seligdar holding · 2018. 11. 16. · seligdar aisc target levels (us$/oz) 750 924 1054 824 946 955...
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Seligdar Holding
Investor day
PJSC Moscow Exchange
August 2018
«Action is born as a thought»
2018 vs 2017: what has changed in the gold division?
2
In 2018 Yasnaya Polyana deposit license was acquired with up to
5 tons of gold resources. The object will replace outgoing
Podgolechnoye deposit on the existing infrastructure.
Since 2018 processing of quartz-carbonate ores technology (1.5
tons of gold) has been introduced at Murzinskoye deposit, which
will extend project life by 3-4 years.
From autumn of 2018 pilot processing of refractory ores by
bioleaching technology starts at Samolazovskoye deposit.
Gold production in 2017 – 4,625 kg (+7% compared to 2016).
In July 2018 gold mining division production reached more than
1 ton of gold per month (1,008 kg).
In 2018 for the first time, rock mass extraction reached 10
million m3 in the first half of the year.
Gold processing plant was launched at Nerunda deposit (Sininda-
1 team of prospectors).
In May 2018 gold processing plant at Ryabinovoye deposit
reached project values.
In June 2018 shareholders approved dividends of 1.44 RUB/preferred share. Payments were made in July 2018.
Since 01/17/18 ordinary shares (SELG) have been allowed for repo operations with the CC(1) and for the NDM(2), and since 04/12/18 preferred
shares (SELGP) have been allowed for repo operations with the CC on the Moscow Exchange. The average daily volume of transactions in July
exceeded 1 billion rubles.
PROSPECTIVE DEVELOPMENT: PRODUCTION:
PJSC SELIGDAR STOCK MARKET:
Месторождение Рябиновое, Республика Саха (Якутия), июль 2017Heap leaching site, Ryabinovoye deposit, Republic of Sakha (Yakutia)
Notes: (1) Central Counterparty; (2) Negotiation Deal Mode
2018 vs 2017: what has changed in the tin division?
3
PJSC Rusolovo results are consolidated in Seligdar’s financial
statements under IFRS from June 2017, and LLC
Pravourmiyskoe results from December 2017.
Consolidation of a 67% LLC Pravourmiyskoye stake on the PJSC
Rusolovo balance is in progress.
Tin production increased in 2017 to 1,011 tons of metal in
concentrate (+64% compared to 2016).
From September 2017, the full-scale operation the Solnechnoye
processing plant (JSC ORK) began, with processing level of up to
150 kt of ore per year.
CORPORATE ENTITY:
PRODUCTION:
In 2018 PJSC Rusolovo became a resident of the Komsomolsk
PDA(1). The PDA Rusolovo projects fully comply with the “Russian
Metallurgical Industry development strategy up to 2020”.
In Q1 2018 project and construction work of a new production
complex has begun at Pravourmiyskoye deposit (LLC
Pravourmiyskoye) for extraction and processing of 600 K tons of
ore per year.
Russian government extended the zero MET(2) rate in tin ores
extraction in the Far Eastern Federal District.
PROSPECTIVE DEVELOPMENT:
Pravourmiyskoye deposit, Khabarovsk region
Notes: (1) Priority Development Area; (2) Mineral Extraction Tax
New horizons and development goals of the Holding in 2018 - 2024
4
Target production level in 2024 is 10 tons of gold per year.
Design of new production complex Khvoyny began with a heap
leach processing capacity up to 3 million tons of ore per year.
The Purikanskaya area (Samolazovsky production complex) and
the Yasnaya Polyana field (Podgolechny production complex) are
being prepared for production.
Implementation of refractory ores bioleaching technology for
Samolazovskoye deposit; realization of a low-temperature ore
roasting plant construction.
Target annual production level in 2024 is 6,000 tons of tin in
concentrate.
The Holding has started a construction project of production
complex at Pravourmiyskoye deposit with a project capacity up to
600 K tons of ore per year.
In the coming year, a validation of the mining feasibility study of
Festivalnoye deposit and the subsequent audit of tin reserves in
accordance of JORK standards are expected.
The second phase of reconstruction of the Solnechnoye processing
plant began to increase ore processing capacity to 240 K tons per
year.
GOLD DIVISION: TIN DIVISION:
Месторождение Рябиновое, Республика Саха (Якутия), июль 2017
Heap leaching site, Ryabinovoye deposit, Republic of Sakha (Yakutia)
5
Growth of financial and production figures of the Holding
Notes : (1) Only the gold division; (2) All-in-sustaining costs, calculated as cash cost and administrative expenses minus depreciation, sustaining capital expenditures and current geological exploration costs per ounce of gold sold; (3) Total cash costs based on LLC Pravourmiyskoe data; (4) Sales of gold, silver and tin; (5) the whole Holding, including JSC Lunnoye results, management account data
Gold production growth in 2018 is 21-32% due to full rollout of the Ryabinovoye gold processing plant and expansion of production capacity.
