Investor presentationOctober 2017
Kyzyl processing plant construction
Growth and Dividends
| 2
Disclaimer
This presentation includes forward-looking statements that involve know n and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are
based on the directors’ beliefs and expectations about future events. These forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions, predictions and other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,”
“estimate,” “forecast,” “project,” “will,” “may,” “should”, “shall”, “could”, “risk”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned” and similar expressions or the negative thereof
identify certain of the forward-looking statements. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for futuregrowth; liquidity, capital resources and capital expenditures; growth in demand for products; economic outlook and industry trends; developments of markets; the impact of regulatory
initiatives; and the strength of competitors. The forward-looking statements in this presentation are based upon various assumptions and predictions, many of which are based, in turn, upon
further assumptions and predictions, including, without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data
available from third parties. Although the Company believes that these assumptions w ere reasonable w hen made, these assumptions are inherently subject to signif icant uncertainties and
contingencies which are diff icult or impossible to predict and are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. Manyfactors could cause the actual results to differ materially from those contained in predictions or forward-looking statements of the Company, including, among others, general economic
conditions, the competitive environment, risks associated with operating in Russia and Kazakhstan, rapid technological and market change in the industries in which the Company operates,
as well as other risks specif ically related to the Company and its operations. Past performance should not be taken as an indication or guarantee of future results, and no representation or
warranty, express or implied, is made regarding future performance. Neither the Company, nor any of its agents, employees or advisors intend or have any duty or obligation to supplement,
amend, update or revise any of the forward-looking statements contained in this presentation. to reflect any change in their expectations or any change in events, conditions orcircumstances on w hich such statements are based
Nothing in this presentation constitutes an offer, invitation, recommendation to purchase, sell or subscribe for any securities in any jurisdiction or solicitation of any offer to purchase, sell or
subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act asany inducement to enter into, any investment activity.
To the extent available, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, studies
and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such
data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verif ied the datacontained therein. In addition, certain of the industry, market and competitive position data contained in this presentation come from the Company's own internal research and estimates
based on the know ledge and experience of the Company's management in the market in w hich the Company operates. While the Company believes that such research and estimates are
reasonable and reliable, they, and their underlying methodology and assumptions, have not been verif ied by any independent source for accuracy or completeness and are subject to
change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. The information
contained in this presentation has not been independently verif ied. Neither the Company, any of its aff iliates, subsidiaries or subsidiary undertakings nor any of their respective advisors orrepresentatives makes any representation or warranty, express or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or
opinions contained in this presentation. Percentages and certain amounts included in this presentation have been rounded for ease of presentation. Accordingly figures shown as totals in
certain tables may not be the precise sum of the figures that precede them. Neither the Company, or any of its aff iliates, advisors or representatives accepts any liability w hatsoever (in
negligence or otherw ise) forany loss howsoeverarising fromany information contained in the presentation.
Polymetal today
High-quality operating assets and growth projects
| 3
˃ 6 operations in Russia, 1 in Kazakhstan and 1 in Armenia
˃ 1 POX facility and 4 major development projects
˃ Market cap of US$ 5.1 billion*, FTSE 250 constituent
Notes:
*As at market close 18.10.2017
Production results Kyzyl Operations
˃ Record quarterly production of 470
Koz of GE, up 26% y-o-y.
˃ 9M production of 1,028 Koz of GE,
up 15% y-o-y and in line with the
FY2017 production guidance of 1.4
Moz of GE.
˃ Polymetal generated FCF during the
quarter which was used to pay
US$60M in interim dividends and a
US$20M consideration for a stake
increase in the Nezhda gold property.
˃ Polymetal re-confirms its production
guidance for FY2018 at 1.55 Moz of
GE and for FY2019 at 1.7 Moz of
GE.
| 4
˃ At Kyzyl, all major processing
equipment has been installed
and the external electrical
infrastructure now fully
operational.
˃ Construction activities are now
focused on finalising the TSF.
˃ First fresh ore from the open
pit is expected in March of
2018.
˃ The project remains on
track to produce its first
concentrate in Q3 2018.
˃ Svetloye heap leach operation
fully ramped up with significant
contributions in Q3.
˃ Updated reserve estimate at
Komar adds 535 Koz of gold with
stable grades of 1.8 g/t to
reserves, extending the Varvara
hub mine life by 3 years, until
2032.
˃ Record quarterly production
achieved at Albazino and
Varvara.
Q3 operational performance
Highlights
| 5
> Deliver a significant and sustainable dividend
> Ensure significant and profitable growth
> Control costs and replace reserves at operating mines
> Deliver medium-term growth at Kyzyl
> Build and advance a long-term growth pipeline
> Maintain highest standards of corporate governance and sustainable development
Simple strategic objectives and clear execution priorities
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1,269 1,400 1,470 1,420 1,470
80 280330
1,269
1,400
1,550
1,700 1,800
2016A 2017E 2018E 2019E 2020E
Kyzyl
Existingoperations
69% 77% 82% 87% 87%
2016A 2017E 2018E 2019E 2020E
Gold production, Koz of GE1
Notes:
GE at 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conv ersion ratios.
Share of gold in production1
We have robust growth profile
5-year results: we deliver on production
| 7
900
1,090
1,190 1,2201,260
952
1,168
1,312 1,267 1,269
2012 2013 2014 2015 2016
Guidance
Actual
+6%
+7%
+10%
Annual production based on 80:1 Ag/Au ratio (Koz of GE)*
+4%
* Company historical gold equiv alent guidance recalculated using 80:1 Ag oz/Au oz conv ersion ratio.
