annual report 2013
wwwpolymetalinternationalcom 
robust strategy
perfor m ance
resilient strategic report
annual report 2013  
polymetal international plc
strategic report
introduction
our aim is to become the leading  
precious metals mining group in russia  
and the cis  delivering sustainable value  
to all our stakeholders
despite significant market volatility during  
the year we remain strongly committed  
to our strategy and business model and  
to our principles of capital discipline and  
the development of highquality assets
combined with our focus on high standards  
of corporate governance and responsibility  
we believe that this approach will enable  
us to build on our strong track record and  
continue to deliver aboveaverage returns
and 
resilient

 st ron g progress
we have achieved the objectives that 
we set ourselves at the time of our 
london listing in 2011 and are now 
strongly positioned for the next stage 
of our development
f ocuse d
1

 stra te gic report
2 at a glance
4 where we operate 
6  performance highlights
8 development focus 
10 operational focus 
12 financial focus
14 chairman’s statement
16 chief executive’s review
18 business model
19 strategy update
22 operating review 
 22 overview
 27 dukat hub
 30 omolon hub
 33 amursk pox hub
 36 albazino
 38 mayskoye
 40 khakanja hub
 42 voro
 44 varvara
 46 standalone exploration projects
48 sustainability
56 financial review
70 risks and risk management
 
govern ance
74 board of directors
75 senior management 
76 corporate governance
81 audit and risk committee report
86 directors’ report
88 remuneration report
 
f inanci al st atements
102 directors’ responsibility statement
103 independent auditor’s report
106 consolidated income statement
1 0 6  c o ns o li d a t e d s t a t e m e n t  
of comprehensive income
107 consolidated balance sheet
108 consolidated statement of cash flows
109  consolidated statement of changes  
in equity
110  notes to the consolidated  
financial statements
 
appendices
152 reserves and resources
159 glossary
162 shareholder information strategic report
strategic report 23
annual report 2013  
polymetal international plc
polymetal at a glance
resilient 
perfor mance
 1 33 moz
ore reserves ge oz
 3 7 gt
average reserve grade  
ge gt
 54
licences
 6
mining operations
 1 6 7 moz
mineral resources ge oz
37 gt
average resource grade  
ge gt
 10  650
total licence area km
2

 
production
production structure ge
■ gold 63
■ silver  35
■ copper  2
 1 2 8 2 koz
gold equivalent 
2012 1 063 koz
  2 1
increase of gold equivalent 
production over 2012
how we’ve delivered
we beat our original production guidance for the second 
consecutive year and delivered 128 moz 2012 106 moz 
of gold equivalent in 2013 up 21 yearonyear and 7 
above original expectations this robust achievement was 
driven by the successful rampup of our key growth 
projects amursk pox and mayskoye and exceptional 
operational delivery at the dukat hub 

 reserves an d resou rces
3

 asset por tfolio
what sets us apart
strong capital discipline 
as demonstrated in 2013 we are able to react dynamically  
to the changing market environment this has allowed  
us to maintain free cash flow generation and sustain  
a significant dividend stream to our shareholders
highquality assets
our high reserve grade supports relatively low cost profile  
and lower capital spending per ounce which taken together 
drive better returns on invested capital and resilience  
to price shocks 
 1 7 0 7
sales revenue us million 
2012 us1854 million 
 74 5
total cash cost  
usge oz
2
  
2012 us690ge oz
 59 8
adjusted ebitda
1
 –  
total us million  
2012 us932 million
 138
free cash flow  
us million  
2012 us138 million
1
  the company defines adjusted ebitda a nonifrs measure as profit for the period 
adjusted for depreciation expenses rehabilitation expenses writedowns of inventory  
to net realisable value sharebased compensation listing expenses additional mining  
tax penalties and accrued interest income on disposal of subsidiaries bargain purchase  
gains foreign exchange gainslosses changes in fair value of derivatives changes  
in fair value of contingent considerations finance income finance costs and income  
tax expenses adjusted ebitda margin is adjusted ebitda divided by revenue  
see note 5 to the financial statements 
2
  total cash costs comprise cost of sales of the operating assets adjusted for depreciation 
expenses rehabilitation expenses and writedowns of inventory to net realisable value  
and general administrative and selling expenses of the operating assets gold equivalent 
sales volume is calculated based on average realised metal prices in the relevant period 
total cash cost per gold equivalent ounce sold is calculated as total cash costs divided  
by total gold equivalent unit ounces sold
3
  mineral resources and ore reserves are estimated in accordance with the jorc code 
2012 mineral resources are additional to ore reserves
 
key financi al fi gures as at 31 december 2013
record production volume
polymetal achieved an alltime record 
production volume with 
810 koz
of gold equivalent this strong performance 
was bolstered by 
•	debottlenecking of the omsukchan 
concentrator dukat hub
•	the expansion of the kubaka plant and 
•	mining and processing commencing  
at albazino
premium listing on the lse
polymetal was admitted to the london  
stock exchange in november and included 
in ftse 100 listing
strong operational performance
metal sales for the full year exceeded 
production for both gold and silver  
polymetal produced
 1 063 koz
of total gold equivalent up 31 compared to 
2011 and exceeding original guidance by 6 
resource base increased
there was a dramatic increase in the resource 
base at albazino successful exploration  
has also identified potential new growth 
assets at kutyn and svetloye as a result  
total gold equivalent resources grew by 35
increased dividend payout 
polymetal’s inaugural dividend payment  
in respect of 2011 was made in june 2012  
a new dividend policy was adopted  
raising the payout ratio to 30 and 
introducing an annual consideration  
of special dividends in order to ensure  
value is delivered to shareholders
mayskoye mine started  
and ramped up
the mayskoye plant was started up in april 
and achieved design capacity by q4 this 
marked the completion of a major investment 
cycle to bring the second generation of assets 
into production and the first 48 koz of gold 
were sold to offtakers
new dividend policy in action
a total of us082 per share was paid  
in dividends in 2013 resulting in an industry
leading dividend yield the increased dividend 
payments were underpinned by commitment 
to capital discipline and strong free cash  
flow generation
destockpiling on track
progress made with scheduled stockpile 
reductions and with total gold equivalent  
sales exceeding production destockpiling 
was driven mainly by the dukat hub  
and albazino 
net debt decreased
positive cash flows resulted in a stable net 
debt at us1045 million driven by continued 
strong operating cash flow and decreased 
capital spending 
production guidance exceeded
polymetal exceeded its original annual 
production guidance for the second 
consecutive year and produced  
1 282 koz
of gold equivalent up 21 yearonyear 
amursk pox rampup  
successfully completed 
the amursk pox plant delivered a full 
quarter at design throughput and recovery 
averaging 93 in q4 this is an important 
strategic milestone for polymetal which 
now possesses a unique competitive 
advantage in the fsu listing on the london stock exchange
first operating pox plant in the  
former soviet union launched
the first operating pressure oxidation plant 
pox in russia’s gold industry polymetal’s 
amursk pox was started up and produced 
its first gold in april 2012 
amursk pox plant
a doré bar at voro

 2011 

 2012 

 2013

 t he futu re
we are fully on track to meet  
production guidance for 2014  
of 13 moz total gold equivalent 
increasing to 135 moz in 2015 
in 2014 we expect total cash costs  
of us700750gold equivalent  
‘ge’ oz allin sustaining cash costs  
of us9751025ge oz and capital 
expenditure of us250 million 
including exploration and  
capitalised stripping
 1 4 moz
total gold equivalent in 2016
our achievements st  petersburg
china
north 
korea
south 
korea
japan
 mongolia 
kostanay 
khabarovsk
magadan
uzbekistan
ukraine
belarus
lithuania
latvia
georgia
armenia
 ekaterinburg
russia 
kazakhstan
china
moscow

strategic report
strategic report 45
annual report 2013  
polymetal international plc
where we operate
highquality 
assets
delivering the full  
potential of the processing 
hub concept
850
ktpa
kubaka cip and  
merrillcrowe plant
13
mtpa
birkachan hl plant
birkachan sopka 
tsokol dalneye
oroch prognoz
pyatinakh burgali 
adygaya
bringing our newest mine  
up to speed
850 
ktpa
mayskoye concentrator
mayskoye
further growth at russia’s 
largest silver mine
16
mtpa
dukat concentrator
400
ktpa
lunnoye cil plant
dukat goltsovoye  
lunnoye arylakh
olcha
krasin zvezdny  
kamenisty

 voro
map key
hub
operating mines
development projects
seaport
standalone mining 
operations
key exploration projects
head office

citytown
sustaining high performance  
and margins
900 
ktpa
hl
900 
ktpa
cip
voro
south voro volchansky
strong operations in kazakhstan 
delivering a stable contribution 
42
mtpa
float  leach
varvara
varvara flanks
developing new and cost
efficient ore sources
600 
ktpa
merrillcrowe plant 
khakanja avlayakan  
ozerny
we have a growing portfolio  
of highquality assets supported  
by a robust exploration programme

 mayskoye

 khakanj a hub

 dukat hub

 omolon hub

 varvara
unparalleled competitive 
advantage in the region
500 
tpd
amursk pox plant 
processing concentrate 
from albazino
albazino mayskoye 

 amursk po x hub
solid operating performance 
throughout 2013
16 
mtpa
albazino concentrator
albazino south  
and east flanks

 albaz ino amursk pox hub strategic report
strategic report 67
annual report 2013  
polymetal international plc
performance highlights
sust ainin g 
str on g 
perfor mance
10379
12591
11002
2011 2012 2013
18
ore mined 
kt
1707
1854
1326
2011 2012 2013
8
revenue 
usm
598
932
624
2011 2012 2013
36
adjusted ebitda
usm
46
44
38
2011 2012 2013
4
average gold equivalent 
grade processed  
gt
53
61
40
2011 2012 2013
13
social investments
usm
10749
9809
8821
2011 2012 2013
10
ore processed 
kt
745
690 701
2011 2012 2013
8
total cash cost
usge oz
167
187
138
2011 2012 2013
11
resources growth
ge oz
138 138
260
2011 2012 2013
0
free cash flow
usm
699
542
2012 2013
29
ghg emissions
1
co
2
equivalent tonnes per 10 kt  
of ore mined
1282
1063
810
2011 2012 2013
21
gold equivalent production 
koz
1086
1059
1231
2011 2012 2013
3
allin sustaining cash cost
usge oz
032
070
0
2011 2012 2013
54
dividends declared
usshare
198
428
290
2011 2012 2013
net income
usm
051
110
079
2011 2012 2013
basic eps
usmshare
057
059
063
2011 2012 2013
3
lost time injury frequency rate
ltifr
2013 2012 2011
141
111
175
57
net debtadjusted ebitda 
8998
9237
8847
2011 2012 2013
3
headcount
operational highlights f inancial highlights
 read more on pages 5669 read more on pages 2255
mayskoye –  
launch and full rampup
amursk pox –  
completion of rampup

 capit al p rojects complete d in 2013
319
397
462
2011 2012 2013
20
capital expenditure
usm
underground mining at mayskoye
1 
2011 figure is not available as new methodology was used to calculate ghg emissions from 2012  strategic report
strategic report 89
annual report 2013  
polymetal international plc
development focus
a core element in our strategy 
for driving longterm growth
greenfield and brownfield exploration 
has proved to be one of the most 
efficient growth sources for polymetal 
historically and remains an important 
pillar of our development strategy  
our decision to sustain our exploration 
programme and to keep working  
on the next generation of growth 
assets is a conscious strategic 
preference in the current market 
environment although we have had  
to slow down some projects and defer 
development decisions for the key 
assets by approximately one year 
in 2013 we invested in both  
brownfield and greenfield exploration 
with total metres drilled increasing  
72 yearonyear to 1949 km  
we continued exploration activities  
at albazino including underground 
drift geotechnical studies and infill 
drilling with a view to converting the 
newly discovered resources to reserves  
and preparing the albazino expansion 
project for the development decision 
we have also advanced exploration 
activities and preparation for resource
reserve estimates and development 
decisions at key greenfield projects 
svetloye kutyn and maminskoye 
which may form the next generation  
of our growth assets
 
we expect that reductions in ore 
reserves and mineral resources  
in 2013 will be significantly reversed  
in 2014 as we step up our exploration 
efforts and complete feasibility studies 
on several key projects
 7 2 
total metres drilled 20132012

 in focus
exploration drilling at maminskoye
 read more on pages 4647
investin g in
explora tion strategic report
strategic report 1011
annual report 2013  
polymetal international plc
operational focus

 in focus
experience and technical 
expertise built up during  
the year
the amursk pressure oxidation plant 
pox our stateoftheart and the first 
operating pox plant in russia’s gold 
industry is now set to give polymetal  
a unique competitive advantage both 
nationally and in the former soviet 
union after successfully ramping  
up to design throughput and recovery 
by q4 2013 
however reaching this milestone has 
taken longer than expected during  
the rampup at the end of 2012 we 
encountered a number of mechanical 
and metallurgical problems and  
a programme of remedial measures 
was developed to deal with these 
issues promptly
the pox facility was restarted in  
q1 2013 with limited daily throughput 
of concentrate to ensure operational 
stability works carried out during  
a planned sixweek shutdown in q2 
then allowed the plant to quickly 
rampup to the design concentrate 
throughput in q3 along with 
improvement in recoveries 
in q4 the amursk pox plant delivered 
a full quarter of stable performance  
at the design parameters for both 
throughput and recovery gold 
production was 59 koz in q4 while 
average recovery reached 93  
the plant is now running at 500 tonnes 
per day exceeding its nameplate 
capacity for albazino concentrate  
with the aim of fasttracking the 
processing of accumulated stockpiles
in 2013 the successful rampup 
process at the amursk pox plant  
and related concentrate de
stockpiling contributed significantly  
to the increased gold production  
at albazinoamursk which totalled  
238 koz and exceeded original 
production guidance
  2 07 
increase in gold production in 2013  
at albazinoamursk
 9 4
design recovery achieved
challen ges
ove rcomin g
 read more on pages 3335
gold recovery 
 
jan feb mar apr may jun jul aug sep oct nov dec
75 75
81 81 81
84
86
87
89
91
94 94
concentrate processed 
kt 
jan feb mar apr may jun jul aug sep oct nov dec
6
4
11 11
10
4
14
13 13
15
8
17 strategic report
strategic report 1213
annual report 2013  
polymetal international plc
financial focus
032
070
000
2011 2012 2013
dividends declared
usshare
2013 2012 2011
141
111
175
net debtadjusted ebitda
138 138
260
2011 2012 2013
free cash flow
usm

 in focus
commitment to generating 
sustainable value
commitment to capital discipline  
is the key characteristic of our 
investment and funding policy
capital discipline drives the use  
of the return on invested capital  
as the key metric for project 
development decisions it also 
underpins our commitment to  
generate significant dividend streams 
for our shareholders while maintaining 
comfortable leverage levels and  
a conservative debt structure
despite challenging market conditions 
in 2013 we were able to stick to all  
of these core principles free cash  
flow for the year was us138 million 
remaining flat yearonyear despite  
a substantial decline in revenues  
this was largely achieved due  
to lower operating and capital 
expenditure levels increased 
production and major destockpiling
as a result the group’s liquidity  
profile remained comfortable with net 
debt almost flat at us1045 million  
2012 us1037 million and 93  
of debt being longterm this has 
allowed us to retain dividend levels 
with us316 million being paid  
in during 2013 and a final dividend  
of us31 million proposed in respect 
of this financial year
 72 
dividend yield in 2013
discipline
capit al
 read more on pages 14 5669 strategic report
strategic report 1415
annual report 2013  
polymetal international plc
chairman’s statement
during 2013 polymetal achieved full compliance with  
the uk corporate governance code during the year  
building on our established governance track record  
we made advances in our executive remuneration and 
significant progress in sustainability governance and reporting 
gaining iso certification and upgrading our sustainability 
disclosure to the exacting standards of the global reporting 
initiative gri
however we regard strong governance as a dynamic  
process in which continuous improvement is key in 2013  
we instigated the first formal evaluation of the board’s 
performance undertaken by an independent external advisor 
this enabled us to review the board’s effectiveness and 
identify areas for improvement the majority of areas were 
rated very highly and we have pinpointed key priorities  
for the coming year along with strategic issues on which  
we need to focus
we continue to strengthen and improve our business both 
operationally and financially but never lose sight of the board’s 
responsibility for ensuring that the company is run in the  
best interests of all its stakeholders through our commitment  
to the highest levels of ethical and responsible behaviour
our people
a strong leadership team can only achieve its goals with  
the collaboration and commitment of a strong and capable 
workforce at polymetal we have talented dedicated and 
hardworking employees and it is their efforts that are the 
bedrock of our success – now and in the future on behalf  
of the board and the leadership team i would like to thank 
everyone for their support and i look forward to working 
together with them for the longterm prosperity  
of the business
confident outlook for 2014
the board is pleased to be able to report a robust operating 
performance and resilient financial results for 2013 particularly 
given the vagaries of the commodity market trading throughout 
market conditions during the year proved challenging with 
gold and silver prices experiencing their sharpest drop in the 
last decade however thanks to a strong culture of delivering  
on our commitments i am pleased to report on polymetal’s 
resilient performance against this background the high  
quality of our assets and a responsive team was instrumental  
in helping us achieve both our production targets and the 
planned asset rampup we were also quick to respond  
to market challenges taking timely and appropriate decisions 
on production capital expenditure and funding and thus 
ensuring sustainable cash flow generation and profitability  
at the new commodity price levels
for the second year in a row we exceeded our original annual 
production guidance and produced 128 moz 2012 106 moz 
of gold equivalent in 2013 up 21 yearonyear and 7 above 
original expectations this achievement was driven by the 
successful rampup of our key growth projects amursk pox 
and mayskoye and exceptional operational delivery at the 
dukat hub 
dividends and value creation
delivering meaningful dividend yield to the company’s 
shareholders is central to our strategy focused on capital 
discipline polymetal has consistently implemented its dividend 
policy with a payout totalling us316 million in dividends  
in 2013 representing a 72 dividend yield to shareholders  
this was underpinned by strong free cash flow generation  
in both 2012 and 2013 and by our commitment to deliver  
this value to shareholders
although the company itself performed in line with the  
board’s expectations sustaining the same level of cash flow 
and profitability was clearly difficult in the significantly lower 
commodity price environment given current trends in the gold 
and silver market with prices set to remain under pressure  
the board has rightly taken a conservative approach in order  
to preserve the company’s current balance sheet strength 
and has decided not to pay a special dividend for 2013 
however in line with our dividend policy and on the back  
of strong cash flow generation in 2013 the board proposes  
a final dividend of us008 per share for 2013 and this will  
be paid subject to approval at the agm in may 2014
building on strong corporate governance
the board is committed to open and constructive dialogue 
effective corporate stewardship and strong corporate 
governance are particularly important for the wellbeing  
of the business in the current challenging market environment 
and we believe that we have the right balance of skills 
experience independence and knowledge of the company 
amongst the board’s directors to tackle these challenges
the year our outlook for 2014 remains unchanged with  
a 13 moz annual gold equivalent production target which  
is set to reach a further 14 moz level by 2016 with the current 
asset portfolio meanwhile we will continue to prepare our third 
generation of assets for development decisions in 20142015  
in order to ensure growth beyond 2016 we will also look for 
strategic acquisition opportunities and continue to streamline 
our current asset portfolio performance – all driven by the core 
objective of creating longterm value for our stakeholders
bobby godsell
chairman
resilient 
perfor mance  
in 2013
polymetal has continued to build  
a business that has clear strategic 
principles and a commitment to best 
business and governance practices
board of directors and committees
member of the  
board of directors
bobby godsell  
vitaly nesis
jonathan best  
marina grönberg
leonard homeniuk  
russell skirrow 
konstantin yanakov
jeanpascal duvieusart
charles balfour   
 chairman  executive director  nonexecutive director
 independent nonexecutive director
 audit and risk committee  remuneration committee 
 nomination committee 

 str uctu re
 read more on pages 74101
openpit mining at varvara
bobby godsell 
chairman
31 6
dividend payout in 2013 us million strategic report
strategic report 1617
annual report 2013  
polymetal international plc
chief executive’s review
safety rules by the employee we have already implemented  
a number of additional safety measures and enforcements  
to existing safety rules across our operating mines 
we are conscious of our longterm commitments  
to the economic social and environmental wellbeing  
of the people and places associated with our operations  
we have an ongoing programme of initiatives that support job 
creation the development of local and regional infrastructure 
health education culture welfare and sports our investment  
priorities are determined through regular feedback from  
and our experience of working with local communities and 
indigenous peoples over many years our daytoday conduct 
is guided by and complies with the un global compact and 
the un declaration on the rights of indigenous peoples 
looking to the future
our plans for 2014 and beyond already take into account  
the current reduced level of commodity prices due to the  
high reserve grade and conservative price assumptions used  
in our lifeofmine models the vast majority of our longterm 
mine plans remain intact after the recent price decline all our 
operating mines continue to generate positive cash flows and 
can withstand further fluctuations in the gold and silver price 
as a result the company reconfirms its production guidance  
of 13 moz of gold equivalent for 2014 and 135 moz for 2015 
as well as our mediumterm production guidance  
of 14 moz in 2016 
our strategic focus is on new growth assets – through both 
the internal pipeline and ma activities we hope to deliver 
significant progress on both of these in 2014 but any decisions 
about either route will be subject to our usual commitment  
to capital discipline
vitaly nesis
chief executive
robust operating performance
as reported in more detail in the chairman’s statement 
polymetal exceeded its original production guidance for  
the second consecutive year delivering an increase of 21 
yearonyear which was 7 above our production guidance 
this robust achievement was driven by the successful  
rampup at amursk and mayskoye and strong operational 
delivery at the dukat hub 
annual gold production was 805 koz 2012 589 koz  
up 37 yearonyear with significant increases coming  
from albazino and mayskoye annual silver production was  
272 moz 2012 265 moz up 3 yearonyear and helped  
by the increased throughput at the dukat hub which more  
than offset the expected gradedriven decline at khakanja
the newly commissioned flagship amursk pox plant after  
all initial issues had been addressed successfully achieved 
design throughput and recovery in the second half of the year 
averaging 93 in q4 this is an important strategic milestone 
for the company which now possesses a unique competitive 
advantage in the fsu 
mayskoye our newest underground mine and processing 
plant ramped up to full capacity marking the full completion  
of a major investment cycle between 2009 and 2012
strategy
our strong production results were underpinned by a strategic 
commitment to capital discipline and to sustaining value in the 
longterm we were quick to respond to the changing market 
environment by trimming capital expenditure suspending 
higher cost assets and stabilising cost performance  
all of these decisions will help preserve both the longterm 
value and the optionality of the company’s portfolio
financial performance
while our financial results were unavoidably impacted by  
lower prices this was partially offset by strong operating 
performance and decreased capital expenditure we 
continued to generate a strong free cash flow despite the 
challenging market conditions this allowed the company  
both to sustain dividend flow to shareholders and to maintain  
a strong balance sheet position which in turn will provide  
us with flexibility for further organic and acquisition growth 
opportunities in the current market environment
sustainability
polymetal is one of the employers of choice in the  
mining sector in russia and kazakhstan employing  
nearly 9000 people at 31 december 2013 alongside the 
responsible development of our business the wellbeing  
of our dedicated staff is paramount to the success of the 
company we have made solid progress across all business 
operations to put in place an employee protection and 
workplace safety management system our health and  
safety focus for 201315 is to enhance our capabilities  
in three key areas – training visualisation and monitoring –  
as well as rolling out the system to our supplier and  
contractor network 
our lost time injury frequency for the year reduced by 3  
over 2012 however it is with great sadness that we report  
one fatality in 2013 at the ozerny openpit mine in the  
khakanja hub a formal investigation into the incident has 
revealed a serious breach of both internal and statutory  
a successful 
year of 
delive ry  
and growt h
2013 was a year when the world’s  
gold miners were tested for their  
ability to withstand market challenges  
as prices experienced their lowest  
dip for nearly two decades while the  
drop in commodity prices impacted  
on performance polymetal demonstrated 
resilience by delivering on its promises  
and responding to the challenge swiftly  
and effectively 
vitaly nesis 
chief executive
ore concentrate storage at albazino the helicopter landing strip at amursk
  2 1
production growth in 2013
 1 086
allin sustaining cash costs in 2013 
usge oz
 138
free cash flow in 2013  
unchanged to 2012 us million strategic report
strategic report 1819
annual report 2013  
polymetal international plc
01 achieve design c apacity a t a ll pl ants 
and t argete d production volumes 14 m oz
achieve design capacity at projects currently under 
construction or in rampup phase by the second half of 2013 
and achieve production level of 14 moz of gold equivalent 
ounces in 2016 assets under construction or rampup phase 
expected to generate production growth are the amursk pox 
plant and mayskoye concentrator
02 complete key c apex projects
albazino amursk pox and mayskoye were the key projects  
we concentrated on in 20122013 these have now been 
completed and are delivering a healthy contribution  
to production and ebitda
03 capit al d iscipline d elive r supe rior 
operatin g profit ability f ree cash flo w 
and dividends
deliver superior operating profitability and strong free  
cash flow by maintaining tight cost control focusing on return  
on capital in investment decisions and maintaining safe  
debt levels
04 value driven o rganic a nd  
inorga nic gr owt h
acquisitions 
pursuit of selected synergistic ‘bolton’ or other valueaccretive 
acquisition opportunities with a view to leveraging processing 
capacity infrastructure and operational expertise at our existing 
processing hubs adding substantial new standalone mines  
to the portfolio or transforming current standalone mines  
into new hubs
greenfield exploration
investment in greenfield exploration with the aim  
of discovering highgrade quality assets for construction  
of new standalone mines
nearmine exploration
investment in nearmine exploration with the aim of expanding 
the group’s reserve base and creating opportunities for 
production growth either through grade improvement  
or expansion of existing processing facilities assets targeted  
such expansion are albazino omolon khakanja and voro
05 maint ain high st andards of cor porate 
govern ance a nd sust ainable d evelopment
maintain high standards of corporate governance strictly 
adhering to the principles of sustainable development  
in our interaction with all stakeholders in our operations 
including communities employees and government bodies  
we are compliant with the provisions of the uk corporate 
governance code from june 2013 the group is also  
a participant in the un global compact a recognised 
international standard for sustainable development
business model
our business 
model for 
success
operatin g to  
a consistent 
stra te gy
the objective of our business model  
is to ensure that we remain successful  
in our market and in doing so deliver 
sustainable value to our stakeholders  
the methodology that we have developed 
focuses on our capabilities for increasing 
our resource base and enhancing  
our processes for improving both 
production efficiency and grades
the consistent implementation  
of our strategy is at the heart  
of our successful track record
our business model is composed of three interdependent 
elements our investment in exploration a focus on highgrade 
assets and the development of our hubbased operating 
system these are all underpinned by our adherence  
to strong governance principles
delivering
sustainable
value
maintaining exemplary governance
maintaining exemplary governance
focusing on highgrade assets
investing in exploration   
leveraging our hubbased system
f ocusing on highgrade assets
return on investment in the precious metals industry is largely 
driven by two key cost factors grades and mining conditions 
we achieve better returns and lower risks from our project 
portfolio by setting appropriate thresholds on head grades  
and focusing on openpit mines only opting for underground 
development if this is justified by higher grades
 read more on pages 2245
l everaging our hubbased system
 
we have created centralised processing facilities to handle 
ores from different sources these enable us to achieve 
economies of scale by minimising processing and logistics 
costs as well as capital spending per ounce the hub system 
also allows us to bring into production mediumsized or even 
smallsized nearmine deposits that would be uneconomic  
to run as standalone operations
 read more on pages 2741
investing in exploration
 
successful exploration provides us with a costeffective 
increase in our reserve base and along with successful 
acquisitions is the key source of our longterm organic growth
 read more on pages 89 2426 4647
maintaining exemplary governance
 
we are committed to upholding good governance throughout 
our operations and in our interactions towards and on behalf  
of all our stakeholders
 read more on pages 74101
surveying activity at khakanja
openpit mining at khakanja strategic report
strategic report 2021
annual report 2013  
polymetal international plc
strategy
we have a disciplined and measurable approach to ensuring that each 
element of our strategy is properly implemented this is reflected in the 
clear kpis that we use to measure progress against our strategy and  
to which the remuneration of the board is linked
the autoclave section at amursk 
risks
•	production risk
•	market risk – commodity prices
•	logistic and supply chain risk
 read more on pages 7172
risks
•	construction and development risk
•	logistic and supply chain risk
 read more on pages 72
a board meeting at our st petersburg 
head office 
risks
•	market risk – commodity prices
•	financial risks
•	tax risk
 read more on pages 7173
risks
•	exploration risk
•	mergers and acquisitions
•	political risk
•	legal risk
 read more on pages 7273
a traditional ‘festival of the north’  
in the khabarovsk region 
risks
•	environmental risk
•	health and safety risk
 read more on pages 7273
volumes 14 moz
01 achieve d esign 
capacity a t a ll pl ants 
and t argete d production 
02 complete key 
capex projects
04 value driven o rganic 
and inorga nic gr owt h
05 maint ain high 
st andards of cor porate 
gove rnance an d sust ainable  
development
03 capit al d iscipline 
delive r supe rior 
ope ratin g profit ability 
f ree cash flo w 
and dividends
kpis our performance in 2013
gold equivalent produced
1282 moz21
average grade gold equivalent  
grade processed
46 gt4
kpis our performance in 2013
capex us million
31920
major project milestones completed mayskoye – launch and full rampup 
amursk pox – completion of rampup
kpis our performance in 2013
total cash cost usge oz
7458
allin sustaining cash costs usge oz
10863
adjusted ebitda us
59836
adjusted ebitda margin
3515
return on equity
616
free cash flow us million
1380
dividend yield
72
kpis our performance in 2013
ma 
transactions made during 2013
acquisition of maminskoye – 09 moz  
of gold reserves in the urals with 
exploration upside  
organic growth through exploration
exploration expenditure us million
59
drilling volumes km
19572
advanced exploration project decisions svetloye albazino2 – expected in 2014 
kutyn maminskoye – expected in 2015
kpis our performance in 2013
compliance with uk corporate 
governance code
ltifr
0573
csr spending us million
5313
ghg emissions tonnes per 10 kt  
of ore mined
69929
priorities for 2014
•	achieve a production level  
of 13 moz of gold equivalent 
•	deliver a full year of robust performance 
at the mayskoye and amursk pox plants
•	negotiate potential terms of offtake  
for mayskoye
•	commence stoping at the avlayakan 
underground mine
•	commence ore leaching at birkachan 
heap leach facility omolon hub
priorities for 2014
•	advance the development decisions  
for the third generation of growth 
assets including potential expansion  
at albazino and development of 
svetloye in the second half of the year
priorities for 2014
•	deliver on our total cash cost  
guidance of us700750ge oz  
and allin sustaining cash costs  
of us9751025ge oz
•	achieve further decrease of capital 
expenditure to us250 million and 
generate significant free cash flow
•	maintain conservative funding structure 
to allow for dividend payments and 
flexibility for further growth opportunities
priorities for 2014
•	advance the development decisions  
for the third generation of growth 
assets including potential expansion  
at albazino and development of 
svetloye in the second half of the year
•	screen for potential valueaccretive 
ma in the current market environment
•	continued resourcetoreserve 
conversions and resource category 
updates at our advanced standalone 
exploration targets and brownfield 
targets through infill drilling
priorities for 2014
•	 increased focus on enforcement  
of health and safety rules and risk 
management with particular attention 
to key risk areas and rollout of our 
systems to suppliers and contractors
•	 keep on track with the high standards 
of corporate governance and  
corporate responsibility
the mayskoye plant 
kerns from the maminskoye  
exploration project  strategic report
strategic report 2223
annual report 2013  
polymetal international plc
operating review
resilient 
operatin g 
perfor mance 
suppor te d by 
highquality 
assets
despite significant turbulence  
in commodity markets in 2013  
polymetal demonstrated a resilient 
performance and delivered  
on all of its operating targets
polymetal exceeded its original annual production guidance  
by 7 and produced 128 moz of gold equivalent during 2013 
up 21 yearonyear this achievement was driven by the 
successful rampups at amursk pox and mayskoye and 
strong operational delivery at the dukat hub supported  
by a robust performance at other mature operating mines 
the full rampup of amursk and mayskoye in 2013 marked  
the completion of a major investment cycle and brought  
a whole new generation of polymetal’s assets albazino
amursk omolon and mayskoye online these new mines 
contributed 35 of total gold equivalent production in the year 
as well as the bulk of production growth during 20112013
in the light of a insignificant decline gold and silver prices  
in the second quarter of 2013 the management and the  
board undertook a strategic review of our operations and 
projects quickly identifying and implementing action plans  
to optimise operating performance and capital expenditures 
the operational decisions taken were aimed at maintaining  
free cash flow generation and the capacity to pay dividends  
in the current market environment whilst securing the long
term health of our assets and retaining flexibility should  
prices recover in future 
in light of this highgrading raising the cutoff grade  
of a mine significantly and continuing to mine whilst leaving  
the rest of the ore body uneconomic was discarded as an 
approach for highercost assets instead we have selectively 
suspended certain mines completely birkachan omolon hub 
and revised mine plans for certain processing hubs omolon  
and khakanja hubs in order to accelerate access to lower  
cost andor higher grade material all decisions including  
the reallocation of mining volumes optimisation of stripping  
and underground development were driven by the  
lifeofmine npv of an operation rather than shortterm 
costcutting considerations
additionally as a result of the board’s strategic review capital 
expenditure was optimised with savings of approximately 
us60 million in 2013 key decisions included
•	the sopka heap leaching project was postponed
•	the greenfieldbrownfield exploration budget was reviewed 
and reprioritised we have continued to invest in key 
development projects such as svetloye maminskoye  
kutyn and the expansion of albazino although the pace  
of development has been slowed down and key project 
development decisions have been pushed back by 
approximately 12 months at a number of earlystage 
exploration assets exploration volumes have been  
reduced or cancelled completely
•	certain noncore maintenance projectsmining  
equipment purchases at operating mines have been 
cancelled or delayed
the actions outlined above made no impact on our 2013 
production plans and only a minor impact on the mediumterm 
production up to 2016 when our original 14 moz of gold 
equivalent production target will be achieved furthermore  
we were also able to bring cash costs down by 8  
in the second half of the year compared to the first half 
production highlights
2013 2012

change
key operating highlights
stripping kt 84956 85173 0
underground development m 55339 46717 18
ore mined kt 10379 12591 18
– openpit 7975 10937 27
– underground 2404 1654 45
metal in ore mined ge grade gt 47 39 22
ore processed kt 10749 9809 10
metal in ore processed ge grade gt 46 44 4
production
– gold koz 805 589 37
– silver moz 272 265 3
– copper kt 4841 6567 26
gold equivalent production koz 1282 1063 21
sales
– gold koz 808 589 37
– silver moz 274 278 2
– copper kt 6141 7011 12
gold equivalent sales koz 1295 1088 19
health and safety
ltifr 057 059 3
fifr 006 – na
exceeding expectations for production and sales 
annual gold production was 805 koz up 37 yearonyear 
with significant increases coming from albazino and mayskoye 
annual silver production was 27 2 moz up 3 yearonyear 
due to increased throughput at the dukat hub which more 
than offset the gradedriven decline at khakanja copper 
production was 48 kt lower than in 2012 because  
of a scheduled decrease in copper grades at varvara
silver sales lagged behind production in the first half of the 
year mainly due to increased concentrate in transit inventories 
at dukat however the gap was closed in the second half  
and metal sales for the full year slightly exceeded production 
for both gold and silver
successful completion of key capital projects
amursk pox
despite the unexpected setback in the rampup schedule  
at the amursk pox plant by the end of the third quarter  
of 2013 the plant was ramped up to full capacity and achieved 
design throughput and recovery this required a sixweek 
maintenance shutdown in the second quarter and an upgrade 
of the water treatment unit in the third quarter of the year  
with these measures successfully completed on schedule  
the plant quickly reached design parameters
launch of mayskoye
another highlight of the year was the successful launch  
and rampup of the mayskoye processing plant between  
its launch in april and december the plant produced  
87 koz of gold in concentrate and achieved design  
throughput and recovery levels
analysis of production results
mining
stripping volumes in 2013 were flat at approximately 85 mt  
of rock moved volumes of stripping were significantly reduced 
at the omolon hub after q2 due to completion of a massive 
stripping campaign and suspension of mining at birkachan  
in response to lower commodity prices while at varvara 
stripping volumes increased in the second half of the year  
as a result of pushback in the northwest and northeast pits 
underground development increased by 18 to more than  
55 km mainly due to increased volumes at the dukat hub 
where ore is increasingly sourced from underground with  
the dukat and arylakh mines switching fully to underground  
in 2013 we commenced openpit mining at dalneye omolon 
hub and underground mining at avlayakan khakanja hub
ore mined was 104 mt and decreased by 18 compared  
to 2012 this is mainly attributable to the drawdown  
of additional ore for processing from prior years’ stockpiles  
at varvara omolon and khakanja the bulk of ore mined 77 
was sourced from open pit however the share of ore mined 
from underground has increased since the mayskoye mine 
started active stoping with the launch of the processing plant 
and the dukat hub shifted almost completely to underground 
mining during the year 
the average gold equivalent grade in ore mined was  
47 gt a 22 increase yearonyear the highgrade profile  
of polymetal’s operations was further supported by the newly 
launched mayskoye mine average grade mined was 74 gt 
gold and the strong grade profile at dukat where the average 
silver grade in ore mined increased by 8 yearonyear  
to 429 gt
the full rollout of the short medium and longterm 
computerised mine planning system across all the group’s 
operations was also an important technical achievement  
during 2013
processing
ore processed increased by 10 in 2013 and totalled 107 mt 
the increase was driven by further capacity expansion at the 
dukat hub including both lunnoye and omsukchan plants 
and the launch of the mayskoye processing plant in april 2013 
which milled 488 kt by the end of the year our mature mines 
demonstrated stable performance in terms of throughput  
and albazino mine as a result of debottlenecking increased 
its capacity to 16 mtpa of ore by the end of the year 
in line with increased grades in ore mined the average gold 
equivalent grade in ore processed grew by 4 to 46 gt  
this result was achieved through the launch of the highgrade 
mayskoye mine the high grade profile at the dukat hub and 
albazino and robust grade performance elsewhere across  
the group with the exception of khakanja scheduled grade 
decline driven by depletion of yurievskoye and khakanja’s  
pit 3 and omolon scheduled grade decline at sopka
ore concentrate unloading at amursk strategic report
strategic report 2425
annual report 2013  
polymetal international plc
operating review
continued
•	greenfield exploration for new precious metals deposits with 
a potential resource base which would be sufficient in grade 
and size to justify the construction of a standalone mine and
•	 exploration for platinum group metals pgm in the 
ekaterinburg and karelia regions in order to establish  
new hardrock pgm resources
key 2013 exploration statistics
 