In 2017 AISC was 17% lower than world averages.
2016Actual
2017Actual
2017/2016Change
2018 Estimate
Ore mined, thousand tons(1) 5 620 5 876 5% 5 600 - 6 300
Ore processed, thousand tons(1) 4 444 4 816 8% 5 900 – 6 300
Gold produced, kg 4 320 4 625 7% 5 600 – 6 100
Gold produced, thousand ounces 139 149 7% 180 – 196
Tin produced, tons 627 1011 61% 1 300 – 1 600
AISC, US$/ounce of gold(2) 669 706 5% 670 – 700
TCC, US$/ton of tin(3) 11 635 9 855 -15% 8 000 – 9 000
Revenue, US$ million 184(4) 203(4) 11% 240 – 270
EBITDA, US$ million 80(5) 91(5) 14% 100 – 120
EBITDA margin 44% 45% 1 pp 40-45%
Net debt, US$ million 242(5) 282(5) 17% 260 – 280
Capex, US$ million 38(5) 47(5) 24% 20
Key financial figures(1)
Comments
Revenue
(US$ million)
EBITDA
(US$ million)
Capex
(US$ million)
Figure
Over the last years, the Holding's revenue has steadily increased. It occurs as result of production growth and leads to an increase in financial figures even against the background of stabilization of gold and tin prices.
In 2018, due to gold production growth and tin assets consolidation, revenue is expected to reach US$ 240-270 million.
Target gold production level in 2018 is about 6 tons.
In 2015-2017 investments were directed mainly for development of Ryabinovoye deposit and tin mining division modernization:
In 2Q2017, the Ryabinovoye gold processing plant was put into
operations; in 2018, the plant reached the target parameters for gold
production and ore processing (1 million tons of ore per year and 1.5
tons of gold).
In September 2017 full-scale operation of the Solnechnoye processing
plant began, with processing volumes of up to 150K tons of ore per
year and with equipment of Pravourmiyskoye upgraded.
EBITDA margin in 2017 was 45%.
Total EBITDA of the gold and tin divisions in 2018 is expected to be about US $ 100-120 million, including Lunnoye deposit figures (not consolidated in the Holding’s financial statements under IFRS).
The Company expects EBITDA margin at levels achieved in previous periods.
6
142
184 203
240-270
2015 2016 2017 2018E
58
80 91
100-120
2015 2016 2017 2018E
39 38
47
20
2015 2016 2017 2018E
Notes: (1) Sales of gold, silver and tin; the whole Holding, including the JSC Lunnoye results, management account data
799
706
670
20
High operational efficiency
7
At the end of 2017, Seligdar’s AISC was 17% lower than theworld average and 12% lower than he Russian average.
Current development strategy of the Holding suggestsmaintaining AISC at US $ 670-700/oz in 2018.
CommentsFigure(1)
Comparisonwith globalcompanies
Comparisonwith Russiancompanies(2)
Notes: (1) Average figures without Seligdar; (2) Polymetal and Nordgold - only for assets in the Russian Federation, Polymetal and Highland Gold Mining - for gold equivalent salesSource: companies data, Seligdar calculations
AISC of global gold producers, 2017(US$/oz)
AISC of Russian gold producers, 2017 (US$/oz)
Seligdar AISC target levels(US$/oz)
750 924
1054
824
946
955
621 804
787
706
Barr
ick G
old
Ne
wm
ont
Min
ing
Ang
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old
Ash
anti
Go
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rp
Kin
ross G
old
Go
ld F
ield
s
Poly
us
Agn
ico E
agle
Ne
wcre
st M
inin
g
Selig
da
r
Average
621
870
963
973
664
701
706
Po
lyus
Po
lym
eta
l
Pe
tropa
vlo
vsk
Nord
gold
Hig
hla
nd G
old
Min
ing
GV
Gold
Se
ligdar
Average
Average level
in Russia (2017)
2017 2018E
Seligdar debt financing structure
8
Loan portfolio structure by maturity, %
Loan portfolio on 01/01/2018 (US $ million)
Debt repayment schedule (excluding %, US $ million)(1)
Key facts
In 2018, Seligdar Holding refinanced loan agreements with VTB Bank for gold loans,
thereby hedging exchange risks almost completely.
The Holding’s working capital financing is extended as the debt is paid and the
Holding plans to keep this type of funding in the next 3 years.
PJSC Seligdar Holding and JSC Seligdar Gold have valid credit ratings for non-
financial companies at the ruA level (Expert RA rating agency) by a national scale
with a stable outlook.
