Polymetal announces solid production results for the second quarter of 2022.

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“In the second quarter, we met our production targets and are on track to meet our full year guidance. Russia continue to have a significant impact on sales, purchasing and logistics. Management is fully focused on maintaining the operational and financial stability of the Company,” said Vitaly NesisCEO of Polymetal Group.

STRONG POINTS

No fatal accidents occurred among the Group’s workforce and contractors in Q2 2022. During this period, two minor LTI incidents were recorded among employees. The Lost Time Injury Frequency Rate (LTIFR) for the six-month period decreased by 53% year-on-year to 0.08 (0.17 in the first half of 2021).

Gold equivalent production in Q2 (‘GE‘) was down 9% year over year to 326 koz. Lower grades and a planned long maintenance shutdown at the Amursk POX reduced production from Kyzyl and Albazino, which more than offset the new contribution from Nezhda.

GE the production of S1 is 697 Koz, down 7% over one year, of which 453 Koz in Russia and 244 Kz in Kazakhstan. ?OVID-related restrictions in China forced the Company to reduce gold concentrate shipments from Nezhda and Kyzyl. The Company reiterates its full-year production forecast of 1.7 Moz of GE (1.2 Moz in Russia and 500 Koz in Kazakhstan), however notes a risk of underperformance given the persistent blockages and logistical constraints in Chinese ports and railways.

At T2, 130 Koz of GE stocks of gold and silver bullion accumulated in the Group’s Russian mines. This gap between sales and production is expected to close during the third quarter as the company ramps up its export sales to various Asian markets.

Revenue for the quarter was down 36% year-on-year for US$433 millionwhile H1 revenue was down 18% at US$1,048 million (US$605 million Russia and US$443 million Kazakhstan). The negative momentum resulted from lower sales volumes due to inventory accumulation, while the average realized price was slightly higher.

Net debt at the end of the second quarter was approximately US$2.8 billion. A quarterly increase of US$0.8 billion was driven by the accumulation of ingot and concentrate inventories, the acceleration of equipment and spare parts purchases, the financing of critical subcontractors and suppliers and the upward revaluation in dollars US ruble-denominated debt driven by a significant strengthening of the ruble during the quarter. The Company maintains sufficient liquidity with US$0.5 billion in cash and US$0.4 billion undrawn lines of credit from unsanctioned banks.

Given the significant appreciation of the ruble against the US dollar, the company will update its full year 2022 cash cost and CAPEX guidance with the release of its first half 2022 financial results on September 22, 2022.

TELECONFERENCE AND WEBCAST

The Company will hold a conference call and webcast on Thursday, July 21, 2022 at 11:00 a.m. London time (13:00 Moscow time).

Contact:

T: +44 (0) 330 165 4012

TOLL FREE: 0800 279 6877

Such. : +1 646 828 8073

TOLL FREE: 800 289 0720

Such. : +7 495 646 5137

TOLL FREE: 8 10 800 2865 5011

To enter from other countries, please dial one of the local access numbers listed above.

Conference code: 1493984

To participate in the webcast follow the link: https://www.webcast-eqs.com/polymetal20220721.

Be prepared to introduce yourself to the moderator or register.

A recording of the call will be available on +44 (0) 20 3859 5407 (from UK), +1 719 457 0820 (from UNITED STATES) and 8 10 800 2702 1012 (from Russia), access code 1493984, from 3:30 p.m. London time Thursday, July 21, until 3:30 p.m. London Thursday time, July 28, 2022. The webcast will be available on Polymetal’s website (www.polymetalinternational.com) and at https://www.webcast-eqs.com/polymetal20220721.

About Polymetal

Polymetal International plc (together with its subsidiaries – “Polymetal”, the “Company” or the “Group”) is one of the world’s top 10 producers of gold and one of the world’s top 5 silver producers with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

FORWARD-LOOKING STATEMENTS

THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE CONSIDERED, “FORWARD-LOOKING STATEMENTS”. THESE FORWARD-LOOKING STATEMENTS ARE ONLY AS OF THE DATE OF THIS PRESS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS “OBJECTIVES”, “BELIEVED”, “EXPECTS”, “OBJECTIVES”, “INTENDS”, “SHALL”, “MAY” , ‘ANTICIPATE’, ‘WOULD’, ‘Could’ OR ‘Should’ OR SIMILAR PHRASES OR, IN EACH CASE, THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN INFORMATION AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER MATERIAL FACTORS BEYOND THE COMPANY’S CONTROL THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON MANY ASSUMPTIONS REGARDING THE COMPANY’S CURRENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENT OF THE COMPANY TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO RELEASE UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY’S EXPECTATIONS THEREOF OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES THESE STATEMENTS ARE BASED.

Contact:

HEADQUARTER

Limassol Office (Cyprus)Parthenonos, 6

3rd floor

3031, Limassol, Cyprus

Tel: +357.25.558090

Fax: +357.25.260816

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