2013 2012 

change
exploration works
core drilling km 1949 1135 72
trenching th m
3
1275 2942 57
underground development  
for exploration purposes m 1137 579 96
sampling thousand samples
trench sampling 8 135 41
core sampling 1298 102 27
sludge sampling 61 – na
geophysical research  
area covered km
2
 372 1038 64
in 2013 despite a significant decline in gold and silver prices 
we continued to invest in exploration with total metres drilled 
increasing 72 yearonyear to 1949 km total capital 
expenditure on exploration declined by 13 to us59 million 
mostly due to a decrease in the unit costs of drilling and  
a reduction in earlystage activities such as trenching
we have made solid progress on all key advanced  
greenfield and brownfield exploration projects as a result 
material additions to ore reserves are expected in 2014  
at svetloye q2 albazino q4 and kutyn q4 with further 
likely additions at nearmine properties at omolon and voro
reserves and resources
ore reserves and mineral resources summary
1
  
1 january
2014
1 january
2013 

change
ore reserves  
proved  probable  
gold equivalent moz 133 151 12
gold moz 89 96 7
silver moz 2195 3076 29
copper kt 770 829 7
mineral resources  
indicated  measured  inferred  
gold equivalent moz 167 187 11
gold moz 134 149 10
silver moz 1172 1461 20
copper kt 1452 2814 48
1
  mineral resources and ore reserves are reported in accordance with the jorc code 
2012 mineral resources are in addition to ore reserves discrepancies in calculations  
are due to rounding
production
for the second consecutive year and despite commodity  
price fluctuations we have exceeded the original guidance 
achieving 128 moz of gold equivalent production in 2013 
dukat mayskoye and albazinoamursk were the key 
contributors to this growth voro and varvara demonstrated 
resilient performance production decline at khakanja was  
a result of scheduled grade decline and the decrease at 
omolon was a result of expected average grade decline  
in ore from sopka
in 2013 polymetal continued to reflect seasonality in its 
production profile production dynamics on a quarterly  
basis are shown in the graph below the strength of the 
second and the third quarters of the year was driven by
•	 shipment of concentrates from mayskoye and albazino 
during the navigation period
•	ore transportation at omolon trucking of ore from  
sopka by winter road in the first quarter processing  
in the second and third quarter and
•	seasonal heap leaching operation at voro
in 2014 with the full volume of albazino concentrate  
to be processed at the amursk pox the level of seasonality  
is expected to reduce however seasonal navigation  
at mayskoye and seasonal highgrade ore processing  
at omolon will continue to influence the production profile  
with peak production expected in the third quarter
quarterly production data 
ge koz
■ gold  ■ silver  ■ copper 
q1
2012
101
94
8
203
q2
2012
154
135
8
298
q3
2012
196
113
9
317
q4
2012
137
99
8
244
q1
2013
121
107
7
235
q2
2013
190
126
7
323
q3
2013
281
126
6
413
q4
2013
212
94
4
310
gold equivalent production by mine koz
2013 2012

 change
dukat 409 357 15
khakanja 144 164 12
voro 154 157 2
varvara 132 134 2
omolon 158 173 9
albazinoamursk 238 77 207
mayskoye 48 – na
total production 1282 1063 21
13277
15138
1517
1498 1154
movement in gold equivalent ore reserves 
moz 
ore reserves
at 010113
processing revaluation new
discoveries
ore reserves
at 010114
in 2013 polymetal decreased its ore reserves by 12  
to 133 moz of gold equivalent while mineral resources 
additional to ore reserves declined by 11 these reductions 
were driven mostly by more stringent economic evaluation  
using the same prices of us1300oz gold and us225oz 
silver for both reserves and resources
the key material additions to ore reserves were due to 
resourcetoreserve conversion at oroch 241 koz of gold 
equivalent and acquisition and subsequent revaluation  
of maminskoye 913 koz of gold equivalent decreases  
in ore reserves in addition to regular depletion 1517 koz 
resulted mostly from the response to changes in mine plans 
and were mainly comprised of the following
•	 reoptimisation of open pits at birkachan and sopka
•	 exclusion of remote ore zones and ore bodies requiring 
significant additional investment in access at dukat and
•	 indefinite postponement of underground mining at khakanja 
due to adverse assessment of geotechnical conditions
mineral resources decreased mostly as a function  
of the lower gold price used in the yearend estimates 
us1300oz in 2013 vs us1500oz in 2012
average ore reserve grade remains high at 37 gt ge  
a decline of 7 compared with 2012 while average mineral 
resource grade increased by 14 to 37 gt as a result  
of lowerquality resources being excluded from the estimate
acquisitions remain an important pillar of our strategy
we believe that the current weakness in precious metal  
prices represents both a challenge and an opportunity  
growth through synergistic valuedriven ma has always 
been an integral part of our strategy in 2013 apart from  
the acquisition of maminskoye we undertook no major 
transactions however we are still keen to investigate potential 
acquisition opportunities and have both the financial and 
operational flexibility to respond should such opportunities 
arise in our acquisition strategy we remain focused on 
highquality development stage assets with highquality 
resourcesreserves and long mine life to justify the construction 
of a standalone mine at current commodity price levels
metal sales in 2013 were 1295 koz of gold equivalent
1
  
and grew by 19 compared to 2012 sales volumes  
slightly exceeded production for the full year
while most of the sales are comprised of refined metals  
we continue to sell concentrates from dukat goldsilver 
varvara goldcopper to offtakers in kazakhstan japan 
south korea and china for dukat and varvara the offtake 
allows us to maximise margins compared to inhouse 
processing of these materials during 2013 we diversified  
the offtaker base considerably in order to achieve an optimal 
combination of transportation costs and treatment charges
recoveries offtake diversification is also an important element 
of polymetal’s strategy aimed at strengthening our commercial 
independence from key customers 
due to the temporary setback in the rampup schedule for the 
amursk pox plant and in order to avoid buildup of excessive 
concentrate stockpiles we resumed concentrate sales from 
albazino in the second and third quarters of 2013 sales to 
offtakers in china during 2013 increased by 25 yearonyear 
and comprised 79 koz this has now been fully completed 
with no further offtake required from 2014 
shortly after the startup of the mayskoye concentrator  
in april 2013 polymetal signed two export sales contracts  
with chinese offtakers for refractory gold concentrate 
produced at mayskoye a total of 30 kt of concentrate  
with 48 koz of payable gold was shipped to offtakers  
during the navigation period in 2013
exploration
polymetal’s exploration activities are focused in five regions  
of russia – khabarovsk magadan chukotka karelia and 
ekaterinburg – as well as in kazakhstan polymetal currently 
has 54 licences for geological studies and gold silver and 
copper exploration and mining and one coal mining licence 
our current exploration portfolio includes 40 licences  
with a total area of approximately 10240 km
2
 of these  
our exploration activities in 2013 covered 28 licence areas 
including 20 areas in the scoping stage and eight areas  
in the advanced exploration stage
our exploration targets for 2013 included
•	ongoing brownfield exploration activities aimed  
at extending mine lives at our existing operations  
khakanja with the shortest current mine life dukat  
omolon varvara and voro
•	continued exploration activities at albazino including 
underground drift geotechnical studies and infill drilling  
with a view to converting the newly discovered resources  
to reserves and preparing the albazino expansion project  
for the development decision 
•	 advanced exploration activities and preparation for  
resourcereserve estimates and development decisions  
at key greenfield projects svetloye kutyn and maminskoye  
which may form the next generation of our growth assets
1
 at 160 ag ozau oz ratio 51 cu mtau oz ratio strategic report
strategic report 2627
annual report 2013  
polymetal international plc
operating review
continued
outlook for 2014
the key operational focus in 2014 will be to deliver a full  
year of robust performance at two of our newest plants – 
mayskoye and amursk pox – and sustain robust operating 
performances at the dukat hub and other mature mines  
in doing so we expect to achieve a production level  
of 13 moz of gold equivalent which will be further improved  
to 135 moz in 2015 and 14 moz in 2016 based on the  
current asset base
operations
achieving our targets at mayskoye will be key to delivering  
on this guidance this will include trial processing of concentrate 
from mayskoye at the amursk pox plant in the first quarter  
and negotiation of the potential terms of longterm offtake  
the split between ownprocessing at the pox plant and 
offtake sales will be driven partially by the relative economics 
of each of these routes and partially by the prospects  
of an albazino expansion which if undertaken will require 
additional pox capacity
at the amursk pox plant the key objective is to deliver a full 
year of sustainable performance and further optimise it in terms  
of costs another important goal is to deliver a robust recovery 
and cost profile on the processing of mayskoye concentrate 
while the past year was challenging in terms of the pox plant 
performance we believe that the internal expertise gained  
as a result of the rampup process will enable us to deliver 
both of these targets successfully
our operational objectives for other existing mines are
•	 further debottlenecking at the dukat hub underground  
mines and achieving total throughput of 2 mtpa
•	commencement of stoping at the avlayakan underground 
mine and achieving an increase in the amounts of ore  
mined and shipped to khakanja
•	 increasing volumes of ore mined at varvara after completion 
of the pushback and pit optimisation
•	 a further increase in the amounts of ore trucking by winter 
road at the omolon hub from sopka and dalneye 
•	commencement of ore leaching at birkachan heap leach 
facility omolon hub and
•	an increased focus on enforcement of health and safety rules 
and risk management with particular attention to key risk 
areas and rollout of our systems to suppliers and contractors
barring any further deterioration of commodity prices we are 
also set to advance the development decisions for the third 
generation of growth assets including potential expansion  
at albazino and development of svetloye in the second half  
of the year in 2015 we will also consider development 
decisions for our kutyn and maminskoye projects
exploration
in 2014 our exploration activities will be focused on
•	continued resourcetoreserve conversions and resource 
category updates at our advanced standalone exploration 
targets and brownfield targets through infill drilling
•	 additional drilling at the flanks of ozerny and avlayakan  
with a view to extend lifeofmine at khakanja
•	further increase of resource potential at albazino through 
additional underground development and drilling in the  
olga zone infill drilling in the ekaterina1 and ekaterina2 
zones and additional stepout drilling at the flanks of the 
albazino field
•	completion of a resource estimate at burgali and continued 
exploration at the other brownfield targets in the omolon  
hub area
•	 infill drilling and finalisation of resource estimates  
at olcha with preparation for openpit mining and  
exploration for new ore bodies in the area
•	 continued exploration at the two key greenfield targets  
of kutyn and svetloye followed by resource estimates  
and preparation of oxidised ores for openpit mining
•	 continued scoping and exploration at the elmus and semcha 
areas in karelia with a view to developing a new standalone 
goldpgm asset in the region and
•	 preparation of maminskoye resources for openpit mining 
and stepout drilling at the flanks of the deposit
our focus on exploration is a conscious strategic preference  
in the current market environment with a highquality portfolio 
of operating assets we continue to generate robust operating 
results and healthy cash flows at lower commodity prices  
we would therefore like to be fully prepared for the next  
stage of the commodity cycle by developing a new generation 
of polymetal’s assets both from reserve additions from 
exploration and from potential acquisition opportunities  
the year ahead will be important for progressing both routes
for the second year in a row dukat takes the lead among our 
mature mines in terms of both production growth and robust 
cost performance silver production in 2013 was 221 moz  
up 15 yearonyear and was further supported by 
improvements in average grades at the dukat and goltsovoye 
mines and increased recovery rates despite the full switch  
to underground mining the dukat hub achieved a further 
reduction in total cash costs of 5 to us116silver  
equivalent oz 
2013 highlights
mining
in 2013 underground development at dukat increased by 26 
yearonyear to 307 km with more than 125 mt of ore mined 
from underground and average silver grade in ore mined 
increasing by 9 to 423 gt this compensated for the 6 
decrease in the total amount of ore mined after the completion 
of openpit mining within the mine we commenced 
development of the eastern zone and further improved  
dilution levels by finetuning the parameters of blasting  
and drilling works 
at goltsovoye following a significant amount of development  
in 2012 ore mined nearly doubled yearonyear to 168 kt  
and the average grades increased by 14 to 624 gt silver 
contributing to the increased grades in the omsukchan 
concentrator feedstock underground development continued 
to accelerate and comprised 71 km in 2013 a 35 increase 
the successful implementation of the driftandfill mining 
method has contributed to a significant reduction in dilution 
and improved average grades in ore mined
at arylakh volumes of stripping and ore mined from open pit 
continued to decline due to depletion while being substituted 
by higher grade ore from underground at lunnoye works 
progressed steadily across ore zones 7 and 9 in accordance 
with the mine plan total ore mined increased by 7 yearon
year to 394 kt although there was a slight decrease in average 
silver grade to 367 gt due to the depletion of the open pit  
at arylakh
processing
the amount of ore processed at the main omsukchan 
concentrator grew by 9 yearonyear and comprised 157 mt 
with a further increase to 16 mt expected in 2014 as a result  
of debottlenecking and increased capacity of the underground 
dukat mine average grades processed followed the positive 
dynamics at dukat and goltsovoye mine with the silver grade 
processed increasing to 425 gt 6 yearonyear the 
average recoveries also trended up by 3 for gold and 2  
for silver to 837 and 863 respectively as a result silver 
production grew by 18 yearonyear to 183 moz of which 
the majority was sold to thirdparty offtakers
the new sag mill was successfully commissioned at lunnoye 
plant which now has the capacity to process 400 kt of ore  
per annum additional feed will come from existing stockpiles 
and potentially from the new satellite mine at olcha in 2015  
in 2013 the amount of ore processed was up 1 at 338 kt 
and despite some grade decline in the ore feed see above 
silver production was up 2 at 38 moz due to increased 
recoveries which comprised 893 for silver
dukat
magadan
omsukchan


1
2
4
5
6
7
3
lunnoye
dukat
mines
1 arylakh
2 lunnoye
3 perevalny
4 nachalny2
5 dukat
6 goltsovoye
7 olcha
 processing plants
 town
kern analysis at ozerny

 fu rt her growt h at russi a’s 
l argest silve r mine
russia magadan region
managing director mikhail egorov
employees 1869
3rd
largest silver deposit  
in the world
  15 
silver production in 2013 
221 moz
5
total cash costs  
us116silver equivalent oz
 8
ore processed  
19 mt  strategic report
strategic report 2829
annual report 2013  
polymetal international plc
operating review
continued
processing plants
omsukchan concentrator
type flotationgravitation
capacity ktpa 1600
commencement of production year 2002
ore from which mines is processed dukat goltsovoye
lunnoye processing plant
type cyanide leaching
and merrillcrowe
capacity ktpa 400
commencement of production year 2001
ore from which mines is processed lunnoye arylakh
 concentrate from 
omsukchan
 concentrator
production 20132012 statistics
omsukchan concentrator lunnoye processing plant total
2013 2012

change 2013 2012

change 2013 2012

change
ore processed kt 1574 1439 9 338 333 1 1912 1772 8
metal in ore processed grades
– gold 07 07 8 11 12 4 08 08 4
– silver 425 401 6 3914 4112 5 419 403 4
recoveries
– gold 837 810 3 856 902 5
– silver 863 843 2 893 877 2
production
– gold koz 30 25 21 10 11 7 41 36 12
– silver moz 183 155 18 38 37 2 221 192 15
gold equivalent koz 335 284 18 73 72 1 409 357 15
total cash cost ussilver equivalent oz 116 121 5
adjusted ebitda usm 229 378 39
resources and exploration
we have continued our efforts in nearmine exploration in the 
dukat licence area in 2014 dukat flanks and deep levels will 
see additional drilling concentrating on extensions of known 
veins beyond the downdip limitations of historic exploration 
we will also attempt to discover a new vein down plunge  
of the host rock formation under the cover of sedimentary 
rocks at olcha drilling will focus on the underground  
potential of currently known veins with an ore reserve  
estimate expected by the 2014 yearend
dukat continued
mines
dukat nachalny2
1
goltsovoye lunnoye arylakh perevalny olcha total
status operating developing operating operating operating scoping developing
mineralisation type veinveinlet vein 
disseminated
narrow vein mineralised
 zone
veinveinlet veinveinlet
mine type  
openpitunderground  
mining method
underground 
and openpit
openpit underground underground openpit underground
commencement  
of mining year
2001 na 2011 2000 2006 na expected
 2015
current lifeofmine end year 2023
reserves
gold equivalent moz 26 – 03 06 02 00 00 37
gold equivalent  
reserve grade gt 82 – 99 68 90 00 00 81
resources
gold equivalent moz 07 – 03 06 01 02 07 26
gold equivalent  
resource grade gt 87 – 127 117 98 66 24 52
1 
reserves and resources included in dukat

 2014 priorities
in 2014 we plan to produce about 400 koz of gold 
equivalent at dukat since we expect the strong grade  
and recovery profile to continue this will be enhanced  
by increased capacity at both lunnoye and omsukchan 
plants where throughput of 400 ktpa and 1600 ktpa  
of ore respectively is anticipated
at arylakh the transition to underground mining will be 
completed and the open pit is likely to close in q2 2014  
at lunnoye from q3 2014 onwards underground mining 
is expected to shift more towards the zone 7 mine with 
lower gold and higher silver grades
we will continue to work with our diversified offtaker base 
in japan south korea and kazakhstan in order to achieve 
optimum cost performance and recovery for the flotation 
and gravity concentrates produced at dukat
in 2014 if the market conditions are favourable we will 
start development activities at the olcha satellite deposit 
where mining is expected to commence in 2015
mining 20132012 statistics
dukat goltsovoye lunnoye  arylakh total
2013 2012

change 2013 2012

change 2013 2012

change 2013 2012

change
stripping kt – 967 100 – – na 1034 2591 60 1034 3558 71
underground 
development m 30717 24311 26 7102 5248 35 6612 4601 44 44431 34160 30
ore mined kt 1253 1328 6 168 84 99 394 370 7 1815 1782 2
metal in ore  
mined grades
– gold 09 07 31 – – na 11 11 4 09 07 17
– silver 423 387 9 624 548 14 367 395 7 429 397 8
the lunnoye plant at our dukat hub
the omsukchan plant at our dukat hub strategic report
strategic report 3031
annual report 2013  
polymetal international plc
operating review
continued
despite a significant revision in annual and mediumterm  
mine plans triggered by adverse movement of commodity 
prices in the first half of 2013 omolon demonstrated  
a robust operating performance during the year it was 
underpinned by flexibility and resilience offered by the concept 
of a processing hub with multiple feed sources we were 
therefore able to reallocate the mining volumes promptly  
and deliver on our original targets in terms of gold equivalent 
production producing 158 koz of gold equivalent during  
the year
2013 highlights
mining
with the launch of mining at dalneye in the third quarter 
omolon currently has four sources of ore higher grade ore 
from birkachan and ore from tsokol are processed at the  
cip circuit of the kubaka plant highgrade ore from sopka  
and dalneye is trucked to kubaka and processed at the 
merrillcrowe circuit
2013 saw a significant reallocation of mining volumes at the 
omolon hub in response to the adverse changes in the gold  
and silver price openpit mining was suspended at the 
birkachan mine which had the highest cash cost level with 
mining volumes reallocated to tsokol sopka and dalneye 
where a higher grade profile ensures lower cost levels  
as a result ore mined at birkachan decreased by 55 
compared to 2012
at sopka the amount of ore mined was 672 kt a 47 
decrease compared to 2012 while average grades for both 
gold and silver increased by 73 and 47 respectively  
the decrease was largely driven by the availability of existing 
stockpiles and revision of the mine plan as a result of the 
group’s strategic review at sopka trucking of ore by winter 
road was successfully completed by the end of the first  
quarter of 2013 with 320 kt of highgrade ore trucked 
the heap leach project for lowgrade sopka and dalneye ore 
has been further postponed from 2015 to 2016 consequently 
the last pushback in the sopka pit has also been excluded 
from the mine plan with some loss of reserves below the 
current pushback boundary the potential for underground 
mining at sopka will be assessed by q4 2014
mining at dalneye commenced in the middle of the year  
and is now continuing at full scale a total of 584 kt of ore  
was mined in 2013 and the first 42 kt of highgrade ore  
was trucked by winter road to the kubaka mill during q4  
ahead of schedule 
at tsokol volumes of waste and ore mined have increased 
considerably compared to 2012 as mining volumes  
were reallocated to the deposit following suspension  
of the birkachan mine ore mined grew more than twofold  
to 223 kt with an average gold grade of 48 gt
om ol on
m ining 20132012 statistics
birkachan sopka tsokol dalneye total
2013 2012

change 2013 2012

change 2013 2012

change 2013 2012

change 2013 2012

change
stripping kt 1932 9133 79 5912 9054 35 4998 3284 52 3695 – na 16537 21471 23
ore mined kt 586 1290 55 672 1271 47 223 101 121 584 – na 2065 2662 22
metal in ore  
mined grades
– gold 18 18 1 39 23 73 48 52 8 36 – na 33 21 56
– silver – – na 1421 967 47 – – na 738 – na 671 461 45
production 20132012 statistics
kubaka plant total
2013 2012

change 2013 2012

change
ore processed kt 767 724 6 767 724 6
metal in ore processed grades
– gold 51 59 13 51 59 13
– silver 1182 1351 13 1182 1351 13
recoveries
– gold 953 942 1
– silver 884 879 1
production na
– gold koz 115 129 11 115 129 11
– silver moz 26 27 4 26 27 4
gold equivalent koz 158 173 9 158 173 9
total cash cost usge oz 879 892 1
adjusted ebitda usm 64 129 51
processing plants
kubaka
type cil merrillcrowe
capacity ktpa 850
commencement of production year 2010
ore from which mines is processed birkachan sopka
 tsokol dalneye
birkachan
type heap leach
capacity ktpa na
commencement of production year 2014
ore from which mines is processed birkachan
processing
at the kubaka plant total throughput increased by 6  
to 767 kt and recoveries for both gold and silver increased  
by 1 to 953 and 884 respectively this helped  
to partially offset the decline in average grades processed  
13 for both gold and silver driven mainly by the expected 
average grade decline in ore from sopka as a result gold 
equivalent production for 2013 was 158 koz down 9 
as part of the strategic review management decided  
to defer the start of heap leaching at birkachan originally 
scheduled for q2 2013 but to continue ore stacking during 
2013 we are planning to start leaching in 2014 with more  
ore stacked to achieve a better cost profile due to economies 
of scale the heap leaching will then operate through to 2016
reserves resources and exploration
our brownfield exploration activities for omolon in 2013  
were focused on several targets within a range of 150 km  
of the kubaka plant in order to extend the lifeofmine  
the reserve attrition at birkachan and sopka was partially 
compensated by resourcetoreserve conversion  
at oroch at 1 january 2014 218 koz of gold equivalent 
reserves mining at oroch is expected to commence  
in 2015 new resource additions from burgali and  
nevenrekan both saw additional infill and stepout  
drilling in 2013 are expected in 2014 
1

5
3
4
2
    birkachan
    tsokol
    oroch 
    sopka
    dalneye
evensk
1
2
3
4
5
processing plant
town 
mines
kubaka
magadan

mines
1 birkachan
2 tsokol
3 oroch
4 sopka
5 dalneye
 processing plant
 town

 delivering th e f ull potential  
of th e pr ocessing hub c once pt
russia magadan region
managing director vladimir bloshkin
employees 825 
767 kt
ore processed  
in 2013
7 1 gt
average ge grade 
processed
 158 koz
ge production strategic report
strategic report 3233
annual report 2013  
polymetal international plc
operating review
continued
omolon continued
mines
birkachan sopka oroch tsokol dalneye prognoz total
status operating operating prefeasibility operating development feasibility
mineralisation type veinveinlet
 stockwork
veinveinlet veinveinlet veinveinlet veinveinlet veinveinlet
mine type  
openpitunderground  
mining method
openpit
 underground
 from 2017
openpit openpit openpit openpit openpit
commencement of mining year 2010 2010 na na na na
current lifeofmine end year 2020
reserves
gold equivalent moz 05 04 02 02 02 – 15
gold equivalent reserve grade gt 41 39 67 74 54 – 48
resources
gold equivalent moz 02 001 03 01 001 – 05
gold equivalent resource grade gt 131 31 78 83 40 – 85

 2014 priorities
in 2014 at current market prices we will continue  
to operate under the revised mine plans at omolon  
the birkachan open pit is expected to be put on 
permanent care and maintenance in q3 2014 after  
a brief mining campaign during the summer in the eastern 
part of the pit which has already been reflected in revised 
reserve and resource estimates the decision on the timing 
and other parameters of underground mining at birkachan 
is expected to be made in q4 2014 following the 
completion of infill drilling
the total amount of ore trucked by winter road from  
sopka and dalneye to the kubaka mill is expected  
to increase to 400 kt in 2014 and support the overall  
grade level in ore processed
the kubaka plant at our omolon hub
despite initial mechanical and metallurgical problems in the 
rampup the amursk pox plant successfully achieved design 
throughput and recovery by october 2013 this was a definitive 
strategic milestone for us polymetal now possesses a unique 
competitive advantage in the former soviet union enabling  
us to target untapped refractory gold deposits across the 
region – through both exploration and acquisitions
2013 highlights
during the rampup in the final quarter of 2012 we 
encountered a number of mechanical and metallurgical 
problems firstly the presence of chlorine in the process  
water caused accelerated corrosion of valves and pipes  
made of an inconel alloy in the circuit it also depressed the 
recoveries in the autoclave due to the preggrobbing effect  
a programme of remedial measures was developed promptly 
to address both issues
the pox facility was successfully restarted in q1 2013 
although daily concentrate throughput was intentionally limited 
before mayjune 2013 in order to ensure stability of the plant’s 
operation then during a sixweek shutdown the inconel parts 
susceptible to corrosion were replaced with more resistant 
parts made from titanium the replacement allowed the plant 
to quickly rampup to the design concentrate throughput 
along with improvement in recoveries to 87 in q3 compared 
to 75 in q1 in q3 the pox plant produced 59 koz of gold  
at an average throughput of 444 tonnes per day 
after the completion of remedial work to the water treatment 
unit in q3 full design recoveries were achieved in october  
in q4 the amursk pox plant delivered a full quarter of stable 
performance at the design parameters in terms of both 
throughput and recovery gold production was 59 koz  
in q4 while average recovery reached 93 a further 
optimisation programme is now in place to ensure continuous 
improvements in the recovery and cost profile of the operation 
currently the plant is running at 500 tonnes per day exceeding 
its nameplate capacity for albazino concentrate with the goal 
to fasttrack processing of accumulated stockpiles
in 2013 the successful rampup process at the amursk pox 
plant and related concentrate destockpiling contributed 
significantly to the increased gold production at albazino
amursk which totalled 238 koz and exceeded original 
production guidance
amursk pox
    albazino
    mayskoye
1
2
processing plants
town
port

mines
mayskoye
albazino
amursk pox
pevek
vanino
khabarovsk
nikolaevsk
onamur


komsomolskonamur


kherpuchi

oglongi
1
2
1
albazino
amursk pox
mines 
1  albazino 
2  mayskoye 
  processing plants 
  town 
 port
    albazino
    mayskoye
1
2
processing plants
town
port

mines
mayskoye
albazino
amursk pox
pevek
vanino
khabarovsk
nikolaevsk
onamur


komsomolskonamur


kherpuchi

oglongi
1
2
1
albazino
amursk pox
openpit mining at sopka

 unparallele d competitive 
advant age in t he region
russia khabarovsk territory
managing director viktor nikitanov  
employees 330
 1 2 7 kt
concentrate processed  
at the amursk pox
94
pox recovery achieved  
in q4 2013
 15 9 koz
total gold production  
in 2013 strategic report
strategic report 3435
annual report 2013  
polymetal international plc
operating review
continued
concentrate sourced from mines
albazino mayskoye total
status operating construction
mineralisation type mineralised
 zones
 refractory
ore
narrow
vein
refractory
 ore
mine type openpitunderground mining method openpit underground
commencement of mining year 2009 2011
current life of mine end year 2021 2022
reserves
gold moz 15 20 35
gold reserve grade gt 51 88 67
resources
gold moz 36 41 77
gold reserve grade gt 48 99 66
the autoclave section at amursk
the amursk pox plant

 2014 priorities
an optimisation programme is now in place to ensure 
continuous improvements in the recovery and cost  
profile of the pox operation in 2014 in february 2014  
we started trial processing of the first batches of mayskoye 
concentrate and the costrecovery achieved will be  
one of the key factors in determining the split between 
inhouse processing and offtake for mayskoye 
processing plants
amursk pox
type pox  cyanidation
capacity tpd 500  
albazino concentrate
commencement of production year 2011
ore from which mines is processed concentrate from 
albazino and 
mayskoye
production 20132012 statistics
2013 2012

change
concentrate processed 127 16 702
gold grade in ore processed gt 498 380 31
recoveries 860 787 9
total gold equivalent production koz 159 14 1036
amursk pox continued
pox plant commissioning  
facilities testing 
commencement  
of process automation
albazino concentrate  
is trucked and stockpiled  
at amursk
first gold poured in april
65 koz of quarterly  
gold production
resumed concentrate sales 
to a chinese offtaker in june 
2012 in order to maximise 
sales during the rampup 
of the pox facility
maintenance shutdowns 
due to mechanical issues
continued sales of 
concentrate to the  
chinese offtaker
ramping up to full design 
concentrate throughput  
and 90 recovery
the plant was shut down  
in late december due  
to the presence of chlorine  
in process water which  
caused a significant 
decrease in recoveries  
and accelerated corrosion
the pox facility was 
successfully restarted
sixweek shutdown  
to replace inconel by  
titanium commenced  
at the end of may
operation at 60  
of design throughput
25 koz produced  
in aprilmay
design throughput 
achieved
water treatment unit 
expanded and retrofitted
operation at design 
throughput and recovery

 amursk po x development timeline
q1 2013 q1 2012 q2 2013 q2 2012 q3 2013 q3 2012 q4 2013 q4 2012 strategic report
strategic report 3637
annual report 2013  
polymetal international plc
operating review
continued
gold production at albazinoamursk in 2013 amounted  
to 238 koz and exceeded the original production guidance 
marking the successful completion of the rampup process  
at the amursk pox plant and related concentrate de
stockpiling this was also a result of a robust operating 
performance at the openpit mine and processing plant  
at albazino where a considerable increase in throughput  
to annual runrate of 16 mtpa was achieved
mining
the openpit mine at albazino continues to run in accordance 
with the mine plan and with a stable grade profile the amounts 
of ore mined increased 10 yearonyear to 1338 kt and  
a further increase in mine capacity is expected in 2014  
to match the increased concentrator throughput average 
grades were 55 gt gold a 2 increase compared with 2012
processing
ore processed grew by 23 yearonyear and comprised 
1513 kt while average gold grade processed increased  
by 6 to 56 gt as a result gold in concentrate produced  
at albazino in 2013 increased by 32 yearonyear this was 
driven mainly by the considerable increase in plant throughput 
where an annual runrate of 16 mtpa has been achieved since 
the implementation of a number of optimisation and de
bottlenecking measures 
sales to offtakers in china aimed at sustaining cash flow 
during the period of rampup of the amursk pox plant 
increased by 25 yearonyear in 2013 and comprised  
79 koz no further offtake will be required from 2014
in 2013 the construction of an allyearround road was 
completed enabling uninterrupted trucking of concentrate 
produced to the amursk pox plant previously concentrate 
was trucked by winter road in the cold period and barged in 
the summer period we have also commenced a scheduled 
upgrade of the tailings dam which will be completed in 2014
exploration and growth potential
the new resources established at albazino in 2012 represent 
significant growth potential for the operation this may require 
the expansion of the albazino mine and the concentrator with 
concentrate to be further processed at the amursk pox plant 
in 2013 we focused on the key areas required to prepare the 
feasibility study for this project these included geotechnical 
studies to determine pit slope angle and underground mining 
method additional infill drilling and tradeoff studies for coal 
heavy fuel oil power station in addition the outcome of the 
mayskoye concentrate longterm offtake negotiations in 2014 
will be an important input to the expansion decision
while the pace of the project has been slowed down and  
the development decision postponed to the end of 2014  
in response to lower commodities prices we made significant 
progress in our geological studies during the year the 
underground development continued increasing almost 
twofold to 1137 m in 2013 while the drilling volumes grew  
23 to 407 km this included infill drilling from both 
underground and surface at olga nadezhda and ekaterina2 
ore bodies as well as underground ore drifting at olga 
we are planning to complete the full feasibility study on the 
albazino2 expansion project and consider the development 
decision in the fourth quarter of 2014
alb azino
openpit mining at albazino
mining 20132012 statistics
2013 2012

change
stripping kt 16135 15160 6
ore mined kt 1338 1216 10
gold grade in ore mined 55 54 2
production 20132012 statistics
2013 2012

change
ore processed 1513 1226 23
gold grade in ore processed gt 56 53 6
recoveries to concentrate 882 869 1
concentrate produced kt 140 115 22
gold grade in concentrate produced gt 531 490 8
gold in concentrate koz 239 181 32
concentrate sold kt 49 40 23
saleable gold in concentrate sold to offtakers koz 79 63 25
gold production at amursk pox 159 14 1036
total gold equivalent production koz 238 77 207
total cash cost usge oz 790 739 7
adjusted ebitda usm excluding mayskoye 103  35 192
    albazino
    mayskoye
1
2
processing plants
town
port

mines
mayskoye
albazino
amursk pox
pevek
vanino
khabarovsk
nikolaevsk
onamur


komsomolskonamur


kherpuchi

oglongi
1
2
1
albazino
amursk pox
mine
1 albazino
 processing plants
 town
mine
albazino
status operating
mineralisation type
mineralised zones 
refractory ore
mine type openpitunderground mining method openpit
commencement of mining year 2009
current life of mine end year 2021
reserves
gold moz 15
gold reserve grade gt 51
resources
gold moz 36
gold resource grade gt 48

