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	4.1
Polymetal	3.8
Agnico Eagle	2.2
Anglogold	1.9
Barrick	1.7
Newmont	1.1
Pan American	1.1
Centerra	0.9
Newcrest	0.8
Kinross	0.7
Yamana	0.6

Source: Companies' data for FY2020

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.

0.8x

0.8x net debt/ebitda as at 31.12.2020

DY paid: 5-year average, %

Centamin	5.7
FTSE 100	4.4
Polymetal	4.1
Polyus	3.6
Fresnillo	1.8
Endeavour	1.7
Centerra	1.5
Newmont	1.4
Gold Fields	1.4
Hochschild	1.2
FTSE GM	1.1
Agnico Eagle	1.0
B2Gold	0.9
Barrick	0.9
Yamana	0.8
Pan American	0.7
Kinross	0.7
Eldorado	0.6
Anglogold	0.6
IAMGOLD	0

Source: Company, Thomson Reuters and Bloomberg data

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.

27.2 Moz GE

Ore Reserves as at 01.01.2020
(+3.2 Moz / +13% y-o-y)

3.8 g/t

GE grade — one of the highest grade in the sector

2020 reserve per share, y-o-y change, %

Yamana	73
Kinross	22
Polymetal	10
Agnico Eagle	8
Hochschild	6
Centerra	0
Pan American	-4
Barrick	-4
Fresnillo	-7
Newcrest	-11
Newmont	-13
Anglogold	-33

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.

+93% from 2012 to 2020

	Guidance	Actual	%
2012	750	809	+8
2013	960	1032	+7
2014	1075	1184	+10
2015	1085	1129	+4
2016	1125	1134	+1
2017	1270	1299	+2
2018	1415	1427	+1
2019	1435	1496	+4
2020	1500	1599	+4

Notes: Historical gold equivalent guidance recalculated using 120:1 Ag oz/Au oz, 1:5 Cu mt/Au oz and 1:2 Zn mt/Au oz conversion ratios