation August 2021
Ss POLYUS CORPORATE PRESENTATION AUGUST 2021
Slide 2: Disclaimer
DISCLAIMER Ss PoLyus The information contained herein has been prepared using information available to PJSC Polyus at the time of prepara- tion 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 a
Slide 3: Ye POLYUS
4, Ye POLYUS
Slide 4: Assets
ASSETS Ss PoLyus STRONG GROWTH ACROSS KEY METRICS SINCE 2013 LARGE-SCALE ASSETS SPREAD ACROSS SIBERIA AND THE FAR EAST TOTAL ROCK ORE TOTAL GOLD MOVED, PROCESSED, OUTPUT), thsn mt koz 487% *101I% *67% 124 233 2766 1652 66 35] 45 “i 2020 2020 2020 Source: Company's dati 4 ~ Includes refined gi 16% —N
Slide 5: Gold major of choice
GOLD MAJOR OF CHOICE Se PoLyus USUAL DISTINCTIVE FEATURES ibe m) (Ce) rts INDUSTRY LEADING ESG FOOTPRINT SUSTAINALYTICS SCORE: 26.8 [MEDIUM RISK] DELIVERY ON PROMISES 7 STRAIGHT VEARS OF EXCEEDING THE GUIDANCE TIER 1 ASSET BASE 104 MOZ OF P&P RESERVES TRACK RECORD OF OPERATIONAL ACHIEVEMENTS 67% GRO
Slide 6: Slide 6
Slide 7: Recent highlights
RECENT HIGHLIGHTS Se PoLyus @ ENVIRONMENTAL pons) SOCIAL fos GOVERNANCE 100% of consumed electricity covered by renewable sources from early 2021 (up from 36% in 2020) 93.47% of water recycled and reused (2020) $8.5 MLN Total environmental protection expenditure (2020) 15% reduction in carbon intens
Slide 8: ESG dashboard
ESG DASHBOARD Ss PoLvus NEWS RATINGS AND ASSESSMENTS ¥ Polyus has published its key priorities in the area of Climate Change, outlining the A) ‘SUSTAINALYTICS MSCI «am Company's Climate strategy that is being developed now 5 pany ad Bae 26.8 A 54 Medium Risk up from BBB in nstituent of MSCI EM 72nd
Slide 9: ESG ratings: reflecting past achievements
ESG RATINGS: REFLECTING PAST ACHIEVEMENTS... Se PoLvus POLYUS’ ESG RATINGS EVOLUTION 54 S&P Global 45 MSCl A " | 2018 2019 CURRENT RATING 2018 CURRENT RATING ») SUSTAINALYTICS (ower is bette ESG ratings reflect Polyus’ overall progress towards sustainability and implementation of relevant initiative
Slide 10: ESG ratings: serving as guidance for future
ESG RATINGS: ..AND SERVING AS GUIDANCE FOR FUTURE Se PoLvus Polyus uses ESG ratings as a source of feedback and as an instrument of prioritizing areas of further development S&P Global 79 I 50 54 I 36 I I I I ul RUSSIA nussia pouvus Dus! AVERAGE AVERAGE MaM AVERAGE CURRENT RATING 0 SUSTAINALYTICS (l
Slide 11: Climate change: our response
CLIMATE CHANGE: OUR RESPONSE Ss PoLyus RISK ASSESSMENT CLIMATE STRATEGY Pilot climate risk assessment project completed in 2020, to be expanded in 2021 Mapping of climate risks ln Scenario analysis “= and capacity building con Quantitative risk analysis a Socks To create a framework to reduce Polyus
Slide 12: Climate change: switching to hydropower
CLIMATE CHANGE: SWITCHING TO HYDROPOWER Se PoLvus SHARE OF RENEWABLE ENERGY IN THE ELECTRICITY SUPPLY OF POLYUS PRODUCTION ASSETS Ust-Srednekanskaya HPP Increase in share of renewable energy follows 100% major agreements with RusHydro and is a key part iny's de- ‘orts: Svetlinskaya HPP 52% KBU of th
Slide 13: Water management