+1%
| 8
4.5%
3.2%
2.7%2.4% 2.3% 2.2% 2.2% 2.1%
1.9% 1.8%1.6% 1.6% 1.5% 1.4% 1.4%
0.8% 0.7%
0.0%
Poly
meta
l
Centa
min
Pan A
merican
Cente
rra
Acacia
Yam
ana
Tahoe
Kin
ross
New
mont
Barr
ick
Gold
field
s
FTS
E G
M
Agnic
o E
agle
Anglo
gold
New
cre
st
Eld
ora
do
Randgold
New
Gold
5Y Sector-leading dividend yield
18%11%
3%
-9% -24%
-26%
-39% -51% -51%-57% -58% -65%
-66% -70% -71% -72% -72% -79% -80%-88%
Centa
min
Agnic
o E
agle
Poly
meta
l
Randgold
Fre
snill
o
Gold
New
mont
New
cre
st
Silv
er
FTS
E G
M
Cente
rra
Acacia
Barr
ick
Kin
ross
Gold
field
s
New
Gold
Tahoe
Anglo
gold
Yam
ana
Eld
ora
do
5Y* TSR
5-year results: dividend yield and TSR
Notes:
Bloomberg data as at market close 19.10.2017
*since POLY IPO
We have high-grade reserves
| 9
Average reserve grade (2P reserves), g/t GE
Source: Company data. Gold, silv er, copper prov ed and probable reserv es as of 01.01.2017
GE at 80:1 Ag oz/Au oz and 1:5 Cu mt/Au oz conv ersion ratios.
4.23.8
6.3
2.8
3.6
2.9
2.31.9 1.7 1.6 1.4 1.4 1.4 1.3 1.3 1.3
1.1 1.1 1.1 1.0 0.9 0.90.7
Acacia
Avera
ge
Unde
rgro
und
Op
en
-pit
Rand
go
ld
Go
ld F
ield
s
Agn
ico
Ea
gle
Pan
Am
erican
Go
ldcorp
Eld
ora
do
Iam
gold
Ang
log
old
Fre
snill
o
Barr
ick
New
mon
t
Yam
ana
New
crest
Centa
min
New
Gold
Bue
na
ventu
ra
Ta
hoe
Kin
ross
Cente
rra
Polymetal
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1,182
1,063
1,002 974 964
937 931 906
879 869 863 854 844 836 789 787
779 750 728 725
664
597
Harm
ony
Anglo
gold
IAM
GO
LD
Go
ld F
ield
s
Kin
ross
AC
AC
IA
Yam
ana
New
mont
Hoch
sch
ild
Agnic
o-
Eagle
Eld
ora
do
New
Gold
Tahoe
Poly
meta
l
Go
ldco
rp
New
cre
st
Centa
min
Randgold
Fre
snill
o
Barr
ick
Cente
rra
Poly
us
All-in sustaining cash costs for 12 months ending 30 June 2017, US$/oz of GE
Source: Companies’ data on co-product basis f or the 12 months ending 30 June 2017. Centamin, Centerra Gold, Tahoe: AISC reported on by -product basis
Hochschild: AISC based on Ag/Au ratio of 74
US$ 1,259 oz – average LBMA gold price for the period
We control our costs
| 11
145 157 145 150 170
47 45
50 50
50 32
86
145
80
30
30
30 224
288
370
310
250
2015A 2016A 2017E 2018E 2019E
Long-term growth projects
Kyzyl and POX expansion
Exploration
Stay-in-business CapEx
Capital expenditures, US$M
Our business model is capital-light
Notes: Long-term growth projects include Prognoz, Viksha and Nezhda.
Total capital expenditure in 2015-2016 includes amounts pay able at the end of the period. On a cash basis, capital expenditure was US$ 271 million in 2016 (2015: US$ 205 million).