 2014 priorities
in 2014 we expect to deliver a full year’s stable 
performance in terms both of mining and processing  
as well as a healthy cost performance which will be 
underpinned by operation of the pox plant at design 
parameters no thirdparty offtake will be required  
for albazino concentrate from 2014
our focus within albazino will be increasingly on the 
geotechnical and feasibility study for new resources and 
their conversion to reserves with the major reserve update 
expected by the end of 2014 by that time we expect  
to evaluate all available development options for the newly 
discovered ore zones and make key decisions for the 
needed plant and pox capacity expansion as well  
as the mining method large openpit versus underground

 soli d operatin g perfor mance 
t hroughout 2103
russia khabarovsk territory
managing director alexander simon
employees 966
239 koz
gold in concentrate 
produced
 1 5 1 3 kt
ore processed 23
 23 8 koz
total gold production 
207 strategic report
strategic report 3839
annual report 2013  
polymetal international plc
operating review
continued
mayskoye a highgrade refractory gold deposit is one  
of the top five deposits in russia in terms of gold resources  
the mayskoye project consists of an underground mine  
and an 850 ktpa onsite flotation concentrator the ore  
is processed by conventional flotation on site and the 
concentrate produced is then shipped to thirdparty  
offtakers or the amursk pox plant
the launch and timely rampup of mayskoye located in the 
distant region of chukotka was one of the key achievements  
of the year the mine delivered the first concentrate to off
takers in china four months after the startup of the plant  
in april 2013 and full rampup was completed in six months
2013 highlights
mining
the underground mine at mayskoye has been operational 
since the beginning of 2010 with 29976 m of underground 
development completed from 2009 through to q1 2013 and 
280 kt of ore grading 92 gt gold mined before the startup  
of the processing plant active stoping commenced in early 
2013 ahead of the launch of the plant 667 kt of ore were 
mined during the year at an average grade of 74 gt  
grade is expected to improve in 2014 as ore from stopes  
fully replaces ore from historic development openings
plant rampup and processing
the construction was largely completed in 2012 and  
in april 2013 the full flowsheet was launched in accordance  
with the schedule to produce the first batch of refractory gold 
concentrate during 2013 a number of minor auxiliary facilities 
were commissioned including fuel storage an automated 
security and communication system and a bigbag  
packaging unit 
the rampup of the plant progressed in line with our  
original plans and by october the plant achieved its design 
parameters in terms of recovery and throughput the daily  
ore throughput amounted to 9095 of design capacity  
while recoveries in q3 were 86
towards the end of the year the mayskoye concentrator  
continued to refine the metallurgical parameters of ore 
processing for different ore zones throughput stabilised  
at design parameters in the meantime we continued  
to manage concentrate yield versus recovery curve  
in order to achieve optimal cost performance through  
potential reduction of shipping costs 
in 2013 a total of 488 kt of ore with an average gold  
grade of 71 gt were processed while average recoveries  
comprised 78 total gold contained in the 49 kt of 
concentrate produced at mayskoye during 2013 was 87 koz 
sales and downstream processing
shortly after the launch of the processing plant we signed  
two annual export sales contracts with chinese offtakers  
for refractory gold concentrate produced at the mayskoye 
mine the offtake allowed us to quickly receive cash flows 
from the project while the amursk pox plant was focused  
on achieving design parameters and the destockpiling  
of albazino concentrate first shipments to the offtakers began 
in july and continued until midnovember 30 kt of concentrate 
with 48 koz of payable gold contained were sold to the 
offtakers during the year and included in total gold production 
mining 20132012 statistics
2013 2012

change
underground development m 9989 11068 10
ore mined kt 667 40 1566
gold grade in ore mined 74 99 26
production 20132012 statistics
2013 2012

change
ore processed kt 488 – na
gold grade in ore processed gt 71 – na
recoveries to concentrate 777 – na
concentrate produced kt 49 – na
gold grade in concentrate produced gt 553 – na
gold in concentrate koz 87 – na
concentrate sold kt 30 – na
saleable gold in concentrate sold to offtakers koz 48 – na
gold production at amursk pox – – na
total gold equivalent production koz 48 – na
total cash cost usge oz 957 – na
adjusted ebitda usm 4 – na
in the meantime the first batches of concentrate from 
mayskoye were shipped to the amursk pox in november  
and trial processing of these commenced at the beginning  
of 2014 the results of the trial processing will inform the 
decision on the split of concentrate between offtake and  
own processing in 2014
mayskoye
    albazino
    mayskoye
1
2
processing plants
town
port

mines
mayskoye
albazino
amursk pox
pevek
vanino
khabarovsk
nikolaevsk
onamur


komsomolskonamur


kherpuchi

oglongi
1
2
1
albazino
amursk pox
mines
1 albazino
2 mayskoye
 processing plants
 port
processing plants
mayskoye concentrator
type flotation
capacity ktpa 850
commencement of production year 2013
ore from which mines is processed mayskoye
mine
mayskoye
status construction
mineralisation type narrow vein refractory ore
mine type openpitunderground mining method underground
commencement of mining year 2011
current lifeofmine end year 2022
reserves
gold moz 20
gold reserve grade gt 88
resources
gold moz 41
gold resource grade gt 99

 2014 priorities
our focus in 2014 will be on continuous improvement  
of production parameters and cost performance across  
all areas of the operation in the underground mine  
we will focus on reducing dilution through continuous 
improvement in the drillingblasting technologies  
at the processing plant we will continue to refine the 
metallurgical parameters of ore processing for different  
ore zones managing concentrate yield versus recovery 
by the end of q2 and the start of the navigation period  
we will have completed the test processing of concentrate 
from mayskoye at the amursk pox plant and renewed  
the offtake contracts for sales of mayskoye concentrate  
to china the split between ownprocessing and third
party offtake will be determined based on the relative 
costrecovery attractiveness of each route 
underground mining at mayskoye

 bringing our newest mine  
up to spee d
russia chukotka
managing director igor nikolishin 
employees 980
20 moz
gold reserves
88 gt
average reserve grade
87 koz
gold in concentrate 
produced
48 koz
gold sold to offtakers strategic report
strategic report 4041
annual report 2013  
polymetal international plc
operating review
continued
khakanja was one of our assets where the mine plans were 
amended midyear in response to the significant decline in gold 
and silver prices the change was made against the backdrop 
of a scheduled decline in grades at the main khakanja deposit 
nevertheless our total production target for the hub remained 
intact and the cost performance was better than expected due 
to increased recoveries and an increased share of highgrade 
ore from ozerny and avlayakan compared to the previous year
2013 highlights
mining
mining at yurievskoye was completed in the beginning  
of 2013 at the khakanja openpit mine the pushback  
at pit 1 continued which limited the amounts of ore mined 
down 78 on 2012 average gold and silver grades in ore 
mined decreased by 42 and 28 compared to 2012  
when ore was mainly sourced from pit 3 and yurievskoye  
ore mining is expected to be resumed in q2 2014 as a result 
of additional studies the commencement of underground 
mining at khakanja has been postponed indefinitely due  
to geotechnical concerns with the corresponding reserve 
being reclassified as resource the resulting reduction in 
lifeofmine is expected to be compensated for by reserve 
additions at ozerny which are based on the results  
of ongoing stepout drilling
at avlayakan openpit mining ceased in november  
one year earlier than originally planned and underground 
development 919 m in 2013 commenced ahead of the original 
schedule as a result of decisions made following the strategic 
review 78 kt of avlayakan ore were safely shipped by sea 
during the 2013 navigation season compared to 41 kt in 2012 
the average grades in ore mined 87 gt gold and 116 gt 
silver in 2013 are expected to increase following the rampup 
of the avlayakan underground mine and the beginning  
of stoping in 2014
at ozerny mining works achieved full scale in 2013 stripping 
volumes increased to 47 mt more than 10 times over ore 
mined increased more than five times over to 319 kt with 
average grades of 36 gt gold and 40 gt silver 139 kt  
were trucked to the khakanja plant by winter road and were 
processed in 2013 a further increase in volumes of ore mined 
and trucked in 2014 is expected and will support the grade 
profile and production levels of the hub as a whole
processing
gold production for the full year increased by 14 while  
silver production decreased by 44 as a result of a structural 
change in the plant’s feedstock yearonyear processing  
of high silver grade ore from khakanja’s pit 3 was substituted 
by ore from ozerny and avlayakan 
processing plants
khakanja plant
type cyanide leaching and 
merrillcrowe
capacity ktpa 600
commencement of production year 2003
ore from which mines is processed khakanja avlayakan 
ozerny
production 20132012 statistics
2013 2012

change
ore processed kt 619 622 1
metal in ore processed grades
– gold 57 48 19
– silver 1466 2772 47
recoveries
– gold 923 956 3
– silver 842 800 5
production
– gold koz 103 91 14
– silver moz 24 44 44
gold equivalent koz 144 164 12
total cash cost usge oz 756 615 23
adjusted ebitda usm 85 178 52
mining 20132012 statistics
khakanja  yurievskoye ozerny avlayakan total
2013 2012

change 2013 2012

change 2013 2012

change 2013 2012

change
stripping kt 3096 4435 30 4714 449 950 1287 1637 21 9097 6521 40
underground 
development m – 1489 –100 – – na 919 – na 919 1489 38
ore mined kt 294 1359 78 319 56 472 84 79 6 697 1494 53
metal in ore  
mined grades
– gold 15 26 42 36 48 26 87 150 42 33 34 2
– silver 141 197 28 40 46 14 116 124 6 92 188 51
khakanj a
the khakanja plant
mines
khakanja avlayakan kirankan ozerny total
status operating operating scoping operating
mineralisation type veinveinlet vein vein vein zone
mine type  
openpitunderground  
mining method
open
pit to be
 followed by
underground
open
pit to be
 followed by
underground
open
pit to be
 followed by
underground
open
pit to be
 followed by
underground
commencement of mining year 2002 2010 na 2012
current lifeofmine end year 2018
reserves
gold equivalent moz 01 03 – 01 05
gold equivalent reserve grade gt 28 178 – 54 62
resources
gold equivalent moz 01 01 003 001 02
gold equivalent resource grade gt 89 169 67 39 92
1
3
    yurievskoye
    avlayakan
    ozerny
1
2
3
processing plant
port
mines okhotsk
2
khakanja
kiran mines
1 yurievskoye
2 avlayakan
3 ozerny
 processing plants
 port

 2014 priorities
sustaining the grade profile and extending the lifeofmine 
remain our top priorities for khakanja in 2014 in the year 
ahead the development of the underground mine at 
avlayakan and increasing the volume of ore shipping  
by sea as well as further growth of mining volumes  
at ozerny will be the key contributors to support the 
volume and grade of ore processed at the khakanja plant

 developin g new costefficient  
ore sour ces
russia khabarovsk territory
managing director alexander akamov
employees 1076
144 koz
gold equivalent produced  
in 2013 
81 gt
average gold equivalent 
grade in ore processed  
in 2013 gt
756 
total cash costs in 2013 
usge oz strategic report
strategic report 4243
annual report 2013  
polymetal international plc
operating review
continued
voro continues to be one of the most profitable and effective 
mines in our portfolio this is achieved by a combination  
of an attractive location in the urals region with full access  
to cheap power and infrastructure and solid operating 
performance despite a significant decline in the gold price 
during the year voro delivered a resounding 61 adjusted 
ebitda margin for 2013
2013 highlights
mining
the openpit mine at voro demonstrated a strong performance 
throughout the year mining in q1 traditionally focused on primary 
ore with a solid improvement in average grade mined allowing 
us to increase the average grade processed to 60 gt with  
the reduction of the stripping ratio in q2 ore mined increased 
by 76 quarteronquarter mainly represented by oxidised ore 
from the southern pit to be used in heap leaching in q3 works 
continued at a stable pace across the central and southern 
pits the amount of oxidised ore mined nearly doubled 
quarteronquarter in order to supply material for the seasonal 
heap leaching the amount of ore mined both primary and 
oxidised in q4 was up 6 yearonyear 
total ore mined was 179 mt 6 up on 2012 with the increase 
split proportionally between primary and oxidised ore average 
gold grades in primary ore were stable at 57 gt while average 
grades in oxidised ore decreased by 11 fully in accordance 
with the mine plan mining works were concentrated on the 
central primary ore and southern oxidised ore pits
processing
in the first half of the year voro used thirdparty sources  
of ore from nearby deposits in order to leverage its processing 
capacity this caused a temporary increase in the cash costs 
of the operation following the decline in the gold price in the 
second quarter purchases of thirdparty ore were discontinued 
resulting in total cash cost improvement in the second half  
of the year
gold production at voro in 2013 decreased marginally by  
1 yearonyear and comprised 154 koz of which 15 is 
produced at the heap leaching circuit and the remaining 85  
at the cip circuit the modest grade and throughput decline  
at the heap leaching circuit was fully offset by a 7 increase  
in average grade and continued improvements in throughput 
1 at the cip circuit
ongoing improvement process
in 2013 the carbonincolumn cic process was  
introduced for the extraction of gold from heap leach  
solutions as changing ore chemistry slowed down  
recoveries at the historical merrillcrowe circuit
processing plants
voro cip
type flotationgravitation
capacity ktpa 940
commencement of production year 2005
ore from which mines is processed voro
voro heap leach
type cyanide leaching
and merrillcrowe
capacity ktpa na
commencement of production year 2000
ore source voro
production 20132012 statistics
voro cip voro heap leach total
2013 2012

change 2013 2012

change 2013 2012

change
ore processed kt 924 917 1 850 901 6 1774 1818 2
metal in ore processed grades
– gold 57 53 7 14 16 13 36 34 5
recoveries
– gold 799 789 1 737 741 0
production
– gold koz 126 118 7 23 32 27 153 154 1
– silver moz 01 01 55 002 003 25 01 02 48
gold equivalent koz 127 120 6 24 33 27 154 157 2
total cash cost usge oz 503 506 1
adjusted ebitda usm 130 182 29
mining 20132012 statistics
voro total
2013 2012

change 2013 2012

change
stripping 11099 11265 1 10
ore mined kt 1787 1684 6 0
– oxidised 981 926 6
– primary 807 758 6
gold grade in ore mined 34 36 4 3
– oxidised 15 17 11
– primary 57 58 1
vo ro
openpit mining at voro
mine
voro
status operating
mineralisation type mineralised zones
mine type open pitunderground mining method openpit
commencement of mining year 1999
current lifeofmine end year 2027
reserves
gold equivalent moz 12
gold equivalent reserve grade gt 28
resources
gold equivalent moz 01
gold equivalent resource grade gt 21
ekaterinburg
karpinsk
serov

nijniy tagil
maminskoye


    vorontsovskoye
 maminskoye licence area
1
2
processing plant
town 
mines
voro

1
2
mines
1 voro
2  maminskoye 
licence area
 processing plants
 town

 2014 priorities
the voro mine was one of polymetal’s original acquisitions 
in 1998 and although it remains one of our lowest cost and 
highest margin assets we remain committed to searching 
for new methods of enhancing both its efficiency  
and profitability
efforts are under way to identify additional sources  
of primary and oxidised ore including thirdparty supplies
at the voro mine the start of mining at the gorevaya zone 
of south voro is expected in 2014 

 sust aining high perfo rmance 
and margins
russia sverdlovsk region
managing director andrey novikov
employees 960
503
total cash costs in 2013 
usge oz 1
61
adjusted ebitda margin  
in 2013
 154 koz
gold equivalent produced  
in 2013 koz  strategic report
strategic report 4445
annual report 2013  
polymetal international plc
operating review
continued
since it was acquired in 2009 varvara has become one  
of our core assets and a stable cash contributor in 2013 
varvara demonstrated steady operating and financial 
performance despite challenging market conditions  
this is well illustrated by stable total production despite  
lower input from thirdparty ore in 2013 and total cash  
costs remaining almost flat on the back of the increased 
efficiency of openpit mining 
2013 highlights
mining
stripping volumes increased to more than 31 mt in 2013  
19 compared with 2012 while the amounts of ore mined 
decreased to 20 mt due to the ongoing pushback in the 
northwest and northeast pits this did not have any impact 
on production during the year due to availability of sufficient ore 
stockpiles a new electrical dragline excavator commissioned 
at the beginning of the year increased the efficiency of mining 
operations average gold grades in ore mined during the year 
have increased by 6 and 28 respectively for float and leach 
ores while the copper grade declined by 21 as expected  
in accordance with the mine plan to 064 
processing
throughput at both flotation and leaching circuits in 2013  
was stable and comprised 1 mt for the flotation circuit and  
27 mt for the leaching circuit in the flotation circuit copper 
recoveries in 2013 decreased by 3 yearonyear driven  
by significant change in the copper grade profile and related 
changes in ore technological properties while gold grades 
remained stable in the leaching circuit the average grade  
grew by 9 compared with 2012 and comprised 13 gt
at varvara gold production for 2013 was 107 koz  
up 6 yearonyear copper production dropped  
to 48 kt as a result of planned grade decline 
processing plants
varvara plant 
type cip flotation
capacity ktpa 3150 1050
commencement of production year 2002 2001
ore source varvara varvara
production 20132012 statistics
varvara – flotation varvara – leaching total
2013 2012

change 2013 2012

change 2013 2012

change
ore processed kt 1005 992 1 2671 2654 1 3676 3647 1
metal in ore processed grades
– gold gt 13 12 2 13 12 9 13 12 7
– copper  06 08 24 – – na 016 020 22
recoveries
– gold 56 61 7 82 85 3
– copper 89 92 3
production
– gold koz 21 22 6 86 79 9 107 101 6
– copper t 4841 6567 26 4841 6567 26
gold equivalent koz 45 55 18 86 79 9 132 134 2
total cash cost usge oz 791 795 1
adjusted ebitda usm 74 102 27
mining 20132012 statistics
2013 2012

change
stripping kt 31053 26072 19
ore mined kt 2008 3609 44
– float ore 499 1031 52
– leach ore 1510 2577 41
metal in ore mined grades
– gold gt – float ore 13 13 6
– gold gt – leach ore 12 09 28
– copper  float ore 06 08 21
varvara
ore and concentrate stockpiles at varvara openpit mining at varvara
mine
varvara
status operating
mineralisation type stockstockwork
mine type openpitunderground mining method openpit
commencement of mining year 2006
current lifeofmine end year 2030
reserves
gold equivalent moz 19
gold equivalent reserve grade gt 14
resources
gold equivalent moz 26
gold equivalent resource grade gt 17
kostanay
varvara

1
    varvarinskoe 1
processing plant
town 
mines
mines
1 varvara
 processing plants
 town

 2014 priorities
by the third quarter of 2014 we expect to complete the 
pushback in the northwest and northeast pits and 
return to a normalised stripping ratio most of the ore 
during the year will be sourced from the south and 
northeast pits some decline in grades in the leaching 
circuit in 2014 is expected as in october 2013 varvara 
discontinued purchases of thirdparty ore due to its 
declining quality

 st ron g operations d elive ring 
a st able cont ribution
kazakhstan kostanay region
managing director nikolay goncharov
employees 745
 13 2 koz
gold equivalent  
production in 2013
 2 030
life of mine
791
total cash costs in 2013 
usge oz strategic report
strategic report 4647
annual report 2013  
polymetal international plc
01
02
03
04
04
burgali
evensk
svetloye
dukat hub
khakanja hub
olcha
magadan
okhotsk
ozerny
komsomolskonamur
kutyn
amursk pox hub
kundumi
khabarovsk
albazino





maminskoye
podolsky
varvara
kostanay 
tamunier
svetlobor
ekaterinburg
stpetersburg
moscow 

finland
petrozavodsk
elmus
semcha


astana 
china
china
mongolia
north
korea
south
korea
kazakhstan
japan
voro
russia 
omolon hub 
operating review
continued
sust ained 
investment  
in st andalone 
explora tion
with the feasibility study is expected in the second quarter  
of 2014 this will enable the board to make decisions about 
further development of the project 
following on from that decision we are planning to  
commence detailed design and equipment purchases  
as well as construction works in unchi seaport
02 kutyn
kutyn a licence area located 113 km northeast of albazino 
currently has openpittable inferred resources of 55 mt  
at 41 gt for 07 moz of contained gold to a depth  
of 140240 m only 25 of the 120 km
2
 licence territory has 
been tested by drilling the mineralised potential of the zone 
inclusive of resources is estimated at 1015 mt at 2535 gt 
for 112 moz of gold internal nonjorc estimate
this deposit has two types of ore – oxidised and sulphide – 
with our current exploration efforts fully focused on oxidised 
material that can be processed by heap leaching in 2013  
we continued stepout and infill drilling across all five ore 
zones and continued scoping works on the flanks of known 
mineralisation drilling volumes totalled more than 15 km 
compared with 11 km in 2012 in sedlovinnaya rodnikovaya 
and geophyzicheskaya zones we continued with 
technological mapping of ores and metallurgical  
testing of the assays taken 
construction of a winter road with an extended service period 
is scheduled for the beginning of 2014 our exploration efforts 
in kutyn will be focused on the identification of additional 
nearsurface heap leachable mineralisation including 
extensions of known ore bodies
the new jorc reserve and resource statement for kutyn 
based on drilling results to date is expected by the end  
of 2014
03 maminskoye
maminskoye is located in the sverdlovsk region of russia 
approximately 70 km from the regional capital ekaterinburg 
and 30 km from the city of kamenskuralsk population 
130000 our voro mine is approximately 450 km to the north 
the 178 km
2
 licence area is accessible by a paved highway
and is adjacent to a 10 kv power line the maminskoye licence 
area covers a 1205 ha 2978 acre site which includes the 
potential mine processing facilities and a waste rock stockpile 
since acquisition in april 2013 our exploration efforts have 
been concentrated on infill drilling with 254 km drilled in 2013 
ore bodies have been drilled out to a depth of 200250 m  
and remain open at depth and along strike in one direction  
on the back of positive exploration results in 2013 probable 
ore reserves at maminskoye were revalued by polymetal  
as at 1 january 2014 to 147 mt of ore at 19 gt gold 
representing 09 moz of contained gold mineral resources 
additional to reserves are estimated at 21 mt at 14 gt 
representing 01 moz of contained gold 
in 2014 we will continue intensive exploration works at 
maminskoye with a significant amount of drilling devoted  
to downdip extensions of known highgrade portions  
of the deposit decisions about further development  
of the asset are likely to be taken in 2015
04 pgm assets
our pgm project now includes two exploration areas 
svetlobor urals region acquired in 2012 and the  
semcha licence area in central karelia 350 km from  
st petersburg and 100 km north of petrozavodsk both  
areas are in favourable locations in northwest and central 
russia with easy access to roads and infrastructure
the mineralised potential of the semcha licence area inclusive 
of resources was earlier estimated at 315 mt for 100 moz  
of contained auptpd nonjorc estimate in 2013 
exploration drilling of more than 4 km was carried out  
in semcha as a result we have identified goldplatinum
palladium occurrences within a 50 km
2
 zone with significant 
base metal credits copper iron titanium vanadium  
the viksha area was discovered in 2013 the width  
of 3pgeau specific horizon varies from 4 to 11 m with 
openpittable mineralised potential of 25 mt for 16 moz  
of contained 3pgeau to a depth of 100 m identified  
internal nonjorc estimate 
there is also additional mineralised potential of 48 mt  
for 32 moz of contained 3pgeau from 100 to 300 m  
depth favourable openpit mining conditions are predicted  
at an approximately 8 km long reef within viksha area 
at svetlobor 109 km were drilled in 2013 however the 
exploration work there was slowed down by an ongoing 
forestry permits process drilling should resume in q3 2014
in 2014 at semcha there will be additional drilling  
on the tabular pgmbearing reef on a regular grid along  
the known surface outcrop to a depth of 100 m 
exploration activities summary
drilling  
km
trenching  
1000 m
3
level  
of activity
2013 2012 2013 2012 2014
greenfield
urals 545 133 190 37
maminskoye 254 – 38 – intensive
urals regional 156 83 70 37 suspended
podolsky – 50 – – suspended
tamunier 26 – – – completed
svetlobor pt 109 – 82 – intensive
far east 243 213 321 1274
kutyn 152 112 321 1105 intensive
svetloye 91 12 – – some
uchama – 38 – 104 suspended
prognozny – 51 – 65 suspended
northwest 91 86 – 03
semcha ptpd 42 – – – intensive
elmus 49 86 – 03 some
total 879 432 511 1314 
our decision to sustain our exploration 
programme and continue to work on the 
next generation of growth assets in the 
current market environment is a conscious 
strategic preference however we have  
had to slow down some projects and defer 
development decisions for key assets  
by approximately one year
we continued to invest in exploration in 2013 with total metres 
drilled increasing 72 yearonyear to 1949 km total dollar 
expenditure on exploration declined mostly due to the 
decrease in the unit cost of drilling and a reduction in early
stage activities such as trenching while some optimisation  
of the portfolio of our greenfield assets took place after the 
decline in gold and silver prices we have kept the exploration 
programme intact for key advanced exploration projects
our current greenfield exploration portfolio is focused  
on identifying assets with a potential resource base sufficient  
in grade and size to justify construction of a standalone mine  
at prevailing commodities prices we are currently 
concentrating on the following key targets
01 svetloye
svetloye is located 220 km southwest of okhotsk in an 
undeveloped and sparsely populated region it has open
pittable inferred resources of 41 mt at 59 gt for 08 moz  
of contained gold to a depth of 100 m the mineralised 
potential of the zone inclusive of resources is estimated  
at 3040 mt at 1822 gt for 225 moz of gold internal 
nonjorc estimate
onsite heap leaching is currently the preferred route  
for development of the project in 2013 we started the 
construction of a winter road which will enhance access  
to the deposit from the seaport of unchi a temporary  
storage facility has been built in unchi 
in 2013 91 km were drilled in svetloye with infill drilling 
concentrated in the elena and emi ore zones the continuation  
of drilling programmes at svetloye is contingent upon the 
extension of areas currently covered by the subsoil licence  
as a result of the 2013 and prioryear drilling programmes and 
the metallurgical tests performed during the year an updated 
audited reserve and resource statement for svetloye along 
map key
hub
standalone  
mining operation
 
standalone  
exploration projects
  town
exploration area at okhotsk strategic report
strategic report 4849
annual report 2013  
polymetal international plc
sustainability
sust ain ability –  
inte gral to  
our business
we believe that a successful business  
is a sustainable business sustainable 
development forms an integral part  
of our business strategy contributing  
to our global competitiveness and  
our reputation as an efficient and 
responsible company we are firmly 
committed to the economic environmental 
and social wellbeing of our stakeholders 
and see this as an investment for  
the future
stakeholder engagement
we engage with a wide range of stakeholders who play  
an important role in helping us define our sustainability 
priorities and in providing feedback on our performance  
it is vital therefore that we are open honest and transparent  
in our dealings and we achieve this by communicating through  
a number of different channels including corporate reporting 
company news briefings hotlines and digital media
we have identified five main stakeholder groups for  
polymetal each with its own specific interest in different 
aspects of the business
shareholders and investors governance strategy  
and sustainable financial returns
employees careers benefits health and safety  
corporate reputation and clear lines of communication
partners and suppliers fair dealing openness  
and transparency
government compliance transparency and  
economic development and
communities and ngos directing investments  
openness and transparency economic opportunity  
and longterm relationships
responsibility and risk assessment
sustainability is ultimately the responsibility of our group  
ceo vitaly nesis he is supported by polymetal’s technical 
council which meets each month to monitor among other 
issues performance against our sustainability priorities  
and implementation across our operating companies  
our heads of department report to the council on matters 
concerning employees community outreach health  
and safety and environmental management
the ceo board of directors and technical council  
aided by the internal audit department identify risks  
to the business and associated management operations  
our risk management process is defined and monitored  
by the audit and risk committee of the board
our sustainability priorities
through our risk management and stakeholder engagement 
programmes we have identified six key sustainability priorities 
which are material for the business
•	to maintain positive working relationships with local 
government ngos and communities by enhancing  
our partnership agreements and increasing the  
effectiveness of our investments
•	 to attract and retain highquality people and ensure  
and improve the quality and terms of their employment
•	 to further improve our health and safety systems through 
more sophisticated visualisation risk management and  
more rigorous monitoring as well as to apply it to our 
supplier network
•	 to gain thirdparty certification for our environmental 
management system and to embed the system into 
production operations 
•	 to develop cost and energy efficiency programmes and
•	 to enhance the rigour and transparency of our 
communications with suppliers customers  
and partners
our approach 
polymetal has been a signatory of the un global compact 
since 2009 and is also an active member of the un global 
compact network russia the un global compact  
is a voluntary international standard that commits affiliated 
companies to comply with its ten principles in the areas  
of human rights labour environment and anticorruption  
and our overall sustainability strategy is designed to meet  
these requirements
from an economic perspective our objective is to generate 
sustainable value for all our stakeholders we achieve  
this by improving operations and providing infrastructure  
such as roads and power lines which in turn deliver wider  
benefits for the local community we provide highquality 
employment and financial support for local community 
initiatives this significant direct investment as well  
as the payment of national and local taxes contributes  
to economic development within our key areas of operation
we take the management of our environmental performance 
very seriously we recognise that there is a potential risk  
of negative environmental impact from such a complex 
geographically diverse business which uses resources  
and energy and produces significant quantities of emissions 
and waste to monitor and manage these environmental risks 
we have established a management system that complies  
with international best practice and national legislation and 
which achieved certification to iso 14001 in march 2013
we operate 120 production sites and processes each  
with its own inherent risks so ensuring a safe working 
environment for our employees is a key priority for polymetal 
our approach to health and safety is underpinned by our 
employee protection and workplace safety management 
system this is designed to detect assess and manage 
production risks and is based on national and international 
standards of best practice we continue to rigorously  
enhance and improve all aspects of the system
we set great store by building strong relationships  
with the communities in which we operate recognising  
that cooperation with local authorities and their associated 
communities is crucial to our business we are a significant 
employer and creator of infrastructure that impacts  
upon adjacent communities and indigenous people  
as a consequence we have formalised our approach  
towards local and indigenous people in our code  
of corporate governance and policy on social  
investments with open and regular dialogue
human rights
as supporters of the un global compact and through  
our own corporate values defined in the polymetal code  
of conduct we apply human rights principles rigorously  
for all our employees we respect the human rights and 
preserve the cultural heritage of the indigenous communities  
in areas where we operate we also seek to influence  
our partners contractors and suppliers to apply  
the same standards 
polymetal’s sustainability report
we publish our sustainability report every two years  
if you would like to learn more about our sustainability 
performance including our compliance with the global 
reporting initiative gri framework our latest sustainability 
report is available to download from our website  
wwwpolymetalinternationalcomsustainabledevelopment 
the next report covering our activities during 201314  
will be published in 2015 
employees
our employees are integral to the success of polymetal  
we employ nearly 9000 people in our operations in russia 
and kazakhstan we nurture their talent and commitment  
to our business with salary levels that are highly competitive 
and a social package that looks after their safety and  
wellbeing and enhances the lives of their families too
training at the khakanja plant
competitive salaries and benefits
our salary levels comply with all the legal requirements  
in russia and kazakhstan however to attract and reward 
highly skilled staff we offer salaries that are above the  
average in each of our operating regions and in the russian 
and kazakhstan mining sectors we also supplement  
this with a highly competitive benefits package
in 2013 the company spent over us102 million to provide 
benefits guarantees and compensations under its social 
package the social package includes but is not limited  
to benefits for employees working in remote regions  
housing provision financial aid retirement benefits  
travel costs rotational transportation kindergarten fees  
and compensation for employees or their families  
in the case of workplace accidents 
in 2013 the company introduced a new scheme  
to help motivate and retain qualified employees under  
this the company assists employees with partial funding  
of mortgages to allow them to buy their own house  
or flat during the year 74 employees participated  
in the scheme and the company paid out  
us01 million of subsidies 
indigenous minorities of the north from evensk strategic report
strategic report 5051
annual report 2013  
polymetal international plc
sustainability
continued
contributing to employees’ wellbeing  
and professional development 
the company also focuses on creating and constantly 
enhancing social and living conditions improving our  
operating culture maintaining employees’ health preventing 
workrelated diseases boosting productivity and looking  
at ways to both motivate current employees and attract 
additional skilled workers 
in 2013 the company spent over us45 million implementing 
these measures and covering a range of activities 
the training centre at the dukat operations magadan  
is certified to carry out internal training and educational 
activities for 23 professions and during the year trained  
546 employees for 14 professions in future we plan to replace 
external training with internal training as much as possible  
last year eight employees of polymetal management and 
polymetal engineering qualified as competent persons in 
immm the institute of materials minerals and mining this 
expands their opportunities and enables them to communicate 
effectively with colleagues from other international mining 
companies it also expands the company’s ability to prepare 
public exploration mineral resources and ore reserves reports
diversity in the workplace
we believe in nurturing skills and talent regardless of gender 
we have been actively recruiting and encouraging women 
within the business and in 2013 the total number of women 
employed across polymetal increased by 38 from 1794  
in 2012 to 1862 we have also seen a rise in the number  
of women in managerial positions to 285 in total 2012 250  
an increase of 14
health and safety
safe working conditions are the principal right of all employees 
and an indicator of efficient management of an operation
polymetal’s policy for ensuring a healthy and safe working 
environment is implemented through the current health and 
safety management system this was developed using the 
fundamentals of international standards contains advanced 
managerial techniques and distributes responsibility across  
all levels in order to ensure industrial safety and enable each 
employee to participate in risk management processes  
the system complies with the internationallyrecognised 
ohsas 18001 and all the appropriate russian  
occupational health and safety standards 
 
in 2013 we continued to improve the health and safety 
management system adding new techniques to identify 
manage and visualise operational risks and engender  
a safety culture amongst employees by giving them key roles  
in assessing the safety and equipment of their workplaces 
suppliers and contractors 
according to the current health and safety management 
system all contractors working on site at our operations  
must comply with polymetal’s health and safety requirements 
these obligations and penalties for noncompliance  
are stipulated within all our contracts
indicators
2013 2012
accidents 7 4
incidents 22 22
injury frequency coefficient 24 17
lost time injury frequency rate ltifr 117 08
fatal injury frequency rate fifr 0 02
2014 priorities
in 2014 our focus will be on improving the efficiency of the risk 
assessment performed on a shiftbyshift basis emphasising 
the key role played by each employee before and during the 
shift each worker assesses the safety of hisher workplace 
entering the results into a personal risk assessment map  
as well as any suggestions on improving working conditions  
the map is analysed by section managers and provides  
more accurate information about working conditions  
enabling the response and risk to be managed in a timely 
manner we will also be developing hazards visualisation  
onsite and distance training and automated production  
control procedures 
environmental performance 
one of polymetal’s key priorities is to reduce the environmental 
impact of our production processes in 2013 we updated  
our environmental policy to ensure improved efficiency  
in environmental management systems and continuous 
improvement across all stages of the company’s exploration 
mining and processing activities wherever possible using 
modern technology equipment and working practices 
to minimise our impact on the environment the company 
complies with all regulatory requirements and systematically 
monitors safety and management issues to ensure the 
business meets environmental objectives and targets
as part of this we have been working towards  
international certification of our environmental management 
processes we are pleased to report that in 2013  
polymetal’s environmental management system ems  
was independently certified by bureau veritas certification  
in line with international standard iso 140012004  
the system supports our commitment and desire to ensure  
the effectiveness of processes environmental protection and 
resource management as well as providing a foundation  
for continuous monitoring and improvement we also achieved 
an additional certification audit for mayskoye which was 
launched later during the year
quality control at lunnoye
as at 31 december 2013 the company operates 91 hazardous 
production facilities this has reduced since our last report due 
to changes in the classification and registration of hazardous 
facilities under russian industrial safety legislation despite  
the overall reduction of hazardous facilities included in the  
state register our operations are no less dangerous and every 
operation provides its workers with safetyatwork training 
protective clothing and equipment and has controls and 
processes in place to ensure safety in the workplace  
by identifying analysing and eliminating hazardous  
and harmful factors
unfortunately in 2013 there were 11 incidents at operations 
within the group in eight of these cases the workers had  
minor injuries and in two cases were severely injured in the 
eleventh polymetal deeply regrets the death at ozerny openpit 
mine khakanja hub where a serious violation of internal and 
statutory safety rules by a blastman resulted in his fatal injury 
the company has investigated the case and has already 
implemented an increase in training a number of additional 
safety measures and enforcements to the existing safety  
rules across its operating mines the following procedures  
will be reinforced throughout the group
•	onsite and distance training for employees
•	risk assessment during each shift
•	hazards visualisation and
•	automated production control
health and safety indicators 
company’s operations
indicators
2013 2012
accidents 11 11
incidents 0 0
emergencies 24 20
injury frequency coefficient 12 12
injury gravity coefficient 235 36
lost time injury frequency rate ltifr 057 059
fatal injury frequency rate fifr 006 0
the landscape in the khabarovsk region
the company initiated a number of projects during 2013
•	purchase of wastewater treatment plants for mayskoye  
to provide the workers’ accommodation camp with  
clean water
•	construction of solid waste and industrial waste landfill  
sites in remote areas at goltsovoye and mayskoye
•	construction of a firststage sewage system at mayskoye
•	reconstruction of ventilation systems at the omsukchan 
processing plant and at lunnoye
•	modernisation of the cyanide solutions cleaning system  
for the kubaka plant 
•	construction of hydraulic structures for stormwater  
drainage at varvara and
•	completion of an audit carried out by the federal  
environmental prosecutor’s office confirmed that there  
had been no violations following an enquiry from local 
residents and state inspection bodies about possible  
environmental contamination at the amursk pox plant
we also commenced a programme that requires  
our contractors to comply with our ems requirements 
in 2013 the company’s expenditure for the implementation  
of environmental protection measures along with construction 
and reconstruction of facilities with environmental relevance 
amounted to us81 million our environmental payments  
to regional budgets for the year totalled us36 million
in february 2014 we began the first stage of a supervisory 
audit to assess the effectiveness of our companywide  
system this is designed to assess performance against 
environmental indicators across the group and also assess 
implementation of the ems it will determine the effectiveness  
of measures aimed at reducing environmental impacts and  
will put in place plans to correct any inconsistencies identified 
during internal audit  strategic report
strategic report 5253
annual report 2013  
polymetal international plc
sustainability
continued
greenhouse gas emissions
as a uk listed company polymetal is required to report  
its greenhouse gas ghg emissions a requirement which 
came into force on 1 october 2013 while we already monitor 
manage and aim to minimise our environmental impacts 
including ghg emissions we are now reporting these 
according to the new ghg protocol corporate standard 
guidelines under the following headings
•	direct ghg emissions
•	indirect power co
2
equivalent emissions related  
to the generation of power purchased imported  
for the company’s operations
the company used iso 14064 as a framework for defining  
its methodology for ghg reporting
ghg emissions
2013 2012
direct ghg emissions
1 2 
t 327222 345130
indirect emissions
3 
t 398144 337401
total ghg emissions 725366 682531
emissions intensity
4
 t10kt 699 542
1
  co 2 emissions were calculated according to the reference book ‘international greenhouse 
gases emissions inventory methodology’ developed by a zinchenko from the scientific 
and production corporation atmosphere in st petersburg in 2003 
2
  direct emissions include direct co 2 equivalent greenhouse gas methane ch 4   
emissions – 5368 tonnes direct co 2 emissions produced by combustion of fuel  
diesel fuel petrol gas coal when operating own powergenerating facilities automobile 
transport main and auxiliary mining equipment – 3255605 tonnes direct co 2 equivalent 
emissions produced by combustion of fuel diesel fuel petrol gas coal when operating 
own powergenerating facilities automobile transport main and auxiliary mining  
equipment – 11243 tonnes
3
   to calculate indirect power co 2 emissions the company applies principles stipulated  
in the un framework convention on climate change signed in more than 180 countries 
including the russian federation and the republic of kazakhstan and also assumes  
that power purchased was generated in the region where the company’s operations are 
present the specific indicators of the indirect power co 2 equivalent emissions that relate 
to the generation of power purchased imported by the company’s operations were taken 
from the reference data of the european bank for reconstruction and development entitled 
‘development of electricity carbon emission factors for russia baseline study for russia’ 
2010 and ‘development of electricity carbon emission factors for kazakhstan baseline 
study for the republic of kazakhstan 2012 co 2 equivalent emissions related to the 
generation of power purchased imported by the company’s operations are calculated 
according to formula 3 eelectr co 2  ecef 3 where eelectr co 2  the amount  
of indirect power co 2 equivalent emissions related to the generation of power purchased 
imported by the company’s operations tyear ec  power purchased imported  
by the company’s operations mwhyear ef  specific regional carbon emissions  
ratio for power consumers tonnes of 2mwh
4
  ghg emissions intensity indicator  ghg emissions tore mined 10 kt  
2013 7253655 ÷ 10379  699 2012 6825581  12591  542 
water resources
during 2013 we recorded positive trends in water use both  
a 10 reduction in per unit water consumption and a 30 
increase in the use of recycled water the company now uses 
twice the amount of recycled water as it does of fresh water 
in order to reduce any negative impact on water resources  
we instigated a number of projects including the purchase  
of devices to purify water used for nonindustrial purposes  
at a number of our sites construction of hydraulic engineering 
facilities to aid stormwater drainage at varvara modernisation  
of the cyanide solutions cleaning system at our kubaka plant  
and an extensive programme of works at the amursk plant  
to prevent pollution of surface water
environmental training
we invest significant resources into the education and training 
of polymetal employees to raise awareness of and increase 
knowledge about managing and mitigating the environmental 
impacts of the company in particular during 2013 many  
of our engineers and technicians received training about how  
to run and audit our environmental management system as 
part of our iso 14001 accreditation employees also attended  
a number of regional and national external courses ensuring  
that as a company we are well informed about industrywide 
developments and were also involved in internal training 
sessions which supplement ongoing personal development 
our plans for 2014
our 2014 action plan will focus on continuous improvement  
of our environmental management system including 
enhancing our efficiency in respect of the most important 
aspects of the environmental impact at each operation  
and the implementation of these priorities in our standard 
operating procedures
the toppriority tasks aimed at reducing our environmental 
impact have been identified as
•	upgrading of the water treatment station at lunnoye plant 
refining wastewater treatment technologies to reduce the 
negative impact on the river levy bulur
•	waste compaction at albazino to reduce volume  
for distribution
•	tailings ponds rehabilitation at the kubaka plant
•	replacement of the gas cleaning section in the cip section  
at voro to enhance the removal of hydrocyanides from gas
•	detoxification of technological solutions at the voro plant 
aimed at a sustainable use of natural resources and  
a reduced impact on water resources
•	design solutions for expansion of stormwater treatment 
facilities at voro to increase the volume of sewage treatment
•	commissioning of a household sewage system in order  
to increase sewage efficiency and commissioning  
of a solid waste and industrial waste landfill at birkachan  
for appropriate storage of these types of waste
our performance 
ghg emissions  
co
2
equivalent tonnes  
per 10 kt of ore mined
the use of diesel generators to power our plants natural gas  
and coal for heating and diesel fuel for vehicles accounts for  
the bulk of our ghg emissions 
the increased figures for 2013 are largely due to increased production  
at the amursk plant and the recently launched mayskoye plant which 
both rely significantly on purchased electricity with a higher ghg 
intensity ratio
542
699
2012 2013
all air emissions
1
 