WATER MANAGEMENT Jp PoLvus Responsible water managementis an essential aspect of Polyus' environmental performance. our KEY GoaLs INCREASING THE EFFICIENCY REDUCING THE VOLUME INCREASING THE SHARE OF QUARRY OF WASTEWATER TREATMENT OF WATER INTAKE WATER IN OVERALL CONSUMPTION Any water that is releas
Slide 14: COVID-19: our response
COVID-19: OUR RESPONSE Ss PoLvus FY 2021 -—4 FY 2020 ESTIMATED ) Py) EXPENSES EXPENSES t t 155 100 | $ min $ min q Ll KEEPING EMPLOYEES SUPPORTING LOCAL $21 min SAFE COMMUNITIES CAPEX + Construction of temporary OS» Alloperating assets sufficiently equipped RUB 1 bin fund established in a partnershi
Slide 15: Board of directors & shareholder structure
BOARD OF DIRECTORS & SHAREHOLDER STRUCTURE Ss PoLyus INDEPENDENT DIRECTORS INDEPENDENT DIRECTORS’ PROFESSIONAL EXPERIENCE EDWARD DOWLING Chairman of the Board & Strategy Committee CHARMAN MARIA GORDON Senior Independent Director, Chairman of Nomination & Remuneration Committee SENIOR INDEPENDENT DIR
Slide 16: ESG outlook for 2021
ESG OUTLOOK FOR 2021 = PoLvuS ENERGY AND @| CLIMATE CHANGE > @ Climate Strategy, incorporating concrete measures to decrease carbon footprint and manage climate risks. '& Upgrade the automated control system for fuel and energy resources at Verninskoye and conduct the first stage of implementing the
Slide 17: Historical & recent results
HISTORICAL & RECENT RESULTS
Slide 18: Guidance macro assumptions
1 – Guidance macro assumptions for 2019 and 2020: USD/RUB of 60, a gold price of $1,200/oz
Slide 19: FY2020 delivery and FY2021-23 guidance
FY2020 DELIVERY AND FY2021-23 GUIDANCE? Se PoLvus Actual number —x Guidance FY 2020 FY 2021 FY 2022 FY 2023 REVISED INITIAL: $ 400-450/oz $ 425-450 /oz $ 425-450 /oz $ 400-450 /oz GOLD PRODUCTION Tcc! CAPEX' O duane" © GuibANcE © GutoaNce ca.2.8 moz $ 375-425 /oz $ 700-750 min $ 1,000-1,100min $ 1,1
Slide 20: 1Q 2021 operational snapshot
1Q 2021 OPERATIONAL SNAPSHOT Ss PoLvus ROCK MOVED ORE MINED ORE PROCESSED RECOVERY DORE GOLD VOLUMES, VOLUMES, VOLUMES, RATE, OUTPUT, ths m- kt kt % koz 31,587 16,639 11,126 81.6 614.7 43% @-0-a VW 4% a-0-a 47% Q-0-Q y 2.3 PPTS -7% Q-O-Q Reflecting lower ore volumes. Primarily due to the higher Driv
Slide 21: 500
500 450 400 350 300 250 200 150 100 50 0
Slide 22: Polyus
POLYUS
Slide 23: JORC update: leading reserve base
JORC UPDATE: LEADING RESERVE BASE Sp PoLvus 2020 RESERVE UPDATE HIGHLIGHTS 4 DRILLING PROGRAM IN 2021 | > @& Polyus now is the largest gold company globally in terms of gold reserves Ooo aoe 2 Key drivers of a y-o-y increase in Ore Reserves: & The Company continues its deep-level exploration program
Slide 24: Reserves: Polyus vs. peers
RESERVES: POLYUS VS. PEERS Jp PoLvus THE LARGEST «WHICH TRANSLATES INTO RESERVE BASE". THE HIGHEST LOM? AVERAGE GRADE, yest —— PoLyus? Bi 49 PoLyus? 338 NEWMONT 40 HARMONY [i 27 BARRICK LT NEWCREST [ 23 NEWcREST 98 : GOLD FELDS | 23 GOLD FIELDS —______|_ __ 3g HARMONY ‘$1697 POLYMETAL | 18. KINROSS
Slide 25: Drilling programme across the group