Totaldebt
Average rate,% annual
Long-term financing (Au) 97 170 6,95%
Short-term financing (Au) 125 606 6,12%
Long-term prepayments ($ and €) 63 296 5,68%
Pravourmiyskoye bonds (RUB) 6 853 9,00%
Total 292 925 6,36%
Notes: (1) The repayment schedule is shown taking into account the possibility of annual refinancing within the limits of the credit line of PJSC “VTB Bank” until 2020.
19%
34%
47%
2018
2019
2020 56
99
139
2018 2019 2020
Corporate Governance and Investor Relations
PJSC Seligdar stocks are listed on the Moscow Exchange. The Holding strivesto comply with the Corporate Governance Code provisions recommended bythe Central Bank of the Russian Federation.
In 2018 VTB Registrar conducted activity assessment of the Board ofDirectors of PJSC Seligdar (for 2017) and confirmed high level of corporategovernance system and its compliance with standards and regulations.
In 2018 PJSC Seligdar plans to:
– continue to improve the corporate governance of the Company;
– follow established standards of business transparency and openness;
– improve the mechanism of prevention and/or resolution of corporate conflicts.
One of the key principles of PJSC Seligdar is the most open and constructiveinteraction with shareholders and investors.
PJSC Seligdar strives to be a transparent company in accordance with the bestpractices of public companies:
Annually arrange the Investor Day at the Moscow Stock Exchange.
Present information about the Company on its corporate website, pages insocial networks, etc. as much as possible.
Use best corporate practices and conduct an audit of corporate governance.
9
Dividend policy
Dividend policy was approved by the Board of Directors, dated 04/04/2016. № 4-SD-2016.
The Company will strive to allocate at least 30% of net profit per year for ordinary and preferred shares dividend payments (based on
the PJSC Seligdar’s consolidated financial statements under IFRS(1)).
Dividends will be paid depending on the net debt/EBITDA ratio:
- less than 1 – 30% and more of net profit;
- from 1 to 2 – 20% of net profit;
- from 2 to 3 – 10% of net profit;
- more than 3 – dividends on ordinary shares are not paid.
In 2014-2016 PJSC Seligdar actively raised debt financing for reserves and production growth. This investments will become the basis for
the company development and future dividends payments.
In 2018, after the major investment projects completion, a new stage of dividend payments began.
ParameterDividend period
2011 2012 2013 2014 2015 2016 2017
Dividend payments for ordinary shares, million RUB 93,1 - - - - - -
Dividend payments for preferred shares, million RUB - 337,5 44,1 - - - 216
Dividends per ordinary share, RUB 0,15 - - - - - -
Dividends per preferred share, RUB - 2,25 0,29382 - - - 1,44
Dividend payments history
10Notes: (1) International Financial Reporting Standards
Shareholder structure on 08/06/2018
Ordinary shares (total 842,354,730): Management and the Board of Directors members: 18.1% Other individuals: 7.7% Foreign institutional investors: 3.8% Other foreign investors, legal entities: 15.3% Russian institutional investors: 21.2% Quasi-treasury shares (held by subsidiaries): 26.4% Other Russian legal entities: 7.9%
Preferred shares (total 150,000,000): Other individuals: 33.8% Foreign institutional investors: 7.1% Other foreign investors, legal entities: 1% Russian institutional investors: 38.1% Other Russian legal entities: 20.2%Free float for listing purposes recognized by the Moscow Exchange:for ordinary shares - 31%, for preferred shares - 16%
Accounts statistics of PJSC Seligdar shareholders for the last 4 years:
Date Total
accounts
Ordinary share
holders accounts
Preferred share
holders accounts
Accounts of
individuals
Accounts of
legal entities
30.06.2018 1189 571 729 1137 52
30.06.2017 1467 553 914 1406 61
09.01.2017 1414 659 920 1349 65
18.10.2016 1418 681 879 1353 65
11.07.2016 1208 693 623 1141 67
03.05.2016 1036 806 329 971 65
10.01.2016 574 474 131 525 49
07.12.2015 499 377 137 449 50
05.05.2015 454 369 98 409 45
20.09.2014 310 291 31 270 40
11
18,0%
7,6%
3,8%
15,3%
21,2%
26,4%
7,9%
Management and the Board ofDirectors members: 18.1%
Other individuals: 7.7%
Foreign institutional investors: 3.8%
Other foreign investors, legalentities: 15.3%
Russian institutional investors:21.2%
Quasi-treasury shares (held bysubsidiaries): 26.4%
Other Russian legal entities: 7.9%
Sustainable development strategy until 2024 – Strategic goals
12
Annual production10 tons of gold/6 K tons of tin
AISC(1) & TCC(2)
$ 700/oz of gold; $ 10,000/ton of tin
Annual revenueNot less than $ 500 million
Renewable resource baseResources for at least 15 years of production
and annual reproduction of used reserves
Managed DebtDebt/EBITDA ratio <2
Effective managementImproving of quality of project
and management decisions
Strategic targets
Improving financial and operational efficiency
Creation of value for shareholders
High efficiency mining company Organic business growth on existing assets
Debt load reduction
Notes: (1) All-in-sustaining costs, calculated as cash cost and administrative expenses minus depreciation, sustaining capital expenditures and current geological exploration costs per ounce of gold sold; (2) Total cash costs
Sustainable development strategy until 2024 – Production plans
Gold division:
Gold production growth from 6 tons of gold in 2018 to 10tons by 2024.