We generate significant free cash flow
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2.2
1.1
(1.1)
OCF Capex FCF (Pre-M&A)
Randgold
2.5
1.1
(1.4)
OCF Capex FCF (Pre-M&A)
Polymetal
2.8
0.3
(2.4)
OCF Capex FCF (Pre-M&A)
Fresnillo
Pre-M&A free cash flow in 2012-2016, US$ bn
Notes:
Company data. Free cash f low (pre-M&A)
| 13
… and we deliver meaningful cash returns to shareholders
Total Dividends and FCF for 2012-2016, US$ bn
1.11.1
0.3
0.9
0.2
1.1
Polymetal Randgold Fresnillo
Pre M&A FCF Dividends
Notes:
Company data. Free cash f low (pre-M&A)
| 14
Notes:
1) As at market close 19 October 2017 based on div idends paid
Dividends, US$ per share
> US$ 1,048 million paid out
since IPO
> Interim dividend for 1H 2017
increased by 55% y-o-y to
US$ 0.14 per share
> LTM yield of 4.0%
> Average 5-year yield of
4.5% (1)
(1)
Track record of substantial dividend payments
0.20
0.32
0.16 0.21 0.22
0.32
0.50
0.20
0.30
0.15
0.70
0.32 0.36
0.51
0.37 0.32
2012 2013 2014 2015 2016 1H 2017
Special at the discretion of the Board
Regular (50% of underlying net income starting FY2017, before that - 30%)
Liquidity profile
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Robust liquidity profile: US$ 1.1 bn of undrawn credit facilities
Current leverage at 2.19x Net Debt/ Adjusted EBITDA but is expected to decrease below 2.0x by year’s end
Low cost of debt below 4% with an average maturity of >4 years
Net debt of US$1.6bn*, 100% bilateral and denominated in US dollars
Notes:
*As at 30.09.2017
New maturity profile, US$M(long term loans only)
26
102
238
454
372
100 50
2018 2019 2020 2021 2022 2023 2024
46% 54%
Fixed Floating
Interest rate breakdown(long term loans only)
| 16
FY2016 FY2017
Production, GE Koz 1,269 1,400
TCC, US$/GE oz 570 600-650
AISC, US$/GE oz 776 775-825
Capital expenditure, US$M 271 370
Free cash flow, US$M 257 Positive
Regular dividend Paid Definitely
Special dividend Paid Decision in January*
Gold, US$/oz. 1,250 1,200
Silver, US$/oz. 17.3 16.0
RUR/USD rate 67 60
Brent oil, US$ 49 60
FY2017 Outlook
On track to deliver on production and cost guidance
*Based on FCF post regular dividends and gold price
| 17
We continue to provide both valuation upside and meaningful current income
67x 62x54x 52x 47x
38x 38x31x 31x 30x 30x 28x 27x 24x 21x 16x 16x 14x 13x 12x 11x 10x 9x 8x
Ya
man
a
New
Gold
Ag
nic
o E
agle
Eld
ora
do
An
glo
go
ld
Hoch
sch
ild
Kin
ross
Go
ldco
rp
Pa
n A
meri
ca
n
New
cre
st
Ran
dgo
ld
Fre
sn
illo
New
mo
nt
Go
ld F
ield
s
Ba
rric
k
Cen
tam
in
Bu
en
aven
tura
Ta
hoe
Po
lym
eta
l
Oce
ana
Gold
Aca
cia
Harm
on
y
Po
lyu
s G
old
Cen
terr
a
2017E P/E
Source: Bloomberg & Capital IQ data as at market close 19.10.2017
5.7%
4.1% 4.0% 3.9%3.2% 2.9%
1.9% 1.9%1.4% 1.1% 0.9% 0.9% 0.9% 0.9% 0.8% 0.8% 0.7% 0.6% 0.6% 0.6% 0.5% 0.5% 0.4% 0.4%
0.0% 0.0%
Ce
nta
min
Po
lyu
s G
old
Po
lym
eta
l
FT
SE
35
0
Ta
ho
e
Ha
rmo
ny
Aca
cia
Go
ld F
ield
s
Ce
nte
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Go
ld
Fre
sn
illo
An
glo
go
ld
Ra
nd
go
ld
FT
SE
GM
Oce
an
a G
old
Ag
nic
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ag
le
Ya
ma
na
Ne
wcre
st
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Ho
ch
sch
ild
Go
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Bu
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ave
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Ba
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Pa
n A
me
rica
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Ne
wm
on
t
Kin
ros
s
Ne
w G
old
LTM Dividend yield
| 18
Kyzyl and Amursk projects update
| 19
Kyzyl is one of the best development-stage gold projects in the world
> Large: 7.3 Moz of gold reserves, of which 3.1 Moz is open pit
> High-grade: 7.7 g/t with 6.9 g/t in the open pit
> Excellent exploration upside: 3.1 Moz of additional resources at 6.8 g/t
> Technology: Flotation followed by concentrate offtake or POX processing
> LOM: 22 years (first 10 years open pit)
> Low capital intensity: US$375M (open pit + flotation + POX expansion)
> Robust economics:*
• US$ 488/oz TCC
• US$ 518/oz AISC
• 33% IRR
• US$ 750M NPV
Notes:
*Based on 10% discount rate. the gold price of US$ 1,200/oz, RUB/USD exchange rate of 64 and Tenge/USD exchange rate of 300.
.
| 20
Permitting Engineering Contracting Construction
Open pit
Processing
plant
External
Infrastructure
100 % 100% 100 % 95 %
100% 100 % 50 %
100 % 100 % 100 % 95 %
100 %
Internal
Infrastructure
Tailings storage
100 % 100 % 100 % 80 %
100 % 100 % 95 % 50 %
KyzylCompletion scorecard
| 21
External power supply facilities (ETL и MSDS) 100%
On-site & Auezov village boiler houses 100%
Maintenance shop 75%
Processing plant building 100%
Kyzyl infrastructure Progress
| 22
KyzylOpen pit
| 23
> Expand the capacity of the existing POX plant by ~50% in terms of concentrate
processed (now limited by the oxygen plant capacity) by debottlenecking the existing
POX facility at low capital cost (US$ 55M)
> Materially improve economics of the Kyzyl project by retaining ~50% of concentrate
for in-house treatment at the POX by:
> Increasing gold recovery from the Kyzyl concentrate to 95%
> Bringing down processing and transportation costs
> Strengthen Polymetal’s commercial position on the concentrate market vis-à-vis off-
takers
> Add development optionality for other refractory gold projects in the Company’s
portfolio
Amursk POX expansion project
Operating synergies with Kyzyl
| 24
Permitting Engineering Contracting Construction
Hydrometallurgical
plant
Oxygen
station 2
Other processing
objects
100 % 90% 65% 50%
100% 50% 30 %
100 % 80% 65% 40%
90 %
Infrastructure 100 % 55 % 85% 0 %
Amursk POX expansion projectCompletion scorecard
Ramp up to full expanded capacity by 2H 2018
| 25
Amursk POX expansion project
Construction progress
Oxygen Plant No 2 30 % Cooling and neutralization area 55 %
Leach tailings filtration area 30 %Dry coolers 50%
> Key additions to the equipment will comprise a 2nd oxygen plant, an autoclave discharge thickener, separate filters for
thickener underflow, and upgrades for heat recovery and water treatment systems
| 26
Further growth opportunities
Nezhda – a very large high-grade gold project
| 27
> Substantial resource (JORC-compliant): 11 Moz of GE at 4.8 g/t of which 2.1 Moz at 3.8 g/t is open-pit
> Low capital intensity and excellent fit with Polymetal’s core capabilities: processing via flotation followed by concentrate
offtake
> Polymetal entered into binding agreement to increase its current 17.7% stake to 24.7% for $8M with a call option to buyout the remaining 75.3% based on the results of an initial JORC-compliant reserve estimate at $100/oz of attributable gold reserves. The
call option premium is $12M in cash.