DRILLING PROGRAMME ACROSS THE GROUP Se PoLvus CAPEX FOR DRILLING AND EXPLORATION PROGRAMMES 2017 2018 2021F" DRILLING 5 — Sukhoi Log ——~ 264 — Other assets 4/~ At RUB/USD FX rate of 65 25
Slide 26: Reserves: Polyus mines vs. benchmarks
RESERVES: POLYUS MINES VS. BENCHMARKS! P&P RESERVES, LOM, MOZ YEARS GRADE IN P&P RESERVES, G/TONNE 2020 GOLD PRODUCTION, KOZ 2020 TCC, $/0Z NEVADA OPERATIONS 45,2 43 i TANAMI 5,1. | NEVADA OPERATIONS | OLIMPIADA OLIMPIADA 1900 LouLo i ‘OLIMPIADA | BLAGODATNOvE LHI 280 KIBALI i PUEBLO VIEJO H NATALKA
Slide 27: Production expansion since 2013
PRODUCTION EXPANSION SINCE 2013 Se PoLvus GOLD PRODUCTION mee 2013 2019 2020 REPORTED PRODUCTION BARRICK 72 NEWMONT 63 NEWMONT 59 NEWMONT 5 BARRICK 5.5 BARRICK 48 ANGLOGOLD 44 ANGLOGOLD 3,3 ANGLOGOLD 30 GOLDCORP 27 povws [LLL 2,80.— PoLyus |Z )3! KINROSS 26 KINROSS 2.5 KINROSS 24 NEWCREST 24 NEWCRES
Slide 28: Production guidance 2021-2023
PRODUCTION GUIDANCE 2021-2023 Ss PoLyus ACTUAL PRODUCTION VS GUIDANCE moz Guidance Actual Production * Temporary grades decline at + Partial recovery of grades * Further grades recovery at Olimpiada at Olimpiada Olimpiada * Throughput capacity expansion * Throughput capacity + Partial effect of i im
Slide 29: Bringing profitable ounces online
BRINGING PROFITABLE OUNCES ONLINE Se Potyus ORE PROCESSED mt Wesninsxow’ PRODUCTION koz ree *—~s_22 NEXT STEPS: New Expansion to — 15.0 mtpa Completion in —— Mid-2022 17.0 mtpa 2025 808 327 3.5 mtpa Csseac New 7.5 mtpa 2024
Slide 30: Polyus' project pipeline
POLYUS’ PROJECT PIPELINE Status: HE completed HE ongoing 2015 2016 2017 2018 2019 2020 2024 2022 OLIMPIADA BLAGODATNOYE KURANAKH VERNINSKOVE NATALKA SUKHOI LOG ~ Gold Equivalent Mill-1 reconfiguration +CA. 220 koz +CA. 20 koz Bio-4 construction Antimony project’ Ss modernization Sec c0ko: Mill-4 exp
Slide 31: Capital allocation framework
CAPITAL ALLOCATION FRAMEWORK Jp PoLvus INVESTMENT CRITERIA IN GOLD INDUSTRY IRR, % PREVIOUS ASSUMPTIONS CURRENT ASSUMPTIONS {MID 2015 - NOVEMBER 2020 SINCE NOVEMBER 2020 coppice : OLVUS APPLIES : 1 O50 HE INDUSTRY-LEADING ' sm “ IRR CRITERIA mx ——— one 60 ww ss «—__. NEWMONT / BARRICK / ANGLOGOLD 1
Slide 32: Olimpiada: expansion to 15.0 mtpa
OLIMPIADA: EXPANSION TO 15.0 MTPA ~ HIGHLIGHTS & DEBOTTLENECKING INITIATIVES ON EXISTING FACILITIES AIMED a = AT A FURTHER THROUGHPUT CAPACITIY INCREASE INCREMENTAL CAPEX EXPECTED OUNCES PA REQUIREMENT: COMPLETION 5 : QU s peerengey PFS is expected to be completed in 2021 ca 5O tor ca BBO nin nid Z2
Slide 33: Olimpiada: BIO upgrade
OLIMPIADA: BIO UPGRADE Se Potvus TECHNOLOGICALLY UNIQUE @ BIO-4 is the only BIO facility globally with an open air placement in the Extreme North 62 BIO tanks 17) IMPROVED BLENDERS @ ADDITIONAL OXIDATION CIRCUIT FULLY AUTOMATED BY THROUGHPUT Ne 2 in the world 4 TVs. m3 TOTAL VOLUME BIO UPGRADE STRAT
Slide 34: 3,50 3,30 2,80 3,00 2,30 1,80 2,50 1,30 0,80 2,00 0,30 1,50 -0,20 -0,70
3,50 3,30 2,80 3,00 2,30 1,80 2,50 1,30 0,80 2,00 0,30 1,50 -0,20 -0,70 1,00 -1,20
Slide 35: Blagodatnoye: mill expansion to 17.0 mtpa