Putting into operation new sites:
• Khvoyny field (2 tons of gold per year for 10 years).
• Refractory ores processing on Samolazovskoye deposit.
• A new project in the Aldan region of Yakutia.
13
Tin division:
Tin production growth to 2 K tons by 2020 and up to 6000tons by 2024.
Putting into operation a new mining and processingcomplex at Pravourmiyskoye deposit (600 K tons of oreper year, 5 K tons of tin per year).
Modernization of the Solnechnoye processing plant,processing capacity growth to 400 K tons of ore per year.
4,6
6
8
10
2017 2018 2019 2020 2021 2022 2023 2024
Target levels of gold production, tons
1
2
6
2017 2018 2019 2020 2021 2022 2023 2024
Target levels of tin production, K tons
Sustainable development strategy until 2024 – Points of Growth
14
Khvoyny production complex
2015-2017 exploration, conducted at Khvoynoye deposit (NYOF(1)), showed the presence of 25 million tons of ore and 25 tons of gold.
At the moment Khvoyny complex construction plan is being developed with processing capacity of up to 3 million tons of ore per year.
Project’s Capex is about 6-8 billion rubles.
Tindivision
The Pravourmiyskoye mine development project is included in the list of the Far Eastern Federal District priority projects.
− The project provides for construction of transport infrastructure and production complex (underground mine, processing plant with a processing capacity of up to 600 K tons of ore per year).
− Geological exploration activities at Pravourmiyskoye deposit in 2019-2023 are going to increase deposit’s C1 + C2 reserves by 7,100 K tons of ore and 52,500 tons of tin.
− Project’s Capex is about 5 billion rubles.
Modernization of Solnechnoye processing plant will increase total processing capacity up to 400 K tons of ore per year.
Newgold deposits
The company obtained a license to develop the Purikanskaya area with estimated resources of 6.8 tons of gold and Yasnaya Polyana deposit with potential of 5 tons of gold. The deposit is located close to the Yakutsk production complex, which makes it possible to enhance the synergetic effect with existing facilities and does not require significant investments in commissioning.
The options of buying new deposits in Yakutia are being worked out, the development of which is possible with the existing infrastructure.
Ores bioleaching ofSamolazovskoye
deposit
Reserves and resources of Samolazovskoye deposit refractory ores - over 9 tons of gold.
In 2017, pilot production was launched using bioleaching technology for refractory ores of deposit.
At the same time, a low-temperature ore roasting plant is being constructed, which will increase gold recovery and project efficiency.
Project’s Capex is about 0.9 billion rubles.
Potassium feldspar at Ryabinovoye
deposit
During additional studies of Ryabinovoye deposit ores, conducted in 2015, it was revealed that more than 70% of the deposit’s host rock is represented by potassium feldspar with high content of potassium oxide (12.5-14.45%) and a high ratio of potassium oxide to sodium oxide (23,5-50).
The Company plans to start potassium feldspar production from the waste of gold mining at Ryabinovoye deposit and reach production of up to 300 K tons of feldspar per year.
The implementation of the project will provide additional income and improve the efficiency, as well as its environmental friendliness.