tonnes per 10 kt  
of ore mined
stripping mined waste storage ore processing and the use of energy 
generate air emissions including carbon dioxide and oxides of nitrogen 
and sulphur
we saw an increase in all air emissions intensity in 2013 as emissions 
from heat power plants increased while the stripping volumes remained 
the same as last year but the amount of ore mined decreased compared 
to 2012
46
75
2012 2013
waste 
tonnes per tonne  
of ore mined
we operate to a set of procedures that are designed to minimise the 
amount of waste produced maximise the volumes recycled and 
minimise the potential impacts on people and the environment 
during 2013 we have performed several stripping and pushback 
campaigns at omolon varvara and khakanja which increased the 
average stripping ratio for the group as a whole and correspondingly 
the amounts of waste mined
6581
8598
2012 2013
discharges to  
surface water 
tonnes per 10 kt  
of ore processed
the discharge intensity reflects the work done relating to the efficiency  
of our water use and to increase recycling
the indicator remained stable 417
444
2012 2013
energy use 
gigajoules per 100 kt  
of ore processed
group companies operate in remote areas subject to extremes of 
weather and far from centralised power sources they must generate 
their own sources of electricity and heat which currently necessitates 
significant use of diesel generators costs environmental impacts and 
alternatives are constantly reviewed 
741
765
2012 2013
1
  all air emissions are calculated in accordance with russian and kazakh environmental legislation co 2 equivalent ghg emissions are calculated separately as according  
to russian and kazakh legislation they are not air pollutants
air quality testing at voro strategic report
strategic report 5455
annual report 2013  
polymetal international plc
sustainability
continued
longterm commitment
as a taxpayer and employer in the areas in which we operate we provide valuable financial stability to local economies  
we are also committed to our community investment programme which is driven by our desire to improve the quality of life  
of local communities and indigenous people this is a longterm programme developed in consultation with local communities 
which enables us to maintain and enhance local infrastructure and services retain and increase employment opportunities  
and provide relevant training and education for local people
our goals and achievements
goals main achievements in 2013
strengthen social partnerships  
with local communities including 
imn communities
we invested us53 million in social and charitable programmes in all areas and paid more than 
us3207 million in regional and local taxes regular charitable assistance and targeted support 
was provided to war veterans and large families 
following a competition for social and cultural projects in three districts the best projects have  
been included in our social programme for 2014
provide comfortable living 
conditions and improve quality  
of life for the population  
in areas where we work
construction of a residential house for employees was completed in amursk
a number of programmes for the population of certain territories are ongoing improving the  
quality of children’s facilities repairing insulating and equipping 13 children’s facilities building and 
equipping children’s playgrounds management of health services and equipping local hospitals 
and improving living conditions in remote villages
improve the quality of feedback 
and cooperation with local 
communities and imn groups
we were very proactive during 2013 holding 15 open meetings with and providing feedback  
to local populations holding public hearings on new mining activities and environmental issues 
conducting public surveys in the far east and organising 15 visits to our production sites  
by members of the public local schoolchildren representatives of environmental protection  
bodies imn and veterans 
company representatives regularly take part in the work of local commissions on social and  
working partnerships
facilitate public access  
in remote areas to physical  
training and sporting events  
and support children’s sports 
work on the building renovation repairs and equipping of five sporting facilities has been 
completed as well as three sports grounds for children regular support is provided to children’s 
sport clubs and sport teams sporting events bringing together employees and the local population 
were organised new sports equipment was supplied to local schools and sport clubs 
provide residents of remote  
areas including imn with 
opportunities for cultural  
and creative development
ongoing support is provided to children’s ecological clubs and scientific research expeditions 
ecological events and volunteering on saturdays 
we have funded the repair and equipment of local cultural centres culturaleducational projects 
included publishing books about the traditions and culture of imn a competition with a cash prize 
for success in learning an indigenous language and support for local festivals and exhibitions  
of imn communities
1
  regular tax payments for 2013 not including additional payments for previous tax periods paid by polymetal companies excluding the head office
community
at polymetal we aim to contribute positively to the economic 
and social fabric of the communities regions and countries  
in which we operate in fostering mutually sustainable 
development we invest substantially in local infrastructure  
and in enhancing social and cultural welfare 
a traditional festival of the north celebration at arka village
we recognise that our operations often impact upon local 
communities and indigenous people in the areas where  
we operate our code of corporate governance and policy  
on social investments formally set our commitment to respect 
and promote fundamental human rights and the value of 
cultural heritage we are committed to operating in accordance 
with the un global compact and the un declaration on the 
rights of indigenous peoples the code is implemented  
by the management teams in each of our group companies 
our operations – and the populations with which we interact –  
are numerous and widespread including russia’s far east 
northern urals chaun district in chukotka autonomous 
territory and taranovka district in kazakhstan
the principles that we adhere to when engaging with local 
communities and indigenous people in these locations are
•	 to be open to ideas and comments from those living  
and working close to our operations 
•	 to be transparent in our dealings by providing timely  
relevant and accurate information on the progress  
of corporate and community investment projects 
•	to take a longterm view of interaction and investment  
and put in place systems for identifying investment priorities 
and monitoring progress
•	 to identify and act on the most significant issues for local 
communities and indigenous people – entailing open and 
regular dialogue and 
•	 to provide real and tangible benefits to local communities  
and indigenous people
community engagement
our relationship with local communities is based upon  
16 agreements relating to socioeconomic cooperation  
with local authorities in line with our own codes and policies 
we also have six agreements in place with indigenous 
minorities of the north imn communities in our russian  
far east operations these agreements are drawn up  
in consultation with imn and local authority representatives  
they focus on support for traditional activities provision of fuel 
food vehicles and building materials educational and cultural 
programmes designed to preserve language and traditions 
maintaining and restoring festival and holiday traditions 
learning about local ecosystems exchanging knowledge  
on environmental protection and facilitating exchanges 
between others in the local area and imn representatives 
in 2013 we continued to implement our major imn assistance 
programmes in areas such as deer farming and preservation  
of native language and culture in all operating regions in the  
far east including organisation of traditional ethnic imn 
festivals in the magadan region and khabarovsk territory 
to identify relevant targeted social investments in the 
khabarovsk territory in 2013 we introduced a competition 
asking public initiative groups to put forward possible  
social and cultural projects the winners were the imn 
representatives and their suggestions have been included  
in polymetal’s 2014 social investment programme
we have also focused on projects related to increasing the 
environmental awareness of the public involving young people 
in activities and undertaking programmes with the population 
of khabarovsk territory and chukotka we responded  
in the media and at public meetings to questions raised  
in 130 applications from the local population during 2013
investing in communities  
our investment priorities have been determined through 
feedback from local populations and our experience  
of working with communities and indigenous people over  
many years at least once a year we evaluate local community 
requirements through public meetings questionnaires  
surveys and onetoone dialogue this allows us to identify  
key investment targets and assess the impact of existing 
investments in the main these investments focus on the 
following activities 
•	education and healthcare 
•	infrastructure 
•	 sports facilities and healthy lifestyle initiatives and
•	 indigenous peoples’ cultural development
in 2013 these investments totalled about us53 million 
social investments in 2013  
■ sport  
■ education and health
■ cultural and creative potential  
■ infrastructure  
■ imn  
42
29
16
7
6
one of russia’s top 100 kindegartens at dukat the panther youth ice hockey club in the blue strip strategic report
strategic report 5657
annual report 2013  
polymetal international plc
financial review
highlights
•	revenue in 2013 decreased by 8 to us1707 million compared to 2012 ‘yearonyear’ as a result of average realised gold 
and silver prices decreasing 19 and 28 respectively yearonyear this unprecedented price decline was to a significant 
extent offset by 14 growth in the volume of gold equivalent sold 
•	 group total cash cost
1
 was us745 per gold equivalent ounce ‘ge oz’ up 8 compared to the 2012 level cash costs were 
negatively affected by the elevated level of unit costs and lower recoveries during the rampup at the amursk pox facility and 
at the newly launched mayskoye mine while the mature mines demonstrated resilient cost performance total cash costs  
in the second half of the year declined by 8 versus the first half of 2013 to us721ge oz driven by operational improvements  
at the albazinoamursk where cash costs declined by 27 halfonhalf to us707ge oz and omolon where as a result  
of mine plan revision a 32 cash cost reduction to us756ge oz was achieved
•	allin sustaining cash costs
1
 comprised us1086ge oz and increased slightly by 3 yearonyear driven mostly by an 
increase in total cash costs during the period which was largely offset by production growth and reduction of per ounce 
sustaining capital and exploration expenditure at our operating mines
•	adjusted ebitda was us598 million a decrease of 36 driven mainly by a decline in commodity prices  
adjusted ebitda margin was 35 compared to 50 in 2012
•	a noncash pretax impairment charge of us366 million resulting from the decline in gold and silver prices was recorded  
as at 31 december 2013 mainly due to the writeoff of goodwill and mining assets at varvara khakanja and lowgrade ore 
stockpiles at omolon the posttax amount recorded was us315 million the impairment calculations were performed  
using conservative price assumptions of us1200oz for gold and us18oz for silver which are meaningfully below current  
spot prices
•	as a result of noncash foreign exchange losses and impairment charges the group recorded a net loss of us198 million  
in 2013 compared to a us428 million net profit in 2012 underlying net earnings adjusted for the aftertax amount of 
impairment charges were us117 million
•	the group’s liquidity profile remained comfortable net debt was us1045 and remained almost flat compared to the 2012 
level of us1037  supported by strong free cash flow generation capacity despite challenging market conditions free cash 
flow
1
 for the year was us138 million remaining flat yearonyear of which us263 million was recorded in 2h 2013 on the 
back of increased production significant destockpiling and lower operating and capital expenditure levels
•	based on net debt
1
adjusted ebitda as at 31 december 2013 of 175 31 december 2012 11 and in accordance with the 
company’s dividend policy a final dividend of us008 per share representing 30 of the group’s underlying net earnings  
for 2h 2013 is proposed by the board
1
  the definition and calculation of nonifrs measures used in this report including adjusted ebitda total cash costs allin cash costs underlying net earnings net debt  
free cash flow and the related ratios is explained in the financial review section on the following pages
financial highlights
2013 2012  change
1
revenue usm 1707 1854 8
total cash cost usge oz 745 690 8
allin cash cost usge oz 1086 1059 3
adjusted ebitda usm 598 932 36
adjusted ebitda margin  35 50 15
average realised gold price usoz 1326 1640 19
average lbma gold price usoz 1410 1668 16
average realised silver price usoz 216 300 28
average lbma silver price usoz 238 311 24
net earnings usm 198 428 nm
underlying net earnings usm 117 431 73
basic eps usshare 051 110 nm
underlying eps usshare 030 113 73
dividend declared during the period usshare
2
032 070 54
net debt usm 1045 1037 1
net debtadjusted ebitda 175 111 57
net operating cash flow usm 462 541 15
capital expenditure usm 319 397 20
free cash flow 138 138 0
1
  percentage changes can be different from zero even when absolute amounts are unchanged because of rounding likewise percentage changes can be equal to zero when absolute 
amounts differ due to the same reason this note applies to all tables in this release 
2
  fy 2013 final dividend for fy 2012 declared in april 2013 and interim dividend proposed for 1h 2013 declared in august 2013 fy 2012 final dividend for fy 2011 declared in april 2012 
and special dividend for fy 2012 declared in december 2012
market summary
precious metals
the year 2013 witnessed significant fluctuations in the precious metals markets with a reversal of a positive trend that  
had dominated since 2009 in the first quarter markets were generally stable with the gold price fluctuating in the range  
of us15801690oz however in the middle of april gold witnessed one of the sharpest daily and weekly declines of the  
past decade decreasing to us1378oz and then further dropping to us1192oz by the end of june this steep decline  
was prompted by significant reductions in etf holdings and other investment demand sources and the plans by the us federal 
reserve to gradually decrease the amount of monetary stimulus to the us economy later in the year the gold price fluctuated 
between us1193oz and us1420oz ending the year at us1202oz on the back of the abovementioned investor demand 
factors offset by a record level of consumer demand especially from china and india as a result the average lbma gold price 
for the period decreased 16 yearonyear silver price dynamics followed gold with an increased level of volatility dropping 
from us309oz as at 1 january 2013 to us195oz as at 31 december 2013 this has also resulted in a further reduction  
in the goldsilver price ratio the average goldsilver price ratio decreased from 154 in 2012 to 159 in 2013 while  
as at 31 december 2013 it was 162 
precious metals market summary
■ gold  ■ silver  ■ goldsilver
31
dec
12
31
jan
13
28
feb
13
31
mar
13
30
apr
13
31
may
13
30
jun
13
31
jul
13
31
aug
13
30
sep
13
31
oct
13
30
nov
13
31
dec
13
gold price usoz silver price usoz and goldsilver price ratio
600
800
1000
1200
1400
1600
1800
100
200
300
400
500
600
700
foreign exchange
the group’s revenues and the majority of its borrowings are denominated in us dollars while the majority of the group’s costs are 
denominated in russian roubles therefore changes in exchange rates affect its financial results and performance during 2013 
the russian rouble depreciated after a moderate strengthening against us dollar in 2012 from 1 january to 31 december 2013 
the russian rouble depreciated against the us dollar by 7 6 from 304 rubus to 327 rubus while the average rate was 
down just 23 yearonyear from 3109 rubus in 2012 to 3185 rubus in 2013 providing a slight benefit to operating profit 
and cash costs the depreciation of the rouble had a more pronounced negative effect on the group’s net earnings in 2013 due  
to the effect of retranslating its us dollar debt to closing rate while the cost performance is yet to reflect the much lower rates in 
2014 seen to date strategic report
strategic report 5859
annual report 2013  
polymetal international plc
financial review
continued
operating results
year ended 31 december
2013 2012  change
waste mined kt 84956 85173 0
underground development m 55339 46717 18
ore mined kt 10379 12591 18
 openpit 7975 10937 27
 underground 2404 1654 45
ore processed kt 10749 9809 10
average grade processed ge gt 46 44 4
production
gold koz 805 589 37
silver moz 272 265 3
copper tonnes 4841 6567 26
gold equivalent koz
1
1282 1063 21
sales
gold koz 808 589 37
silver moz 274 278 2
copper tonnes 6141 7011 12
gold equivalent koz
2
1285 1129 14
headcount
3
9232 8993 3
safety
ltifr 057 059 3
fifr 006 – na
1
 based on 160 agau and 51 cuau conversion ratios
2
 based on actual realised prices
3
 average for the period
the company has exceeded its original annual production guidance and produced 1282 koz of gold equivalent up 21 
yearonyear this achievement was driven by the successful rampup at the amursk pox and mayskoye and strong operational 
delivery at the dukat hub 
other developments
in march 2014 the majority of polymetal’s employees waived their rights under the legacy executive incentive plan adopted  
in 2010 a new grant of options under the new longterm incentive plan is expected in april 2014 following the issuance of the 
company’s annual report
f inancial review
revenue
sales volumes
2013 2012  change
gold koz 808 589 37
silver moz 274 278 2
copper kt 6141 7011 12
gold equivalent sold
1
koz 1285 1129 14
1
 based on actual realised prices
sales by metal 
usm unless otherwise stated
2013 2012  change
volume
 variance
 usm
price
 variance
 usm
gold 1071 966 11 358 254
average realised price usoz 1326 1640 19
average lmba closing price usoz 1410 1668 16
share of revenues  63 52
silver 593 833 29 13 228
average realised price usoz 216 300 28
average lbma closing price usoz 238 311 24
share of revenues  35 45
copper 41 53 23
share of revenues  2 3
total metal sales 1704 1852 8 256 404
other revenue 2 2 32
total revenue 1707 1854 8  
in 2013 revenue declined by 8 yearonyear to us171 billion driven by a 19 decline in the average realised gold price while 
gold equivalent volume sold was up 14 gold sales volumes increased by 37 and silver sales declined by 2 yearonyear 
while production grew 37 and 3 respectively 
the average realised price for gold was us1326oz in 2013 down 19 from us1640oz in 2012 and slightly below the 
average market price of us1410oz due to a larger volume of polymetal’s sales recorded in the second half of the year when 
the market prices had already deteriorated the average realised silver price was us216oz down 28 yearonyear and 
reflecting market price movements in the same pattern
the share of gold sales as a percentage of total revenue increased from 52 in 2012 to 63 in 2013 with a corresponding 
decline in the share of silver sales from 45 to 35 driven by production and sales volume movements
revenue usm
gold equivalent sold 
koz silver for dukat
analysis by segment
2013 2012  change 2013 2012  change
dukat 532 673 21 24865 22570 10
voro 215 268 20 154 161 4
khakanja 203 302 33 148 180 18
varvara 190 215 12 140 135 4
omolon 223 296 25 162 177 9
albazinoamursk 294 99 196 230 65 254
mayskoye 50 – na 48 – na
other 2 0 na na na na
total revenue 1707 1854 8 1285 1129 14
revenue by segment 
usm
■ dukat  ■ voro  ■ khakanja  
■ varvara  ■ omolon  ■ albazinoamursk  ■ mayskoye 
1707
1854 673 268 302 215 296 99
532 215 203 190 223 294 50
2012
2013 strategic report
strategic report 6061
annual report 2013  
polymetal international plc
financial review
continued
due to the decline in gold and silver prices during the period the decline in revenue affected all operating segments of the 
group with the exception of albazinoamursk where increased production at the pox plant and offtake concentrate sales  
led to a nearly threefold increase in dollar sales among the mature mines sales generally followed production dynamics  
and goldsilver ratio price movements
changes in accounting policies and basis of estimates
application of ifric 20 ‘stripping costs in the production phase of a surface mine’
ifric 20 provides guidance on the accounting for the costs of stripping activities during the production phase of a mine  
when the benefit from the stripping activity is improved access to a component of the ore body in future periods the stripping 
costs in excess of the average oretowaste ratio for the lifeofmine of that component are recognised as a noncurrent asset 
ifric 20 became effective for the group from 1 january 2013 
prior to adoption of ifric 20 the group’s accounting policy was not to capitalise stripping costs during the production phase 
therefore as at 1 january 2012 there were no stripping assets on the group’s balance sheet the adoption of ifric 20 has 
resulted in the capitalisation of certain stripping costs and a reduction in the cost of sales and inventory recorded in 2012  
the stripping assets recognised as a result of the application of ifric 20 will also affect the level of depreciation charges  
in future periods see details in note 25 to the consolidated financial statements total cash costs adjusted ebitda and  
other nongaap metrics have been restated accordingly the capitalised stripping costs in 2013 comprised us91 million 
compared to us61 million in 2012 and were mainly represented by omolon khakanja and varvara
use of jorc reserves for depreciation calculation
from 1 january 2013 the group began to use jorc as opposed to gkz reserves as the basis for unitofproduction 
depreciation calculations as management believes this revised basis better reflects the longterm mine plans which  
are also being prepared based on jorc reserves estimates
the increase in profit for the period due to the adoption of ifric 20 was almost entirely offset by the change in depreciation 
calculation basis
cost of sales 
cost of sales excluding writedowns of metal inventories
2013 2012

change
onmine costs 393 363 8
smelting costs 384 336 14
purchase of ore from third parties 33 33 1
mining tax 109 121 10
total cash operating costs 919 852 8
depreciation and depletion of operating assets 245 178 38
rehabilitation expenses 2 4 53
total costs of production 1167 1034 13
increase in metal inventories 54 187 71
writedown of nonmetal inventories to net realisable value 11 2 357
total change in metal inventories 43 185 77
cost of other sales 1 2 72
total cost of sales 1124 852 32
cash operating cost structure
2013
usm
2013
 of total
2012
usm
2012
 of total
consumables and spare parts 286 31 260 30
services 305 33 284 33
labour 180 20 148 17
other expenses 5 1 7 1
purchase of ore from third and related parties 33 4 33 4
mining tax 109 12 121 14
total cash operating costs 919 100 852 100
cash operating cost structure 
usm
■ consumables and spare parts  ■ services  ■ labour  
■ other expenses  ■ purchase of ore from third parties  ■ mining tax 
919
852 260 284 148 7 33 121
286 305 180 5 109 33
2012
2013
total cost of sales grew by 32 in 2013 to us1124 million mainly on the back of volumebased growth in production and  
sales 21 and 14 yearonyear respectively in gold equivalent terms other cost drivers include domestic inflation in russia 
65 in 2013 which was only partially offset by rouble depreciation and a significant increase in depreciation charges  
as a result of the launch and rampup of the mayskoye concentrator and the amursk pox plant which are now both  
in commercial production
 
the cost of consumables and spare parts and the cost of services grew by 10 and 7 respectively with most of the growth 
being volumebased specific cost increases in the period are attributable to consumables and spare parts at the amursk pox 
which was fully operational during the year and displayed elevated consumption rates due to limited throughput and recovery 
during the rampup process amursk pox was the main driver of increased smelting costs during the period
the total cost of labour within cash operating costs in 2013 was us180 million a 22 increase mainly stemming from 
production volume growth increase in the rates of payroll tax for highly paid employees and growth in the average number  
of employees at amursk and mayskoye which are now fully in commercial production 
mining tax decreased by 10 yearonyear to us109 million driven by a revenue decrease of 8
depreciation and depletion was us245 million up 38 yearonyear mainly as a result of the commencement of commercial 
production at the amursk pox and the mayskoye concentrator as well as an increased share of underground mining at dukat 
resulting in increased depreciation of capital underground development costs and depreciation of capitalised stripping costs 
us11 million of depreciation and depletion expenses in 2013 which related to ore and concentrate stockpiles was included  
in metal inventories as at 31 december 2013
in 2013 a net metal inventory increase of us54 million was recorded excluding writedowns to net realisable value in the 
second half of the year the company successfully progressed with scheduled stockpile reductions with total gold equivalent 
sales meaningfully exceeding production by 54 koz destockpiling was driven mainly by the dukat hub khakanja and albazino
general administrative and selling expenses
usm
2013 2012  change
labour 107 92 16
sharebased compensation 24 54 55
services 19 18 2
depreciation 4 4 13
other 14 12 19
total 168 182 7
general administrative and selling expenses decreased by 7 yearonyear from us182 million to us168 million mainly 
because of the decrease in sharebased compensation the amount of us24 million of sharebased compensation recognised 
during 2013 represents the final accrual made in respect of the old longterm employee incentive programme ‘old eip’  
which was adopted in 2010 and had a vesting date of 11 june 2013 or at the discretion of the participants 11 june 2014  
none of the options vested in june 2013 as the performance conditions excess of price over strike price of us1674 per share 
were not met further in march 2014 the majority of employees waived their rights under the old eip in order to be able to 
participate in the new longterm incentive plan the ‘new ltip’ however the expense previously recognised does not reverse 
as a credit to the income statement in accordance with ifrs rules as the nonvesting is related to a marketbased condition 
should any remaining options vest in june 2014 at the revised target share price us1875 per share no additional expense  
will be recognised in the income statement strategic report
strategic report 6263
annual report 2013  
polymetal international plc
financial review
continued
the new ltip was approved by the agm in june 2013 and the first grant of options under the new ltip is expected to take 
place in april 2014 following the issuance of the annual report the sharebased payment expense in relation to the new ltip  
will therefore be recognised after grant in 2014
labour costs increased by 16 to us107 million due to planned increases in administrative personnel at the new mines 
including amursk pox and mayskoye and payroll tax increases
other expenses
usm
2013 2012  change
exploration expenses 24 33 27
taxes other than income tax 21 14 49
social payments 11 11 2
loss on disposal of property plant and equipment 10 9 2
housing and communal services 7 8 17
bad debt allowance 1 – 100
additional mining taxes penalties and accrued interest 1 66 99
other expenses 15 13 19
total 88 154 42
other expenses decreased from us154 million in 2012 to us88 million in 2013 there were no additional mining tax charges 
including penalties and accrued interest recognised in 2013 and there were no material changes to the provisions previously 
recognised the decrease in exploration expenses from us33 million in 2012 to us24 million in 2013 is mainly due to a lower 
amount of exploration costs written off as generating no future benefits 
total cash costs by mine
cash cost per ge ounce 
usoz
gold equivalent sold koz 
silver for dukat
total cash costs per gold equivalent ounce
1
 
2013 2012  change 2013 2012  change
dukat silver equivalent oz 116 121 5 24865 22570 10
voro 503 506 1 154 161 4
khakanja 756 615 23 148 180 18
varvara 791 795 1 140 135 4
omolon 879 892 1 162 177 9
albazino 790 739 7 230 65 254
mayskoye 957 – nm 48 – nm
total 745 690 8 1285 1129 14
1
  total cash costs comprise cost of sales of the operating assets adjusted for depreciation expense rehabilitation expenses and writedown of inventory to net realisable value and certain 
other adjustments and general administrative and selling expenses of the operating assets gold equivalent sales volume is calculated based on average realised metal prices in the 
relevant period total cash cost per gold equivalent ounce sold is calculated as total cash costs divided by total gold equivalent unit ounces sold
total cash costs 
usge oz
■ 2012  ■ 2013   
dukat
1
121
116
506 503
615
795 791
756
892
879
739
790
957
690
745
voro khakanja varvara omolon albazino mayskoye total
1
  silver equivalent oz for dukat
in 2013 the total cash costs per gold equivalent ounce sold ‘tcc’ were us745ge oz up 8 yearonyear due to elevated 
cost levels at the amursk pox and mayskoye plants during their rampup periods combined with a higher share of these 
segments in total production and sales 
the table below summarises major factors that have affected the group’s tcc dynamics yearonyear
reconciliation of tcc movements
usoz  change
total cash cost per gold equivalent ounce – 2012 690
domestic inflation 51 7
us rate change 16 2
mining tax change – au and ag price 21 3
auag ratio change 31 4
change in average grade processed by mine 22 3
change in recovery rate 22 3
change in share of sales between mines
1
11 2
total cash cost per gold equivalent ounce – 2013 745 8
1
 effect of mix change between mines with different cost levels
  
total cash cost by mine 
•	dukat’s total cash cost per silver equivalent ounce sold decreased by 5 yearonyear to us116 oz this has been achieved 
on the back of sustainably strong grades and recoveries at the omsukchan concentrator and increased throughput at both 
omsukchan and lunnoye plants
•	at voro which continues to be our lowest cost operation cash costs decreased further by 1 compared to 2012  
to us503ge oz despite a moderate decrease in total gold equivalent production cost performance was supported  
by grade profile of the primary ore processed during the period and the higher share of gold produced at the cip plant  
versus heap leaching as well as by robust operating performance of the mine
•	khakanja’s tcc was us756ge oz a 23 increase yearonyear this cost increase was driven by a scheduled decline  
in average grade processed from 94 gt to 81 ge gt yearonyear and a higher share of relatively highcost ore from 
avlayakan processed during the second half of the year
•	at varvara tcc was us791ge oz decreasing by 1 yearonyear this decrease was achieved on the back of a stable 
grade profile and openpit mine productivity improvements with the introduction of the new dragline excavator
•	at omolon tcc amounted to us879ge oz remaining almost flat compared to the 2012 level despite a moderate decline  
in average grades and production the improvement in cost performance was mainly achieved in the second half of the year  
as a result of implemented changes to the mine plan following the decrease in gold and silver prices a higher share of higher 
grade ore from sopka and tsokol as well as suspension of mining at birkachan during the year contributed to the  
cost reduction 
•	at albazinoamursk tcc was us790ge oz up 7 compared to 2012 due to lower throughput and recoveries at the 
amursk pox in the first half of the year before the remedial actions were implemented tcc improved considerably over  
the second half of the year as the pox plant reached design throughput and recovery levels this was further supported  
by significant concentrate destockpiling through a combination of sales to thirdparty offtakers and accelerated concentrate 
processing at the pox plant after achieving design parameters
•	 tcc at mayskoye was us957ge oz with the high level mainly associated with cost inefficiencies inherent in the rampup 
period of the processing plant lower average throughput and recoveries and a lower grade of ore processed during the 
rampup period cost levels in 2014 are set to improve as mayskoye delivers its first full year of production
allin sustaining cash costs
1
 
total usm usge oz
2013 2012  change 2013 2012  change
total cash costs 957 779 23 745 690 8
sga and other operating expenses not included in tcc 142 146 2 111 129 14
capital expenditure excluding new projects 256 237 8 199 210 5
exploration expenditure capital and current 41 33 25 32 29 9
allin sustaining cash costs 1396 1195 17 1086 1059 3
finance cost 49 41 19 38 36 5
income tax expense 40 223 82 31 197 84
aftertax allin cash costs 1485 1459 2 1156 1292 11
development capital 60 163 63 47 144 67
sga and other expenses for development assets 7 12 43 5 10 50
allin costs 1552 1633 5 1208 1447 17
1
  allin sustaining cash costs comprise total cash costs all selling general and administrative ‘sgra’ expenses for operating mines and head office not included in tcc mainly represented  
by head office sga other expenses excluding writeoffs and noncash items in line with the methodology used for calculation of adjusted ebitda and current period capex  
for operating mines ie excluding new project capex but including all exploration expenditure both expensed and capitalised in the period and minor brownfield expansions strategic report
strategic report 6465
annual report 2013  
polymetal international plc
financial review
continued
allin sustaining cash costs amounted to us1086 in 2013 and increased by 3 yearonyear with the increase in total  
cash costs substantially offset by reduction of per ounce sga sustaining capex and exploration expenditure 
impairment charges
khakanja varvara omolon mayskoye
other 
operating
segments
corporate 
and other total
goodwill 13 63 – – – – 76
mining assets 91 17 17 – – – 125
metal inventories 28 19 75 16 15 – 153
investments in associates – – – – – 12 12
total impairment charges 132 99 92 16 15 12 366
in accordance with ifrs requirements polymetal conducts impairment tests for its goodwill property plant and equipment 
other noncurrent assets and inventories at each reporting date
following a significant decline in market prices for gold and silver in 2013 a total pretax impairment charge of us366 million 
equivalent to a posttax amount of us315 million was recorded in the consolidated financial statements as a result of these 
impairment tests additional impairment charges recognised in the second half of 2013 were us61 million and mainly resulted 
from the reoptimisation of mine plans at the omolon hub and writeoff of lowgrade ore stockpiles across our operations
polymetal used conservative price assumptions in the tests performed with the following flat forward real prices meaningfully 
below the current spot prices
•	gold – us1200oz
•	 silver – us18oz
•	copper – us7 000tonne
the following major impairment losses were recognised
•	an impairment of us132 million in respect of khakanja hub assets including us104 million of goodwill and mining assets 
and us28 million of ore stockpiles the impairment mainly relates to the value of avlayakan mining assets which were 
acquired in 2009 for stock then valued at us60 million with a view to establishing resources sufficient for a standalone mine 
currently the asset operates as a satellite mine to khakanja which generates a significant amount of trucking and shipping 
costs which are offsetting at the prices used the high reserve grade of the deposit ore impairment is also mainly represented 
by the existing stockpiles of avlayakan ore and lowgrade ore from khakanja the ongoing shift to underground mining will 
enable an increase in grade profile and improve cost levels accordingly 
•	an impairment of us99 million was incurred in respect of varvara mainly represented by goodwill writeoff due to the 
relatively low grade ore varvara operations are more sensitive to gold and copper prices the impairment model does not 
include any purchased thirdparty ore due to the shortterm nature of the purchase arrangements which represented about 
20 of gold equivalent production at varvara in 2012 and 16 in 2013 and was an important contribution to the economics  
of the asset by leveraging existing processing capacity goodwill on the original purchase transaction arose mainly due to this 
additional contribution which was assessed when estimating the purchase consideration paid
•	an impairment of us92 million was recorded in respect of omolon hub assets mainly represented by a us75 million 
writeoff of the lowgrade ore stockpiles at sopka written off and birkachan net realisable value reduced to reflect lower price 
assumptions the impairment model assumes that polymetal will not proceed with the sopka heap leach at the prices used 
due to a lower than required return on the capital that needs to be invested in the start of the facility and therefore assigns zero 
value to the lowgrade ore stockpiles accumulated for heap leaching however the construction of the heap leach at birkachan  
is already completed and leaching is planned from 2014 at the assumed prices of us1200oz for gold and us18oz  
for silver this would result in positive cash flow contribution making processing of these stockpiles economic
•	at mayskoye an us16 million writedown of inventories is represented by relatively lowgrade and highcost concentrate 
produced during the first months of the concentrator operation with higher costs inherently associated with the rampup  
of the processing facility the source of impairment is expected to be nonrecurring as mayskoye had achieved design 
throughput and recovery by the end of 2013
•	 a total us15 million impairment of ore stockpiles was recorded at dukat and voro and was represented by marginal  
lowgrade material
•	polymetal has also written off its investment in its associate uralpolymetal totalling us12 million having assessed  
the enterprise value using the assumptions above
adjusted ebitda and ebitda margin
1
reconciliation of adjusted ebitda usm
2013 2012  change
net earnings 198 428 nm
finance cost net 40 22 80
income tax expense 40 223 82
depreciation and depletion 238 142 68
ebitda 120 815 85
impairment of inventories 153 4 nm 
impairment of goodwill and mining assets 201 – 100
impairment of investment in associate 12 – 100
sharebased compensation 24 54 57
exchange gainslosses 74 7 nm
change in fair value of contingent liability 8 5 nm
rehabilitation costs 2 3 46
writedown of nonmetal inventory 11 2 357
gain on disposal of subsidiarybargain purchase gain 9 10 nm
additional tax charges according to the supreme arbitration court decision 1 66 99
adjusted ebitda 598 932 36
adjusted ebitda by segment usm
2013 2012  change
dukat 229 378 39
voro 130 182 29
khakanja 85 178 52
varvara 74 102 27
omolon 64 129 51
albazinoamursk 103 35 192
mayskoye 4 12 63
corporate and other and intersegment operations 82 59 36
total 598 932 36
1
  the company defines adjusted ebitda a nonifrs measure as profit for the period adjusted for depreciation expense rehabilitation expenses writedown of inventory to net realisable 
value sharebased compensation listing expenses gains and losses on acquisitions and disposals foreign exchange gainloss change in fair value of derivatives change in fair value  
of contingent consideration finance income finance costs and income tax expense adjusted ebitda margin is adjusted ebitda divided by revenue the figures presented above have 
been rounded and accordingly may not sum to the total shown
adjusted ebitda margin