BLAGODATNOYE: MILL EXPANSION TO 17.0 MTPA Jp PoLvus FURTHER MILL EXPANSION Mill-4 now Significant reserve base allows for further mill operates on 2 expansion to 17 mtpa via construction of Mill-S identical lines + in-pit crushing and conveying (IPCC) STRONG STRATEGIC PROJECT RESULTS AND PLANS + fil
Slide 36: Blagodatnoye: construction of Mill-5
BLAGODATNOYE: CONSTRUCTION OF MILL-5 ed Be a) ADDITIONAL INCREMENTAL. EXPECTED CAPACITIES OUNCES" LAUNCH Project's first 5-year average Project's first 5-year average TCC REGIONAL INVESTMENT PROJECT BO. «390... 2025 KEY OUTCOMES OF THE FEASIBILITY STUDY 3203: In December 2020, Mill-5 was included in
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% % % % % % % % % % % % % % % % % % % % % % % % % %
Slide 38: General layout of the complex
GENERAL LAYOUT OF THE COMPLEX POLYUS Proposed layout allows to optimize earthworks across the mill site BLAGODATNOVE MILL EXPANSION TO 17 MTPA M Blagodatnoye (current layout) New Mill-5 facilities AN * Maximum synergy with the existing ’ CRUSHED ORE STOCKPILE Mill-4 facilities and utilities ‘ ‘ . IP
Slide 39: Verninskoye: mill expansion to 3.5 mtpa completed
VERNINSKOYE: MILL EXPANSION TO 3.5 MTPA COMPLETED _ :«; powus AHEAD-OF-SCHEDULE CAPACITY GAIN 90.1% As a result of project initiatives 89.9% (primarily — introduction of an Recovery rate,% 89.6 been 90.0% ~ — additional reactivation kiln), recovery . rate at Verninskoye has reached the o- 25 noo cop
Slide 40: Kuranakh: mill expansion to 7.5 mtpa
KURANAKH: MILL EXPANSION TO 7.5 MTPA Ss POLYUS PROJECT PROCESSING RATE HIGHLIGHTS Throughput, Mt Expansion projects, Stages 1-3 Having completed 3 stages of plant capacity expansion, Polyus decided to proceed with a fourth stage aimed at increasing throughput from current 6.1 to7.5 mtpa 3.9 4.2 2015
Slide 41: Natalka: debottlenecking
NATALKA: DEBOTTLENECKING Se Potvus HAVING COMPLETED MILL'S RAMP UP AND REACHED ANNUALIZED NAMEPLATE CAPACITY OF 1OMTPA IN 2018, POLYUS STARTED TO REVIEW DEBOTTLENECHING OPTIONS HIGHLIGHTS Over the course of 2019, Polyus’ technical team completed a set of operational initiatives which allowed to proc
Slide 42: Natalka: flash flotation
NATALKA: FLASH FLOTATION DESIGN FLOW According to the initial design, flash flotation was installed at hydrocyclone underflow Following the flash flotation rollout, a set of initiatives aimed at improving mill throughput was implemented * Among others, there were adjustments of the SAG mill discharg
Slide 43: 2021 capex breakdown
2021 CAPEX BREAKDOWN Se PoLvus 2021 Guidance FX assumption: USD/RUB of 65 KURANAKH MAINTENANCE OTHER SUKHOI Los BLAGODATNOVE $30-40mn $20-5Omin $ 1,000-1,100mIn $ 40-6OmiIn —__ FOREX $ 45-60mIn a a Increased 250-260 OLIMPIADA $ 135-16Omin py Cyclical increase e¢pjoration i Reconstruction _ in spendi
Slide 44: Capex guidance 2021-2023
CAPEX GUIDANCE 2021-2023 CAPEX GUIDANCE! $bn Stay-in-business CAPEX @ ~$450-500 min 2021F 2022F POLYUS KEY GROWTH PROJECT IcoNSTRUCTION CAPEX) MILL-5 SUKHOI!I LOG CAPEX $600 min? $3.3 bIn4 $200-300 min REFLECTED IN GUIDANCE 4 ~CAPEX guidance based on v 2 ~ additional capital expenditures are subject
Slide 45: Operational efficiency