> The call option is exercisable in 2018 with the total consideration capped at $180M of which $10M will be paid in cash and the rest in shares.
> First JORC-compliant reserve statement in 2H 2017 and development decision in Q3 2018
5 000 m
10
00
m
0-5
5-25
25-50
50-70
70-100
100, ceiling
Legend, AU m*g/t
Nezhda: progress
| 28
2017
2018
Exploration
Geomechanical and mining
method studies
Preparation of JORC-compliant MR estimate
Further exploration of ore zone1 and adjacent areas to grow
open-pittable resources
• Upgrade of inferred resources into indicated
Construction expected to start in 2019 with
potential start of production in 2021
Technology
Pilot plant test-work
Hydrometallurgical studies
(concentrate) Study of concentrate
thickening and filtration Reagent mode optimization
Issue of operating
procedure
Design
Optimization of open-pit
mining
• Project documentation for processing facility
• Processing equipment marketing
• JORC-compliant CPR
Notes:
Start of construction and production is subject to positiv e dev elopment decision
Design
• Preparation and audit of PFS
• Development of project
documentation
Exploration
• Continue exploration activities at
adjacent areas to grow open-
pittable resources• Additional exploration of
potential ore zones for underground mining
• Further upgrade of inferred
resources into indicated
Development
• Development decision
Viksha – our first PGM asset
| 29
Gra
m-m
ete
r
(gm
-m)
One of the
largest open
pittable PGM
resources in the
world
Consistent gram-meter (gm-m) down dip (Pd eq.* ore body width)
˃ 20-year mining licence granted on July 18, 2016 for a project
area of 47km2
˃ Mineral Resources: 213 Mt at 0.98 g/t of combined precious
metals, total content at 6.6 Moz
˃ Processing: conventional flotation processing to produce bulk copper-PGM sulphide concentrate + off-take
˃ Average thickness: 7 m
˃ Depth of open pit: 150 m
Viksha: project timeline
| 30
2016
2017
2018
2019
Q1
License documents submitted for
governmental
approval
Q2
Received governmental approval
New mining license
granted
Q4
Exploration program approved and being
launched
Q1
Geological engineering survey
Q3
• Pilot plant testwork
Q4
• Confirmatory testwork
Q2
• Exploration completed• Start of feasibility study development and reserves estimate
Q3
• Submission of Russian FS to Subsoil agency (Rosnedra) and get reserves on balance• Bankable FS and development decision
Potential start of production in 2022 Notes:
Start of production subject to positiv e dev elopment decision
Prognoz – the largest undeveloped primary silver deposit in Russia
| 31
* Estimated by Micon in 2009
Key facts
Ownership:
> 5% with an option to increase stake to 50% (investment decision
to be made no later than Q1 2020)
> the other 50% owned by financial investor and potentially
available
Mineral resources: 292 Moz at 586 g/t* silver, 3% lead
Additional mineral potential: 7.9 - 18.1 Mt of ore at 469 g/t silver for
119 – 273 Moz of silver contained*
Mining method: Open-pit (5-8 years), followed by underground
Throughput: ~1 Mtpa
Production: 20 Moz of silver per annum (100%)
Capex: ~$250M (100%)
Top silver development projects globally
| 32
Source: Company reports, BMO Capital Markets
Silve
r g
rad
e, g
/t
0
200
400
600
800
1000
0
200
400
600
800
Mangazeiskiy Juanicipio Prognoz Silvertip Los Gatos Webbs Terronera Fuwan Navidad La Preciosa Corani
Development projects – Ranked by Silver Grade
P+P M+I Inf. Ag grade, g/t
Silve
r co
nte
nt, M
oz
(BCM)(CDE)(CDE)(FRES;MAG) (POLY)(SBR) (DOWA) (Silv er Mines) (EXK) (MSV) (PAAS)
Prognoz: project timeline
| 33
2017
• Focus on exploration (at least 25km of diamond drilling)• Start of technical study development and reserve estimate
2018
• Preparation of preliminary feasibility study• No later than 31 March 2019 - completion of pre-feasibility study and externally audited JORC-compliant reserves
estimate followed by investment decision
2019
• Preparation of the FS (combined mining method, reserves estimate)• Design of processing plant and infrastructure
2020
• Completion of permitting stage• Development decision and start of construction
Potential start of production in 2023
Notes:
Start of production subject to positiv e dev elopment decision
| 34
Operating assets review
| 35
Key facts:
> Location: Magadan Region, Russia
> Life of mine: 2023
> Mining: Underground
> Processing: 1.8 Mtpa concentrator and 425 Ktpa Merrill
Crowe plant
> Reserves (JORC): 2.1 Moz GE at 4.7 g/t including 142
Moz of silver at 327 g/t
> Resources (JORC): 0.6 Moz GE at 13.3 g/t including 43
Moz of silver at 886 g/t
> Employees: 1,897
Dukat
Operation
Development