■ 2012  ■ 2013   
dukat
56
voro khakanja varvara omolon albazino
amursk
mayskoye total
43
68
61
59
42
47
39
44
29
36
35
0
9
50
35
in 2013 adjusted ebitda was us598 million 36 lower yearonyear with adjusted ebitda margin of 35 the decrease 
was mainly driven by a 19 reduction in the average realised gold price and a 28 reduction in the average realised silver  
price as well as a 8 increase in total cash costs the albazinoamursk hub increased the adjusted ebitda almost threefold  
yearonyear due to significant production and sales growth and adjusted ebitda at other segments declined yearonyear  
on the back of pricedriven revenue decrease  strategic report
strategic report 6667
annual report 2013  
polymetal international plc
financial review
continued
other income statement items
polymetal recorded a net foreign exchange loss in 2013 of us74 million compared to a gain of us7 million in 2012 these 
unrealised noncash losses represent the appreciation of the group’s mostly usdollardenominated borrowings against the 
russian rouble the functional currency of all group companies other than varvara the group’s average gross debt during  
2013 was us987 million with more than 95 denominated in us dollars while the us dollar appreciated against the russian 
rouble by 80 during the period from 304 rubus at 31 december 2012 to 327 rubus as at 31 december 2013  
in 2014 this exchange rate dynamic has continued and is expected to have a more meaningful positive effect on operating  
cash cost levels
the company does not use any hedging instruments for managing foreign exchange risk other than a natural hedge arising 
from the fact that the majority of the group’s revenue is denominated or calculated in us dollars though income statement 
volatility may arise in the financial reporting polymetal believes that the underlying matching of revenue cash flows against  
debt repayments and related interest represents an economically effective hedging strategy
net earnings earnings per share and dividends
the group recorded a net loss of us198 million in 2013 versus a net profit of us428 million in 2012 the loss resulted mainly 
from noncash impairment charges pretax amount of us366 million equal to aftertax amount of us315 million unrealised 
foreign exchange losses in 2013 versus smaller absolute gains in 2012 and the decrease in adjusted ebitda 
underlying net earnings excluding the aftertax impact of impairment charges were us117 million compared  
to us431 million in 2012 the decrease in underlying net earnings was mainly a result of a decrease in adjusted ebitda  
by us334 million yearonyear as well as the effects of foreign exchange
basic earnings per share were a loss of us051 per share compared to earnings of us110 per share in 2012 underlying 
basic eps was us030 per share compared to us113 per share in 2012
in accordance with the company’s dividend policy the board is proposing to pay a final dividend of us008 per share 
representing approximately 30 of the group’s underlying net earnings for the period during 2013 polymetal paid a total  
of us316 million in dividends representing special and final dividends for fy 2012 and interim dividends for 1h 2013 
capital expenditure
usm
2013 2012  change 
mayskoye 54 66 19
dukat 37 49 24
amurskalbazino 36 79 54
omolon 22 40 44
varvara 21 16 37
khakanja 14 20 28
voro 8 11 27
exploration 59 68 13
corporate and other 6 8 22
capitalised stripping 91 61 51
capitalised interest 6 14 57
 total capital expenditure
1
357 433 18
1
  total capital expenditure includes amounts payable at the end of the period on a cash basis capital expenditure was us319 million in 2013 2012 us397 million  
the difference with the one on the accrual basis is mostly due to depreciation of us33 million 2012 us26 million capitalised into exploration and stripping assets 
357
433
capital expenditure
usm
■ mayskoye  ■ dukat  ■ albazinoamursk  ■ omolon    
■ varvara  ■ khakanja  ■ voro  ■ exploration  
■ corporate and other  ■ capitalised stripping  ■ capitalised interest 
66 49 79 40 16 2011 68 61 8 14
54 37 36 2223148 59 89 6 6
2012
2013
in 2013 total capital expenditure was us357 million down 18 yearonyear all of the group’s major investment projects  
are now complete with the launch of the mayskoye concentrator in april 2013 consequently starting from 2h 2013 the bulk  
of the group’s capital expenditure is now related to stayinbusiness spending and exploration in addition the implementation  
of ifric 20 refer to ‘changes in accounting policies’ above resulted in the partial capitalisation of productionphase stripping 
costs all of which were previously expensed capital expenditure excluding stripping costs would have been us265 million  
in 2013 2012 us372 million
the major capital expenditure items in 2013 were
•	 us54 million was spent on completion of construction of the processing plant at mayskoye and sustaining capital expenditure 
for the newly launched mine the concentrator was launched in april 2013 and by the end of the year the rampup process 
was complete 
•	 us36 million was invested at albazinoamursk mostly related to mining fleet expansion and continued underground 
exploration activities at albazino as well as investing in equipment upgrades at the amursk pox
•	capital expenditure at dukat was us37 million down 24 yearonyear and is mainly represented by expansion  
of underground operations and maintenance capex at the lunnoye and omsukchan plants
•	at varvara capital expenditure was us21 million and is mainly related to the expansion of the mining fleet including  
an electrical dragline excavator commissioned in q1 2013
•	at omolon capital expenditures declined by 44 yearonyear to us22 million due to revision of the mine plans and 
suspension of the birkachan mine as well as due to postponement of the sopka and birkachan heap leaching projects  
the actual expenditure during 2013 is mainly related to development of dalneye openpit mine and maintenance capex
•	across the other mature mines khakanja and voro capital expenditures declined yearonyear and were mainly represented  
by mining fleet upgradesreplacements and maintenance expenditure at the processing facilities
•	the company continues to invest in standalone exploration projects capital expenditure on exploration in 2013 was 
us59 million compared to us68 million in 2012 and focused mostly on maminskoye svetloye and kutyn
•	capitalised stripping costs totalled us91 million in 2013 2012 us61 million and are attributable to operations with stripping 
ratios during the period exceeding their lifeofmine ‘lom’ averages including most importantly khakanja omolon and 
varvara the capitalisation of stripping costs at omolon and varvara has resulted in increased impairment charges recorded  
in respect of those segments’ mining assets refer to ‘impairment charges’ above 
•	 total capital expenditure includes us6 million of capitalised interest 2012 us14 million which declined materially  
as the group has already commissioned all of its major growth assets and led to an increase in finance costs recognised  
in profit and loss  strategic report
strategic report 6869
annual report 2013  
polymetal international plc
financial review
continued
cash flows
usm
2013 2012  change 
operating cash flows before changes in working capital 450 724 38
changes in working capital 12 184 nm
total operating cash flows 462 541 15
capital expenditure 319 397 20
other 5 6 16
investing cash flows 324 403 19
financing cash flows 
net increase in borrowings 213 149 243
mto and squeezeout obligation repayment – 569 100
dividends paid 316 77 313
total financing cash flows 104 794 87
net decreaseincrease in cash and cash equivalents 34 656 nm
cash and cash equivalents at the beginning of the year 19 659 97
effect of foreign exchange rate changes on cash and cash equivalents 13 16 20
cash and cash equivalents at the end of the year 66 19 252
operating cash flows in 2013 were under pressure from declining commodities prices operating cash flows before changes  
in working capital decreased by 38 yearonyear to us450 million as a result of adjusted ebitda decrease net operating 
cash flows were us462 million compared to us541 million in 2012 and were almost unaffected by changes in working 
capital in 2013 the increase in working capital in 2012 was us184 million despite a meaningful increase in production  
volumes and scope of operations 
total cash and cash equivalents increased from us19 million as at 31 december 2012 to us66 million  
as at 31 december 2013 with the following items affecting the cash position of the group
•	 operating cash flows of us462 million
•	 investment cash outflows of us324 million down 19 yearonyear and mainly represented by capital expenditure  
down 20 yearonyear to us319 million
•	payment of special and regular dividends for 2012 amounting to us316 million and
•	an increase in borrowings of us213 million
balance sheet liquidity and funding 
net debt
31 december 
2013
31 december 
2012  change
shortterm debt and current portion of longterm debt 81 244 67
longterm debt 1030 620 66
dividends payable – 191 100
gross debt 1111 1055 5
less cash and cash equivalents 66 19 252
net debt 1045 1037 1
net debtadjusted ebitda 175 111 59
the group continues to maintain a comfortable liquidity and funding profile in the current turbulent market environment
the group’s net debt was almost flat and comprised us1045 million as of 31 december 2013 representing a net debt
adjusted ebitda ratio of 175 
the group maintains a healthy debt structure which is comfortable from both the liquidity and cost standpoints in the second 
half of the year the group refinanced a total of us400 million of its shortterm borrowings into longterm facilities as a result 
the proportion of longterm borrowings increased from 48 as at 30 june 2013 to 93 as at 31 december 2013 this new 
borrowing facility led to a significant improvement of the group’s debt maturity profile now extending to more than three years 
in addition as at 31 december 2013 the group had us16 billion of available undrawn facilities from a wide range of lenders 
which maintains its operational flexibility in the current environment
the average cost of debt remained low at 299 in 2013 2012 306 supported by low base interest rates and the ability  
to negotiate competitive premiums on the back of the solid financial position of the company and polymetal’s excellent  
credit history 
2014 year outlook
while we recognise that our financial performance will significantly depend on commodity price movements in the year ahead 
polymetal expects to deliver a resilient financial performance at the current price levels which will be driven by the  
following factors
•	the company is fully equipped to deliver on its production guidance of 13 moz of gold equivalent for 2014
•	 in 2014 polymetal expects total cash costs of us700750ge oz and allin sustaining cash costs of us9751025ge oz 
which will be supported by the ongoing devaluation of the russian rouble and kazakh tenge
•	capital expenditure will decline further to us250 million including exploration and capitalised stripping as there will be  
no major investment in growth projects before project development decisions are taken closer to the end of the financial year  strategic report
strategic report 7071
annual report 2013  
polymetal international plc
risks and risk management
identify and 
document risks
assess quantify  
and classify  
each risk
monitor report 
and review risk
develop and 
implement  
risk mitigation 
strategies
1
2
3
4
risk category risk description and potential effect risk response
1 
market risk
gold and silver price volatility may result in 
material adverse movement in the company’s 
operating results revenues and cash flows
in the light of the recent decline in commodity prices the company  
has implemented a number of measures to maintain profitability  
and cash flow including
•	redistribution of ore mined volumes between deposits to achieve  
a better cost profile due to better logistics and less expensive  
mining methods
•	suspension of highcost operations
•	deferral of certain marginal growth projects
•	staffing level review and hiring freeze
•	assetlevel costcutting
key capital expenditure savings include
•	deferral of certain marginal growth projects
•	greenfieldbrownfield exploration budget reviewed and reprioritised
•	certain noncore maintenance projectsmining equipment purchases 
at operating mines cancelleddelayed
conservative commodity price assumptions are used for future  
period budgets and lifeofmine models to ensure viability of the  
plans in the event of a sustained weakness in precious metals prices
the company has also developed action plans to address  
any further severe price reduction scenario
currently the company does not hedge as its strategy is to offer 
stakeholders full exposure to potential gold and silver price  
upside potential
21
production risks –  
mining plans
the risk of failure to meet the planned production 
programme failure to meet production targets 
may adversely affect the operating performance 
and financial results of the group the risk of 
lower than expected metal grades or dilution  
is caused by complex mining and geological 
conditions mainly at underground mines 
recoveries at the group’s processing plants may 
not reach planned levels due to the complex 
technological properties of the ore processed
annual quarterly and monthly production budgeting and subsequent 
monthly control against budget is designed to mitigate the risk 
the effectiveness and efficiency of the production process is ensured 
by the group’s senior engineering team the approved production 
programme includes an increased volume of onmine exploration 
works such as infill drilling and grade control sampling
to mitigate the risk the group invests considerable resources  
in ore quality assessment procedures and seeks to control ore quality 
by the formation of ore stacks with the required characteristics
22
production risks –  
procurement
the group’s production activity depends heavily  
on the effectiveness of its supply chains these 
might be negatively affected by complex logistics 
to remote locations and delays in construction 
and delivery of purchased mining and processing 
equipment or spare parts
the group has implemented and constantly improves its supply  
chain system to closely link the production demand of resources with 
inventory levels optimise the number of order placements and ensure 
intime inventory and equipment delivery to production sites
23
production risks –  
qualified labour 
availability
failure to retain key employees or to recruit  
new staff mainly at the group’s mining and 
processing facilities may lead to increased staff 
costs interruptions to existing operations and 
delays in new projects
lack of skilled and knowledgeable staff  
at remote locations may occur due to extreme 
weather conditions
a working conditions improvement programme is in place
remuneration policies are designed to incentivise motivate  
and retain key employees
there is an increased focus on health and safety – refer to pages 5051  
of this report – and there is active promotion of a positive corporate 
culture within the group
robust risk management systems are 
critical to the longterm success of the 
company we believe that the creation  
of sustainable value for our stakeholders 
should be firmly based on effective risk 
identification and an appropriate response  
to each risk
risk management process
polymetal’s risk management process is designed to minimise 
the potential threats to achieving our strategic objectives
internal control and risk management systems are continuously 
improved to add value to the business the number of kpis 
used to assess the qualitative measures of the key business 
activities’ performance has significantly increased over the  
past years
the process incorporates the following stages
•	identification and documentation of risks
•	assessment qualification and quantification of each risk
•	development and implementation of risk mitigation 
control strategies
•	monitoring reporting and reviewing risks and
•	input of effective internal control procedures
the audit and risk committee of the board sets the agenda 
for the risk management policies and procedures of the  
group including the treasury policy governing management  
of financial risks and is responsible for reviewing their 
effectiveness its duties include the review of
•	policies and overall processes to identify and assess  
business risks and manage their impact on the company 
and the group
•	regular assurance reports from management internal  
audit external audit and others on matters related to risk  
and control
•	periodic ‘deep dives’ in significant risks and
•	the timeliness of and reports on the effectiveness  
of corrective action taken by management
risk identification
risk awareness is embedded within the group and  
is grounded in our strong ethical values and proactive 
corporate culture our risk management philosophy  
is driven by the company’s board of directors and runs 
through all our management employee and connected 
stakeholder activities – from developing strategy  
to daytoday operations 
risk management is one of the key functions of the audit  
and risk committee strategic risks are identified by the  
board based on a detailed understanding of the company  
its markets and the legal social political economic 
technological environmental and cultural environments  
in which we operate our risk identification system considers  
not only single mutually exclusive risks but also multiple  
linked and correlated risks 
risk matrices and assurance maps are used to record 
prioritise and track each risk through the risk management 
process these are regularly reviewed by the audit and  
risk committee
risk assessment
once identified potential risk factors are assessed to consider 
the impact and consequences that the event or events may have 
on achieving objectives and the likelihood and probability of the 
event see table on top of page 71 together these create  
a risk profile
risk response
when the appropriate ranking has been identified a response 
to each risk is formulated and implemented this is tracked 
through a comprehensive risk assurance map management 
assesses the effects of a risk’s likelihood and impact as well  
as costs and benefits of a particular risk mitigation method 
the degree to which the response brings the risk within 
acceptable tolerance levels is then evaluated and corrective 
actions are taken where necessary
monitoring and reporting
ongoing monitoring processes are embedded in polymetal’s 
business operations these track the effective application of 
internal control and risk management policies and procedures 
including internal audit and specific management reviews  
risk matrices and assurance maps are used to reevaluate  
and adjust controls in response to changes in the company’s 
objectives the business and the external environment
management is responsible for the implementation of effective  
followup procedures to ensure appropriate actions occur  
in response to changes in risk and control assessments
effective r isk 
identific ation  
and 
management

 impactfin anci al consequences
us01m us01mus5m us5mus10m us10mus50m  us50m
insignificant
•	 minimal impact on 
strategy or operational 
activities
•	 low stakeholder 
concern
minor
•	 minor impact on strategy 
or operational activities
•	 l i m i t e d sta k e h o l d e r 
concern
moderate
•	 serious impact on 
strategy or operational 
activities
•	 m o d er a t e s t a k eh o l d er 
concern
major
•	major impact on strategy  
or operational activities
•	 m a j o r sta k e h o l d e r 
concern
catastrophic
•	 si gn ifi c a nt i mp a ct  
on strategy or  
operational activities
•	 m ult i ple si gn ifi c a nt 
stakeholder concerns
likelihoodprobability
almost certain 
occurs one or more times 
per year and is likely to 
reoccur within one year
likely 
occurs less than once  
a year and is likely to 
reoccur within five years
possible 
could occur or may  
reoccur at some point  
within ten years
unlikely
has happened at some  
time or could happen  
within 20 years
rare
is highly unlikely  
that it would occur  
in the next 20 years
residual risk level
high  medium  low  strategic report
strategic report 7273
annual report 2013  
polymetal international plc
risks and risk management
continued
risk category risk description and potential effect risk response
24
production risks –  
reliance on 
contractors
risk of underperformance against production 
plan of exceeding available resources budget 
overspending delayed results
a contractors’ performance control system is designed implemented 
and applied
3
tax risk
due to frequent changes in tax legislation in 
russia and kazakhstan a lack of established 
practices in tax law means that additional costs 
such as taxes or penalties may arise
the most recent russian government initiatives 
include significant amendments to tax law 
governing operations with entities from  
offshore jurisdictions
the taxation risk level correlates with legal and 
political risks levels
the company’s policy is to comply fully with the requirements  
of applicable tax laws providing adequate controls over tax accounting 
and tax reporting
given the prevailing practice accepted by arbitration courts when 
deciding on certain cases in tax disputes in 201213 as well as 
particular outcomes of tax disputes involving kazakh and russian 
subsidiaries of the group the tax risk is assessed as ‘high’
the consolidated financial statements reflect provisions booked  
in connection with the company’s evaluation of tax risks
to date the company is not aware of any significant outstanding tax 
claims which could lead to additional taxes accruing in the future 
except for amounts already booked or disclosed in the group’s 
financial statements
4
exploration risks
exploration and development are time and 
capitalintensive activities and may involve a high 
degree of risk but are necessary for future 
growth failure to discover new reserves of 
sufficient magnitude could adversely affect the 
company’s results
exploration risks include exploration site 
selection defining the optimal method of 
exploration licensing and permits exploration 
process supply staff equipment etc exploration 
contractors’ performance control and reporting
potential effects include financial losses due to 
poor exploration results on selected properties 
financial losses or unreliable exploration results 
due to use of incorrect exploration methods 
inefficient use of the resources available orand 
not achieving the reserveresource targets set
risk and uncertainty are inherent in exploration and  
development activities
the group invests considerable amounts in focused exploration 
projects to obtain sufficient information about the quantity and  
quality of expected reserves and to estimate expected cash flows 
the group’s team of geologists and engineering specialists has  
a track record of successful greenfield and brownfield exploration 
leading to subsequent development of exploration fields for  
commercial production
5
construction and 
development risk
failure to achieve the return required from major 
capital expenditure projects such as building  
new mines and processing facilities or production 
capacity increaserenovation at existing mines  
as a result of failure to meet project delivery 
timeline and budgets could adversely affect the 
group’s financial results cash flow position and 
increase capital costs
the company implements global best practice in project management 
the group’s engineering team is responsible for the oversight of capital 
expenditure projects including project support coordination of service 
organisations contractors constructors and cooperation with 
regulatory bodies
significant elements of our exploration and development projects  
are performed by the group inhouse by polymetal engineering  
a subsidiary company with significant expertise and a strong track 
record of designing and commissioning mines and processing plants
our techniques for construction risk management are constantly 
improved including the employment of worldclass consultants with 
recognised international experience
6
logistics and  
supply chain risk
the company operates in remote locations that 
require complex and significant transportation of 
ore and goldsilver concentrates most of which is 
conducted by thirdparty contractors production 
targets may not be reached if any element of the 
logistics chain is disrupted
to improve procurement management in 2013 the group restructured 
the procurement function by creating regional branches
to mitigate the logistics risk the group invests considerable resources 
in the construction and maintenance of permanent and temporary 
winter roads at exploration and production sites the group exercises 
effective control over the whole logistics chain including selection and 
operation of contractors
7
health and  
safety risk
health safety and environment risk includes 
regulatory compliance environmental pollution 
and damage and personal safety
there is labour and industrial safety control system in place that 
includes risk assessment of individual workplacesfunctions protection 
of personnel with safety equipment etc
the company has tightened responsibility for implementation of safety 
procedures by raising employees awareness of risk and has developed 
additional safety measures in relation to any identified weaknesses
risk category risk description and potential effect risk response
8
environmental risk
major pollution arising from operations could 
include deforestation air and water pollution  
and land contamination potential impacts  
include fines and penalties statutory liability for 
environmental redemption and other financial 
consequences which may be significant
the company has implemented an ecomanagement system  
with meets international standards and compliance certificates  
have been received
the company implements a number of initiatives to monitor and limit 
the impact of its operations on the environment including external 
expert assessment of pollution generated and adopting best practice  
in the industry for its corporate policies and procedures
9
mergers and 
acquisitions risks
the group invests considerable resources in gold 
mining assets and operations in the russian 
federation and kazakhstan there is a risk  
of failure to achieve the expected benefits from 
any acquisition in the case of adverse changes  
in assumptions or any inaccuracy of estimates 
made or where the information used for  
decisionmaking was incomplete or inaccurate
failure to deliver expected benefits from an 
acquisition can results in adverse financial 
performance lower planned production  
volumes or problems with product quality
rigorous due diligence procedures are applied to the evaluation  
and execution of all acquisitions to assess the consequences of the 
acquisition based on economic ecological political and social factors
board andor shareholder approval is required for any acquisition
10
legal risk
operating in developing countries such as russia 
and kazakhstan involves the risk that changes  
in tax and other legislation may occur from time  
to time the most sensitive areas are regulation  
of foreign investments private property 
environmental protection and taxation 
in recent years however the governments  
of both russia and kazakhstan have become 
more consistent regarding the introduction  
of new regulations and taxes demonstrating  
an awareness of investment climate issues 
however in the application of existing legislation 
requiring interpretation courts often uphold the 
more assertive position of the tax authorities  
which does not always coincide with the 
company’s position
polymetal has a successful track record of operating in both the 
russian and kazakh jurisdictions having developed its own expertise 
in corporate tax licensing and other legal areas 
the group’s financial and legal teams monitor current legislation  
and proposed changes and incorporate these into their practice
corporate and operational management teams are responsible for 
meeting legal requirements in their operating activities head office  
and onsite legal teams ensure appropriate controls over  
compliance issues
the group takes into account the results of tax audits and court rulings 
when interpreting taxation rules and determining future tax positions
11
political risk
operating in russia and kazakhstan involves 
some risk of political instability which may include 
changes in government negative policy shifts 
international sanctions and civil unrest these may 
have an adverse effect on the group’s market 
value and operating environment
the group actively monitors political developments on an ongoing basis
we aim to maintain open working relationships with local authorities  
in the countries where we operate
121
financial risks –  
cash and  
liquidity risk
the inability to raise sufficient funds to meet 
current operating or ongoing financial needs  
to develop new projects and fund growth
inadequate cash management in terms of cash 
flow forecast available resources and future 
requirements
the group’s treasury function is responsible for ensuring that there  
are sufficient funds in place including loan facilities cash flow from 
operating activities and cash on hand to meet shortterm business 
requirements longterm credit lines are used to finance new projects 
and organic growth
122
financial risks –  
currency risk
currency risk arises from the company’s  
receipts from metal sales and foreign  
currencydenominated debt as well as the  
foreign currencydenominated cost of imported 
capital goods and consumables
natural hedging is used to reduce the risk exposure revenue  
is matched with us dollardenominated debt
flexible budgeting is used to monitor the effect of exchange rate 
fluctuations on the group’s financial results
123
financial risks –  
interest rate risk
the group is exposed to interest rate risk  
as a significant part of the group’s debt portfolio  
is us dollar and eurodenominated floating  
rate borrowings
based on analysis of the current economic situation the group has 
decided to accept the risk of floating interest rates rather than hedge  
it or borrow at fixed rates
however the group does not rule out the possibility of fixing the  
interest rate on its borrowings in the future should assessment  
of the ongoing economic situation suggest this may be profitable
124
financial risks –  
inflation rate risk
a higher rate of inflation may increase future 
operational costs and have a negative impact on 
the company’s financial results if there is no 
related depreciation of the local currency against 
the us dollar or an increase in lbma gold and 
silver fixings
as part of the budgeting process the group estimates possible 
inflation levels and incorporates them into its cost planning
residual risk level
high  medium  low 
residual risk level
high  medium  low  governance 7475
annual report 2013  
polymetal international plc
governance
board of directors
 chairman
 chief executive officer
 nonexecutive director
 independent nonexecutive director
 01  02  03
 04  05  06
 07  08  09
 02
 
vitaly nesis
chief executive officer
appointed 29 september 2011
experience jsc polymetal’s chief  
executive from 2003 member of its board  
since june 2004 ceo of vostsibugol  
20022003 strategic development director  
at the ulyanovsk automobile plant in 2000  
head of the investment planning department  
at sual holding 20012002 mckinsey  
in moscow 19992000 merrill lynch  
in new york 19971999
qualifications ba in economics  
from yale university
 05
 
marina grönberg 
nonexecutive director
appointed 29 september 2011
experience board member of jsc polymetal 
since september 2008 various positions  
in banks and private equity firms
qualifications degrees in economics and 
finance and in law from moscow state  
law academy and in applied mathematics  
from moscow state university
other roles board member of waterstones 
holding hachetteatticus mig credit  
marenco swiss helicopters sparretail  
ann capital management fund  
managing director of ann schweiz  
member of management committee  
of ann capital management fund  
president of the nadezhda charity fund
 03
 
konstantin yanakov
nonexecutive director
appointed 29 september 2011
experience member of jsc polymetal’s  
board of directors since september  
2008 member of its audit committee  
until 2011 various positions at mdm bank  
cfo of jsc polymetal until 2004
qualifications mba from the london business 
school phd in economics from the russian 
state university of management degree  
in global economics from the government  
of russia’s finance academy
other roles chief financial officer  
of ict group director of llc ictcapital 
director of greek organisation of football 
prognostics sa opap sa member of the 
supervisory board of rigensis bank as  
board member at piraeus bank
 06
 
charles balfour 
senior independent  
nonexecutive director 
appointed 29 september 2011
experience over 40 years’ experience in the 
investment banking industry in the usa uk 
france and hong kong working for dillon read 
banque paribas durlacher and fleming family 
partners executive of nasdaq international 
1993–2004 and its chairman in 20002004 
director of humber power and humber energy
qualifications educated at eton in the uk  
and the sorbonne in france
other roles trustee of the bawdsey estates
committees member of the audit and risk 
remuneration and nomination committees
 01
 
bobby godsell
chairman of the board of directors
appointed 29 september 2011
experience president of the south african 
chamber of mines chairman of eskom  
chief executive of anglogold ashanti  
director of african barrick gold and chair  
of the board of optimum coal holdings 
acquired by glencore plc
qualifications ba from the university of natal 
and ma from the university of cape town
other roles chairman of business leadership 
south africa director of platmin limited and  
solar capital member of the south african 
national planning commission and cochairman 
of the south african millennium labour council 
nonexecutive director of the south african 
industrial development corporation
committees chairman of the  
nomination committee
 04
 
jeanpascal duvieusart 
nonexecutive director
appointed 29 september 2011
experience managing partner for central 
europe and the cis at mckinsey joined 
mckinsey in 1992 and worked in brussels  
new york and central europe before  
becoming managing partner in prague  
advisor to banks insurers and industrial 
companies in russia and central europe  
board member of nomos bank and fesco
qualifications mba from the  
university of chicago master’s degree  
in commercial engineering catholic  
university of louvain belgium
other roles director of ppf advisory russia 
ppf bv ppf group nv flowervale ltd  
and hc bv member of the supervisory  
board of ppf since 2010
 07
 
jonathan best 
independent nonexecutive director
appointed 29 september 2011
experience more than 30 years’ experience  
in the mining industry board member of jsc 
polymetal since december 2006 chairman  
of the audit committee of gulf industrials  
interim ceo of transsiberian gold in 2006  
cfo and executive director of anglogold ashanti
qualifications mba from the university of the 
witwatersrand johannesburg chartered 
management accountant acima associate  
of the chartered institute of secretaries  
and administrators
other roles nonexecutive director of anglogold 
ashanti holdings plc and member of its audit 
committee chairman of sentula mining and 
bauba platinum and member of their nomination 
and remuneration committees chairman  
of goldstone resources nonexecutive  
director and chairman of the audit committee  
of metair investments 
committees chairman of the audit  
and risk committee member of the 
remuneration committee
 08
 
russell skirrow 
independent nonexecutive director
appointed 29 september 2011
experience board member of jsc polymetal 
since september 2008 total of 34 years’ work 
experience in the global mining industry and 
investment banking including ten years at merrill 
lynch in london as head of global metals 
mining  steel research and subsequently  
as global chairman of the metalsmining team 
and 12 years in gold fields ltd south africa 
and western mining corporation in australia  
and the usa chairman of dampier gold ltd 
20102013
qualifications bsc with honours in geology 
from durham university and a phd from the  
royal school of mines imperial college london 
member of the institute of materials minerals  
 mining with chartered engineer status  
and fellow of the financial services institute  
of australasia
committee member of the audit and  
risk committee
 09
 
leonard homeniuk
independent nonexecutive director
appointed 29 september 2011
experience board member of jsc polymetal 
since june 2010 president ceo and member  
of the board of directors of centerra gold 
20042008 held executive positions  
with centerra gold kumtor gold and  
cameco corporation 
qualifications msc from the university  
of manitoba member of the ontario society  
of professional engineers the canadian  
institute of mining and metallurgy and the 
prospectors and developers association  
of canada honorary professor at the  
kyrgyz mining institute
other roles director of trade ideas llc  
chair president and chief executive officer  
of polygon gold inc 
committees chairman of the  
remuneration committee member  
of the nomination committee
senior management 
vitaly savchenko
chief operating officer
appointed 2009
experience director of the production 
department 20072009 senior production 
technical and mining positions since 2004  
chief engineer at priargunskoye mining and 
chemical company 19942003 recipient  
of a thirdcategory miner’s glory medal
qualifications degree with honours in 
underground mineral mining engineering  
kyrgyz mining institute completed strategy 
course of the mba programme at the uk’s  
open university business school and  
is currently undertaking the final stage
sergey cherkashin
chief financial officer
appointed 2005
experience cfo of the timashevsk dairy  
plant sales director of the ulyanovsk 
automotive plant deputy ceo of development 
at the volgograd dairy plant consultant for  
at kearney in moscow
qualifications mba from the university  
of hartford degree in applied mathematics from 
the moscow institute of physics and technology
sergey trushin
deputy ceo mineral resources
appointed 2010
experience chief geologist at the khabarovsk 
exploration company 20082010 chief 
geologist at albazino resources 20062008  
and various positions at albazino resources 
since 1998 geologist with dalnevostochnie 
resources 1997 geologist with the production 
geological association ‘dalgeology’ and the 
nizhneamursk exploration expedition in the 
preceding six years
qualifications degree in geological surveying 
and mining engineering exploration from the 
novocherkassk state polytechnic institute
roman shestakov 
deputy ceo project development  
and construction
appointed 2009
experience chief engineer at gold of northern 
urals 20072009 and a pit superintendent from 
2006 mine superintendent at the okhotsk 
mining and exploration company 20042005 
mining engineer in the production and technical 
department of jsc polymetal management  
in the preceding two years
qualifications honours degree in openpit  
mining from the mining department of  
the st petersburg state mining institute
 