OPERATIONAL EFFICIENCY * hed a time SSS
Slide 46: Increasing rock moved volumes across the group
INCREASING ROCK MOVED VOLUMES ACROSS THE GROUP Je PoLvus ROCK MOVED VOLUMES " OLIMPIADA BLAGODATNOYE VERNINSKOYE KURANAKH NATALKA 2013 2020 2013 2020 2013 2020 2013 2020 ROCK HAULING AND SHOVEL LOAD AT KRASNOYARSK ASSETS TRUCKS SIZE: av Te 34% Masx {i si% —— ss SHARE IN ROCK MOVED i _ ue a ~ ma — VO
Slide 47: 160,0 160,0 160,0 1400 140,0 1,80 140,0 140,0 0,0 1,60 120,0 120,0 120,0 140,0
1 500 160,0 160,0 160,0 1400 140,0 1,80 140,0 140,0 1 000 160,0 1,60 120,0 120,0 120,0 140,0 900 1,40 500 120,0 100,0 100,0 100,0 1,20 100,0 0 1,0 80,0 40080,0 80,0 80,0 ,80 60,0 60,0 60,0 60,0 -500 ,60 40,0 40,0 -100 40,0 40,0 ,40 -1 000 20,0 ,20 20,0 20,0 20,0 0,0 ,0 0,0 -6000,0 0,0 -1 500 160,0 1
Slide 48: Flash flotation
FLASH FLOTATION Ss PoLyus TECHNOLOGY Flash flotation is the unit operation A flash flotation cell recovers liberated designed to reduce overgrinding by valuable minerals in the cyclone removing fine particles from underflow (recirculating load) before classification cyclone underflow they returned t
Slide 49: Spending on business transformation and IT projects
SPENDING ON BUSINESS TRANSFORMATION AND IT PROJECTS »%; povvus 2020! 2021F? $ 4 Bain $ TZ Q2ain BUSINESS AREAS erp TT infrastructure Equipment and software for workstations Other $31 min $19 min $10 min $11 min ae fg) & & at Production and Finance Capital construction Maintenance Procurement Digital
Slide 50: Wireless broadband roll-out
WIRELESS BROADBAND ROLL-OUT Se PoLvus a@ BULLDOZER WITH WIRELESS EQUIPMENT OLIMPIADA @PENDPONT © TERMINALS 329 BASE STATION FH Base ‘STATIONS 78 a NATALKA é BASE ENDPOINT Hihons | P RBA Polyus is establishing wireless communication infrastructure at Olimpia- da, Natalka and Kuranakh to enable reliab
Slide 51: IT-infrastructure: digital pit
IT-INFRASTRUCTURE: DIGITAL PIT Se PoLyus AERIAL DRONES REMOTE CONTROL MINING EQUIPMENT Drone applications include: Remote control mining equipment allows to enhance safety of Polyus operations S Aerial surveying & 3D mapping sq) Drill & blast 5g A : & REMOTE CONTROL * CENTER Fada}, Infrastructure in
Slide 52: Ye POLYUS
Ye POLYUS
Slide 53: Asset overview
ASSET OVERVIEW Se PoLyus Ses fl BY JORC =) {oon oon RESERVES. SUKHOI LOG Verninskoye Ne 1 globally 2 potkir JORC P&P RESERVES 4 wrt 20D ait JORC RESOURCES, —_ Baikal-Amur Railway Novaya Chara @ Railway station 67 woz IoD et to Severobaykalsk © —— Yanchukan Severomuysk ‘oe Taksimo °Yakutsk ie 2 Boday
Slide 54: Sukhoi Log consolidation
SUKHOI LOG CONSOLIDATION Jp PoLvus 2016-2017 2017-2020 2020 In 2016, Polyus and ‘Rostec Business Polyus entered into a number of cash In September 2020, Polyus Development’ ("RT") established SL Gold and equity option agreements with RT exercised its right to accelerate in order to participate in th
Slide 55: Sukhoi Log vs other greenfields
SUKHOI LOG VS OTHER GREENFIELDS\... Ss PoLyus SUKHOI LOG IS THE LARGEST GREENFIELD ASSET IN TERMS OF GOLD RESERVES... «WITH STRONG PRODUCTION PROFILE, LONG LIFE OF MINE AND ONE OF THE HIGHEST GRADES GLOBALLY P&P AVERAGE LOM ANNUAL RESERVES PRODUCTION LOM Moz Moz Years® 10 7 ROsIA, |, COTE SUKHoILoc
