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

'In Q2, we hit our production targets and are on track to meet our full-year guidance. International sanctions against Russia continue to have a material impact on sales, procurement and logistics. The management is fully focused on maintaining operating and financial stability of the Company', said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

No fatal accidents occurred among Group workforce and contractors in Q2 2022. During this period, two minor LTI incidents were recorded among employees. Lost time injury frequency rate (LTIFR) for the six-month period decreased by 53% year-on-year (y-o-y) to 0.08 (0.17 in H1 2021).

Q2 gold equivalent production ('GE') decreased by 9% year-on-year to 326 Koz. Lower grades and planned long maintenance shutdown at the Amursk POX reduced output from Kyzyl and Albazino, more than offsetting fresh contribution from Nezhda.

GE output for H1 was 697 Koz, down by 7% y-o-y, including 453 Koz in Russia and 244 Koz in Kazakhstan. ?OVID-related restrictions in China forced the Company to reduce shipments of gold concentrates from Nezhda and Kyzyl. The Company reiterates its full-year production guidance of 1.7 Moz of GE (1.2 Moz in Russia and 500 Koz in Kazakhstan), however notes a risk of underperformance given persistent lockdowns and logistical constraints in Chinese ports and railway.

In Q2, 130 Koz of GE in gold and silver bullion inventory accumulated across the Group's Russian mines. This gap between sales and production is likely to be closed during Q3 as the Company ramps up export sales to various Asian markets.

Revenue for the quarter recorded a 36% decline y-o-y to US$ 433 million, while H1 revenue was down by 18% to US$ 1,048 million (US$ 605 million Russia and US$ 443 million Kazakhstan). The negative dynamics was the result of lower sales volumes on the back of inventory accumulation, while the average realized price was marginally higher.

Net debt as of the end of Q2 stood at approximately US$ 2.8 billion. A quarterly increase of US$ 0.8 billion was driven by bullion and concentrate inventory accumulation, accelerated purchases of equipment and spares, funding of the critically important contractors and suppliers, and upward US$ re-valuation of ruble-denominated debt driven by significant Rouble strengthening during the quarter. The Company maintains sufficient liquidity with US$ 0.5 billion in cash and US$ 0.4 billion of undrawn credit lines with non-sanctioned banks.

Given significant appreciation of Ruble against US Dollar, the Company will update its FY2022 cash costs and CAPEX guidance with the publication of its H1 2022 financial results on 22 September 2022.

CONFERENCE CALL AND WEBCAST

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

Contact:

T: [phone]

TOLL FREE: 0800 279 6877

T: [phone]

TOLL FREE: 800 289 0720

T: [phone]

TOLL FREE: 8 10 800 2865 5011

To participate from other countries, please dial any of the local access numbers listed above.

Conference code: 1493984

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

Please be prepared to introduce yourself to the moderator or register.

A recording of the call will be available at [phone] (from the UK), [phone] (from the USA) and 8 10 800 2702 1012 (from Russia), access code 1493984, from 15:30 London time Thursday, 21 July, till 15:30 London time Thursday, 28 July 2022. Webcast replay 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 a top-10 global gold producer and top-5 global silver producer 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 DEEMED TO BE, 'FORWARD-LOOKING STATEMENTS'. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS 'TARGETS', 'BELIEVES', 'EXPECTS', 'AIMS', 'INTENDS', 'WILL', 'MAY', 'ANTICIPATES', 'WOULD', 'COULD' OR 'SHOULD' OR SIMILAR EXPRESSIONS 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 AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S PRESENT 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 COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED.

Contact:

HEADQUARTERS

Limassol Office (Cyprus)Parthenonos, 6

3rd floor

3031, Limassol, Cyprus

Tel: [phone]

Fax: [phone]

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