Notes: (1) Nizhneyakokitskoye Ore field
1999 – pilot production start at Samolazovskoye deposit
2004 – production at Mezhsopochnoye commences
2005 – production start at Garbuzovskoye deposit
2008 – production development of Nizhneyakokitskoyeore field (NYOF)
2012 – production start at Lunnoye and Podgolychnoyedeposits, the launch of separate ore processing at Verkhneye deposit (NYOF)
2013 – production commences at Ryabinovoye deposit -heap leaching section
2013 – start of modernization of the Pravourmiyskoyeprocessing plant
2016 – production restart at Molodezhnoye deposit (JSC ORK)
2017 –2nd stage of reconstruction of the Pravourmiyskoye processing plant
July 2017 – launch of the Ryabinovoye processing plant
2018 – launch of bioleaching technology at Samolazovskoye deposit
1974 – Seligdar – a team of prospectors – is founded
1975 – Seligdar starts placers development at Seligdar
and Orto-Salaa rivers in Yakutia
1995 – heap leaching production development for ore
deposits
2006 – establishment of a subsidiary - OJSC
Seligdar Gold
2007 – a license was purchased for Ryabinovoye deposit
development, which significantly increased the
Holdings reserves
2008 – Mergers and acquisitions: LLC Sininda-1 (Buryatia) LLC Poisk (Altai region) LLC OGK (Orenburg oblast)
2008 – a contract is signed with OJSC
Atomredmetzoloto for the joint development of
Lunnoye deposit
2010 – license purchase for Podgolechnoye deposit
2012 – license purchase for 11 deposits of placer gold in
Buryatia
2011 – zero MET(1) rate on tin ore
2012 – establishment of PJSC Rusolovo
December 2015 – license for Purikanskoye area deposit
(estimated resources of 6.8 tons)
1 half of 2017 – PJSC Rusolovo consolidation in
financial statements under IFRS
December 2017 – LLC Pravourmiyskoye consolidation in
financial statements under IFRS
February 2018 – license for Yasnaya Polyana deposit
(estimated resources of 5 tons)
2018 – prolongation of zero MET rate on tin ores
1974-2007 2008-2013 2014-2018
15
For over 40 years the Company has shown stable growth and development and has successfully launched new
projects, 5 of which have been introduced in recent years
New
pro
ject
sla
unch
ing
Key
hig
hli
ghts
Brief history of the Seligdar Holding – major milestones
Notes: (1) Mineral Extraction Tax
PJSC Seligdar is a group of companies which is in the TOP-12 gold
producers and Russia’s only tin producer. The Holding was
established in 2008 on the basis of Seligdar prospectors,
organized in 1975.
Gold assets are located in the Republic of Sakha (Yakutia), in the
Altai region and in Buryatia. The Company uses mainly open-pit
mining with heap leaching technology, which proved to be
effective for low-grade ores:
− Gold production in 2017 is more than 4.6 t.
− Gold reserves in category C1 + C2 are approx. 122 tons(1), 2P
gold reserves according to JORC Code are approx. 63 tons(2).
− Reserves - more than 20 years of production.
Tin assets are located in Khabarovsk region (PJSC Rusolovo and
subsidiaries):
− Tin production in 2017 is 1011 tons.
− Tin reserves in category C1 + C2 are approx. 203K tons, MI
tin reserves according to JORC Code are approx. 80 K tons
(only Pravormiyskoye).
− Reserves availability - more than 60 years of production.
Company Overview
16
SHORT DESCRIPTION ASSETS LOCATION
YakutiaMoscow
Buryatia
Altai regionOrenburg oblast
Notes: (1) Balance reserves of С1 + С2 by Russian State Reserves Commission classification on 01/01/18, with the Nizhneyakokitskoye ore field (NYOF) reserves growth in February 2018; (2) JORC reserves include reserves at the NYOF and Ryabinovoye deposit; (3) consolidated management account data of PJSC Seligdar, PJSC Rusolovo and JSC Lunnoye
Khabarovsk region
Gold assetsTin assets
2015 2016 20176 months
2017
6 months
2018 (E)
Change
2018/2017
Gold production, kg 3 468 4 320 4 625 953 1 327 +39%
Tin production, tons 578 627 1011 223 361 +61%
Revenue(3), US$ million 142 184 203 43 56 +30%
EBITDA(3), US$ million 58 75 91 12 21 +75%
EBITDA margin, % 44% 45% 45% 28% 38% +10 p.p.