Plant
City
| 36
Gra
de
, (g
/t)
Notes:
GE produced at 80:1 Ag oz/Au oz; SE (silv er eq.) per oz sold based on actual realised prices (f or AISC)
1,574 1,711 1,817 1,938 1,463
338400
416435
346
1,912 2,111
2,233 2,373
1,808
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, KtDukat concentrator Lunnoye plant
317 344
393 369
241
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
6.0 5.8 6.4 5.6 4.7
13.9
10.9
7.8 8.0
10.2
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/SE oz)
Dukat
1,253 1,468
1,656
1,661
1,211
168
191201 183
143
394
384
401 435
419
48111,815
2,0432,258 2,279
1,833
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined, KtDukat Goltsovoye Lunnoye Nachalny-2 Terem
˃ Start of production from high-grade satellite deposits
˃ Terem (mineral resources1 of 690 Kt, at 21.9 g/t GE) and Nachalny – 2 introduced to the feed in Q3 2017
˃ Perevalnoye (ore reserves of 350 Kt, at 5.9 g/t GE) in Q4 2017
˃ Primorskoye (mineral resources of 500 Kt, at 19.6 g/t GE) in Q3 2019
˃ Step-out exploration at deeper flanks of Dukat and Lunnoye
˃ Removal of left-behind pillars and lower-grade stopes where no minimal development is needed through application of differentiated cut-off grade
| 37
˃ Extend LOM to 2027 while maintaining stable costs
˃ Slow down grade erosion and production decline
˃ Improve processing capacity utilization
Notes:
1) Unaudited mineral resource estimate
Dukat: operational priorities
| 38
Albazino
Key facts:
> Location: Khabarovsk Territory, Russia
> Commissioning: 2009
> Life of mine: 2031
> Mining: Open pit/Underground
> Processing: 1.6 Mtpa flotation circuit followed by
POX and CIL processing at Amursk Hub
> Reserves (JORC): 2.0 Moz GE , 4.2 g/t
> Resources (JORC): 1.7 Moz GE , 5.3 g/t
> Employees: 988
| 39
Albazino
Gra
de
, (g
/t)
1,513 1,609 1,607 1,654
1,291
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
238 227 220 244
197
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
5.6
4.85.2 5.0
4.8
1,139
901
667 684
893
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/GE oz)
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
1,338 1,566 1,5831,866
1,217
49
267
2501,338
1,566 1,632
2,133
1,467
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined, Kt
Open-pit Underground Total
86.0%
93.8% 94.0% 94.0% 96.1%Recovery
(POX), %
˃ Acceleration of satellite open-pit development:
˃ Ekaterina 1 (ore reserves of 380 Kt at 3.5 g/t GE)
˃ Ekaterina 2 (ore reserves of 1,170 Kt at 2.6 g/t GE)
˃ Ekaterina 3 (ore reserves of 200 Kt at 3.5 g/t GE)
˃ Farida (mineral resources of 610 Kt at 4.0 g/t GE)
˃ Continued resource-to-reserve conversion in the underground mine
˃ Continued near-mine exploration
Albazino: operational priorities
| 40
Stable production and costs for the next
10-12 years
| 41
Mayskoye
Key facts:
> Location: Chukotka, Russia
> Commissioning: 2011
> Life of mine: 2034
> Mining: Underground and open pit
> Processing: 850 Ktpa flotation concentrator/CIL
> Reserves (JORC): 1.4 Moz GE, 6.9 g/t
> Resources (JORC): 3.2 Moz GE , 11.9 g/t
> Employees: 977
Operation
Development
Plant
Sea port / City
| 42
Mayskoye
48
143 138
116
90
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
NR
1,134
935
1,242
FY 2013 FY 2014 FY 2015 FY 2016
AISC (US$/GE oz)
667 653 628 730 766
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined, Kt
Gra
de
, (g
/t)
488
807
683 761
649
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
7.1
8.7
6.7 5.3 5.9
10.0 10.5
13.8
19.5
14.4
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Underground development, Km
˃ Debottlenecking of the CIP section to achieve design recovery levels for oxidised ore from the open pit
˃ Maintain safety, productivity and grade control underground
˃ Accelerate resource-to-reserve conversion both in the open pit and underground
Mayskoye: operational priorities
| 43
Stable production for the next 8-10 years with
2017-2019 costs lower by 25-30% vs 2016
| 44
Omolon
Key facts:
> Location: Magadan Region, Russia
> Commissioning: 2010
> Life of mine: 2024
> Mining: Open pit/Underground
> Processing: 850 Ktpa CIP and Merrill
Crowe,1000 Ktpa HL
> Reserves (JORC): 1.5 Moz GE, 3.7 g/t
- CIP: 1.2 Moz GE at 6.8 g/t
- HL: 0.3 Moz GE at 1.3 g/t
> Mineral resources (JORC): 0.6 Moz GE, 10.3 g/t
- CIP: 566 Koz GE at 11.9 g/t
- HL: 16 Koz GE at 1.9 g/t
> Employees: 725
Operation
Development
Depleted
Plant
City
| 45
767 825 835 840
1,008
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
1,322
722 732 675
901
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/GE oz)
Gra
de
, (g
/t)
147
213
188 170
140
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
6.68.4 7.5 7.0
