Polus · RUS:PLZL
Polus — Polyus Gold — Renaissance Capital 11th Annual Investor Conference 2007
14 slides from Polus's conference presentation, Jun 19, 2007
Slide 1: Polyus Gold. Growth for Value: Great Discoveries and On-going Delivery
Renaissance Capital 11th Annual Investor Conference, Moscow, June 19, 2007. Pavel Skitovich, CEO POLYUS GOLD. GROWTH FOR VALUE: GREAT DISCOVERIES AND ON-GOING DELIVERY.
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been prepared using information available to Polyus Group at the time of preparation of the presentation. External or other factors may have impacted on the business of Polyus Group and the content of this presentation, since its preparation. In additi
Slide 3: Polyus Gold: Overview
POLYUS GOLD: OVERVIEW Russia’s largest gold miner – 25% market share by production output A public company with a free float of approx. 49%, listed and traded in Russia (RTS & MICEX), UK (LSE Main Board) and the U.S. (OTC). Market cap as of June’07 about US$7 billion, 7th largest globally Target set
Slide 4: 2006 Production: Meeting the Targets
2006 PRODUCTION: MEETING THE TARGETS k, oz 1 215 1200 1 038 17% 172 Olimpiada mine + 9% 156 212 32 Kuranakh mine + 478% 27 800 15 854 Zapadnoye mine + 113% 783 Alluvials - 23% 400 0 2005 2006 17% year-on-year increase of production comes from Kuranakh mine acquisition and organic growth at Olimpiada
Slide 5: 2006 Performance: Emerging Top Global Player
2006 PERFOMANCE: EMERGING TOP 10 GLOBAL PLAYER 10th largest gold producer 6th largest reserves 2006 Top 10 Global Gold Producers, m oz 2006 Top 10 Global P&P Reserves (JORC), m oz 12,0 160 123 9,0 8,6 120 96 93 5,9 5,6 6,0 80 67 4,4 52 51* 51 45 40 3,0 2,4 40 33 1,7 1,6 1,5 1,5 1.2 1,2 18 - - Buenav
Slide 6: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE 735 Earnings per +55% share* = US$0.76 473 441 for the first year in the market 299 226 191 +57% 2004 2005 2006 Gold Sales, US$ million EBITDA, US$ million * - basic and fully diluted
Slide 7: Total Cash Costs: In Line with the Industry
TOTAL CASH COSTS: IN LINE WITH THE INDUSTRY TCC: Polyus Gold vs. Global TOP-10, US$/oz Polyus Gold TCC for 480 433 2006 are in the lower end of the sector 358 360 304 308 319 33% y-o-y increase in 278 282 278 line with the TOP-10 240 183 195 global producers average 120 Business rationale: 33 changi
Slide 8: Challenging Share Performance
CHALLENGING SHARE PERFORMANCE 120% Barrick Newmont Goldcorp Majors’ stock went down AngloGold GFI Polyus Gold since March 2007 as well as PLZL Polyus Gold case: the negative industry trend 100% coincided with the drop of the Russian market and the RTS index Now: unique chance of 80% investing in a p
Slide 9: Unprecedented Organic Growth Profile
UNPRECEDENTED ORGANIC GROWTH PROFILE 4.0 3.9 M oz + Nezhdaninskoye (250-300 k oz) Natalka Chertovo Koryto Blagodatnoye New operations 2.0 Verninskoye + 2.7 million oz Exploration projects 1.2 M oz Zapadnoye Olimpiada (expansion) Alluvials Kuranakh (expansion) 0.0 2006 2007 2008 2009 2010 2011 2012 2
Slide 10: Project Update: Blagodatnoye
PROJECT UPDATE: BLAGODATNOYE Construction of on-site infrastructure for 1000 workers to be in place by the end of 2007 Land property rights cleared Total CapEx for 2007: US$15.3 million Feasibility Study to be completed by the end of 2007 10
Slide 11: Project Update: Natalka
PROJECT UPDATE: NATALKA GKZ approved Scoping Study and listed 48 million oz of Russian B+C1+C2 “balance” reserves (+11 million oz of “off-balance” reserves) in December 2006 International engineering companies led by Knight Piesold Consulting hired to assist in the development of Pre-Feasibility (PF
Slide 12: Partnership with the Investment Fund
PARTNERSHIP WITH THE INVESTMENT FUND Polyus Gold projects were first presented at Investment Fund of Private Capital the Russian Economic Forum in Russian Federation St.Petersburg Polyus Gold applies with 2 projects to the ≈20% ≈80% Governmental Commission in 2007: Natalka (local power supply line),
Slide 13: Strategic Objectives for 2007
STRATEGIC OBJECTIVES FOR 2007 Unique exploration portfolio – new world class discoveries: Submission of Chertovo Koryto (Irkutsk) and Titimukhta (Krasnoyarsk) exploration results to the GKZ in Q3 2007 On-going delivery of corporate development and new projects: Launch of the new 5 mtpa mill at Olimp
Slide 14: OJSC Polyus Gold
OJSC POLYUS GOLD 15/1, TVERSKOI BOULEVARD MOSCOW, RUSSIAN FEDERATION TEL/FAX: +7 495 641 33 77 INFO@POLYUSGOLD.COM WWW.POLYUSGOLD.COM Shares Outstanding 173 million Market Cap US$7 billion (as of June 2007) PLZL: RTS & MICEX (local shares) PLZL: LSE, Main Market (ADRs) OPYGY: OTC (ADRs)
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