Key financial & production figures
49,9%
PJSC Seligdar(ticker on the Moscow Exchange – SELG and SELGP)
JSC Seligdar Gold LLC PoiskLLC Orenburg Mining
Company
Deposits: • Nizhneyakokitskoye
ore field (NYOF)
• Podgolyechnoye• Purikanskaya area• Yasnaya Polyana
Murzinskoye deposit
100% 100%100%
LLC Sininda-1
100%
PJSC Rusolovo
(ticker – ROLO)
Deposits:• Festivalnoye• Perevalnoye
92,28%
Holding structure
Notes: (1) The Company owns 49,9% of JSC Lunnoye; based on a agreement with Atomredmetzoloto, JSC Seligdar Gold is the project operator
The Holding has transparent ownership structure. Information on the list of persons belonging to the same holding
of PJSC Seligdar, since 05/28/18 has been accepted for posting on Russian Federal Antimonopoly Service website
Samolazovskoyedeposit
Deposits: • Vasin• Anikhovskoye
Nerunda Deposit;Placers:• Nerunda stream and
tributaries • Shaman stream
tributaries• + 11 new placer licenses
JSC Lunnoye(1)LLC Ryabinovoye
Deposits: • Lunnoye and Feodorovskaya area
Ryabinovoye deposit
17
99.9%
LLC PravourmiyskoyeOJSC Tin Mining
Company
98,95%33,3%
Pravourmiyskoyedeposit
Assets portfolio
18
Key assets geography(1) Structure
Altairegion
Yakutia
Buryatia
Orenburg oblast
Ryabinovoye LunnoyeSamolazovskoyeNizhneyakokitskoye
Ore FieldPodgolechnoye
Notes: (1) Balance reserves of С1 + С2 by Russian State Reserves Commission classification on 01/01/18, production level for 2017; (2) Total tin ore reserves of В + С1 + С2 for LLC Pravourmiyskoye and OJSC Tin Ore Company; (3) including the Nizhneyakokitskoye ore field (NYOF) reserves growth in February 2018
Share: 100% Reserves: 16,3 t Production: 621 kg
Share: 49.9% Reserves: 11.1 t Production: 420 kg
Share: 100% Reserves: 7,3 t Production: 189,9 kg
Share: 100% Reserves: 36,0 t Production: 2 450 kg
Share: 100% Production: 291 kg
Vasin
Share: 100% Reserves: 44.3 t
Poisk
Share: 100% Reserves: 2.0 t Production: 452 kg
Sininda 1
Share: 100% Reserves: 5.2 t Production: 198 kg
Au reserves breakdown Au production breakdown (2017)
Total: 4 625 kg Total: 122 t
Production complexB+С1,
tons of goldС2,
tons of goldTotal
reserves, t
NYOF (3) 31,2 4,8 36,0
Podgolechnoye 0 0 0
Samolazovskoye 6,3 1 7,3
Sininda-1 0,7 4,5 5,2
Lunnoye 7,0 4,1 11,1
Poisk 1,6 0,4 2
Ryabinovoye 8,8 7,5 16,3
Reserves in operation 55,6 22,2 77,8
Vasin 1,4 43,0 44,3
Total reserves 56,9 65,2 122,1
Rusolovo
Share: 92,28% Reserves: 203,5 kt(2)
Production: 1011 t
Khabarovskregion
Gold assets Tin assets
Reserves breakdown
4% 6%
53%9%
14%
10%4%
СамолазовскийПодголечныйНЯРПЛунныйРябиновый Поиск
7%
29%
10%
15%
2%5%
42%
SamolazovskoyePodgolechnoyeNYOFLunnoyeRyabinovoyePoisk
Yakutia production complex Yakutia production complex
Yakutia production complex assets are located close to the town of Aldan so that
general and administrative costs are optimized by using the same infrastructure
facilities, service and technological units
Distances from the base of PJSC Seligdar to the main assets:
The location of production assets helps to minimize costs and increase efficiency
Production assets
Expansion assets
Nizhneyakokitskoye
Samolazovskoye
Ryabinovoye
Lunnoye
Podgolechnoye
19
SamolazovskoyeNizhneyakokitskoye (Mezhsopochny site)Nizhneyakokitskoye (Nadezhda site)PodgolechnoyeLunnoyeRyabinovoye
65 km81 km58 km67 km60 km49 km
Purikanskaya area
Gold division (1/2)
Yasnaya Polyana
Khvoyny production complex
Samolazovskoyeproduction complex
База ПАО «Селигдар» в г. Алдан
ALDAN
Shared facilities:
● Administration
● HR● Finance and accounting● Maintenance● Construction unit● Geological services● Laboratory● Transportation● Explosives ● Storehouse● Metallurgical production● Provision services● Other service units
Gold division (2/2)
20
Production assets Region
Gold production, kg
Mining Processing2015 2016 2017
Samolazovskoye PC(1)
Yakutia
72 51 190 Open-pit Heap and bio- leaching
Podgolechnoye PC 469 396 291 Open-pit Heap leaching
Nizhneyakokitskoye PC 1 806 2 272 2 450 Open-pit Heap leaching
Lunnoye PC 197 406 420 Open-pit Heap leaching
Ryabinovoye PC 676 776 621 Open-pit GEP(3), heap leaching
T/p(2) Poisk Altai region 120 305 452 Open-pit Heap leaching
T/p Sininda-1 (Nerundinskoyedeposit) Buryatia
0 0 0 Underground GEP, gravity separation
T/p Sininda-1 (placers) 128 113 201 Open-pit Placer washing
Total 3 468 4 320 4 625
Well-developed asset base enables strong production growth
Notes: (1) Production complex; (2) Team of prospectors (gold-mining cooperative); (3) Gold extracting plant
2 115
910
253 242 207 159 147 137 122 63 36
Po
lyus G
old
UG
C
Pe
tropa
vlo
vsk
Po
lym
eta
l
Nord
gold
Hig
hla
nd G
old
Min
ing
Zo
loto
Kam
chatk
i
GV
Gold
Se
ligdar
Kin
ross G
old
Su
sum
anzolo
to
Holding position in the gold mining industry
21
Gold production 2017 (tons) Gold reserves 2017 (tons)
Seligdar ranks 9th place among Russian companies in gold reserves terms and 12th place in production terms in 2017.