5.0
Omolon: operational statistics
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
2,0652,488 1,990
2,061
378
4172
190
2,065
2,488
1,9942,233
567
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined, KtOpen-pit Underground Total
˃ Smooth roll-over from older depleted ore sources (Tsokol, Dalneye) to Birkachan, Oroch
˃ Continued resource and reserve accretion at Olcha, Sopka, Nevenrekan, Yolochka
˃ Restart of Heap Leach operation at Birkachan
Omolon: operational priorities
| 46
˃ Stable production and costs for the next 7-8 years
˃ Advancing LOM extension options
Omolon: production by ore source
| 47
825 835 840 850 850 850 850
8.4
7.5
7.0
7.6
7.0
7.9
7.0
0
2
4
6
8
0
300
600
900
1200
1500
2014 2015 2016 2017E 2018E 2019E 2020E
Ore processed breakdown, Kt
Birkachan Sopka Tsokol Olcha Dalneye Oroch Grade GE, g/t
Grade GE, g/t
| 48
> Location: North-western Kazakhstan
> Commissioning: 2007 (operated by Poymetal since 2010)
> Life of mine: 2032
> Mining: Open pit
> Processing: CIL (2.5 Mtpa)/ flotation (1 Mtpa)
> Total Reserves (JORC)*: 3.4 Moz GE, 1.6 g/t
- Komar: 1.4 Moz GE at 1.8 g/t
- Varvara & others: 2.0 Moz GE at 1.5 g/t
> Total Resources (JORC): 2.9 Moz GE, 1.8 g/t
- Komar: 0.5 Moz GE at 2.2 g/t
- Varvara & others: 2.4 Moz GE at 1.8 g/t
> Employees: 1,129
Key facts:
Varvara
Operation
Development
Plant
City
*Updated JORC-compliant reserv e estimate as of 01.06.2017
| 49
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
2,782
1,076
338
1,346
3,676 3,664 3,457
3,119
2,422
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
Varvara and other Komar
1,088 1,049
1,092
975
1,026
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/GE oz)
Gra
de
, (g
/t)
131
106
72 85 88
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
1.51.2
0.91.1 1.3
Varvara: operational statistics
2,820
1,070
383
1,363
2,008
3,985 4,068
3,203
2,433
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined by source, Kt
Varvara Komar Total
Varvara: operational priorities
| 50
>Evaluation of in-pit waste storage at both Komar and Varvara with the goal to reduce operational footprint and cut costs by reducing average waste haulage distance twofold
>Optimisation of the long-term mine plan for the hub as a whole with evaluation of strategic options for
assets on the Russian side of the border (Tarutin, Maminskoye)
>Continued active presence on the market for 3rd party ore
˃ Komar will drive a strong jump in production at
Varvara in 2017
˃ Stable production for the next 10-12 years
˃ Costs trending lower 15-20% vs 2016
| 51
Key facts:
> Location: Khabarovsk Region, Russia
> Commissioning: 2003
> Life of mine:
- Okhotsk – 2019
- Svetloye – 2024
> Mining: Open pit/Underground
> Processing: 600 Ktpa Merrill Crowe, 1000
Ktpa HL circuit at Svetloye
> Reserves (JORC): 0.9 Moz GE, 3.2 g/t
average grade
- Svetloye: 675 Koz GE at 2.8 g/t
- Okhotsk: 201 Koz GE at 5.3 g/t
> Resources (JORC): 0.5 Moz GE, 5.2 g/t
average grade
> Employees: 1,182
Okhotsk
Operation
Development
Plant
Sea port
23 84
134 119 114 108
63
134119 114
131
147
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
Svetloye Okhotsk Total
| 52
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
619 622 631 627 467
428921
619 622 631
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
Okhotsk Svetloye Total
1,055
1,389
1,065
909
621
752
1,040
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/GE oz)
Okhotsk: operational statistics
697
1,077
399 14198
1,336
935
697
1,077
399
1,477
1,032
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore mined, Kt
Okhotsk Svetloye
Gra
de
, (g
/t)
7.5 6.7 6.2 4.94.7
| 53
>De-bottlenecking heap leach stacking capacity at Svetloye given significant expansion in ore reserves
following positive grade reconciliation after in-fill drilling and positive exploration results on the flanks
>Continued exploration at smaller high-grade satellite deposits potentially providing feedstock at Khakanja(Khotorchan, Kundumi, Kirankan)
>Advancing Levoberezhny, particularly the heap leachable oxide cap
>Evaluation of strategic options for the Khakanja plant and associated smaller deposits
˃ Stable production at very low costs at Svetloye
for the next 7-8 years
˃ Flexible ore source planning for Khakanja
Okhotsk: operational priorities
| 54
Key facts:
> Location: Sverdlovsk Region, Russia
> Commissioning: 2000 (HL), 2005 (CIP)
> Life of mine: 2027
> Mining: Open pit
> Processing: 950 Ktpa CIP circuit
> Reserves (JORC): 0.9 Moz GE , 2.5 g/t
> Resources (JORC): 0.8 Moz GE , 4.4 g/t
> Employees: 874
Voro
Operation
Development
Plant
City
| 55
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