Slide 56: Sukhoi Log vs currently operating gold mines
SUKHOI LOG VS CURRENTLY OPERATING GOLD MINES' Se PoLvus SUKHOI LOG’S RESERVE BASE IS ONE OF THE LARGEST AMONG BOTH UNDER- GROUND AND OPEN PIT OPERATIONS SUKHOI LOG POSSESSES LEADING ANNUAL PRODUCTION CAPACITY ALONG WITH HIGH GRADE IN RESERVES P&P AVERAGE LOM ANNUAL GRADE IN P&P RESERVES PRODUCTION L
Slide 57: Progress on Sukhoi Log
PROGRESS ON SUKHOI LOG Se PoLyus Sukhoi log vs other greenfields of comparable scale SUKHOI LOG POLYUS sistent progress ey project milestones NORTE ABIERTO BARRICK / NEWMONT Focus of JV mem s projects. No clarity development of the project DONLIN GOLD BARRICK / NOVAGOLD Prolonged period of receipt o
Slide 58: Drilling programme at Sukhoi Log (2017-2020)
DRILLING PROGRAMME AT SUKHOI LOG (2017-2020)... Ss PoLyus COMPLETED DRILLING PROGRAMME IN 2017-2019 Combined with 324 km of historical drilling (1961-1999), total drilling at Sukhoi Log amounted to ca. 546 km. = q [23] TOTAL DRILLING DRILLING PROGRAMME AT SUKHOI LOG IN 2017-2019 Ca. 546 km Ca. 222 k
Slide 59: ...and continued exploration (2021 & onwards)
eeAND CONTINUED EXPLORATION (2021 & ONWARDS) Ss PoLyus POLYUS PROGRESSES WITH ITS DEEP-LEVEL AND FLANK EXPLORATION DRILLING CAMPAIGN oe During the 2017-2019 exploration 17, 2 40 drilling campaign it became evident e KM KM that the orebody extends below The license for flankexploration was acquired i
Slide 60: MI&I resources and P&P reserves estimates
MI&I RESOURCES AND P&P RESERVES ESTIMATES vs PoLvus MI&I RESOURCES 2017 2020 TONNES Grape TONNES Grape 887. 2.03. BBN ino. i9,. E70 Indicated 668 mt 2.1g/t AG moz Inferred 44imt 1.5 g/t 21moz 101 Inferred 69% Indicated 1% Inferred P&P RESERVES 2017 2020 TONNES Grape No data 540 mt 2.3 g/t Bm 100% Pr
Slide 61: Mining equipment
MINING EQUIPMENT Ss PoLyus 50 M? NOMINAL PAYLOAD SHOVELS Available from all major suppliers (P&H (Komatsu), WK and CAT) 4 rope shovels cost-efficient and reliable for 15 m benches hydraulic excavators The PFS confirms that the characteristics of Sukhoi Log's ore distribution favors the selection of
Slide 62: Processing flowsheet design
PROCESSING FLOWSHEET DESIGN Ss PoLyus CONVENTIONAL GRAVITY - FLOTATION SCHEME average annual throughput capacity 92. average recovery rate 2.3 «x average grade in ore processed (P&P reserves) 2.3 1: average annual gold production, LOM JORC
Slide 63: Process plant design
PROCESS PLANT DESIGN Ss PoLyus 3D PROCESS PLANT MODEL
Slide 64: Comminution scheme
Ss PoLyus COMMINUTION SCHEME NoMINaL. eee 33.2 mtpa PRIMARY CRUSHING SECONDARY CRUSHING The PFS assumed the application of gyratory A conventional Semi-Autogenious Ball Pebble-Crusher scheme was selected for the PFS based on the hardness of the ore and the availability and relative crushing based on
Slide 65: Gold extraction
Ss PoLyus GOLD EXTRACTION SUKHO!I LOG FLOWSHEET INCLUDES BEST-IN-CLASS TECHNOLOGIES! FOR PROCESSING THIS TYPE OF ORE FLOTATION AND CIL FLOTATION MACHINES x1O of 630 m3 x5 of 100m? GRAVITY AND FLASH FLOTATION CONCENTRATORS x24 FLASH FLOTATION UNITS x cIL TANKS x8 of 2,000 m3 Significant, but not exce
