1 / 15

GOLD MINING COMPANY POLYUS

GOLD MINING COMPANY POLYUS. Mr. Eugene Ivanov President and Chief Executive Officer RUSSIAN ECONOMIC FORUM 2005. WHY RUSSIA?. Growing Russian gold production outpaces rest of the world +7% vs. (1)% CAGR. CAGR 7%. 5.5. 5.4. 5.4. 4.9. 4.6. 4.1. 3.7. 1998. 1999. 2000. 2001. 2002.

pilar
Télécharger la présentation

GOLD MINING COMPANY POLYUS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GOLD MINING COMPANY POLYUS Mr. Eugene Ivanov President and Chief Executive Officer RUSSIAN ECONOMIC FORUM 2005

  2. WHY RUSSIA? • Growing Russian gold production outpaces rest of the world +7% vs. (1)% CAGR CAGR 7% 5.5 5.4 5.4 4.9 4.6 4.1 3.7 1998 1999 2000 2001 2002 2003 2004 mln oz Source: Russian Union of Gold Miners, GFMS

  3. WHY RUSSIA? • World’s second largest reserve base and only sixth place in gold output South Africa 1 157 Russia 482 Australia 193 China 132 Peru 132 USA 119 Canada 113 Indonesia 90 Reserve base, mln oz Source: GFMS, U.S. Geological Survey

  4. WHY RUSSIA? • Russian producers are undervalued so far Average 40% 40% 17% Russian producers Major producers Intermediates Junior producers -18% 0% NAV Premium Source: BMO Nesbitt Burns

  5. WHY RUSSIA? • Discount for Russian producers implies high growth potential Average 182 150 125 51 Major producers Intermediates Junior producers Russian producers EV / Reserves, US$ / oz Source: BMO Nesbitt Burns

  6. HERE COMES POLYUS! • Undisputable leader of Russian gold mining since 2001 Polyus 1.1 Peter Hambro 0.2 Highland Gold 0.2 Kinross Gold 0.1 Bema Gold 0.1 High River Gold 0.1 2004 production in Russia, mln oz 2004 production in the rest of the world, mln oz Source: Company reports, BMO Nesbitt Burns, Troika Dialog

  7. HERE COMES POLYUS! • World class reserve base Polyus 18.9 Highland Gold 7.7 Peter Hambro 2.2 High River Gold 1.2 Bema Gold 0.4 Kinross Gold 0.3 2003 - 2004 reserves in Russia, mln oz 2003 - 2004 reserves in the rest of the world, mln oz Source: Company reports

  8. COMPANY AT A GLANCE • Unparalleled exposure to Russian gold • World class reserve base • 18.9 mln oz reserves plus an additional 40.9 mln oz resources • 3 operating mines and 9 development / exploration projects: • presence in 4 regions, employing 9 800 people • 2004 production – 1 087 k oz • 2004 est. total cash costs – US$175 per oz • 2004 est. EBITDA – US$199 mln • Financial strength • Focus on explosive growth with low total cash cost profile • Goal of becoming a TOP-5 Global Producer by 2010

  9. LOCATION OF THE ASSETS Natalka, Degdekan, Magadan Bamskoe, Amur Alluvials and Zapadnoe, Irkutsk Olimpiada, Krasnoyarsk HQ, Moscow

  10. ASSETS – KRASNOYARSK, IRKUTSK • Krasnoyarsk assets include Olimpiada, Olenii, Tyrada operating mines and Blagodatnoe, Panimba, Titimukhta deposits. Olimpiada open pit is the largest mine in Russia with 4.0 mtpa of ore mining capacity and 4.5 mtpa of ore treating capacity • Irkutsk Hard Rock Gold consolidates hard rock gold mining assets, incl. Zapadnoe, Verninskoe, Pervenetz, Mukodek, Chertovo Korito, and owns key infrastructure • Lenzoloto – 2nd largest Russian gold company on a stand-alone basis. 9 Lenzoloto subsidiaries operate 48 placer deposits and develop / explore another 74 deposits in Irkutsk region

  11. ASSETS – MAGADAN, AMUR • Assets in Magadan include Natalka deposit and Degdekan exploration area • Natalka deposit with 4.0 mln oz in reserves at 4.2 g/t will transform into 18.1 in reserves at 2.0 g/t by 2007. 2005 – 2007 exploration budget of US$65 mln • Pre-feasibility study will chose between 23 or 30 mtpa processing plant, est. development capex of US$600 – 800 mln, annual production of up to 1.4 mln oz at total cash costs of approx. US$200 per oz • In February 2005 Polyus acquired Bamskoe deposit in Amur region containing .4 mln oz reserves and 2.4 mln oz resources

  12. NATALKA EXPLORATION UPDATE • 2003 – creation of geological model based on historical 125 000 m drilled, resulted in 78.3 mln oz of modeled MI&I resources • 2004 – two stage exploration program to confirm modeled resources and explore at depth and on flanks, 13 drill rigs in place: • Surface diamond drilling of 120 000 m, 34 000 m completed • Underground drilling of 6 000 m, will end this May • 2005 – exploration stage #1 completed: • Confirmed 18.2 mln oz of measured and 11.3 mln oz of indicated resources under .6 g/t cut-off grade, in line with completed SRK audit results • Added 6.5 mln oz of indicated resources under +600 m elevation bench • Encountered two new ore intervals 200 m thick and grading more than 2.0 g/t • Possible upward reevaluation of grade

  13. NATALKA EXPLORATION UPDATE Upside from exploration stage #1, 6.5 mln oz of indicated resources Two new ore intervals 200 m thick and grading > 2.0 g/t

  14. STRONG ORGANIC GROWTH PROFILE • Explosive growth with stable low total cash costs 221 219 213 207 207 198 175 144 3.3 2.5 1.9 1.1 1.3 1.2 1.1 1.1 2003 2004 2005F 2006F 2007F 2008F 2009F 2010F Production, k oz Total cash costs, US$ per oz

  15. SOLID CASE FOR POLYUS • Unparalleled exposure to Russian gold industry • Key position of a leading Russian gold miner to capitalize on growth potential of Russian gold • Existing assets with superior growth profile • Solid cash flows • Strong cash balance and debt-free balance sheet • No hedging policy

More Related