Reasons to invest in Polymetal

Return on investment in the precious metals industry is reliant on grades and mining conditions. We achieve better returns and lower risks from our project portfolio by setting appropriate thresholds on head grades and largely focusing on open-pit mines.

Average reserve grade (2P reserves), g/t of GE

Hochschild	5.6
Polymetal	3.7
Highland*	3.2
Agnico Eagle	2.9
Gold Fields*	2.8
Barrick	2.4
Endeavour	1.9
Polyus*	1.8
Anglogold	1.5
Newmont	1.5
Pan American	1.4
B2Gold*	1.3
Newcrest	1.3
Fresnillo	1.2
Centamin*	1.2
Centerra	1.1
Petropavlovsk	1.0
Kinross	0.7

Source: Companies' data for FY2019
*2018 data

Polymetal has been developing refractory ore deposits since 2007. Our pressure oxidation (POX) processing hub in Amursk, which is now undergoing a major expansion, was key to extracting value from Albazino, Mayskoye, and, more recently, Kyzyl, as well as Nezhda in the near future. Moreover, as more and more gold resources globally tend to be refractory, our technological expertise in environmentally friendly refractory ore processing will be a key strategic advantage, including being in the market buying third party feedstock.

Production, GE Koz

We engender a strong focus on capital discipline throughout the business; maximising risk-adjusted return on capital is our priority in all investment decisions. We do not retain excess cash and return free cash flow to shareholders through substantial dividend payments while maintaining a safe leverage level.

6.5%

6.5% dividend yield for 2019 *

1.4x

1.4x net debt/ebitda as at 31.12.2019

DY paid: 5-year, %

Polyus	5.2
Centamin	5.1
FTSE 100	4.3
Polymetal	4.1
FTSE 250	3.2
Centerra	2.0
Fresnillo	1.6
Pan American	1.6
Yamaha	1.3
Gold Fields	1.3
Newmont	1.2
FTSE GM	1.2
Newcrest	1.1
Barrick	1.0
Agnico Eagle	0.9
Anglogold	0.6
Eldorado	0.5
B2Gold	0.3
IAMGOLD	0
Kinross	0

Source: Company, Thomson Reuters and Bloomberg data
* DPS declared for 2019 ($0.82) dividend by 2019 average share price ($12.7)
** Including special and final dividend declared for 2019

We believe that good corporate governance is key to the ongoing success of the business and value creation for our stakeholders. We are compliant with all regulatory requirements and best international practices being recognised as a corporate governance leader.

We are ahead of many of our peers in our ESG projects. Our achievements are recognised by both the rating agencies and the investor community: Polymetal is the only CIS-focused mining company listed on the Dow Jones Sustainability Index; we are included in the FTSE4GoodIndex Series; we received upgraded ratings in the MSCI ESG Ratings assessment and ISS-Oekom Corporate Rating; and we won the international award for most effective integration of ESG from the Investor Relations Society.

Recognition of our efforts to date

Investment in both greenfield and near-mine exploration provides us with a cost-effective increase in our reserve base and, along with successful acquisitions, is the key source of our long-term growth.

25.2 Moz GE

Ore Reserves as at 01.01.2020
(+1.2 Moz / +5% y-o-y)

2019 reserve per share, y-o-y change, %

Pan American	75
Newmont	29
Polymetal	5
Centerra*	2
Petropavlovsk*	1
Anglogold	0.3
Centamin*	-0.1
Gold Fields*	-1
Newcrest	-3
Hochschild	-3
Kinross	-5
Fresnillo*	-6
Agnico Eagle	-6
Polyus*	-7
Endeavour*	-10
Highland*	-11
B2Gold*	-14
Barrick	-17

Source: Companies' data
* 2018 over 2017

We pride ourselves on our operational excellence and delivering on our promises to shareholders. Despite difficult trading conditions, we beat our production guidance for the eighth consecutive year.

+70% from 2012 to 2019

	Guidance	Actual	%
2012	885	952	+8
2013	1090	1168	+7
2014	1190	1312	+10
2015	1220	1267	+4
2016	1260	1269	+1
2017	1400	1433	+2
2018	1550	1562	+1
2019	1550	1614	+4

Notes: Historical gold equivalent guidance recalculated using 80:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conversion ratios