valery tsyplakov
managing director  
polymetal engineering
appointed 2004
experience previous roles in polymetal  
deputy general director for mineral resources 
design and technology and senior roles in the 
production and technology and technological 
research departments 20002004 department 
head at the soviet union research institute  
of aeronautical automation and prior to this  
at orhus university’s physics institute denmark 
research fellow in the plasma physics 
department of the moscow physics and 
engineering institute professional member of the 
institute of materials minerals  mining london
qualifications degree in experimental nuclear 
physics the moscow physics and engineering 
institute phd in physics and mathematics
pavel danilin 
deputy ceo strategic development
appointed 2009
experience previous role in polymetal director 
of corporate finance and investor relations 
head of corporate finance head of corporate 
finance at cjsc ict 2002 and 2003 deputy 
head of currency department and head  
of financial resources department at the 
kaliningrad branch of bank petrocommerce 
19982001
qualifications mba from the university  
of california at berkeley haas school of business 
degree in economics and management 
kaliningrad state technical university
igor kapshuk 
chief legal officer
appointed 2009
experience previously worked in polymetal  
as head of the legal department since 2005  
and deputy head since 2003 deputy general 
counsel head of the department for legal 
matters and head of claims department at the 
branch of siberia energy coal company and at 
vostsibugol irkutsk 20012003 legal advisor 
for pharmasintez 19992001 legal advisor  
and acting head of the legal department  
at the irkutsk teapacking factory 19971998  
legal adviser at an insurance company irkutsk 
19941997
qualifications degree from the law school  
of irkutsk state university governance 7677
annual report 2013  
polymetal international plc
governance
corporate governance
dear shareholders
we remain committed to upholding good governance 
throughout every strand of our organisation effective corporate 
stewardship is essential in good times but in the current 
difficult market environment its importance as the key  
to timely and effective decisionmaking is vital 
during 2013 the polymetal board has faced – and been equal 
to – the challenges it has met achieving full compliance with 
the uk code during the year and enabling us to build upon our 
track record of strong governance we made advances in our 
executive remuneration with our best practice scheme being 
fully endorsed by shareholders we have maintained a sound 
system of internal control and risk management with regular 
internal audits risk assessment and reporting and have  
in place robust anticorruption procedures including anti
corruption training of all employees we also made significant 
progress in sustainability governance and reporting gaining 
iso certification and producing a comprehensive report 
compliant with the exacting standards of the global  
reporting initiative gri 
we regard strong governance as a dynamic process in which 
continuous improvement is paramount in 2013 a full formal 
board evaluation was conducted by an independent external 
advisor enabling us to review the board’s effectiveness and 
identify areas for improvement 
the board is continuously focused on providing effective 
strategic leadership to the company both in the best interests  
of its stakeholders and in order to ensure full accountability  
of the company’s management to the board this process  
is supported by a robust internal control system embedded  
in all areas including most importantly operations finance  
and sustainability this robust system ensures delivery  
on the company’s strategic objectives and appropriate risk 
management a rigorous approach to succession planning  
will ensure that leadership is aligned to corporate strategy  
both at board and senior management levels to help bolster 
the longterm success of the business
our resilient financial performance is underpinned by  
a conservative approach to funding aimed at striking  
the right balance between equity and debt and maintaining 
conservative liquidity and gearing polymetal was successful  
in further extending the maturity profile of its debt during the 
year while maintaining a safe gearing ratio and a low cost  
of debt as well as securing substantial additional unused  
credit facilities
we continue to strengthen and improve our business both 
operationally and financially but never lose sight of the board’s 
responsibility of ensuring that the company is run in the best 
interests of all its stakeholders through our commitment  
to the highest levels of ethical and responsible behaviour 
bobby godsell
chairman
statement of compliance with the 
uk corporate governance code
the directors are committed to maintaining high standards  
of corporate governance as a premium uk listed company 
during the year ended 31 december 2013 polymetal 
international was required to comply with the uk code  
of corporate governance ‘the uk code’ published in 
september 2012 and available through the uk financial 
reporting council’s website or where the provisions of the  
uk code have not been complied with to provide appropriate 
explanations during 2013 the company achieved compliance  
with all provisions of the uk code
as well as complying with the uk code the company has 
complied with all applicable regulations of the moscow stock 
exchange and russian securities laws since admission of its 
shares to secondary trading on the moscow exchange  
in june 2013
role and structure of the board
the company’s board comprises one executive director the 
nonexecutive chairman and seven nonexecutive directors 
excluding the chairman four members of the board are 
independent nonexecutive directors refer to the schedule 
below for the structure of the board and its committees 
showing the status of each director
the independent nonexecutive directors are those determined 
by the board to be independent in character and judgement 
and to be free from relationships or circumstances which may 
affect or could appear to affect the director’s judgement  
the role of independent directors on the board is to challenge 
the strategy and scrutinise the performance of management  
in meeting agreed goals and objectives to monitor the 
reporting of performance of the company to review the 
integrity of financial information and that the company’s  
internal financial controls and system of risk management are 
robust and defensible they are responsible for determining 
appropriate level of remuneration for the ceo and have a 
primary role in appointing and when necessary removing him 
directors’ interests are disclosed in annual declarations and  
the company secretary is notified promptly of any changes  
to those interests before each board meeting independent 
nonexecutive directors reconfirm their independence and all 
directors disclose whether they hold any interests in any 
matters to be reviewed at the board meeting
the significant shareholders of the company are represented 
on the board by mr yanakov who is a representative of 
powerboom investments limited ms grönberg who is  
a representative of vitalbond limited ann and capital 
management fund limited and mr duvieusart who is a 
representative of ppf group bv mr nesis is the brother of the 
beneficial owner of powerboom investments limited save for 
the potential conflicts inherent in these relationships there are 
no potential conflicts of interest between the duties owed by 
the directors or senior management to the company and their 
private interests or other duties
the board has determined charles balfour jonathan best 
russell skirrow and leonard homeniuk to be independent 
nonexecutive directors bobby godsell met the independence 
criteria on appointment jonathan best has been on the board 
of the company since september 2011 and on the board  
of jsc polymetal since december 2006 and his 
reappointment is subject to particularly rigorous review  
the board believes that mr best continues to display all of the 
qualities of independence pursuant to the criteria set out in the 
code in 2012 the company sold 100 of amikan holdings 
limited which owns the veduga gold deposit ‘veduga’  
in the krasnoyarsk region of the russian federation to 
polygon gold inc ‘polygon’ mr homeniuk serves as 
polygon’s executive chairman and ceo polygon operates  
as a standalone company with independent management and 
polymetal provides certain technical and regulatory assistance 
to polygon on an ongoing basis polymetal currently holds  
a 426 equity ownership in polygon and one of the four board 
seats and therefore has significant influence but does not have 
control over its activities the board continues to consider  
mr homeniuk to be an independent nonexecutive director  
the board concluded that the relationship between polymetal 
and polygon is not material given the carrying value of its 
interest in veduga which is us156 million and represents 
approximately 05 of the group’s total assets as  
at 31 december 2013 
the company considers that the board and its committees 
have the appropriate balance of skills experience 
independence and knowledge of the company to enable  
them to discharge their respective duties and responsibilities 
effectively all directors have access to the advice and services 
of the company secretary and are able to take independent 
professional advice if necessary at the company’s expense
charles balfour has informed the board of his intention  
not to offer himself for reelection at the upcoming agm  
of the company and to retire as a director at the conclusion  
of the agm in order to pursue other opportunities further  
to mr balfour’s decision not to offer himself for reelection  
at the agm the board has appointed spencer stuart  
as an international search firm to assist with the search  
for a replacement independent nonexecutive director 
board meetings
in 2013 the board met nine times one of the meetings  
held by way of a conference call between messrs godsell  
and nesis approved an administrative matter previously 
agreed by the whole board further business was approved  
by a committee of the board on two occasions
role of the board
the board is responsible for
•	defining the commercial strategy and longterm objectives  
of the group
•	approving annual operating and capital expenditure budgets 
and any material changes to them
•	overseeing the group’s operations ensuring competent  
and prudent management sound planning a strong system  
of internal control and compliance with all statutory and 
regulatory obligations
•	reviewing the performance of the group in the light of its 
business strategy objectives business plans and budgets 
and ensuring that any necessary corrective action is taken
•	approving any material extension of the group’s activities  
into new businesses or geographic areas and any decision  
to cease to operate all or any material part of the group’s 
business and
•	ensuring a mutual understanding of objectives and 
maintaining constructive dialogue with shareholders governance 7879
annual report 2013  
polymetal international plc
governance
corporate governance
continued
further to mr balfour’s decision not to offer himself  
for reelection as a director the board will appoint  
a new sid following the agm
constructive use of the annual general meeting
the board uses the annual general meeting agm  
to communicate with investors and to encourage their 
participation to ensure the company’s shareholders have  
time to consider our annual report and notice of agm  
and lodge their proxy votes in good time all meeting materials 
are made available more than 20 working days prior to the 
agm separate resolutions are proposed on each substantially 
separate subject and all resolutions are put to a poll  
the company also offers shareholders the option to abstain
shareholders who are not able to attend the agm are 
encouraged to submit proxy votes either electronically or in 
paper format at the company’s 2013 agm we received votes 
representing approximately 82 of our issued share capital 
the results of the proxy vote are read at the meeting with the 
final results announced via the london stock exchange and 
available on the website
in addition our agm provides a valuable opportunity for 
shareholders to meet with and put questions to the directors  
in person the 2013 agm was attended by all directors 
including the chairmen of the audit and risk remuneration 
and nomination committees live webcast and conference 
call facilities are available for shareholders unable to be present 
in person and a recording of the agm webcast is made 
available on the company’s website
the primary means of communication with the majority  
of our shareholders who have not requested paper copies  
of our documentation is through our corporate website  
wwwpolymetalinternationalcom 
board and committee meeting attendance
board
meetings
1
nine
audit and 
risk
committee
meetings
2
six
remuneration
committee
meetings
3
two
nomination
committee
meetings
two
bobby 
godsell all na na all
vitaly  
nesis all na na na
jonathan 
best 8 all all na
russell 
skirrow 8 all na na
leonard 
homeniuk 8 na all all
charles 
balfour 8 all all all
konstantin 
yanakov 8 na na na
marina 
grönberg 8 na na na
jeanpascal 
duvieusart 8 na na na
1
  further business conducted by the board was approved by a committee of the board  
on two further occasions one of the meetings held by way of a conference call between 
messrs godsell and nesis approved an administrative matter previously agreed by the 
whole board
2
  further business conducted by the audit and risk committee was approved by written 
resolutions on five further occasions
3
  further business conducted by the remuneration committee was approved by written 
resolutions on two further occasions
the schedule of matters reserved to the board is reviewed  
at least annually
roles of the chairman chief executive officer  
and senior independent director
the board has approved the division of responsibilities 
between the chairman and the chief executive officer ceo 
and the role of the senior independent director sid
the chairman reports to the board and is responsible for  
the leadership and overall effectiveness of the board and  
for setting the board’s agenda his responsibilities include
•	effective running of the board
•	ensuring there is appropriate delegation of authority  
from the board to executive management
•	promoting a culture of openness and debate by facilitating 
the effective contribution of nonexecutive directors in 
particular and ensuring constructive relations between 
executive and nonexecutive directors
•	encouraging active engagement by all members of the  
board and ensuring that the directors receive accurate 
timely and clear information and
•	ensuring that the views of the shareholders are 
communicated to the board as a whole
mr godsell is able to commit sufficient time to his role as 
nonexecutive chairman of polymetal international and the 
board believes that other commitments do not adversely affect 
his contribution to the company mr godsell’s other significant 
commitments are membership of the south african national 
planning commission and a nonexecutive directorship in the 
south african industrial development corporation he is also 
chairman of business leadership south africa and a director 
of platmin limited and solar capital 
the ceo is responsible for the daytoday management  
of the group and for developing the group’s business  
strategy objectives budget and forecasts and once approved 
by the board overseeing their successful implementation 
the ceo reports to the chairman and the board directly 
the board interacts with the executive management on a 
regular basis directors invite senior executives to attend 
relevant parts of the board and committee meetings for 
evaluation and reelection policies
nomination committee
the nomination committee is chaired by mr godsell  
and its other members are mr homeniuk and mr balfour 
the committee has responsibility for making recommendations 
to the board on the composition of the board and its 
committees including appointments of additional and 
replacement directors the committee
•	leads the process for board appointments and makes 
recommendations to the board
•	regularly reviews the board structure size and composition 
including skills knowledge independence experience and 
diversity and makes recommendations to the board about 
any changes that the committee considers necessary
•	considers plans and makes recommendations to the  
board for orderly succession to the board and to senior 
management so as to maintain an appropriate balance  
of skills and experience within the company and on the 
board and to ensure progressive refreshing of the board 
taking into account the challenges and opportunities facing 
the company
•	keeps under review the leadership needs of the group  
both executive and nonexecutive with a view to ensuring  
the continued ability of the group to compete effectively in 
the marketplace
•	before any appointment is made by the board evaluates  
the balance of skills knowledge experience independence 
and diversity of the board and in the light of this evaluation 
prepares a description of the role and capabilities required  
for a particular appointment and the expected time 
commitment and
•	reviews the results of the board’s performance evaluation 
process that relates to the composition of the board and 
whether nonexecutive directors are spending enough  
time to discharge their duties
there were no changes to the board structure in 2013  
and the company has not employed external search 
consultants the company has appointed spencer stuart  
as an international search firm to search for a further 
independent nonexecutive director to replace mr balfour  
and a replacement member of the nomination committee  
will be appointed following the agm
in accordance with the uk code all directors are subject  
to annual reelection
full terms and conditions of appointment of nonexecutive 
directors are available for inspection at the company’s 
registered office
the directors’ biographical details are set out on pages  
74 to 75 ●and the board considers that each of the directors 
standing for reelection will be an effective contributor  
to the success of the group following their performance 
evaluations the chairman believes that each director standing 
for reelection continues to be effective and to demonstrate 
commitment to his or her role a performance evaluation  
of the chairman including externally facilitated evaluation was 
conducted by the board in 2013 and the board believes that 
the chairman continues to be effective and to demonstrate 
commitment to his role 
reporting on items of the agenda and participating  
in discussion all members of executive management  
report directly to the ceo
his responsibilities include
•	development and proposal of group strategy including 
communicating annual plans and commercial objectives  
to the board
•	upholding the group’s responsibilities to its shareholders 
customers employees and other stakeholders
•	identifying and executing strategic opportunities
•	regularly reviewing the operational performance and  
strategic direction of the group
•	making recommendations on remuneration policies 
executive remuneration and terms of employment  
for senior employees
•	ensuring the development needs of the executive directors 
and senior management are identified and met and ensuring 
effective succession planning and
•	ensuring effective communication with shareholders and that 
appropriate timely and accurate information is disclosed to 
the market with issues escalated promptly to the executive 
management and the board
senior independent director ‘sid’
charles balfour acts as the board’s sid mr balfour is available 
to shareholders and as an intermediary for the other directors  
if necessary he attends meetings with major shareholders  
to listen to their views in order to help develop a balanced 
understanding of the issues and concerns of major 
shareholders meetings between independent directors 
including mr balfour and major institutional shareholders  
took place in 2013 as part of the company’s investor day  
the board is regularly updated on shareholders’ opinions 
following meetings with the company’s management  
separate meetings are held between the nonexecutive 
directors without the chairman or the ceo being present and 
between nonexecutive directors without the chairman led  
by the sid to appraise his performance annually and on such 
other occasions as appropriate and between the independent 
nonexecutive directors without the other nonexecutive 
directors being present this includes both formal and  
informal meetings between directors
board composition
board member
appointed executive nonexecutive independent
audit  risk
 committee
 member
chairman
remuneration
 committee
 member
chairman
nomination
 committee
 member
chairman
bobby godsell 29 september 2011 ✓ chairman
vitaly nesis
1
29 september 2011 ✓
jonathan best
2
29 september 2011 ✓ ✓ chairman member
russell skirrow
3
29 september 2011 ✓ ✓ member
leonard homeniuk
4
29 september 2011 ✓ ✓ chairman member
charles balfour
5
29 september 2011 ✓ ✓ member member member
konstantin yanakov
6
29 september 2011 ✓
marina grönberg
7
29 september 2011 ✓
jeanpascal duvieusart 29 september 2011 ✓
1
 mr nesis was appointed ceo of jsc polymetal the previous parent and reporting entity of the group on 30 june 2004
2
 mr best was appointed nonexecutive director of jsc polymetal on 28 december 2006
3
 dr skirrow was appointed nonexecutive director of jsc polymetal on 25 september 2008
4
 mr homeniuk was appointed nonexecutive director of jsc polymetal on 29 june 2010
5
 senior independent director a replacement senior independent director will be appointed following the agm
6
 mr yanakov was appointed nonexecutive director of jsc polymetal on 25 september 2008
7
 ms grönberg was appointed nonexecutive director of jsc polymetal on 25 september 2008 governance 8081
annual report 2013  
polymetal international plc
governance
corporate governance
continued
upon appointment directors receive a full induction including 
information about the company an outline of the role of  
a director and a summary of his or her responsibilities and 
ongoing obligations under legislation regulation and best 
practice a copy of the memorandum on inside information 
insider lists and code of practice on dealing in securities 
directors also receive the company’s guidelines on matters 
reserved to the board terms of reference of the board 
committees and other governing documents of the company 
directors and chairmen of the board committees regularly 
receive updates on changes to corporate governance  
and regulatory requirements and other changes affecting  
the company the board is kept informed of relevant 
developments in the company by way of monthly management 
reports including comprehensive information on operating  
and financial performance and the progress of capital  
projects a field trip to the amursk pox plant and albazino  
for nonexecutive directors took place in august 2013
there were two meetings of the nomination committee in 
2013 in 2013 the nomination committee organised a full 
externally facilitated board evaluation full details of which  
are set out further on this page 
 
at its meetings the committee continued discussing diversity 
and ways of helping to promote women in the company  
the board welcomes diversity at all levels it believes that  
the right way to approach diversity is not to introduce fixed 
quotas but to seek the right qualities in every appointment 
where competence comes first diversity becomes an 
additional advantage of such an approach and is in line with 
the company’s objective of promoting women at all levels  
of the group despite challenges presented by the industry  
the company operates in it takes steps to promote women 
including hiring women in positions traditionally held by men  
in 2013 the proportion of women working in the group  
was 22 women represent 11 of board members  
22 of senior management positions and 44 of qualified 
employees the audit under taken in 2013 by the hr 
department revealed no instances of discrimination towards 
employees of the company all candidates and employees 
have equal opportunities regardless of gender age race 
nationality language origin wealth residence religion 
and other beliefs social membership or other  
personal circumstances 
during the year the nomination committee reviewed existing 
succession planning arrangements in the company and held 
interviews with senior managers to discuss matters that 
needed to be addressed to ensure continued effective 
performance through leadership continuity methods of 
building up the leadership pipeline were discussed including 
whether stronger candidates for senior management positions 
should be those with fluent english and some experience  
andor education outside russia along with experience of 
working in russia and the cis the nomination committee 
acknowledges that a deeper and more rigorous approach  
to succession planning is vital for the company’s continuing 
success so that leadership is fully aligned to corporate strategy 
both at board and senior management levels and will continue 
addressing this matter in the future
full terms of reference of the nomination committee  
are available at the company’s website  
wwwpolymetalinternationalcom
the board considers that the composition of the board and 
the nomination committee complies with the requirements  
of the uk code
board evaluation
polymetal is committed to best practice in corporate 
governance and commissioned its first externallyfacilitated 
board review in 2013 this was performed by lintstock ltd  
an independent advisor with no other connection to the 
company the board carried out a performance evaluation  
of itself its committees the chairman and each individual 
director in accordance with the uk code it is the board’s 
policy that the evaluation process will be externally facilitated 
every three years 
the evaluation process consisted of the board reviewing its 
own performance the performance of each committee of the 
board individual directors and the chairman all directors and 
the company secretary completed detailed questionnaires  
on the basis of which a report was produced for the board’s 
review indepth discussion of the results took place at the 
meetings of the committees of the board and subsequently  
at a board meeting each individual director including the 
chairman and the ceo did not fill in questionnaires on their 
own performance and were not present at the subsequent 
discussion of their performance areas of review included 
board composition board expertise board dynamics time 
management board support board committees strategic 
oversight risk management and internal control succession 
planning and human resource management and priorities  
for change
the majority of areas were rated very highly with all areas 
receiving at least adequate feedback top priorities for the 
board over the coming year were identified as focusing  
on strategy understanding the views of investors and 
shareholders and succession planning the top strategic 
issues facing the company were identified as replacing and 
growing reserves ma commodity prices cost control  
the investor base and maintaining the dividend
the board will continue to perform an annual  
selfevaluation to assess its effectiveness and identify 
development requirements
dear shareholders
in 2013 the regulatory environment became more  
demanding – and the committee’s approach reflected this 
with its ongoing focus on active management of risks and 
robust internal control during the year a new effectiveness 
framework for the assessment of the committee’s work  
was implemented 
 
negative market movements prompted a more rigorous 
approach towards key financial statements risks namely 
impairments and underlying assumptions we also 
strengthened our financialinternal controls team with  
the aim of enhancing the quality of the reporting function  
to the committee and the board 
in addition the committee has an ongoing responsibility  
for the review evaluation and stewardship of the company’s 
risk management processes to minimise the strategic risks  
to the business identified by the board of which market risk  
is currently our top priority
the audit and risk committee is a fully independent body 
consisting only of independent nonexecutive directors  
with relevant skills and experience in financial reporting  
and risk management
in 2013 six meetings of the audit and risk committee were 
held and further business conducted by the committee was 
approved by written resolutions on five additional occasions
the audit and risk committee dealt with the  
following matters
•	reviewed and recommended for approval financial and  
risk information included in the annual report 2012
•	reviewed and recommended for approval polymetal’s  
results for the six months to 30 june 2013
•	discussed and approved the committee work plan
•	supervised compliance with the company’s antibribery  
and corruption policy
•	reviewed the treasury policy and recommended its approval  
by the board
•	reviewed the group’s internal audit plan and monitored  
the effectiveness of internal audit
•	reviewed the group’s external audit plan and recommended 
for approval the interim and year end audit fees
•	reviewed the actual audit fee in 2013 compared  
to the authorised amount
•	approved the terms of engagement including the 
engagement letter issued at the start of each audit  
and the scope of the audit
•	reviewed the independence and effectiveness of the external 
auditor reviewed nonaudit work performed by the auditors
•	recommended the reappointment of deloitte llp  
as external auditor 
•	reviewed the critical risks and exposures of the group 
including significant judgements impairments and tax risks
•	reviewed the capability of the group’s finance team and
•	performed an externallyfacilitated assessment of the 
committee’s effectiveness
in line with the company’s overall approach to governance  
we have instilled a strong culture of discipline throughout our 
business and are confident that we have a strong system  
of flexible processes which enable the committee  
to operate effectively
we as a committee remain fully focused on being an effective 
key body scrutinising the reporting internal control and risk 
management processes in order to ensure transparency  
and objectivity of the company’s financial statements
jonathan best
chairman audit and risk committee
audit and risk committee report governance 8283
annual report 2013  
polymetal international plc
governance
audit and risk committee report
continued
an auditor assessment tool is completed each year by each 
member of the audit committee and by the cfo feedback  
is also sought from the ceo other members of the finance 
team divisional management and the head of internal audit 
the assessment tool adopted is comprehensive and includes 
detailed questions which are completed by way of a formal 
questionnaire every three years with the key areas being 
performed every year the feedback from this process is 
considered by the audit committee and is provided both  
to the auditors and to management action plans arising are 
also reviewed by the committee
the effectiveness of management in the external audit process 
is assessed principally in relation to the timely identification  
and resolution of areas of accounting judgement the quality 
and timeliness of papers analysing those judgements 
management’s approach to the value of independent audit  
the booking of audit adjustments arising if any and the timely 
provision of draft public documents for review by the auditor 
and the audit committee
every three years the audit committee requests that a partner 
independent of the audit engagement team discusses the 
quality of the external audit process with the audit committee 
chairman and the cfo using this evaluation framework
during this year the audit committee’s focus was on
•	testing the recoverability of goodwill and ppe  
the committee examined the potential indicators of 
impairment for each of the cashgenerating units and  
the lifeofmine financial models used for assessing the fair 
value less costs to sell of the individual cgus tested for 
impairment the committee examined and challenged  
the commodity price discount rate and exchange rate 
assumptions used by management in its impairment tests 
•	testing the existence and recoverability of metal 
inventories the committee examined the price 
assumptions used by management as well as unit costs  
and other internal assumptions used in determining the net 
realisable value of unfinished goods within metal inventories 
ore and concentrate stockpiles 
•	testing the recoverability of exploration and 
development assets the committee evaluated 
management’s approach to determine whether the existing 
exploration and development asset are likely to generate 
future economic benefits reviewing prior exploration results  
and future development plans 
•	provisioning and disclosure of tax exposures  
the committee assessed the existing and potential tax 
exposures of the group in russia and kazakhstan and  
the developments of the related court cases since the  
last reporting date and evaluated whether the amount  
of provisions recognised in the financial statements  
continued to be the best estimate for probable exposures
•	other items the committee examined the impact of the 
implementation of ifric 20 ‘stripping costs’ a new 
regulation covering accounting for stripping costs and  
the related impact on current and prior period financial 
statements the committee also evaluated the accounting 
policies adopted by management internal controls and  
the risk of misstatement 
audit and risk committee
the audit and risk committee is chaired by mr best and  
its other members are mr skirrow and mr balfour both 
independent nonexecutive directors the directors consider 
that mr best has recent and relevant financial experience  
refer to page 75 for details of mr best’s experience in addition 
the other members of the committee have a wide range  
of financial and other relevant experience as a result  
of mr balfour’s decision not to offer himself for reelection  
as a director a replacement member of the audit and  
risk committee will be appointed following the agm
the responsibilities of the audit and risk committee comprise
•	monitoring the integrity of the group’s consolidated financial 
statements and reviewing its annual and interim financial 
statements including but not limited to the consistency of 
and any changes to accounting and treasury policies across 
the company and the group the methods used to account 
for significant or unusual transactions the reasonableness  
of significant estimates and judgements taking into account 
the views of the external auditor and the clarity and 
completeness of disclosure in the consolidated  
financial statements
•	considering and making recommendations to the board  
to be put to shareholders to consider at the agm in relation 
to the appointment reappointment resignation or removal  
of the group’s external auditor
•	overseeing the group’s relationship with its external auditor 
and reviewing the effectiveness of the external audit process 
taking into account relevant uk professional and regulatory 
requirements the committee meets with the external 
auditors at least once a year without management being 
present to discuss their remit and any issues arising  
from the audit
•	reviewing the independence and objectivity of the external 
auditor and the appropriateness of the provision of any 
nonaudit services by the external auditor taking into 
account relevant ethical guidance
•	reviewing the effectiveness of the group’s system  
of internal controls and risk management systems
•	monitoring and reviewing the effectiveness of the group’s 
internal audit function in the context of the group’s overall 
risk management system
•	reviewing the group’s policies and procedures for preventing 
and detecting fraud the systems and controls in place for 
preventing bribery and its policies for ensuring that the group 
complies with relevant regulatory and legal requirements and
•	approving significant transactions
full terms of reference of the audit and risk committee  
are available at the company’s website  
wwwpolymetalinternationalcom
ultimate responsibility for reviewing and approving the interim 
and annual financial statements remains with the board 
the committee gives due consideration to applicable laws  
and regulations the provisions of the uk code and the 
requirements of the listing rules
the chairman of the audit committee makes himself available 
to major institutional shareholders annually to discuss the 
company’s annual reporting to shareholders as part of the 
company’s investor day he is also available for oneonone 
meetings with key shareholders on their request 
the reappointment of deloitte llp as the group’s external 
auditor is reviewed annually by the audit and risk committee 
deloitte llp was appointed auditor in 2011 with deloitte cis 
having been auditor of jsc polymetal since the last tendering 
process in 2007 the group has a policy of tendering the 
external audit at least every ten years the committee’s 
assessment of the external auditor’s performance and 
independence underpins its recommendation to the board  
to propose to shareholders the reappointment of deloitte llp 
as auditor until the conclusion of the agm in 2015 resolutions 
to authorise the board to reappoint and determine the 
auditor’s remuneration will be proposed at the agm  
on 21 may 2014
the board considers that the audit and risk committee 
complies with the requirements of the uk code 
internal control and risk management 
the company aims to ensure that all its activities are 
adequately controlled to mitigate risk and support the 
achievement of its objectives while avoiding the creation  
of excessive bureaucracy the system of internal controls  
is designed to manage rather than completely eliminate risk  
to achieve the company’s business objectives whilst bringing 
residual risk to an acceptable level and can only provide 
reasonable and not absolute assurance against material 
misstatement or loss
in conducting its annual review of the effectiveness of risk 
management and internal control including financial operating 
and compliance controls the board considers the key  
findings from the ongoing monitoring and reporting processes 
management assertions and independent assurance reports 
the board also takes account of material changes and trends 
in the risk profile and considers whether the control system 
including reporting adequately supports the board in achieving 
its risk management objectives 
during the course of the year the board considered the 
group’s responsiveness to changes within its business 
environment the board is satisfied that there is an ongoing 
process which has been operational during the year and  
up to the date of approval of the annual report for identifying 
evaluating and managing the significant risks faced  
by the group 
internal audit 
the internal audit function supports this aim by providing  
the directors through the audit and risk committee with  
an objective evaluation of the company’s and the group’s 
governance framework the internal audit function also aims  
to raise levels of understanding and awareness of risk and 
control throughout the group 
the audit and risk committee monitors the company’s 
relationship with its external auditor relating to the provision 
of nonaudit services to ensure that auditor objectivity and 
independence are safeguarded this is achieved by disclosure  
of the extent and nature of nonaudit services see note 14  
to the consolidated financial statements and the prohibition 
against selected services being provided by the external auditor 
 
the policy governing the provision of nonaudit services by the 
external auditor approved by the committee defines permitted 
audit and nonaudit services 
preapproval thresholds are in place for the provision of 
nonaudit services by the external auditor being preapproval 
by the cfo if below us5000 by the chairman of the audit 
and risk committee if between us5000 and us20000  
or by the audit and risk committee if above us20000 
above a certain threshold if it is determined that the external 
auditor has no obvious competitive advantage in the 
performance of proposed nonaudit services then the provider 
of those services must be chosen by way of a competitive 
tender certain types of nonaudit work may be undertaken  
by the auditor without prior referral to the audit and risk 
committee up to a cumulative annual value of us100000  
any further nonaudit work is subject to approval by the  
audit and risk committee in further tranches of us100000  
in the event that the cumulative value of nonaudit fees exceeds 
us500000 in any given year separate approval of the  
audit and risk committee is required explaining why there  
is no threat to independence a copy of the policy is available  
on the company’s website wwwpolymetalinternationalcom
the audit and risk committee has considered information 
pertaining to the balance between fees for audit and nonaudit 
work for the group in 2013 and concluded that the nature and 
extent of nonaudit services provided do not present a threat  
to the external auditor’s objectivity or independence
review of the effectiveness of the external audit 
process and audit quality
the audit committee has adopted a formal framework in its 
review of the effectiveness of the external audit process and 
audit quality which includes the following areas 
•	 the audit partners with particular focus on the lead audit 
engagement partner
•	 the audit team 
•	planning and scope of the audit and identification of areas  
of audit risk
•	execution of the audit 
•	 the role of management in an effective audit process 
•	communications by the auditor with the audit committee 
and how the auditor supports the work of the audit 
committee 
•	 how the audit contributes insights and adds value 
•	the independence and objectivity of the audit firm  
and the quality of the formal audit report to shareholders governance 8485
annual report 2013  
polymetal international plc
governance
audit and risk committee report
continued
the head of internal audit reports to the ceo and through the 
audit and risk committee to the board of directors where 
relevant the internal audit function will additionally report its 
findings to members of the company’s executive management
the internal audit function’s annual work plan is designed to 
focus on matters arising from the operational risk matrix and  
is approved by the audit and risk committee in advance 
the internal audit function uses an annual selfcertification 
process which requires managers throughout the group  
to personally confirm the testing of internal controls and 
compliance with group policies within their business  
or function and the steps taken to address actual  
or potential issues that are identified 
management provides a timely response to issues raised  
by internal audit where possible the issues are resolved  
within one reporting period 
internal control framework and activities 
the management structure of the group and internal policies 
and procedures are aimed at maintaining a robust control 
framework within the group which will result in the 
achievement of strategic objectives within the set risk  
tolerance levels 
 
this framework includes 
•	an appropriate tone set from the top board level  
aimed at building the appropriate control environment 
•	a proper risk identification and management system  
for more detail please refer to page 7071 
•	a strict division of responsibilities and adequate delegation  
of authority 
•	specific control activities implemented at all levels of the 
group and 
•	a periodic review of the effectiveness of internal controls 
the governance framework reflects the specific structure and 
management of the group where authority and control are 
delegated by the board to different levels from the ceo to the 
managers of the group’s operating entities and then downward 
to business and project managers as appropriate 
within this framework authority is delegated within clearly 
prescribed limits and decisions are escalated where either 
project size or risk profile require a higher level of authority 
in addition to controls operating in specific areas production 
exploration construction procurement the control framework 
also includes a set of common procedures for financial 
accounting reporting and budgeting – see details below 
the board confirms that the actions it considers necessary 
have been or are being taken to remedy any failings  
or weaknesses in the group’s system of internal controls  
controls over it systems used in financial accounting 
and reporting
the group uses a 1c enterprise 8 erp system for automation 
of everyday enterprise activities these include various 
business tasks of the economic and management functions  
such as management accounting business accounting  
hr management supplier relationship management ‘srm’ 
and material requirements planning ‘mrp’ polymetal  
also uses the erp system for budgeting accounting  
hr recordkeeping and payroll supply chain management 
operational reporting and procurement the group operates  
an it management framework based on cobit control 
objectives for information and related technology which 
provides a complete set of highlevel requirements to be 
considered for effective control of each it process
uk bribery act 2010
the company and its directors are committed to ensuring 
adherence to the highest legal and ethical standards  
this must be reflected in every aspect of the way of the  
group operates bribery is a criminal offence in the countries  
in which the group operates corrupt acts expose the  
group and its employees to the risk of prosecution fines  
and imprisonment as well as endangering the company’s 
reputation the group has a code of conduct in place  
which refers to antibribery and corruption policy the policy 
extends across all the group’s business dealings in all 
countries and territories in which the group operates and 
applies to all employees of the group as well as relevant 
business partners and other relevant individuals and entities 
the board attaches the utmost importance to this policy and 
applies a ‘zero tolerance’ approach to acts of bribery and 
corruption by any of the group’s employees or by business 
partners working on the group’s behalf the policy prohibits 
the payment offer or authorisation of bribes the receipt or 
acceptance of a bribe or the payment offer or promise to pay 
any facilitating payments any breach of this policy is regarded 
as a serious matter by the company and is likely to result  
in disciplinary action
as part of its implementation of internal procedures to comply 
with the uk bribery act the group has in place a formalised 
whistleblowing policy which describes processes in place for 
staff to communicate in confidence concerns about possible 
improprieties unethical or illegal activities and ensures that 
arrangements are in place for independent investigation  
of such matters
the company affirms that it has not denied any personnel 
access to the audit and risk committee and that it has 
provided protection to whistleblowers from adverse  
personnel action
the code of conduct is available on the website copies of  
the antibribery and corruption policy and the whistleblowing 
policy are available on request from the company’s offices 
this has involved considering the matters reported to it  
and developing plans and programmes that it considers  
are reasonable in the circumstances based on the results  
of the review of risk management and internal control activities 
undertaken by the board and the audit and risk committee 
the board considers that the risk management and internal 
control systems are in accordance with the revised guidance 
for directors on the uk code 
financial reporting systems
the quality of financial accounting and reporting is ensured 
through a set of control procedures in the following areas 
accounting methodology preliminary review of new 
transactions documentation accounting techniques  
and financial closing procedures
accounting policies are developed centrally for each of the 
group’s subsidiaries and are adapted for the peculiarities  
of each entity and groupwide policies employees responsible 
for accounting and reporting functions have powers to review 
upcoming transactions and propose adjustments where 
necessary to ensure proper accounting and tax treatments
the use of a centralised erp system in each of the group 
companies ensures unification of the business and accounting 
processes the group implements a multilevel set of controls 
over financial and accounting data recorded in the system 
these controls involve the accounting department of each 
subsidiary senior management of the subsidiary and controls 
at the head office level in addition the accounting and 
reporting data are regularly audited by internal and  
external auditors
procedures for approval of capital and  
current expenditures
the company prepares annual operating and capital 
expenditure budgets based on its current and strategic goals 
and objectives in addition to periodic control of actual financial 
performance versus budgeted a procedure of ongoing  
control and authorisation of expenses is in place the current 
system of preapproval of significant transactions along with 
accounting procedures in the erp system achieves a level  
of control over the amount and appropriateness of expenses
treasury operations
the group operates a centralised treasury function which  
is responsible for payments on behalf of all subsidiaries of the 
group use of such a centralised system achieves the best level 
of control over the payments function without compromising the 
speed and reliability of payments all transactions with banks 
on accounts maintenance deposits and borrowings and 
foreign currency transactions are also performed at head  
office level in compliance with the treasury policy approved  
by the board governance 8687
annual report 2013  
polymetal international plc
governance
directors’ report
the directors submit the annual report of polymetal 
international plc together with the audited financial  
statements of polymetal international plc for the year  
ended 31 december 2013
corporate governance
refer to pages 77 to 80 for a description of the group’s  
corporate governance structure and policies
going concern
in assessing its going concern status the group has taken 
account of its financial position anticipated future trading 
performance its borrowings and other available credit facilities 
and its forecast compliance with covenants on those 
borrowings and its capital expenditure commitments and 
plans as at 31 december 2013 the group held us66 million 
of cash and had net debt of us1045 million with us1324 
million of undrawn but committed facilities available subject  
to the net debtadjusted ebitda covenant compliance
 