924 915 924 1,001 752
850 747450 319
302
1,774 1,662
1,375 1,321
1,054
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Ore Processed, Kt
CIP HL
692
515
391 419
473
FY 2013 FY 2014 FY 2015 FY 2016 1H 2017
AISC (US$/GE oz)
Gra
de
, (g
/t)
154 159 141
129
88
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Production (GE Koz)
3.63.7
3.43.6
3.4
Voro: operational statistics
11 11 10 10
8
FY 2013 FY 2014 FY 2015 FY 2016 9M 2017
Waste mined, Mt
| 56
>Reserve estimate for Saum and Tamunier in 1H 2018
>Feasibility study for the joint development of Saum, North Kaluga and Tamunier with an upgrade of the existing CIP plant to include flotation circuit in Q3 2018
>Continue regional exploration and evaluation of bolt-on M&A opportunities
˃ Declining medium-term production and the
cessation of mining at Voro in 2019
˃ Stockpile processing in 2019-2027
Voro: operational priorities
| 57
Key facts:
˃ Location: Kapan province, Armenia
˃ Acquired by Polymetal: April 2016
˃ Mining: underground
˃ Processing: flotation concentration followed by offtake
˃ Life of mine: TBC in Q3 2017
˃ Ore reserves: TBC in Q3 2017
˃ Mineral resources (JORC):
- Kapan 1.9 Moz GE , 4.0 g/t average grade
- Lichkvaz 0.6 Moz GE , 4.2 g/t average grade
˃ Employees: 1,085
KapanOur first Armenian operation
Yerevan
St. Petersburg
2400 km
320 km
Kapan project
Lichkvaz
70 km
Azerbaijan
Turkey
Iran
Armenia
| 58
Notes:
GE produced at 80:1 Ag oz/Au oz; GE (gold eq.) per oz sold based on actual realised prices (f or AISC)
64
224 247
1H 2016 2H 2016 1H 2017
Ore Processed, Kt
1,930
1,184 1,197
1H 2016 2H 2016 1H 2017
AISC (US$/GE oz)
Gra
de
, (g
/t)
6
19
25
1H 2016 2H 2016 1H 2017
Production (GE Koz)
4.23.9
4.5
Kapan: operational statistics
2
7 8
1H 2016 2H 2016 1H 2017
Underground development, Km
| 59
> Carry on with improvement measures aimed at debottlenecking the underground mine
> Undertake additional drilling to produce a JORC-compliant reserve estimate and a combined LOM for Kapan and Lichkvaz in Q3 2017
> Continue active exploration activities in the region
Kapan: operational priorities
A capital-light regional processing hub with
sizeable production of more than 100 Koz of
GE per annum
| 60
Appendix
| 61
Sustainability is the only way forward
0strikes and lockouts
0major environmental incidents
5.5% staff turnover in 2016
0.2LTIFR
(4 fatalities in 2016)
US$13.6Mcommunity investments
2014-16
42% female qualified personnel
Member 2016/2017
25cooperation agreements with
communities
60hours of training per person
11,261 people
We are committed to delivering sustainable value
| 62
2016-2017 Sustainability highlights
> Signatory to the International Cyanide Management Code
> Leader for Environmental management in WWF/UN rating
> Completion of ESIA at Kyzyl (EBRD Environmental and Social Policy implemented)
> CarbonManagement and Human Rights Policies signed
> 50% reduction of extreme risks and 14% LTIFR reduction
> Biodiversity conservation incorporated into corporate environmental management
> Over 50 social service institutions renovated or upgraded in host communities
• \
| 63
Notes:
Shareholder structure data as of October 3. 2017
59% Free Float
27% ICT Group (Alexander Nesis)
13% PPF (Petr Kellner)
Christine Coignard
Senior INED
ex-MD HCF International
Advisors
Chair of the Remuneration Committee
Jonathan Best
INED
ex-CFO of AngloGold Ashanti
Chair of the Audit and Risk
Committee
Russell Skirrow
INED
ex-Chairman ML Metals/
Mining IB team
Leonard Homeniuk
INED
ex-President of Centerra
Gold
Chair of the Safety and Sustainability Committee
Jean-Pascal
Duvieusart
PPF Group
ex-Managing Partner at
McKinsey
Konstantin Yanakov
ICT Group Ltd
ex-CFO of Polymetal
Marina Gronberg
Vitalbond Ltd
Vitaly Nesis
Group CEO
Shares outstanding
430,115,480
1% Management
& Directors
Bobby Godsell
Chair
Chairman of Business Leadership South Africa,
ex-CEO of AngloGold Ashanti
Chair of the Nomination Committee
We are committed to highest standards of corporate governance
INED Non-independent
• 14% High net worth individuals
• 45% Institutional
investors
Shareholder structure Board of DirectorsThe majority of our Board is independent
We operate in stable low-risk jurisdictions
| 64
Type of risk Recent issues in mining jurisdictions
outside FSU
Russia/Kazakhstan/Armenia
Resource
nationalism
> Tanzania – export ban on concentrate since March + possible introduction of 1% clearing fee on mineral export value. Government blocks export of Petra diamond parcel
with risk of nationalisation
> Indonesia - Freeport McMoran divests ownership to local aluminum producer under gov’t pressure
Low risk
