Polymetal : Q4 and full year 2014 production results

29 January 2015

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce the Group's production results for the fourth quarter and twelve months ended December 31, 2014 .

HIGHLIGHTS

• In 2014 Polymetal increased its gold equivalent ("GE") production by 12% to 1.43 Moz and exceeded both its original production guidance of 1.3 Moz of GE by 10% and the updated production guidance of 1.365 Moz by 5%. This achievement was mostly driven by the full ramp-up of Mayskoye and strong operational delivery at Dukat and Omolon.
• Annual gold production for the year increased by 17% to 945 Koz . Annual silver production increased by 5% to 28.7 Moz. The share of gold in revenue composition increased to 69% compared to 63% in 2013.
• On 23 January 2015 the Company paid a special dividend of US$ 0.20 per share, representing approximately US$ 84 million, which brings total dividends paid for the previous twelve months to US$ 0. 36 per share, or US$ 149 million (representing an annual dividend yield of 3.9%1).
• Net debt at 31 December 2014 decreased by US$ 83 million compared to 30 September 2014 to US$ 1,249 million (this figure already includes the liability for special dividend payable) as the Company continued to generate free cash flow driven by of strong operating and cost performance.
• Polymetal continues to benefit from the depreciation of the Russian rouble against the US dollar. The Company reaffirms its full-year Total Cash Cost ("TCC) guidance of US$ 625-675 per GE oz, and expects All-in Sustaining Cash Cost ("AISC") of US$ 900-950 per GE oz.
• The Company reiterates its production guidance of 1.35 Moz of GE for 2015 and 2016. In 2015, Polymetal expects a lower TCC of US$ 575-625 per GE oz and AISC of US$ 750-800 per GE oz. Capital expenditure in 2015 is expected to total approximately US$ 240 million (including exploration, capitalised stripping and spending on the Kyzyl project). This guidance is heavily dependent on the RUB/USD exchange rate, inflation in Russia, and oil price dynamics and is based on management's current estimates of these variables in 2015.

"In 2014 Polymetal materially exceeded its production guidance for the third consecutive year despite a challenging market environment. Over the last several years, Polymetal has continued to consistently deliver value to shareholders through substantial dividend payments", said Vitaly Nesis, the Group CEO, commenting on the results. "We are confident in our outlook for 2015 and intend to continue dividend payments in the current market environment . "

(1)For the last twelve months ended January 23, 2015. Dividend yield is calculated as dividends paid during the period divided by average share price.

Please follow the link to find pdf-version of the release.

CONFERENCE CALL AND WEBCAST

Polymetal will hold a conference call and webcast on Thursday, 29 January 17:30 Moscow time (14:30 London time).

To participate in the call, please dial:

8 10 8002 041 4011 access code 679755# (free from Russia), or

[phone] (free from the UK), or

[phone] (free from the US), or

any of the above numbers (from outside the UK, the US and Russia) or follow the link:

http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=2515

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

Webcast replay will be available on Polymetal's website ( www.polymetalinternational.com ) and at http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=2515 . A recording of the call will be available immediately after the call at [phone] (from within the UK), [phone] (from within the US) and [phone] (from within Russia), access code 291542#, from 6:30 pm Moscow time Thursday, January 29, till 6:30 pm Moscow time Thursday, February 5, 2015.

Enquiries

Media		Investor Relations
Instinctif Partners Leonid Fink Tony Friend	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Bill Hutchings Sam McLennan	[phone]	RBC Europe Limited Darrell Uden Jonny Hardy	[phone]

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.

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