Slide 66: Sukhoi Log site at scale
SUKHOI LOG SITE AT SCALE Je Potvus
Slide 67: Recovery estimate based on testwork programme
RECOVERY ESTIMATE BASED ON TESTWORK PROGRAMME _ *; po.vus & The samples for testwork originated from contiguous drill core samples to specifically cover as much of the entire ore body as possible and include the expected range of grades the processing plant would see, with a focus on better coverage
Slide 68: Key project economic metrics
KEY PROJECT ECONOMIC METRICS Ss PoLvus BASED ON PRE-FEASIBILITY STUDY' PRELIMINARY GOLD PRODUCTION PROFILE Grade inore MINING RATE AVG. WASTE- BASE THROUGH- processed, (AT PEAK) TO-ORE RATIO PUT CAPACITY g/t 2,3 22 lea 168 mipa 3.257 33.2 mipa Average first 10y Froauctiong 5 23 23 23 23 23 23 22 22
Slide 69: Capital costs breakdown
CAPITAL COSTS BREAKDOWN Estimated Initial Construction CAPEX stands at $3.3 bln CAPEX is estimated with Pre-Feasibility Study Class 4 estimate with the level of accuracy +/-20% PROJECT INITIAL CONSTRUCTION CAPEX Capital costs are in real as of the end of 2019 USD terms, CAPEX COMPONENTS, $bin CONTIN
Slide 70: Capex: estimate evolution
CAPEX: ESTIMATE EVOLUTION Ss PoLyus FROM SCOPING STUDY TO PRE-FEASIBILITY MINING CAPACITY O,2bIn $O,3bIn Throughput capacity increase from 30 to 33.2 mtpa $2,3bIn Higher mining equipment CAPEX due to a comprehen- sive update of the mining plan with a focus on optimising mining and stripping volumes
Slide 71: Sukhoi Log capex intensity
SUKHOI LOG CAPE INTENSITY' Ss PoLvus based on Pre-Feasibility estimate of capital expenditures, Sukhoi Log ranks favourably in CAPEX intensity and life of mine compared to other greenfield projects Bubble size represents LoM TERMS OF LIFE OF MINE, — avg, Au only production — VEARS 60 KSM NEW PROSPER
Slide 72: PFS estimates
PFS ESTIMATES THROUGHPUT CAPACITY RECOVERY TCC INITIAL CONSTRUCTION CAPEX AVERAGE ANNUAL GOLD PRODUCTION, LOM 33.2 sen 92. :390.. s Seon 2.3 woz
Slide 73: Off-site infrastructure overview
OFF-SITE INFRASTRUCTURE OVERVIEW Ss PoLyus POWER GRID ? Existing electricity facilities (~3 MW) enable Polyus to launch the construction at Sukhoi Log To cover operational power needs (~229 MW) Polyus has already signed an agreement with Federa Grid Company (FGC) for technologi- cal connection of Su
Slide 74: Developing power grids
DEVELOPING POWER GRIDS Ss PoLvus Since 2015, Polyus has been developing power infrastructure in its regions of presence to gain access to renewable electricity r PELEDUY - Ust-Omchug - OS MAMAKAN Omchak RAZDOLINSKAYA - TAIGA CAPEX $60 APEX cA. MLN. c LN CAPEX FINANCING ° Bought out by the FGC in Pe
Slide 75: Sukhoi Log power supply chain
SUKHOI LOG POWER SUPPLY CHAIN Ss PoLyus POWER SUPPLY INFRASTRUCTURE REQUIREMENTS GENERATION SCoPE Ust-Ilimskaya Hydro Power Plant Vs) Ust-Ilimskaya Hydro Power Plant (CURRENT STATUS Constructed Severobaykalsk r LONG-DISTANCE GRID Scope ‘CURRENT STATUS Construction of ~ 1,000 km @ FGC and Polyus sign