No instances of government overreach or licensing issues in hard rock mining in more than 10 years
Tax regime
> Burkina Faso – adoption of new mining code abolishes a previous 10% tax break on mining company profits (now 27.5%)
> South Africa – introduction of new 1% royalty on mine
turnover
> Zambia – increased electricity tariffs for copper mines
Stable tax regime
Relatively low
corporate and sectortaxation levels
No recent changes to royalty rates and mineral extraction tax;
Corporate tax rates stable at 20% since 2009 in Russia and Kazakhstan, and
since 2006 in Armenia
Environmental
/regulatory/
community
limitations
> Greece and some other EU countries – ban on project development for environmental reasons in many locations
> Philippines – ban on open-pit mining and closure of several operating mines involved in production of nickel for
environmental reasons
> Colombia – project suspension by government after
community anti-mining vote
Low risk No material issues
Labour issues > South Africa – miners’ strikes and instances of illegal
miners occupying mine sites
Low risk
None, unemployment rates at a low 5.3% in Russia, 4.9% in Kazakhstan and 17.4% in Armenia
Labour strikes extremely rare; labour
unions only traditionally influential in coal mining
Source: Publicly av ailable data
1H 2017 1H 2016 Change, % (1) FY 2016
Revenue, US$M 683 593 +15% 1583
Adjusted EBITDA, US$M 257 293 -12% 759
Adjusted EBITDA margin 38% 49% -11% 48%
Total cash cost (TCC), US$/GE oz 656 514 +28% 570
All-in sustaining cash cost (AISC), US$/GE oz 906 754 +20% 776
Net earnings/ (loss) for the period, US$M 120 165 -27% 395
Underlying net earnings, US$M 117 125 -6% 382
Underlying EPS, US$/share 0.27 0.29 -7% 0.90
Dividend declared during the period, US$/share (2) 0.18 0.13 +38% 0.37
Dividend proposed for the period, US$/share 0.14 0.09 +56% 0.37
Net operating cash flow, US$M 35 65 -46% 530
Capital expenditure, US$M 193 117 +65% 271
Free cash flow (pre M&A), US$M (3) (163) (53) +208% 257
30-June-17 31-Dec-16
Net debt, US$M 1,582 1,330 (4) +19%
Net debt/Adjusted EBITDA (5) 2.19 1.75 +25%
Financial highlights
Notes:
(1) % changes can be different from zero even when absolute amounts are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute amounts differ due to the same reason.(2) 1H 2017: f inal dividend for FY 2016 paid in May 2017. 1H 2016: final dividend for FY 2015 paid in May 2016.
(3) Net cash generated by operating activities less capital expenditures.(4) As at 31 Dec 2016. (5) On a last 12 months basis
| 65
Impact of Rouble appreciation on AISC
| 66
754
906
AISC 1H 2016 Domestic
inflation
Mining tax
change - Au&Ag
price
USD rate
change
Au/Ag ratio
change
Average grade
processed
Changes in
sales structure
Other AISC 1H 2017
AISC reconciliation, US$/oz
Source: Company data
GE based on actual realised prices
- 41
˃ AISC driven mostly by the increase in TCC as a result of continued Russian Rouble strengthening which was partially offset
by the robust operating performance at Varvara, Kapan and Svetloye (Okhotsk hub).
˃ We remain on track to meet the FY2017 AISC guidance of US$ 775-825/GE oz.
+ 37
- 5- 6
+ 139
+ 1+ 28
Financial performance is heavily dependent on the RUB/USD exchange rate and oil price dynamics
| 67
Labor, 24%
Fuel, 20%
Services, 23%
Grid power,
4%
Non-fuel consumables,
21%
Royalty, 8%
$ / RUB / Tenge
RUB/ Tenge
Oil
$ / Au
Oil / RUB /
Tenge
RUB / Tenge
RUB, 41%
Tenge, 9%
$, 20%
Oil, 30%
OpEx Structure, $/oz
> A 1 RUB movement in domestic
currency will have an US$8/oz effect
on TCC
| 68
RUB, 20%
$, 40%
Tenge, 40%
Project Capex (Kyzyl + Amursk + LT projects)
Sustaining Capex
RUB, 50%
$, 20%
Tenge, 30%
> A 10% devaluation of domestic currencies will have approx.
8% effect on the sustaining capex or ~US$8/oz
> A 10% devaluation of domestic currencies will have approx.
6% effect on the project capex (US$175M in 2017) or ~US$11
million
Capital expenditures also sensitive to FX dynamics
Reserves and resources
| 69
2.1
1.5
2.0
1.4
0.90.9
4.1
7.3
0.9
21.2
0.6
0.6
1.7
3.2
0.50.8
2.9
3.1
2.5
1.90.7
18.6
Dukat Omolon Albazino Mayskoye Okhotsk Voro Varvara Kyzyl Kapan Nezhda Other Total
Reserves Resources
Notes:
Reserv e and resource statement (JORC 2012) as at 01.01.2017 including updates f rom Dolinnoy e and Nezhda. Gold and silv er price assumptions of $1,200/oz and $16/oz respectiv ely .
*Assuming a reasonable resource-to-reserv e conv ersion
1) Includes Kapan and Lichkv az mines 2) Kuty n, Veduga
GE
Moz
4.7 3.7 4.2 6.9 3.2 2.5 1.8 4.3
Re
se
rve
g
rad
e, g
/t
2.7
2.0
3.7
4.7
1.41.7
7.0
1.6 38.6
2023 2024 2031 2034 2024 2027 2032
LO
M
7.7
2039
4.1
10.4
2.5
N/A
N/A
**
1 2
N/A
1.9