Source: companies data, media. Reserves are given on С1+С2 basis of Russian classification or P&P reserves based on JORC Code, if available.
67,2
28,7
18,115 13,7
8,5 7,5 7,0 6,4 5,3 5,1 4,6
Po
lyus G
old
Po
lym
eta
l
Kin
ross G
old
UG
C
Pe
tropa
vlo
vsk
Hig
hla
nd G
old
Min
ing
Nord
gold
GV
Gold
Pa
vlik
Zo
loto
Kam
chatk
i
Su
sum
anzolo
to
Se
ligdar
22
PJSC Rusolovo
PJSC Rusolovo comprises two tin mining assets in the
Khabarovsk region: LLC Pravourmiyskoye and OJSC Tin
Ore Company (OJSC ORK). PJSC Rusolovo is the only tin
mining company in Russia.
The main type of activity: tin ores mining, tin
concentrates production, associated production of tungsten
concentrate.
Underground mining method.
117165
321
578 627
1 011
2012 2013 2014 2015 2016 2017
Tin production (metal in concentrate), t
Actual data for 2017
Drifting — 4182 m (+132%)
Ore mining — 206.4 K tons (+116%)
Ore processing - 208.1 K tons (+119%)
Tin in concentrate production - 1011 tons (+61%)
Tungsten in concentrate production - 43 tons (+16%)
Revenue - 989 million rubles
6 354
11 834
8 736
0
5 000
10 000
15 000
20 000
25 000
30 000
Всего руда, тыс.т
м.Перевальное
м.Фестивальное
м.Правоурмийское
78
83
43
0
20
40
60
80
100
120
140
160
180
Всего олово, тыс.т
Tin division
Resource base
Perevalnoye
Festivalnoye
Pravourmiyskoye
Total tin, thousand tonsTotal ore, thousand tons
Notes: (1) Compound Annual Growth Rate
Gold and tin reserves in category C1+C2 on January 1, 2018
23Notes: (1) For placer deposits gold content in g/m3; (2) For Nizhneyakokitskoye ore field the reserves are based on a new mining feasibility study, February 2018
Production complex DepositLicense expiration
dateB+C1
gold, kgC2
gold, kgOff-balance gold
reserves, kgAverage gold grade
in reserves, g/t(1)
Samolazovskoye Samolazovskoye 30.06.2019 6 269 950 1 976 3,47Podgolechnoye Podgolechnoye 15.04.2022 0 0 0 1,86
Nizhneyakokitskoye(2)
Verkhneye 31.12.2022 3 066 1 045 1 667 1,23Nadezhda 31.12.2022 3 262 176 3 662 1,03Smezhnoye 31.12.2022 840 489 1 015 0,90Trassovoye 31.12.2022 9 563 791 5 910 0,92Khvoynoye 31.12.2022 14 484 2 325 2 298 0,89
Sininda-1
Nerundinskoye 31.12.2030 135 4 362 0 5,97Nerunda River 31.12.2022 93 4 6 2,86Nerunda stream tributaries 31.12.2021 261 175 56 0,89
Shaman stream tributaries 31.12.2021 238 2 40 0,92
Lunnoye Lunnoye 20.08.2027 6 962 4 060 23 985 1,89
Poisk Murzinskoye-1 31.12.2022 1 588 382 601 1,64Ryabinovoye Ryabinovoye 31.12.2026 8 825 7 477 4 870 2,05
Gold Mining Reserves 55 586 22 238 46 086Vasin Vasin 31.12.2021 1 353 42 952 341 6,78
Total: 56 939 65 190 46 427
Production complex DepositLicense expiration
dateB+C1tin, kt
C2tin, kt
Off-balance tin reserves, kt
Average tin gradein reserves, %
Pravourmiyskoye Pravourmiyskoye 55,3 22,4 - 1,22
Molodezhnoye Festivalnoye 53,1 29,5 - 0,7
Perevalnoye Perevalnoye 30,2 13 - 0,5
Total: 138,6 64,9 0,8
Audit of reserves by JORC Code
24
Gold reserves (proved and probable) Gold resources
DepositOre,
million tonsAu, g/t Au, t
NYOF, including 35,0 1,1 37,1
Nadezhda 7,5 1,1 8,3
Verkhneye 2,6 1,5 3,9
Trassovoye 11,5 1,1 13,1
Smezhnoye-1 1,0 1,0 1,0
Smezhnoye-2 0,6 1,1 0,6
Khvoynoye 11,8 0,9 10,2
Ryabinovoye 16,9 1,56 26,2
Total 51,8 1,22 63,3
PJSC Seligdar is actively working on the audit of resources and reserves of large deposits by JORC Code. The audit is conducted by Micon International:
Nizhneyakokitskoye ore field (2012 & 2017)
Ryabinovoye (2012 & 2016)
Pravourmiyskoye (2011)
DepositOre,
million tonsAu, g/t Au, t
NYOF, including 52,9 1,11 58,9
Nadezhda 7,8 1,20 9,3
Verkhneye 3,4 1,66 5,7
Trassovoye 14,6 1,11 16,3
Smezhnoye-1 1,3 1,12 1,5
Smezhnoye-2 0,6 1,18 0,7
Khvoynoye 25,2 1,01 25,4
Ryabinovoye 23,2 1,56 36,2
Total 76,1 1,25 95,0
Indicated Measured
Ore Tin Tin Ore Tin Tin
(kt) % (t) (kt) % (t)
4 377 1,10 48 170 3 234 0,99 32 146
Tin resources of Pravourmiyskoye deposit
Stock value dynamics of PJSC Seligdar
25
Since December 2016, Seligdar stock is included in the Broad Market Index of MOEX
Ordinary shares Preferred shares Trading volume, RUB Trading volume, RUBPrice, RUB Price, RUB
APPENDIX (1/2): Market multiples of peer companies
26Source: companies data, Bloomberg on August 14, 2018Notes: (1) Market capitalization of ordinary shares; (2) Calculated as the sum of the market capitalization of ordinary and preferred shares and net debt in August 14, 2018.
Capex EV
Gold
productionEV/EBITDA P/E EV/
2P reserves
EV/
gold production18E 19E 18E 19EUS$ million US$ million Million ounces
Russia
Seligdar 127(1) 412(2) 0.16 3,5 - 3,1 - 203х 2,168х
PolyusGold 8,947 12,238 2.2 6.6x 5.2x 7.5x 6.1x 180x 5,666x
Polymetal 3,895 5,219 1.4 6.4x 5.2x 9.4x 7.1x 250x 3,728x
Highland Gold 558 759 0.3 4.7x 4.5x 7.3x 7.3x 149x 2,787x
Petropavlovsk 277 800 0.4 4.1x 4.0x 7.1x 5.6x 98x 1,818x
Average 5.5x 4.7x 7.8x 6.5x 169x 3,500x
Global gold producersNewmont Mining 19,048 20,940 4.9 8.5x 7.7x 25.3x 21.8x 306x 4,273x
Barrick Gold 12,673 17,516 5.3 5.3x 5.2x 17.0x 14.8x 272x 3,292x
Newcrest Mining 12,170 13,629 2.4 8.2x 7.2x 22.6x 16.7x 220x 5,724x
Goldcorp 10,466 10,489 2.6 7.0x 4.8x 45.5x 18.0x 196x 4,081x
Agnico Eagle Mines 9,440 10,442 1.7 13.0x 10.5x n.m. 46.8x 508x 6,094x
Randgold Resources 6,788 5,003 1.7 8.2x 7.1x 23.0x 19.4x 357x 2,969x
Kinross Gold 4,051 4,889 2.7 4.0x 4.1x 18.1x 22.1x 189x 1,831x
Eldorado Gold 821 1,062 0.3 7.7x 6.2x - 23.4x 61x 3,626x
Average 7.7x 6.6x 25.3x 22.9x 264x 3,986x
AfricaAngloGold 3,499 4,089 3.8 3.0x 2.8x 12.2x 10.2x 83x 1,089x
Gold Fields 2,884 4,143 2.2 3.5x 3.1x 22.6x 13.5x 62x 1,918x
Harmony Gold Mining 828 989 1.1 2.7x 2.0x 7.2x 8.6x 27x 909x
Average 3.1x 2.6x 14.0x 10.7x 57x 1,305x
CIS/CEE/TurkeyCenterra Gold 1,306 1,436 0.8 3.6x 3.2x 9.7x 8.3x 88x 1,829x
Dundee Precious Metals 427 459 0.2 4.5x 2.8x 16.4x 10.2x 170x 2,320x
Average 4.0x 3.0x 13.1x 9.2x 129x 2,074x
APPENDIX (2/2): The fundamental attractiveness of gold market
27
■ High attractiveness of gold as a defensive asset against the background of instability in global markets and investors'
concerns about the growth prospects of global economy, high volatility in commodity markets and significant political risks.
■ A long period of low interest rates in the Eurozone and the USA increases the investment attractiveness of gold, and the rising inflation creates conditions for more positive price forecasts.
■ Renewal of physical demand for gold ETFs allows to maintain the gold volume over 2017 at the level of over 2 thousand tons.
Source: Consensus Economics (August 2018), brokers forecasts, World Gold Council
Current gold price forecasts (US$/oz) Gold dynamics in index funds
1
2
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