the board is satisfied that the group’s forecasts and 
projections having taken account of reasonably possible 
changes in trading performance show that the group has 
adequate resources to continue in operational existence for  
at least the next 12 months from the date of this report and that 
it is appropriate to adopt the going concern basis in preparing 
the consolidated financial statements for the year ended  
31 december 2013
financial and business reporting
the board believes that the disclosures set out in the strategic 
report on pages 1 to 73 of this annual report provide the 
information necessary for shareholders to assess the 
company’s performance business model and strategy
directors
the directors their status and board committee memberships 
are set out on pages 7475 and 78 of the report
appointment and replacement of directors
the board may appoint a person who is willing to act to be  
a director either to fill a vacancy or as an additional director 
and in either case whether or not for a fixed term irrespective 
of the terms of his or her appointment a director so appointed 
shall hold office only until the next following agm if not 
reappointed at such annual general meeting he or she shall 
vacate office at its conclusion
the company may by ordinary resolution remove any director 
from office notwithstanding any provision of the company’s 
articles or of any agreement between the company and such 
director but without prejudice to any claim he or she may have 
for damages for breach of any such agreement no special 
notice needs to be given of any resolution to remove a director 
and no director proposed to be removed has any special right 
to protest against his or her removal the company may  
by ordinary resolution appoint another person in place  
of a director removed from office
directors’ interests
information on directors’ interests in shares of the company  
is set out in the remuneration report on page 98
directors’ indemnities
to the extent permitted by the companies jersey law 1991 
the company has indemnified every director and other officer  
of the company other than any person whether an officer  
or not engaged by the company as auditor out of the assets 
of the company against any liability incurred by him or her  
for negligence default breach of duty breach of trust  
or otherwise in relation to the affairs of the company  
this provision does not affect any indemnity that a director  
or officer is otherwise entitled to
political donations
the company may not make a political donation to a political 
party or other political organisation or to an independent 
election candidate or incur any political expenditure unless 
such donation or expenditure is authorised by an ordinary 
resolution of shareholders passed before the donation is made 
or the expenditure incurred no such donations were made  
in 2013 2012 none
capital structure
the structure of the company’s share capital is detailed  
in note 32 to the financial statements 
there are no specific restrictions on the size of a holding  
or on the transfer of shares which are both regulated  
by the articles of the company and applicable legislation 
the directors are not aware of any agreements between 
holders of the company’s shares that may result  
in restrictions on the transfer of shares or on voting rights
there are a number of agreements that take effect alter  
or terminate upon a change of control of the company  
such as commercial contracts bank loan agreements and 
employees’ share plans none of these is considered to be 
significant in terms of their likely impact on the business of the 
group as a whole furthermore the directors are not aware  
of any agreements between the company and its directors  
or employees that provide for compensation for loss of office  
or employment that occurs because of a takeover bid
substantial shareholdings in the company are disclosed  
on page 162
details of employee option schemes are set out in the 
remuneration report on pages 90 to 100
there were no acquisitions of the company’s own shares in 
2013 at 31 december 2013 the group and its subsidiaries 
held no treasury shares 31 december 2012 no shares as at 
31 december 2013 the company had shareholders’ authority 
to purchase up to 38947 286 of its own ordinary shares
the articles of the company can be altered by a special 
resolution of the company a resolution is a special resolution 
when it is passed by threequarters of the members  
who being entitled to do so vote in person or by proxy  
at a general meeting of the company
pursuant to the company’s articles the directors have the 
power to allot equity securities as defined in the articles  
at the agm of the company held in 2013 the power to allot 
equity securities was renewed up to an aggregate number  
of 129824288 ordinary shares provided that the directors’ 
power in respect of such an amount may only be used in 
connection with a preemptive issue as defined in the articles 
the directors are further empowered pursuant to article 124 
of the company’s articles to allot equity securities for cash  
as if article 13 of the articles preemptive rights did not apply 
and for the purposes of paragraph b of article 124 of the 
articles the non preemptive shares as defined in the 
articles are an aggregate number of up to 19473643  
ordinary shares in 2013 the company used the above  
powers to allot 5491661 new ordinary shares relating  
to the maminskoye acquisition
pursuant to article 57 of the companies jersey law 1991  
the company is authorised to make market purchases  
of ordinary shares of the company provided that
•	the maximum number of ordinary shares to be  
purchased is 38947 286 ordinary shares
•	the minimum price excluding expenses which  
may be paid for each ordinary share is 1 penny
•	the maximum price excluding expenses which may  
be paid for each ordinary share is the higher of
a an amount equal to 105 of the average of the middle 
market quotations of an ordinary share in the company  
as derived from the london stock exchange daily official 
list for the five business days immediately preceding the 
day on which the ordinary share is contracted to be 
purchased and
b an amount equal to the higher of the price of the last 
independent trade of an ordinary share and the highest 
current independent bid for an ordinary share as derived 
from the london stock exchange trading system
•	pursuant to article 58a of the companies jersey law 1991 
the company may hold as treasury shares any ordinary 
shares purchased pursuant to the authority conferred  
in this resolution
the authorities above shall unless previously revoked or 
varied expire at the conclusion of the company’s next  
agm or if earlier at the close of business on the date which  
is 15 months after the date of the resolution which granted 
them being 12 december 2014
approval of share issues consideration for which does not 
exceed us15 million is delegated to a committee of the ceo 
the chairman of the audit and risk committee and the sid  
if the chairman of the audit and risk committee andor the 
sid are not available then any independent nonexecutive 
directors may act as their alternates on the committee
dividends
the group’s loss for the year ended 31 december 2013
attributable to equity holders of the company was  
us198 million 2012 profit us428 million underlying  
net earnings adjusted for the aftertax amount of
impairment charges in 2013 were us117 million  
2012 us431 million in august 2013 the company  
declared an interim dividend of us001 per share which  
was paid in september 2013 the directors have proposed  
the payment of a final dividend of us008 per share  
2012 us031 per share in addition a special dividend  
of us050 per share was declared by the company  
in december 2012 and paid in january 2013
annual general meeting
the agm of shareholders of the company will take place  
on 21 may 2014 at 1100 am bst in le hocq suite radisson 
blu waterfront hotel rue de l’etau st helier jersey je2 3wf 
channel islands a webcast will be available for shareholders 
who will not be able to attend the meeting in person
auditors
each of the persons who is a director at the date of approval  
of this annual report confirms that
•	so far as the director is aware there is no relevant audit 
information of which the group’s auditors are unaware and
•	the director has taken all steps that he or she ought to have 
taken as a director in order to make himself or herself aware 
of any relevant audit information and to establish that the 
group’s auditor is aware of that information
deloitte llp has expressed its willingness to continue in office 
as auditor and a resolution to reappoint them will be proposed 
at the forthcoming agm the audit and risk committee 
reviews both the level of the audit fee and the level and nature 
of nonaudit fees as part of its review of the adequacy and 
objectivity of the audit process
having taken all matters considered by the board and brought 
to the attention of the board during the year into account  
we are satisfied that the annual report taken as a whole  
is fair balanced and understandable and provides the 
information necessary for shareholders to assess the 
company’s performance business model and strategy
on behalf of the board
bobby godsell
chairman
30 march 2014 governance 8889
annual report 2013  
polymetal international plc
governance
remuneration report
dear shareholders
2013 was a challenging year for all mining companies when 
adverse movements in commodity prices forced the sector  
to focus on controlling costs producing robust operating 
performance and maintaining capital discipline with this  
in mind the remuneration committee decided that any 
significant changes to the remuneration of directors and 
officers of the company during 2014 would be inappropriate 
instead we have put our efforts into finalising the performance 
share plan approved at last year’s agm
as a ftse250 company whose shares are listed on the 
london stock exchange we believe that our shareholders 
rightfully expect polymetal to comply with the strictest of 
corporate governance requirements we remain committed  
to full adherence to all regulatory requirements and as such 
also reflect this in our remuneration policies and decisions  
as a result we consistently receive over 95 of the votes  
in favour of agm resolutions related to remuneration and  
to reappointment of directors this unequivocal backing from 
shareholders in support of the company’s decisions is very 
heartening as we strive to develop our remuneration policies  
in line with best practices and substantially aligned with the 
business strategy and performance
polymetal’s remuneration policy remains a key element  
in providing a clear framework to motivate incentivise and 
retain our senior management team with the introduction  
of a significant amount of changes to disclosure requirements 
this has been a challenging reporting year however  
i believe that polymetal’s remuneration structure is both 
straightforward and substantially aligned with shareholder 
interests – as evidenced by the overwhelming support that  
this received at the 2013 agm this has enabled us to meet  
the challenge with relative ease 
remuneration philosophy
the focus on sustainable shareholder value creation  
is the cornerstone of our executive remuneration system 
the company’s remuneration policy is set to ensure that 
directors are fairly rewarded with regard to the responsibilities 
undertaken and considers comparable pay levels in the 
countries of operation and the international mining industry 
the executive remuneration strategy and underlying policy 
supports this by enabling the company to attract and retain 
talent that will maximise shareholder value
corporate and individual performance is taken into account  
in setting pay levels for the ceo and this is reviewed  
on an annual basis to ensure it remains in line with  
companies of a similar nature size and complexity  
an external benchmarking is undertaken every three years  
in order to ensure comparability with other gold mining 
companies worldwide and londonlisted peers such 
benchmarking was last performed in 2012 remuneration 
levels for nonexecutive directors are based on comparable 
levels for companies of a similar nature size and complexity 
and take into account specific responsibilities undertaken 
context to the committee’s decisions
2013 was a challenging year for all mining companies  
at polymetal we continued to concentrate on controlling  
costs delivering robust operating performance and maintaining 
capital discipline however despite resilient operating and cost 
performance the financial results of the company in 2013 were 
inevitably affected by the market conditions our net profit and 
dividends decreased on the back of significant decline in 
commodities prices however we were able to sustain free 
cash flow as a result of decrease in capital expenditure and 
production growth
another challenge was to stay on top of the changing 
remuneration disclosure requirements and ensure that all 
procedures are put in place to be fully compliant these 
priorities are reflected in our remuneration decisions when 
awarding performance bonuses to the ceo and senior 
employees and reviewing their base salaries
key committee decisions
•	 in 2013 the remuneration committee concentrated  
on finalising the longterm incentive plan ltip which  
was supported by 9982 of shareholders who voted on it  
the plan includes a total shareholder return tsr underpin 
stipulating that no options will vest in the event that tsr for 
the period is negative other features include the mandatory 
deferral of 50 of an annual bonus for three years in shares 
clawback provisions a one year holding period for all plans 
and a substantial minimum shareholding requirement for the 
company’s executives
•	 due to unfavourable market conditions the remuneration 
committee decided that any significant changes to the 
existing approach to remuneration of directors and senior 
officers of the company in 2014 would be inappropriate
•	the committee approved the increase in rouble based  
chief executive’s base salary for 2014 by 8 there  
was no increase in 2013 versus 2012 which partially 
compensates for the more significant depreciation  
of the rouble against the us dollar 14 and inflation  
the us dollar equivalent of the chief executive’s base  
salary would decrease by 5
•	annual bonus of 88 of the maximum opportunity  
was awarded to the chief executive in respect of 2013 
changes during the year
•	 in the context of the changing regulations polymetal did  
not have to make additional changes to its existing executive 
remuneration structure it formalised some of the existing 
procedures adopted changes required by the new regulation 
and presents in this annual report a comprehensive yet simple 
remuneration strategy and seeks shareholder approval of the 
policy which will come into effect immediately after the agm 
2014 and will apply for three years 
•	 subsequent to 2013 yearend 99 of employees entitled  
to the legacy longterm incentive plan waived their 
entitlement to these options and will be granted options  
under the new ltip 
approach to disclosure
this report sets out the company’s remuneration policy  
and implementation for its directors and provides details  
of their remuneration and share interests for the year ended  
31 december 2013 the board believes that for a company 
whose shares are listed on the london stock exchange  
it is expected that the directors’ remuneration policy report  
and annual remuneration report of the company should be 
approved by shareholders and it is an element of good 
corporate governance for the company to seek this 
accordingly the directors’ remuneration policy report  
will be put to a binding shareholder vote and the directors’ 
annual remuneration report will be put to an advisory 
shareholder vote at the annual general meeting of the 
company on 21 may 2014
on behalf of the committee i welcome feedback from 
shareholders and look forward to receiving your support  
at the agm
yours sincerely
leonard homeniuk
chairman remuneration committee governance 9091
annual report 2013  
polymetal international plc
governance
remuneration report
continued
directors’ remuneration policy
the committee will be requesting shareholder approval of the following remuneration policy at the annual general meeting  
on 21 may 2014 to cover a period of three years the policy will apply from the date of approval
element and purpose 
link to strategy operation opportunity
performance metrics  
used and period applicable
executive director – ceo
base salary
to attract and  
retain highcalibre 
executives
•	the committee reviews base 
salary on an annual basis taking 
into account general economic 
and market conditions underlying 
company performance the  
level of increases made across  
the company as a whole the 
remuneration of executives in 
similar positions in ftse 250 and 
global mining peers and individual 
performance when setting base 
salary for the following year
•	over the policy period base salary 
for the chief executive will be set 
at an appropriate level within the 
peer group and will increase in line 
with base salary increases for the 
wider workforce except where  
a change in the scope of the  
role occurs
•	the annual base salary for the 
reporting year and the current  
year is set out in the annual  
report on remuneration
•	not applicable
benefits •	the company does not provide 
any benefits for its chief executive
•	not applicable •	not applicable
pension
to provide funding  
for retirement
•	the company does not fund any 
pension contributions or retirement 
benefits except contributions  
to the mandatory pension fund  
of the russian federation  
as required by russian law
•	the company pays defined 
contributions of 10 of total pay  
to the mandatory pension fund 
this permits retiring employees  
to retire and to receive a defined 
monthly pension for life from the 
statutory pension fund
•	does not exceed the mandatory 
contribution made to the pension 
fund of the russian federation
•	currently 10 of total pay
•	not applicable
annual bonus 
to focus on achieving 
annual performance 
goals which are 
based on the 
company’s key 
performance 
indicators kpis  
and strategy
•	the annual bonus result is 
determined by the committee  
after the year end based on 
performance against targets
•	 annual bonuses are paid three 
months after the end of the 
financial year to which they relate
•	50 of annual bonus earned is 
paid in cash and the remaining 
50 is compulsorily deferred into 
shares which are released annually 
to the employee over the next 
three years in equal instalments 
through the deferred share 
awards plan dsa
•	 details of the dsa are set  
out below
•	 maximum bonus opportunity –  
150 of base salary 
•	 target bonus opportunity –  
100 of base salary
•	threshold – nil annual bonus  
for threshold performance
•	the annual bonus is earned  
on the basis of the achievement  
of a mix of financial and non
financial measures
•	for 2014 performance metrics  
and associated weightings  
for each would be
− production 30
− total cash costs 30
−  completion of new projects  
on time and within budget 30 
− health and safety 10
•	the committee has discretion  
to vary the weighting of 
performance metrics over the  
life of this remuneration policy  
in addition the committee has 
discretion to vary performance 
metrics partway through  
a performance year if there  
is a significant event which causes 
the committee to believe that the 
original performance conditions  
are no longer appropriate
•	performance is measured over  
the financial year
element and purpose 
link to strategy operation opportunity
performance metrics  
used and period applicable
longterm incentive plan ltip
deferred share 
awards plan dsa
deferral to  
encourage retention 
and alignment  
with shareholders
•	50 of annual bonus earned  
is paid in cash and the remaining 
50 is compulsorily deferred into 
shares which are released annually 
to the employee over the next 
three years in equal instalments
•	 malus provisions apply for the 
unvested portion of the dsa  
the remuneration committee may  
at any time up to and including 
vesting reduce the number of 
shares that vest should material 
misstatement misconduct andor 
a failure of risk management occur
•	dividend equivalents will  
be received on vested shares 
reflecting the value of dividends 
which have been paid during the 
period from the grant date to the 
vesting date
•	entitlement to this deferred 
component is subject to  
continued employment  
over the deferral period
performance  
share plan psp
to provide longterm 
alignment with  
shareholders’ 
interests
•	under this plan annual rolling 
awards are made with a fouryear 
vesting period and an additional 
mandatory holding period  
of one year following vesting
•	stretching performance targets 
reward participants for delivering 
positive absolute and superior 
relative total shareholder return 
tsr performance against global 
peers over a longterm period
•	malus provisions apply for the 
unvested portion of the psp the 
remuneration committee may  
at any time up to and including 
vesting reduce the number of 
shares that vest should material 
misstatement misconduct andor 
a failure of risk management occur
•	retesting of the performance 
conditions in future years is not 
allowed under any circumstances
•	first grants under the psp are 
expected to be made in april 2014
•	maximum grant permitted under 
the plan rules is 200 of salary
•	normal grant level is expected  
to be 150 of base salary
•	threshold vesting is equivalent  
to 20 of the award
•	dividend equivalents will be 
received on vested shares 
reflecting the value of dividends 
which have been paid during  
the period from the grant date  
to the vesting date
•	vesting is based on relative  
tsr measured against the 
constituents of the ftse gold 
mines index and also on the 
company’s absolute tsr 
•	peers are ranked and  
the company’s position  
determines vesting
− 0 vests for below  
median performance
− 20 vests at median 
performance
− 100 vests at top decile 
performance and above
− no award will vest if absolute  
tsr is negative regardless  
of relative performance
•	the committee may substitute vary 
or waive the performance targets  
if an event occurs which causes  
the committee to consider that  
the target is no longer appropriate
•	the committee has discretion  
to vary the proportion of awards 
that vest to ensure that the 
outcomes are fair and appropriate 
and reflect the underlying financial 
performance of the group
minimum  
shareholding 
requirements
to strengthen  
alignment between 
interests of  
executive directors  
and those  
of shareholders
•	the ceo is required to build  
a minimum shareholding over  
a fiveyear period
•	unvested shares under the  
psp or dsa are not taken  
into account when calculating 
progress towards the minimum 
shareholding requirements
•	for the purposes of determining 
whether the requirements have been 
met share price is measured at the 
end of each financial year
•	post vesting and tax all shares 
acquired under psp and dsa 
awards must be retained until the 
shareholding requirement is met 
•	500 of base salary for the ceo •	not applicable governance 9293
annual report 2013  
polymetal international plc
governance
remuneration report
continued
element and purpose 
link to strategy operation opportunity
performance metrics  
used and period applicable
nonexecutive directors
fees for non
executive directors
to attract and retain 
highcalibre non
executive directors
•	the fees of independent non
executive directors are set by 
reference to those paid by other 
ftse 250 mining companies
•	fees are set to reflect the 
responsibilities and time spent  
by the nonexecutive directors  
on the affairs of the company
•	no fees are paid to  
nonindependent  
nonexecutive directors
•	nonexecutive directors are not 
eligible to receive benefits and  
do not participate in incentive  
or pension plans
•	the chairman receives a base  
fee only
•	the following fees are paid in 
addition to the nonexecutive 
director base fee
− committee chairmanship fee 
− committee membership fee
−  board and committee  
attendance fee
the remuneration committee 
determines the framework and broad 
policy for the remuneration of the 
chairman the remuneration of 
nonexecutive directors is a matter  
for the chairman of the board and  
the executive members of the  
board ie the ceo directors  
do not participate in discussions 
relating to their own fees 
•	fees are reviewed but  
not necessarily increased  
on an annual basis
•	any increase in nonexecutive 
director fees will normally be in line 
with base salary increases for the 
wider workforce except where  
a change in the scope of the  
role occurs 
•	current fee levels are set out in the 
annual report on remuneration
•	not applicable
remuneration policy for other employees
the remuneration policy for the other members of the company’s executive team and broader management team of the  
group is consistent in both structure and kpis with the policy in respect of the chief executive officer whilst the value of 
remuneration will vary throughout the group depending upon the individual’s role criticality to the business and level of seniority 
the remuneration of all senior executives consists of a base salary an annual bonus and participation in the new ltip the psp 
and dsa employees up to three levels below the board approximately 300 employees throughout the group are expected  
to participate in the ltip at the discretion of the remuneration committee the psp policy grant level is 150 of base salary  
for the ceo 100 for executive committee members and 50100 for employees of the level below the executive committee 
shareholding requirements are also set below board level the dsa operations mirror the arrangement set out for executive 
directors in the policy table where 50 of the annual bonus is compulsorily deferred into shares and released annually  
to employees over a period of three years 
remuneration policy for the wider group of employees is aimed at aligning pay with the achievement of targeted results for each 
employee the company’s policy on fair pay leads to the payment of additional remuneration for employees living in difficult 
climatic locations and the delivery of appropriate levels of pay for different levels of work the bonus component of remuneration 
for midlevel management and operational staff is measured based on the achievement of production targets increasing  
output the level of justified cost savings and health and safety records in terms of pension arrangements the company applies 
a consistent approach for the ceo and other employees and adheres to the mandatory pension contributions required under 
applicable laws
salaries are considered for annual increases based on the company’s performance results inflation rates and the competitive 
level of salaries versus the wider market
notes to the policy table 
performance measures and targets
the committee selected the performance conditions indicated in the policy table because they are central to the company’s 
overall strategy and are the key metrics used under the annual bonus and ltip by the ceo to oversee the operation  
of the business 
performance targets for all our incentive plans are reviewed annually and where appropriate are typically set at a level that is in 
line with the company’s forecasts 
changes to remuneration policy from that operating in 2013
design element
changes made during the year
base salary no changes made
annual bonus no changes made
ltip introduction of new plan ltip and removal of eip see below for details
nonexecutive directors no changes made
the new ltip
in april 2013 following a detailed review of market practice and the remuneration packages of the company’s executive 
management carried out at the request of the remuneration committee the board of directors proposed to put in place  
a new longterm incentive programme the ‘performance share plan’ or ‘psp’ after the potential vesting of awards under  
the current longterm eip  
the key terms of the new ltip are described in the policy table above
the board believes that the new ltip will ensure continued alignment of the executive team’s performance with shareholder 
interests and will reward superior longterm performance and the creation of sustainable shareholder value the board  
also believes that the ltip is in line with uk best practice and fully follows the provisions of the uk corporate governance  
code and other relevant guidelines while also containing features which are superior to common practice in the uk –  
such as a positive tsr underpin for vesting of the ltip 
the psp was put to a shareholder vote at the agm in june 2013 and following approval by 9982 of shareholders  
will be implemented upon vesting of the current eip after june 2014 or for those participants who have waived their rights  
under the eip from april 2014 
illustration of application of remuneration policy
the composition and structure of the remuneration package for the ceo under three performance scenarios  
maximum performance target performance and minimum performance is set out in the charts below 
these charts show that the proportion of remuneration delivered through shortterm and longterm incentive schemes is in line 
with our remuneration policy and changes significantly across the three performance scenarios as such the package promotes 
the achievement of both shortterm and longterm performance targets and drives the alignment of the ceo’s interests with the 
interests of shareholders
00 04 08 12 16 20
total 
us17 million
total 
us10  million
total 
us05  million
maximum
target
minimum
28
46
100
38
41
33
1 2
remuneration policy 
usm
■ fixed elements of remuneration  ■ single year variable  
■ multiple year variable  
note scenario values are translated at the closing exchange rate of the rouble to the us dollar  
stated by the central bank of the russian federation as of 31 december 2013   governance 9495
annual report 2013  
polymetal international plc
governance
the scenarios are defined as follows
minimum ontarget maximum
fixed elements •	base salary and pension
single year  
variable
•	performance against financial  
kpis is below budget by more  
than 10
•	nonachievement  
of nonfinancial kpis 
•	0 payout
•	performance against financial  
kpis is at budgeted levels
•	full achievement  
of nonfinancial kpis 
•	100 of base salary payout  
77 of maximum opportunity
•	includes dsa awards
•	performance against financial  
kpis is at budgeted levels
•	full achievement  
of nonfinancial kpis 
•	150 of base salary payout  
100 of maximum opportunity
•	includes dsa awards
multiple  
year variable 
•	share price performance is below 
the median of ftse gold mines 
index constituents
•	no shares vest
•	scenario is based on 150  
policy awards
•	share price performance is at 
median of ftse gold mines  
index constituents
•	shares equivalent to 30  
of base salary vest under the psp  
20 of total shares available
•	share price performance is in the 
top decile of ftse gold mines 
index constituents
•	shares equivalent to 150  
of base salary vest under the psp 
100 of total shares available
no allowance has been made for share price appreciation or for the payment of dividend equivalents nonexecutive directors 
do not receive performancerelated pay their fees are disclosed in the policy table on page 97
approach to recruitment remuneration
the committee’s approach to recruitment remuneration is to pay a competitive overall package as appropriate to attract and 
motivate the right talent for the role if an executive is promoted to the board from within the company any preexisting awards 
or benefits that were made available to him or her prior to becoming a director and not in anticipation of an imminent promotion 
to the board will be retained and allowed to vest or be provided under the original terms
the following table sets out the various components which would be considered for inclusion in the remuneration package for 
the appointment of an executive director any new director’s remuneration package would include the same elements be set at 
a level consistent with the scope of the role at a level not exceeding that of the ceo as set out in the remuneration policy table 
and be subject to the same constraints as those of existing directors performing similar roles as shown below
area
policy and operation
base salary  
and benefits
•	the base salary level will be set by taking into account the experience of the individual and the salaries paid  
in comparable companies
•	depending on the circumstances of any particular appointment the committee may choose to set the base salary 
below market median and increase the amount paid over a period of time to achieve alignment with market levels for 
the role with reference to the experience and performance of the individual subject to the company’s ability to pay
•	in line with the remuneration policy as set out in the directors’ remuneration policy table no benefits will be provided 
to recruited directors
pension •	pension contributions will be limited to the mandatory contributions required by russian or any other applicable law 
as set out in the directors’ remuneration policy table
annual bonus •	the executive director will be eligible to participate in the annual bonus scheme as set out in the directors’ 
remuneration policy table the maximum annual opportunity is 150 of base salary
•	50 of any bonus is deferred into shares under the dsa as set out in the directors’ remuneration policy table
longterm  
incentives
•	the executive director will be eligible to participate in the ltip at the remuneration committee’s discretion in line  
with the details set out in the directors’ remuneration policy table the maximum annual grant permitted under the 
scheme rules is 200 of base salary and the normal grant level is up to 150 of base salary performance measures 
would apply as set out in the remuneration policy table
replacement  
awards
•	the committee will seek to structure any replacement awards so that overall they are no more generous in terms  
of quantum or vesting period than the awards due to be forfeited as a consequence of the individual joining the 
company in determining the quantum and structure of any replacement awards the committee will seek to replicate 
the fair value and as far as practicable the timing form and performance requirements of the forfeited remuneration 
the maximum value of replacement awards is capped at 50 of the individual’s base salary and at least 50  
of any replacement award should be delivered in the company’s shares 
other •	should relocation of a newly recruited executive director be required reasonable costs associated with this 
relocation will be met by the company such relocation support may include but not be limited to payment  
of legal fees removal costs temporary accommodationhotel costs a contribution to stamp duty and replacement 
of nontransferrable household items in addition and in appropriate circumstances the committee may grant 
additional support in relation to the payment of school fees and the provision of tax advice
•	the company will reimburse the executive director for all reasonable expenses which heshe may incur while 
carrying out executive duties
remuneration report
continued
service contracts and policy on payment for loss of office
loss of office policy
the committee’s approach when considering payments in the event of termination is to take into account individual 
circumstances including the reason for termination contractual obligations of both parties as well as applicable share plan  
and pension scheme rules including any relevant performance conditions
please note that mr nesis is a director of both polymetal international plc and jsc polymetal a 100 subsidiary  
of the group incorporated in russia further details are set out in the current directors’ service contracts section below
the table below summarises the key elements of the executive director service contracts and policy on payment for loss  
of office
area
policy and operation
notice period polymetal international jsc polymetal
6 months from company with immediate effect from company
6 months from director 1 month from director
compensation  
for loss of office in 
service contracts
•	no entitlement in respect of directorship of polymetal international
•	up to three times average monthly salaries in respect of directorship of jsc polymetal
treatment of annual 
bonus awards
•	where an executive director’s employment is terminated after the end of the performance year but before the 
payment of the annual bonus is made the executive may be eligible for an annual bonus award for that performance 
year subject to an assessment based on performance achieved over the period no award will be made in the event 
of gross misconduct
•	where an executive director’s employment is terminated during a performance year a prorated annual bonus award 
for the period worked in that performance year may be payable subject to an assessment based on performance 
achieved over the period
treatment of  
unvested deferred 
share awards  
under plan rules
•	in normal circumstances deferred share awards will continue until the normal time of vesting upon cessation  
of employment by way of injury illhealth disability redundancy retirement or any other circumstances which the 
committee determines 
•	alternatively the board may determine that deferred share awards will vest immediately in both circumstances  
there would be no prorating of the deferred share awards for time from the award date until cessation  
of employment or for performance
treatment of  
unvested performance 
share plan awards 
under plan rules
•	any outstanding award will lapse at cessation of employment with the company unless the reason for cessation  
due to death injury illhealth disability redundancy retirement or any other circumstances which the committee 
determines when the award will vest as normal in accordance with the terms of the award
•	alternatively the committee may determine that a proportion of the award will vest immediately with the proportion 
determined by the committee taking into account where relevant the extent to which the performance conditions 
have been met or are likely to be met at the end of the performance period and any other factors the committee 
may consider relevant
•	the number of shares shall also normally be prorated down to reflect the reduced service period
exercise  
of discretion
•	any discretion available in determining the treatment of incentives upon termination of employment is intended  
only to be relied upon to provide flexibility in unusual circumstances
•	the committee’s determination will take into account the particular circumstances of the director’s departure  
and the recent performance of the company
change of control in relation to performance share plan awards
•	each or any award will not vest where there is a corporate event resulting in a new person or company acquiring 
control of the company but will instead be exchanged for new awards on an equivalent basis over shares in the 
new company or
•	the committee may determine that a proportion of the awards shall vest or become exercisable as the case may 
be taking into account such factors as the committee may consider relevant including but not limited to the length 
of time the award has been held at the time the change of control event occurs and having regard to performance 
targets or other performance conditions imposed on the award
in relation to the deferred share awards the committee may determine that a proportion of the awards shall vest 
taking into account such factors as the committee may consider relevant governance 9697
annual report 2013  
polymetal international plc
governance
current directors’ service contracts
ceo
the table below highlights key elements of the service contract of the ceo with jsc polymetal
date of contract
1 september 2013
expiry of term 31 august 2018
payment in lieu of notice none
pension none except for defined contributions to the mandatory pension  
fund of the russian federation 
mr nesis entered into an appointment letter with the company in relation to his appointment as a director this appointment  
took effect from the date of admission of shares to trading on the london stock exchange on 28 october 2011 and  
is subject to annual reelection mr nesis does not receive any fees in respect of his appointment as a director of polymetal 
international plc but is entitled to reimbursement of his reasonable expenses incurred in relation to the carrying out  
of his duties as a director appointment of mr nesis as a director may be terminated at any time in accordance with the  
articles of association mr nesis can terminate his appointment as a director on six months’ notice he is not entitled  
to receive any compensation in respect of his role as director on termination of this appointment 
following the expiry of the previous fiveyear employment contract on 23 august 2013 jsc polymetal a 100 subsidiary  
of the company incorporated in russia entered into an employment contract with mr nesis as its chief executive officer 
the contract became effective on 1 september 2013 the contract was entered into for a period of five years and expires  
on 31 august 2018 under the terms of the contract the chief executive officer undertakes to perform general management  
of jsc polymetal a 100 subsidiary of polymetal which provides management services to each of the group’s subsidiaries 
and arrange for its commercial economic social and other activities with a view to providing for jsc polymetal’s further 
development the employment contract does not contain any specific grounds for early termination the contract can be 
terminated at any time on one month’s notice by mr nesis and with immediate effect by jsc polymetal in accordance with 
russian labour and civil law this could result in compensation of three average monthly salaries
the full terms and conditions of appointment of the ceo are available for inspection at the company’s registered office in jersey
nonexecutive directors
nonexecutive directors do not have service contracts rather the terms of their appointment are set out in letters  
of appointment the appointment of each of the nonexecutive directors took effect from admission until the next agm  
of the company subject to annual reelection the appointment of any nonexecutive director may be terminated at any  
time in accordance with the articles of association the appointment of each nonexecutive director may be terminated  
by either party on one month’s notice a nonexecutive director is not entitled to receive any compensation on termination  
of his or her appointment each nonexecutive director is subject to confidentiality restrictions without limitation in time
the full terms and conditions of appointment of the ceo are available for inspection at the company’s registered office in jersey
dates of contract or appointment for nonexecutive directors are set out in the table below
director
date of contract or appointment notice period
bobby godsell 29 september 2011 1 month
charles balfour 29 september 2011 1 month
konstantin yanakov 29 september 2011 1 month
jeanpascal duvieusart 29 september 2011 1 month
marina grönberg 29 september 2011 1 month
jonathan best 29 september 2011 1 month
russell skirrow 29 september 2011 1 month
leonard homeniuk 29 september 2011 1 month
statement of consideration of shareholder views
the committee consults with the company’s major shareholders regularly and seeks their feedback on the ceo’s remuneration 
policy this year shareholders were extensively consulted around the new longterm incentive arrangements and the structure  
of the new ltip takes into account some of the comments made by shareholders the plan was put to a shareholder vote  
at the agm in june 2013 and following approval by 9982 of shareholders who voted will be implemented upon vesting  
of the current eip 
remuneration report
continued
statement of consideration of employment conditions elsewhere in the group
in determining salary increases for the ceo the committee takes into account a range of factors including overall base salary 
increases awarded to the wider employee population during the year 
the committee does not directly consult with employees on the appropriateness of the ceo’s pay arrangements but any 
comments received by the company will be considered
annual report on remuneration
single total figure of remuneration audited information – us
the table below sets out 2013 remuneration for the ceo the ceo’s remuneration is denominated in russian roubles and 
converted to us for presentation purposes the approach to exchange rates and russian rouble remuneration equivalent  
is set out in the note to this table 
base salary taxable benefits annual bonus
1
longterm  
incentive plans pension total
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
434148 458051 – – 599624 542091 – – 47800 37261 1081572 1037403
1
  50 of the bonus received has been deferred into 30081 shares on 11 march at £568 rub 317 per share using average price for 90 days preceding the bonus award the shares will 
be allotted in april 2014 following release of the company’s financial results in line with policy deferred shares will be released in equal tranches over a period of three years in march 2015 
march 2016 and march 2017 and are not subject to further performance conditions
2
 the amounts are translated at average rates of the russian rouble to the us dollar for 2013 and 2012 respectively
details of total fees paid to nonexecutive directors and the chairman during 2013 are set out in the table below
total fees
us
2013 2012
bobby godsell 450999 449253
jonathan best 270762 264997
russell skirrow 212516 208051
leonard homeniuk 242265 236220
charles balfour 264398 258418
konstantin yanakov – –
marina grönberg – –
jeanpascal duvieusart – –
total nonexecutive fees 1440940 1416939
notes the amounts for 2013 and 2012 are translated at crossrates of the british pound and the us dollar to the russian rouble stated by the central bank of the russian federation  
as of the dates of each payment
single total figure of remuneration – additional information audited information
annual bonus targets and outcomes
the targets for annual bonus measures are considered commercially sensitive because of the information that their disclosure 
may provide to the company’s competitors given that these competitors are largely based outside of the uk and hence are  
not subject to the same reporting requirements as the company performance against these targets is set out below
measures
weight below target maximum
achieving production budget 30 ●
total cash cost per ounce of gold equivalent produced 30 ●
completion of new projects on time and within budget 30 ●
health and safety 10 ●
this resulted in the ceo receiving a bonus of 88 of maximum opportunity for the year 133 of salary us599624 
ltip
no share options vested or were exercised in 2013 no options were granted to mr nesis or other directors in 2013  
the eip was adopted in september 2010 prior to the company’s ipo to reward key senior executives including the ceo  
for increasing the share price and delivering superior performance over a longterm period 
12000000 options were granted to mr nesis under the eip with a vesting date in june 2014 subject to a vesting condition  
as at the date of this report mr nesis has waived all his rights under the legacy longterm eip 
scheme interests awarded during the financial year
no share awards were made to the ceo in 2013 governance 9899
annual report 2013  
polymetal international plc
governance
total pension entitlements audited information
save for the group’s defined contributions to the mandatory pension fund of the russian federation during the financial year 
ended 31 december 2013 no amounts were set aside or accrued by the group to provide pension retirement or other benefits 
to the directors and senior management
loss of office payments or payments to past directors audited information
no loss of office payments or payments to past directors were made in the year under review
directors’ shareholdings audited information
•	the ceo is required to retain a shareholding equal to five times his base salary ie 232067 shares 
•	for the purposes of determining whether the requirements have been met share price is measured at the end of each  
financial year shares are valued for these purposes at the yearend price of £575 us948 per share at 31 december 2013 
translated at the closing exchange rate of gbp to russian rouble as of 31 december 2013 
•	shares that count towards shareholding requirements include unfettered shares 
the table below sets out the number of shares held or potentially held by directors
shares held
1
options held
director
shareholding
requirement
 of salary
owned
outright
subject to
performance
conditions
vested but
unexercised
exercised
in year
current
shareholding
 salary
guideline
met
vitaly nesis 500 3100000 – – – 6679 yes
leonard homeniuk – 64000 – – –
bobby godsell – 2000 – – –
1
 there have been no changes in the directors’ shareholdings between 31 december 2013 and the date of this report
performance graph and table 
the graph below illustrates the company’s tsr performance relative to the constituents of the ftse 250 index excluding 
investment companies of which the company is a constituent from the date of the company’s admission to trading on the 
london stock exchange in october 2011 to provide context to the company’s performance in its specific sector of operation 
we also provide an illustration of the company’s tsr relative to the constituents of the ftse gold miners index
total shareholder return
 