Slide 76: Update project timeline
UPDATE PROJECT TIMELINE Sp PoLvus 2017 2018 2019 2020 ae 2022 2023 2024 2025 2026 2027 ENGINEERING Initiation ---- Scoping study Pre-feasibility - Feasibility study Investment decision —Final investment decision Project Design Documentation Regulatory procedures, GGE Plant construction permit | ----
Slide 77: Plans for 2021
PLANS FOR 2021 2017 2018 2019 2020 2022 2023 2027 | ENGINEERING | | INFRASTRUCTURE OTHER Environmental and Social Impact Assessment (ESIA) to evaluate the likely impacts prior to decision-making Start of construction of first-priority facilities (electrical grids, sewage facilities for camp site, ro
Slide 78: Absolute cost leadership
ABSOLUTE ) COST ‘LEADERSHIP
Slide 79: Key financial figures & benchmarking
KEY FINANCIAL FIGURES & BENCHMARKING Se PoLyus EBITDA ADJUSTED TOTAL CASH COSTS ~ +7 pots] MARGIN 3690 2680 4s3q 1702 1865 4oso. (12/8 NET DEBT / EBITDA ADJUSTED, x? 242%) 0,7 0,7 2 OF 24 2,0 2,0 q Sources: Company data, Metals Focus, Bloomberg 1 ~ Presented on a levered basis 2 = Including der $/oz
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% % 160 0 160 0 140 0 140 0 120 0 120 0 100 0 100 0 800 800 600 600 400 400 200 200 0 0
Slide 81: Total cash cost performance
TOTAL CASH COST PERFORMANCE Se PoLyus CASH OPERATING COSTS STRUCTURE, FY 2020 USD SHARE IN TCC, FY 2020 2021E Most of the costs are RUB-denominated @—uso — RUB $14230mnin som 20% Excluding MET Excluding MET sper costs are ~30% denominated Including MET “i iret CONSUMABLES USD-inked onponents AND SPA
Slide 82: Cost guidance 2021-2023
COST GUIDANCE 2021-2023! Ss PoLyus $/oz 4. —TCC guidance based on assumptions FX 65 rub and a gold price of $1,300/oziin real 2021 US dollars GUIDANCE HIGHLIGHTS A gradual increase in TCC from 2020 levels, driven by: > inflationary factors; > a temporary reduction of head grades at Olimpiada; » adec
Slide 83: Key cost components inflation
KEY COST COMPONENTS INFLATION POLYUS FORECASTS INFLATIONARY PRESSURE ACROSS KEY CONSUMABLES AND SPARES 80% +72% LABOR COSTS cow 47% 40% 4% 4% A% 20% +2% nz 0% —__ ™\\_—_____———__ 2021F 720% ~40% ja 2a 3a 4a 1a 2a 3a 4a 1a ja 2a 3a 4a 1@ 2a 3a aa 1a 1a 2a 3a 4a 1@ 2a 3a 4a 10 2019 2019 2019 2019 2020
Slide 84: Taxation overview
“, TAXATION OVERVIEW Ss PoLvus MINERAL TAX / REVENUE' GOLD MINING ROYALTIES BENCHMARKING The Russian Finance Ministry has The key rationale (as officially announced TAX BASE: REVENUE HE — fixed BI — range recently announced initiatives to by the Finance Ministry) is to ‘normalise boost taxation on t
Slide 85: Regional investment project
REGIONAL INVESTMENT PROJECT Ss PoLvus Regional Investment Project is a special tax regime, which allows for tax benefits for the projects in the Far Eastern region of Russia. The tax regime provides for lower mineral extraction tax rate (MET) and profit tax rate for the projects. TAX RATES FOR RIP M
Slide 86: Focus on shareholder
FOCUS-ON SHAREHOLDER WOegereeesoenae: 10 chchchahepopddeypbosocaind
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