■ polymetal  ■ ftse 250  ■ ftse gold mines
oct
2011
20
40
60
80
100
120
140
160
180
nov
2011
dec
2011
jan
2012
feb
2012
mar
2012
apr
2012
may
2012
jun
2012
jul
2012
aug
2012
sep
2012
oct
2012
nov
2012
dec
2012
jan
2013
feb
2013
mar
2013
apr
2013
may
2013
jun
2013
jul
2013
aug
2013
sep
2013
oct
2013
nov
2013
dec
2013
ceo’s pay in last five years
us ’000
2013 2012 2011 2010 2009
ceo total remuneration 1081572 1037413 1138013 248565 291172
annual bonus –  of maximum 88 90 137
1
– –
ltip award –  of maximum – – – – –
1
  an additional bonus was awarded by the remuneration committee to mr nesis for the successful ipo of the company in november 2011 mr nesis was required to devote a significant 
amount of time above and beyond his normal daytoday responsibilities as ceo to successfully bring about the ipo excluding the additional bonus the annual bonus comprised 49  
of maximum opportunity in 2011
remuneration report
continued
percentage change in ceo remuneration 
excluding the value of longterm incentives the percentage change in total remuneration for the ceo was 4 increasing  
from us1037 413 in 2012 to us1081572 in 2013 the average percentage change in total remuneration for all employees  
in the year was 3
to ensure the comparability of this figure and to minimise distortions the allemployee remuneration figure is on the basis  
of fulltime permanent employees
relative importance of spend on pay
the chart below shows how staff remuneration costs compared to profit before tax and distributions made to shareholders  
in 2013 and 2012
relative importance of employee pay 
usm
■ 2012  ■ 2013   
total employee pay
1
return to shareholders
2
special 
dividends
regular
dividends
regular
dividends
underlying profit 
before tax
3
360
370 191
77
125
655
209
3 53 68
1
 total spend on pay is as set out in note 13 to the accounts 
2
  total dividends were taken from note 17 to the accounts regular dividends include both  
interim and final dividends for the year special dividends are the dividend payments  
which in accordance with company’s policy are considered by the board annually based  
on the company’s current and expected free cash flow 
3
 underlying profit before tax excludes pretax impact of impairment charges
implementation of remuneration policy in the following financial year
in 2014 the committee intends to implement the executive and nonexecutive director remuneration policies as follows
base salary
the policy for determining 2014 base salaries will remain unchanged base salary for the ceo for 2013 and 2014 is set out below
2014
salary
1
2013 
salary
1
 change
ceo
roubles
15600000
roubles
 14400000 8
us428546 us452148 5
1
  base salary for 2014 is translated at the closing exchange rate of the rouble to the us dollar stated by the central bank of the russian federation as of 22 march 2014  
base salary for 2013 is translated at the average exchange rate of rouble to us dollar stated by central bank of russian federation during 2013 
the remuneration committee decided to increase the base salary of the ceo in 2014 in rouble terms for the first time since 
2011 having taken into account the inflation in russian federation as well as significant devaluation of the russian rouble 
against the us dollar during the period the us dollar equivalent of the base salary has decreased by 5 compared to 2013  
as a result of the rouble devaluation
pension and benefits
no pension or benefits plans are in place for 2014 except for the defined pension contributions to the mandatory pension fund  
of the russian federation 
annual bonus
the targets for annual bonus measures are considered commercially sensitive particularly in the gold mining industry because  
of the sensitivity of information that their disclosure may provide to the company’s competitors given that these are largely 
based outside the uk and hence are not subject to the same reporting requirements as the company
longterm incentive plan deferred share awards plan and performance share plan
deferred share awards plan
the committee intends to defer annual bonus awards earned for the 2014 performance period in line with policy governance 100101
annual report 2013  
polymetal international plc
governance
performance share plan 
the committee intends to make an award under the psp to the ceo in 2014 in line with the disclosed policy on pages 9091
vesting is based on relative tsr measured against the constituents of the ftse gold mines index and on the company’s 
absolute tsr peers are ranked and the company’s position determines vesting
tsr vs ftse gold miners payout
below threshold below median performance 0
threshold median performance 20
maximum upper decile performance 100
straightline vesting will occur between the points set out above no award will vest for performance below median  
or if the company’s absolute tsr performance is negative regardless of relative performance
nonexecutive directors
the policy for determining nonexecutive directors’ fees will be unchanged from 2013 fee rates for 2013 and 2014  
are set out below
role
2014 fees
us
2013 fees
us
nonexecutive chairman 412150 412150
senior independent director
no 
additional 
fee
no 
additional 
fee
independent nonexecutive director basic fee 164860 164860
additional fees
audit and risk committee chairman 49458 49458
chairman of other committees 24729 24729
committee membership fee not payable to the committee chair 16486 16486
board and committee meeting attendance fee
4946
per meeting
4946
per meeting
note nonexecutive director fees are denominated in pounds sterling and for presentation purposes the figures are translated to us at crossrates of the british pound  
and the us dollar to the rouble stated by the central bank of the russian federation as of 31 december 2013
remuneration committee
the remuneration committee comprises three independent nonexecutive directors who have no personal financial interest 
other than as a shareholder in the matters to be decided as a result of mr balfour’s decision not to offer himself for reelection 
as a director a replacement member of the remuneration committee will be appointed following the agm in 2012 the 
company sold 100 of amikan holdings limited which owns the veduga gold deposit ‘veduga’ in the krasnoyarsk region  
of the russian federation to polygon gold inc ‘polygon’ mr homeniuk serves as polygon’s executive chairman and ceo 
polygon operates as a standalone company with independent management and polymetal provides certain technical and 
regulatory assistance to polygon on an ongoing basis polymetal currently holds 426 equity ownership in polygon and one  
of the four board seats and therefore has significant influence but does not have control over its activities the board continues 
to consider mr homeniuk to be an independent nonexecutive director the board concluded that the relationship between 
polymetal and polygon is not material given the carrying value of its interest in veduga in the group’s financial statements which  
is us156 million and represents approximately 05 of the group’s total assets as at 31 december 2013
the membership of the remuneration committee is shown in the table below
name
role
leonard homeniuk chairman
jonathan best member
charles balfour member
the principal functions of the remuneration committee under its terms of reference are
•	to make recommendations to the board on the group’s policy on the remuneration of executive management
•	to determine within agreed terms of reference the remuneration of the chairman and specific remuneration packages for each 
of the executive director the company secretary and the members of senior management including pension rights and any 
compensation payments
•	to formulate suitable performance criteria for the performancebased pay of executive management
•	to review and oversee all aspects of any executive share scheme operated by or to be established by the company and
•	to oversee and advise the board on any major changes in employee benefit structures throughout the company or the group
remuneration report
continued
the full terms of reference of the remuneration committee can be found in the corporate governance section on the 
company’s website wwwpolymetalinternationalcom
consideration by the directors of matters relating to directors’ remuneration
further business conducted by the remuneration committee was approved by written resolutions on two further occasions
in 2013 the meetings of the committee covered the following key areas
•	reviewed and approved board expenses and reimbursement policy
•	reviewed and approved bonuses for 2012 
•	 reviewed individual and corporate performance of the ceo and senior executives and set kpi levels for 2013 
•	approved remuneration report for the year ended 31 december 2012
•	following review of the company’s remuneration policy and practices to ensure that they remain aligned with the objectives of 
the business and in line with the uk corporate governance code and best practice the committee proposed the introduction 
of the new longterm incentive plan ltip to replace the employee incentive programme once it expires this ltip was 
approved by shareholders at the agm held in 2013 
•	reviewed proposed changes to the remuneration report regulations and agreed the approach to disclosure in future years 
although these regulations are not expected to formally apply to the company the committee believes that as a ftse 250 
company whose shares are listed on the london stock exchange it is in keeping with good corporate governance to 
voluntarily adopt the new disclosure provisions including carrying out a binding vote on remuneration policy at the 2014 agm
•	the board considers that the composition and work of the remuneration committee complies with the requirements of the uk 
corporate governance code following external board evaluation the committee reviewed its performance and noted 
feedback provided with the assistance of external consultants
statement of voting at agm
at the 2013 agm held on 12 june votes for the remuneration report were as follows
votes for
votes against withheld
320242860 9975 809134 025 32095
at this meeting the company’s new longterm incentive plan was put to a vote with 9982 of shareholders in favour of the 
introduction of the new plan
advisors
the committee appointed pricewaterhousecoopers llp ‘pwc’ as independent external remuneration consultants to provide 
support in relation to the design and operation of the new ltip and on the changes associated with the new remuneration report 
regulations pwc is a member of the remuneration consultants’ group ‘rcg’ and a signatory of the rcg voluntary code  
of practice and incorporates the principles of voluntary code of practice into its engagement no other services were provided 
by pwc during 2013 fees paid to pwc in relation to remuneration services provided to the committee in 2013 totalled 
us54500 with fees quoted in advance and based on the level of complexity of the work undertaken the committee  
reviews the objectivity and independence of the advice it receives from pwc at a private meeting held on an annual basis 
during its work in 2013 the committee was also aided by the chief executive officer and senior finance and human resources 
executives of the company
pwc’s appointment was made by way of a competitive tender results of which were presented to the remuneration committee 
for approval 
approval
this report was approved by the board of directors on 30 march 2014 and signed on its behalf by
leonard homeniuk
chairman remuneration committee financial statements 102103
annual report 2013  
polymetal international plc
financial statements
directors’ responsibility statement independent auditor’s report to the members of polymetal international plc
the directors are responsible for preparing the annual report and financial statements in accordance with applicable law  
and regulations 
company law requires the directors to prepare financial statements for each financial year under that law the directors are 
required to prepare the group financial statements in accordance with international financial reporting standards as adopted 
for use in the european union ifrs the financial statements are required by law to be properly prepared in accordance  
with the companies jersey law 1991 international accounting standard 1 requires that financial statements present fairly for  
each financial year the group’s financial position financial performance and cash flows this requires the faithful representation  
of the effects of transactions other events and conditions in accordance with the definitions and recognition criteria for assets 
liabilities income and expenses set out in the international accounting standards board’s ‘framework for the preparation  
and presentation of financial statements’
in virtually all circumstances a fair presentation will be achieved by compliance with all applicable ifrss however the directors 
are also required to
•	 properly select and apply accounting policies
•	 present information including accounting policies in a manner that provides relevant reliable comparable and  
understandable information
•	provide additional disclosures when compliance with the specific requirements in ifrss are insufficient to enable users  
to understand the impact of particular transactions other events and conditions on the entity’s financial position and  
financial performance and 
•	 make an assessment of the company’s ability to continue as a going concern
the directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the 
financial position of the company and enable them to ensure that the financial statements comply with the companies jersey 
law 1991 they are also responsible for safeguarding the assets of the company and hence for taking reasonable steps  
for the prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website legislation in the uk and jersey governing the preparation and dissemination of financial statements  
may differ from legislation in other jurisdictions
responsibility statement 
we confirm that to the best of our knowledge
•	the financial statements prepared in accordance with international financial reporting standards give a true and fair view  
of the assets liabilities financial position and profit or loss of the company and the undertakings included in the consolidation 
taken as a whole and
•	the management report which is incorporated into the strategic report includes a fair review of the development and 
performance of the business and the position of the company and the undertakings included in the consolidation taken  
as a whole together with a description of the principal risks and uncertainties that they face
by order of the board
bobby godsell 
chairman of the board of directors
vitaly nesis
chief executive
30 march 2014
opinion on financial statements
in our opinion the financial statements
•	give a true and fair view of the state of the group’s affairs as at 31 december 2013 and of the group’s loss  
for the year then ended
•	have been properly prepared in accordance with international financial reporting standards ifrss  
as adopted by the european union and
•	have been prepared in accordance with the companies jersey law 1991
the financial statements comprise the consolidated income statement consolidated statement of comprehensive income 
consolidated balance sheet consolidated statement of changes in equity consolidated statement of cash flows and the 
related notes 1 to 37 the financial reporting framework that has been applied in their preparation is applicable law and ifrss  
as adopted by the european union
going concern
we have reviewed the directors’ statement on page 86 that the group is a going concern we confirm that
•	we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial 
statements is appropriate and
•	we have not identified any material uncertainties that may cast significant doubt on the group’s ability to continue  
as a going concern
however because not all future events or conditions can be predicted this statement is not a guarantee as to the group’s  
ability to continue as a going concern
our assessment of risks of material misstatement
the assessed risks of material misstatement described below are those that had the greatest effect on our audit strategy  
the allocation of resources in the audit and directing the efforts of the engagement team
risk how the scope of our audit responded to the risk
recoverability of ppe and goodwill 
recoverability of ppe and goodwill is dependent  
on several assumptions the determination of which  
requires a significant level of judgement see note 18
management has assessed whether any indicators of impairment 
existed at its seven cash generating units ‘cgus’ as set out  
in note 5 where an indicator of impairment was identified  
it assessed the recoverable amount of the cgu to ensure  
this was not less than its net book value
we critically assessed developments in the wider economic 
environment and the performance of the cgus in the year  
through visiting certain operations and meeting with local  
and group operational management to challenge management’s 
assessment of the existence of impairment indicators
where indicators were identified and valuations were performed  
our audit procedures included testing the principles and integrity  
of the models and challenging assumptions through comparison  
with externally and internally derived data for the key inputs such  
as the discount rate used expected metal prices and foreign 
exchange rates
recoverability of exploration and development ed assets
recoverability is dependent on the expected future success  
of exploration activities ed expenditure is capitalised once it has 
been determined that the mineral property can be economically 
developed the valuation assessment of each asset’s future 
prospectivity requires significant judgement
at 31 december 2013 the group held us337 million in respect  
of ed expenditure on the balance sheet
management undertook a detailed valuation of ed assets  
for impairment which included a summary of the group’s current 
licence obligations and an assessment of the likelihood of future 
success of exploration activities as well as management’s  
future plans for further ed expenditure were prepared  
on a consistent basis
we assessed the recoverability of the assets by meeting with 
operational management to discuss material ed assets reviewing 
drilling and other testing results in the year and confirming future 
development plans we reviewed boardapproved budgets for 
20145 to check that exploration projects were committed and  
we performed detailed testing to assess the validity of costs 
capitalised in the year financial statements 104105
annual report 2013  
polymetal international plc
financial statements
independent auditor’s report to the members of polymetal international plc
continued
risk how the scope of our audit responded to the risk
existence and valuation of metal inventories
management’s determination of the contained metal levels  
in ore stockpiles and work in progress involves the use  
of sampling techniques and theoretical models
the assessment of the recoverability of metal inventories  
requires judgement both in terms of calculating the expected  
costs to process and refine ore stock piles to produce concentrate 
or doré for sale and in terms of estimating future gold silver  
or copper prices to be realised on sale
at 31 december 2013 the group held us438 million in respect  
of metal inventories on the balance sheet
we tested the existence of metal inventories through attending inventory 
counts conducted by management at material operating locations and 
performing detailed roll forward testing from the count dates through  
to year end by testing management’s metal inventory models 
we tested the recoverability of metal inventories through the 
recalculation of projected net realisable values based on expected 
commodity prices which were consistent with prices used in the 
group’s ppe and goodwill impairment calculations and costs  
to complete we also performed a detailed analytical review  
of management’s inventory costing calculations
we tested inventories for obsolescence by reviewing management’s 
strategic mine plans and assessing whether there was appropriate 
provisioning in place where stockpiles are no longer expected  
to be used
provisioning and disclosure in respect of income tax and mineral extraction tax liabilities
russian and kazakh tax legislation is subject to varying 
interpretations and management’s interpretation as applied  
to the transactions and activity of the group may be challenged  
by the relevant regional and federal authorities
the determination of whether a potential exposure is probable 
possible or remote requires significant judgement
we examined the group’s assessment of its potential tax exposures 
including related interest and penalties and we utilised tax audit 
specialists both in russia and in kazakhstan to assess the likelihood 
of an exposure crystallising
we reconciled court documentation received to provisions 
recognised or settlements paid and disclosures made in note 16  
we considered the impact of court cases on other exposures 
identified we agreed payments made to bank statements
the audit committee’s consideration of these risks is set out on page 83
our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole 
and not to express an opinion on individual accounts or disclosures our opinion on the financial statements is not modified  
with respect to any of the risks described above and we do not express an opinion on these individual matters
our application of materiality
we define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic 
decisions of a reasonably knowledgeable person would be changed or influenced we use materiality both in planning the scope 
of our audit work and in evaluating the results of our work
we determined materiality for the group to be us16 million which is 56 of adjusted pretax profit and less than 1 of equity 
pretax profit is adjusted for the materiality calculation to exclude oneoff impairments writedowns and net foreign exchange 
losses recognised which would if included significantly distort the materiality calculation year on year
we agreed with the audit committee that we would report to the committee all audit differences in excess of us320000  
as well as differences below that threshold that in our view warranted reporting on qualitative grounds we also report to the 
audit committee on disclosure matters that we identified when assessing the overall presentation of the financial statements
an overview of the scope of our audit
our group audit was scoped by obtaining an understanding of the group and its environment including groupwide controls 
and assessing the risks of material misstatement across the group our audit scope focused primarily on the seven key 
operating segments voro khakanja dukat omolon varvara amurskalbazino and mayskoye plus the head office entity  
such that 100 of revenues and over 99 of total assets were subject to a full scope audit
the group audit team was involved in the work of the component auditors at all stages of the audit process the signing partner 
and senior members of the group engagement team visited the head offices in st petersburg several times in the past year  
and have also visited at least one of the key business units at least once a year since our appointment as external auditors  
the group audit team directed and reviewed in detail the work performed on significant risks by the component auditors
our audit work was executed at levels of materiality applicable to each individual component which were lower than  
group materiality
matters on which we are required to report by exception 
adequacy of explanations received and accounting records
under the companies jersey law 1991 we are required to report to you if in our opinion
•	we have not received all the information and explanations we require for our audit or
•	proper accounting records have not been kept by the parent company or proper returns adequate for our audit  
have not been received from branches not visited by us or
•	the financial statements are not in agreement with the accounting records and returns
we have nothing to report in respect of these matters
corporate governance statement
under the listing rules we are also required to review the part of the corporate governance statement relating to the company’s 
compliance with nine provisions of the uk corporate governance code we have nothing to report arising from our review
our duty to read other information in the annual report 
under international standards on auditing uk and ireland we are required to report to you if in our opinion information  
in the annual report is
•	materially inconsistent with the information in the audited financial statements or
•	 apparently materially incorrect based on or materially inconsistent with our knowledge of the group acquired in the course  
of performing our audit or
•	otherwise misleading
in particular we are required to consider whether we have identified any inconsistencies between our knowledge acquired during 
the audit and the directors’ statement that they consider the annual report is fair balanced and understandable and whether  
the annual report appropriately discloses those matters that we communicated to the audit committee which we consider  
should have been disclosed we confirm that we have not identified any such inconsistencies or misleading statements
other matters
in our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance  
with the provisions of the uk companies act 2006 as if that act had applied to the company
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation  
of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express  
an opinion on the financial statements in accordance with applicable law and international standards on auditing uk and 
ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors we also 
comply with international standard on quality control 1 uk and ireland our audit methodology and tools aim to ensure that 
our quality control procedures are effective understood and applied our quality controls and systems include our dedicated 
professional standards review team strategically focused second partner reviews and independent partner reviews
this report is made solely to the company’s members as a body in accordance with article 113a of the companies jersey 
law 1991 our audit work has been undertaken so that we might state to the company’s members those matters we are 
required to state to them in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept 
or assume responsibility to anyone other than the company and the company’s members as a body for our audit work for this 
report or for the opinions we have formed
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes  
an assessment of whether the accounting policies are appropriate to the group’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report  
to identify material inconsistencies with the audited financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the audit 
if we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
christopher thomas
for and on behalf of deloitte llp
chartered accountants and recognized auditor
london uk
30 march 2014 financial statements 106107
annual report 2013  
polymetal international plc
financial statements
consolidated income statement consolidated balance sheet
consolidated statement of comprehensive income
  year ended 
 
 notes
31 december
2013
us’000
31 december
2012
restated
1
 
us’000
revenue 6 1706597 1854065
cost of sales 7 1123796 851839
writedowns of metal inventories to net realisable value 23 153327 4000
gross profit 429474 998226
general administrative and selling expenses 11 168132 181648
other operating expenses 12 88486 153855
impairment of noncurrent assets 18 201105 –
impairment of investment in associate 18 12291 –
share of loss of associates and joint ventures 21 2340 1804
operating lossprofit 42880 660919
loss on disposal of subsidiaries 4 8746 10709
gain on acquisition of remaining interest in joint venture 21 – 21051
net foreign exchange lossesgains 74240 6677
change in fair value of contingent consideration liability 30 8131 4717
finance income 2850 4657
finance costs 15 42735 26787
lossprofit before income tax 157620 651091
income tax expense 16 40417 222868
lossprofit for the financial year 198037 428223
lossprofit for the year attributable to
equity shareholders of the parent 198037 421196
noncontrolling interest – 7027
198037 428223
lossearnings per share
us us
basic 32 051 110
diluted 32 051 110
2013
cents per
 share
2012
cents per
 share
2013
us’000
2012
us’000
final dividend proposed note 17 8 31 31158 119034
interim dividend note 17 1 – 3879 –
special dividend declared note 17 – 50 – 191603
year ended
31 december
2013
us’000
31 december
2012
restated
1
 
us’000
lossprofit for the financial year 198037 428223
other comprehensive lossincome
effect of translation to presentation currency
2
153575 111656
total comprehensive lossincome for the financial year 351612 539879
year ended
31 december
 2013
us’000
31 december
 2012 restated
us’000
total comprehensive lossincome for the financial year attributable to
equity shareholders of the parent 351612 522730
noncontrolling interest – 17149
351612 539879
1
 restated following adopting ifric 20 stripping costs in the production phase of a surface mine refer to note 35 
2
 may be subsequently reclassified to the income statement
notes
31 december
2013
us’000
31 december
2012
restated
1
us’000
assets
property plant and equipment 19 2094742 2205732
goodwill 20 30889 115106
investments in associates 21 15651 29822
noncurrent loans and receivables 22 22853 14811
deferred tax asset 16 88484 58024
noncurrent inventories 23 53142 98864
total noncurrent assets 2305761 2522359
current inventories 23 727144 840621
current vat receivable 85135 103192
trade and other receivables 24 44526 107596
prepayments to suppliers 18170 31044
income tax prepaid 8433 14481
cash and cash equivalents 25 65567 18622
total current assets 948975 1115556
total assets 3254736 3637915
liabilities and shareholders’ equity
accounts payable and accrued liabilities 28 117974 312218
current borrowings 26 81331 244211
income tax payable 37174 63021
other taxes payable 56885 72119
environmental obligations 27 212 1565
total current liabilities 293576 693134
noncurrent borrowings 26 1029813 619612
contingent consideration liability 30 15523 25276
deferred tax liability 16 63085 82760
environmental obligations 27 65152 65128
other noncurrent liabilities 97 134
total noncurrent liabilities 1173670 792910
total liabilities 1467246 1486044
net assets 1787490 2151871
stated capital account 32 1664170 1576123
sharebased compensation reserve 143524 119291
translation reserve 206836 53261
retained earnings 186632 509718
total equity 1787490 2151871
1
 restated following adopting ifric 20 stripping costs in the production phase of a surface mine refer to note 35
the notes on pages 110 to 151 form part of these financial statements these financial statements are approved and authorised  
for issue by the board of directors on 30 march 2014 and signed on its behalf by
vitaly nesis bobby godsell
chief executive chairman of the board of directors
30 march 2014 financial statements 108109
annual report 2013  
polymetal international plc
financial statements
consolidated statement of cash flows consolidated statement of changes in equity
notes
year ended
31 december
2013
us’000
31 december
2012 
restated
1
us’000
net cash generated by operating activities 36 461667 540840
cash flows from investing activities
purchases of property plant and equipment 19 319448 397076
consideration for acquisitions 4 11934 20797
proceeds from disposal of subsidiary – 25000
convertible loan repaid byadvanced to polygon gold 21 10000 10000
other investing activities 3681 4559
interest received 1965 5686
contingent consideration paid 30 1329 1227
net cash used in investing activities 324427 402973
cash flows from financing activities
borrowings obtained 26 3099855 1236036
repayments of borrowings 26 2887041 1384913
mto and squeezeout obligation repayment – 568837
dividends paid 17 316429 76537
net cash used in financing activities 103615 794251
net increasedecrease in cash and cash equivalents 33625 656384
cash and cash equivalents at 1 january 25 18622 658795
effect of foreign exchange rate changes 13320 16211
cash and cash equivalents at 31 december 25 65567 18622
1
 restated following adopting ifric 20 stripping costs in the production phase of a surface mine refer to note 35
sales of property plant and equipment in 2013 for consideration of us113 million resulting in a loss on disposal  
of us90 million were on deferred payment terms with nil cash received in the current year
notes
number
of polymetal
international
shares
outstanding
stated
capital
account
sharebased
compensation
reserve
treasury
shares
in jsc
polymetal
translation
reserve
share
purchase
obligation
retained
earnings
total
equity 
attributable
to the parent
non
controlling
interest total equity
balance at  
1 january 
2012 382685782 1566386 59239 395 151029561659 753572 1666114 148484 1814598
total 
comprehensive 
income – – – – 101533 – 421197 522730 17149 539879
amortisation  
of bonus 
received from 
depositary – – – – – – 1258 1258 – 1258
share based 
compensation – – 53515 – – – – 53515 764 54279
issue of shares 
in exchange for 
assets 520422 9737 – – – – – 9737 – 9737
dividends – – – – – – 267880 267880 – 267880
acquisition of 
noncontrolling 
interest under 
mto and 
squeezeout – – 6537 395 3765 561659 398429 166397 166397 –
balance at  
31 december 
2012 restated
1
383206204 1576123 119291 – 53261 – 509718 2151871 – 2151871
total 
comprehensive 
income – – – – 153575 – 198037 351612 – 351612
share based 
compensation 33 – – 24233 – – – – 24233 – 24233
issue of shares  
in exchange  
for assets 4 775000 13423 – – – – – 13423 – 13423
issue of shares  
in exchange  
for business 
acquisitions 4 5491661 74624 – – – – – 74624 – 74624
dividends 17 – – – – – – 125049 125049 – 125049
balance at  
31 december 
2013 389472865 1664170 143524 – 206836 – 186632 1787490 – 1787490
1
 restated following adopting ifric 20 stripping costs in the production phase of a surface mine refer to note 35 financial statements 110111
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
1 general
corporate information
polymetal group is a leading gold and silver mining group operating in russia and kazakhstan
polymetal international plc the company is the ultimate parent entity of polymetal group the company was incorporated  
on 29 july 2010 as a public limited company under companies jersey law 1991 its shares are traded on the london  
and moscow stock exchanges
significant subsidiaries
at 31 december 2013 the company held an effective 100 interest in jsc polymetal an entity incorporated in russia  
through this subsidiary the company held the following significant mining and production subsidiaries
effective interest held  
by jsc polymetal 
name of subsidiary
deposits
country of 
incorporation
31 december
2013
31 december
2012
cjsc gold of northern urals vorontsovskoye russia 100 100
llc okhotskaya mining and exploration company khakandjinskoye russia
yurievskoye
avlayakan
ozernoye 100 100
cjsc magadan silver dukat russia
lunnoye
arylakh
goltsovoye 100 100
mayskoye gold mining company llc mayskoye russia 100 100
omolon gold mining company llc kubaka russia
birkachan
tsokol
danleye
sopka kvartsevaya 100 100
albazino resources ltd albazino russia 100 100
amursk hydrometallurgical plant llc na russia 100 100
jsc varvarinskoye varvarinskoye kazakhstan 100 100
going concern
in assessing its going concern status the group has taken account of its financial position anticipated future trading performance 
its borrowings and other available credit facilities and its forecast compliance with covenants on those borrowings and its  
capital expenditure commitments and plans as at 31 december 2013 the group held us66 million of cash and had net debt  
of us1045 million with us1324 million of undrawn but committed facilities available subject to the net debtadjusted ebitda 
covenant compliance
 
the board is satisfied that the group’s forecasts and projections having taken account of reasonably possible changes in trading 
performance show that the group has adequate resources to continue in operational existence for at least the next 12 months 
from the date of this report and that it is appropriate to adopt the going concern basis in preparing the consolidated financial 
statements for the year ended 31 december 2013
basis of presentation
the group’s annual consolidated financial statements for the year ended 31 december 2013 are prepared in accordance  
with international financial reporting standards ifrs as adopted by the european union the financial statements have  
been prepared on the historical cost basis except for certain financial instruments and sharebased payments which are 
measured at fair value 
the accounting policies set out in note 2 have been applied in preparing the consolidated financial statements for the year 
ended 31 december 2013 
new and amended standards adopted by the entity
ifric 20 stripping costs in the production phase of a surface mine
in october 2011 the iasb issued ifric 20 stripping costs in the production phase of a surface mine ifric 20 provides 
guidance on the accounting for the costs of stripping activities during the production phase of a mine when the benefit from  
the stripping activity is the improved access to a component of the ore body in future periods the stripping costs in excess  
of the average ore to waste ratio for the life of mine of that component are recognised as a noncurrent asset after initial 
recognition the stripping activity asset is depreciated on a systematic basis unitofproduction method over the expected  
useful life of the identified component of the ore body made accessible as a result of the stripping activity
 
the group has adopted ifric 20 retrospectively according to the transitional provisions and the 2012 results have been  
restated accordingly prior to adoption of ifric 20 the group’s accounting policy was to expense all the production stripping 
costs as incurred therefore at 1 january 2012 there were no deferred stripping assets on the group’s balance sheet and  
no restatement was required at that date 
 
the adoption of ifric 20 has resulted in capitalisation of certain waste stripping costs within property plant and equipment  
and a reduction in cost of sales and metal inventories in the year ended 31 december 2012 for further detail of the effect  
on the group financial statements the year ended 31 december 2012 please refer to note 35
amendments to ias 1 presentation of items of other comprehensive income
the amendments to ias 1 impact the group’s statement of comprehensive income by requiring the grouping of items  
presented in other comprehensive income based on whether or not they will be reclassified to profit or loss in future 
adoption of the amendment did not impact earnings per share
amendments to ifrs 7 disclosures – offsetting financial assets and financial liabilities
the amendments to ifrs 7 require entities to disclose information about rights of offset and related agreements for financial 
instruments under an enforceable master netting agreement or similar arrangements 
ifrs 13 fair value measurement
ifrs 13 establishes a single framework for measuring fair value when such measurements are required or permitted  
by other standards the application of ifrs 13 has not materially affected the fair value measurements carried out by the  
group ifrs 13 also requires specific disclosures on fair values some of which replace existing disclosure requirements  
in other standards including ifrs 7 financial instruments disclosures the additional disclosure requirements are reflected 
within the relevant notes to the financial statements
changes in accounting estimates
from 1 january 2013 the group began to use jorc as opposed to gkz reserves as the basis for the unitofproduction 
depreciation calculations as management believes this revised basis better reflects the longterm mine plans which are  
also being prepared based on jorc reserves estimates the impact on the total depreciation charge for the year ended 
31 december 2013 was an increase of us40 million
standards and interpretations in issue not yet adopted
the following new amended or revised ifrs accounting standards and interpretations not yet adopted are not expected  
to have a significant impact on the group
ifrs 10 consolidated financial statements replaces the portion of ias 27 consolidated and separate financial statements  
that addresses accounting for consolidated financial statements and sic12 consolidation – special purpose entities  
ifrs 10 provides a single basis for consolidation with a new definition of control the standard applies to annual periods 
beginning on or after 1 january 2014 for companies reporting under ifrs as adopted by the eu
ifrs 11 joint arrangements replaces ias 31 interests in joint ventures and sic13 jointlycontrolled entities – nonmonetary 
contributions by venturers under ifrs 11 a joint arrangement is classified as either a joint operation or a joint venture and  
the option to proportionately consolidate joint ventures has been removed interests in joint ventures must be equity accounted  
this standard applies to annual periods beginning on or after 1 january 2014 for companies reporting under ifrs as adopted  
by the eu financial statements 112113
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
1 general continued 
ifrs 12 disclosures of interests in other entities will accompany ifrs 10 and ifrs 11 this standard combines the disclosure 
requirements previously covered by ias 27  related to consolidated financial statements ias 31 interest in joint ventures and  
ias 28 investments in associates as well as including additional disclosure requirements this standard applies to annual  
periods beginning on or after 1 january 2014 for companies reporting under ifrs as adopted by the eu
amendments have been made to ias 27 consolidated and separate financial statements and it has been reissued  
as ias 27 separate financial statements the revised standard prescribes the accounting and disclosure requirements  
for investments in subsidiaries joint ventures and associates when an entity prepares separate financial statements  
the accounting and disclosure requirements for investments in subsidiaries joint ventures and associates in consolidated 
financial statements are prescribed by ifrs 10 ifrs 11 and ifrs 12 the revised standard is to be applied for annual  
periods beginning on or after 1 january 2014 for companies reporting under ifrs as adopted by the eu 
amendments have been made to ias 28 investments in associates and it has been reissued as ias 28 investments  
in associates and joint ventures the revised standard prescribes the application of the equity method when accounting  
for investments in associates and joint ventures the revised standard is to be applied for annual periods beginning  
on or after 1 january 2014 for companies reporting under ifrs as adopted by the eu
amendments to ias 32 financial instruments – presentation is effective for annual periods beginning on or after 1 january 2014
2 significant accounting policies
basis of consolidation
subsidiaries
the consolidated financial statements of the group include the financial statements of the company its subsidiaries and  
if applicable special purpose entities from the date that control effectively commenced until the date that control effectively 
ceased control is achieved where the company has the power to govern the financial and operating policies of an entity  
so as to obtain benefits from its activities
income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated income 
statement from the effective date of acquisition and up to the effective date of disposal as appropriate
when necessary adjustments are made to the financial statements of subsidiaries to bring their accounting policies  
into line with those used by other members of the group
all intragroup balances transactions and any unrealised profits or losses arising from intragroup transactions are eliminated  
on consolidation
changes to the group’s ownership interests that do not result in a loss of control over the subsidiaries are accounted for as 
equity transactions the carrying amount of the group’s interests and noncontrolling interests are adjusted to reflect the change 
in their relative interests in the subsidiaries any difference between the amount by which the noncontrolling interest is adjusted 
and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent
when the group loses control of a subsidiary the profit or loss on the disposal is calculated as the difference between  
1 the aggregated fair value of the consideration received and the fair value of any retained interest and 2 the previous  
carrying amount of the assets including goodwill and liabilities of the subsidiary and noncontrolling interests
for nonwholly owned subsidiaries noncontrolling interests are initially measured at the noncontrolling interest’s proportion  
of the fair values of net assets recognised at acquisition thereafter a share of the profit or loss for the financial year and other 
movements in the net assets or liabilities of the subsidiary is attributed to the noncontrolling interests as shown in the income 
statement and balance sheet
business combinations
ifrs 3 business combinations applies to a transaction or other event that meets the definition of a business combination  
when acquiring new entities or assets the group applies judgement to assess whether the assets acquired and liabilities 
assumed constitute an integrated set of activities whether the integrated set is capable of being conducted and managed  
as a business by a market participant and thus whether the transaction constitutes a business combination using the guidance 
provided in the standard acquisitions of businesses are accounted for using the acquisition method the consideration for  
each acquisition is measured at the aggregate of the fair values at the date of exchange of assets given liabilities incurred  
or assumed and equity instruments issued by the group in exchange for control of the acquiree acquisitionrelated costs  
are recognised in the consolidated income statement as incurred transaction costs incurred in connection with the  
business combination are expensed provisional fair values are finalised within 12 months of the acquisition date
where applicable the consideration for the acquisition may include an asset or liability resulting from a contingent consideration 
arrangement contingent consideration is measured at its acquisitiondate fair value and included as part of the consideration 
transferred in a business combination subsequent changes in such fair values are adjusted against the cost of acquisition 
retrospectively with the corresponding adjustment against goodwill where they qualify as measurement period adjustments 
measurement period adjustments are adjustments that arise from additional information obtained during the measurement 
period about facts and circumstances that existed at the acquisition date the measurement period may not exceed one  
year from the effective date of the acquisition the subsequent accounting for contingent consideration that does not qualify  
for as a measurement period adjustment is based on how the contingent consideration is classified contingent consideration  
that is classified as equity is not subsequently remeasured contingent consideration that is classified as an asset or liability  
is remeasured at subsequent reporting dates in accordance with ias 37 provisions contingent liabilities and contingent  
assets or ias 39 financial instruments recognition and measurement with the corresponding amount being recognised  
in profit or loss
the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date except that
•	 deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised  
and measured in accordance with ias 12 income taxes and ias 19 employee benefits respectively
•	liabilities or equity instruments related to sharebased payment arrangements of the acquiree or sharebased payment 
arrangements of the group entered into to replace sharebased payment arrangements of the acquiree are measured  
in accordance with ifrs 2 sharebased payment at the acquisition date and
•	assets or disposal groups that are classified as held for sale in accordance with ifrs 5 noncurrent assets held for sale  
and discontinued operations are measured in accordance with that standard
where a business combination is achieved in stages the group’s previously held interests in the acquired entity are remeasured 
to fair value at the acquisition date ie the date the group attains control and the resulting gain or loss if any is recognised  
in the consolidated income statement amounts arising from interests in the acquiree prior to the acquisition date that have 
previously been recognised in equity are reclassified to profit or loss where such treatment would be appropriate if that interest 
was disposed of
goodwill and goodwill impairment
goodwill arising in a business combination is recognised as an asset at the date that control is acquired the acquisition date 
goodwill is measured as the excess of the sum of the consideration transferred the amount of any noncontrolling interests  
in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree if any over the net of the 
acquisitiondate amounts of the identifiable assets acquired and the liabilities assumed
if the group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred 
the amount of any noncontrolling interests in the acquiree and the fair value of the acquirer’s previously held equity interest  
in the acquiree if any the excess is recognised immediately in the consolidated income statement as a bargain purchase gain
goodwill is not amortised but is reviewed for impairment at least annually for the purpose of impairment testing goodwill  
is allocated to each of the group’s cashgenerating units expected to benefit from the synergies of the combination cash
generating units to which goodwill has been allocated are tested for impairment annually or more frequently when there is an 
indication that the unit may be impaired if the recoverable amount of the cashgenerating unit is less than its carrying amount 
the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other 
assets of the unit prorata on the basis of the carrying amount of each asset in the unit an impairment loss recognised  
for goodwill is not reversed in a subsequent period
on disposal of a subsidiary the attributable goodwill is included in the determination of the profit or loss on disposal
acquisition of mining licences
the acquisition of mining licences is often effected through a nonoperating corporate entity as these entities do not represent  
a business it is considered that the transactions do not meet the definition of a business combination and accordingly  
the transaction is accounted for as the acquisition of an asset the net assets acquired are accounted for at cost
investments in associates
an associate is an entity over which the group has significant influence and that is neither a subsidiary nor an interest in a joint 
venture significant influence constitutes the power to participate in the financial and operating policy decisions of the investee 
but does not extend to a control or joint control over the enactment of those policies the results and assets and liabilities  
of associates are incorporated in the consolidated financial statements using the equity method of accounting financial statements 114115
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
2 significant accounting policies continued 
equity method of accounting
under the equity method an investment in an associate or jointly controlled entity investee is initially recognised in the 
consolidated balance sheet at cost and adjusted thereafter to recognise the group’s share of the profit or loss and other 
comprehensive income of the investee when the group’s share of the losses of an associate exceeds the group’s interest  
in that entity the group ceases to recognise its share of further losses additional losses are recognised only to the extent  
that the group has incurred legal or constructive obligations or made payments on behalf of the investee
any excess of the cost of acquisition over the group’s share of the net fair value of the identifiable assets liabilities and 
contingent liabilities of an investee at the date of acquisition is recognised as goodwill which is included within the carrying 
amount of the investment any excess of the group’s share of the net fair value of the identifiable assets liabilities and  
contingent liabilities over the cost of acquisition after reassessment is recognised immediately in profit or loss
the requirements of ias 39 are applied to determine whether it is necessary to recognise any impairment loss with respect  
to the group’s investments where an indicator of impairment exists or the carrying value of the asset contains goodwill with  
an indefinite useful life the entire carrying amount of the investment including goodwill is tested for impairment in accordance 
with ias 36 impairment of assets ias 36 as a single cash generating unit through the comparison of its recoverable amount 
the higher of value in use and fair value less costs to sell with its carrying amount any impairment loss recognised forms  
part of the carrying amount of the investment any reversal of that impairment loss is recognised in accordance with ias 36
when a group entity transacts with its investees profits and losses resulting from the transactions with the investee are 
recognised in the group’s consolidated financial statements only to the extent of interests in the associate that are not related  
to the group
functional and presentation currency
the functional currency for each entity in the group is determined as the currency of the primary economic environment  
in which it operates for all russian entities the functional currency is the russian rouble rub as well as for the investment 
holding companies including polymetal international plc the functional currency of the group’s entity located in kazakhstan 
jsc varvarinskoye and operating with significant degree of autonomy is the kazakh tenge kzt
the group has chosen to present its consolidated financial statements in us dollars us as management believes  
it is a more convenient presentation currency for international users of the consolidated financial statements of the group  
as it is a common presentation currency in the mining industry the translation of the financial statements of the group  
entities from their functional currencies to the presentation currency is performed as follows
•	all assets and liabilities are translated at closing exchange rates at each reporting period end date
•	all income and expenses are translated at the average exchange rates for the periods presented except for significant 
transactions that are translated at rates on the date of such transactions
•	resulting exchange differences are included in equity and presented as movements relating to the effect of translation  
to the group’s presentation currency within the translation reserve and
•	 in the consolidated statement of cash flows cash balances at the beginning and end of each reporting period presented  
are translated using exchange rates prevalent at those respective dates all cash flows in the period are translated at the 
average exchange rates for the periods presented except for significant transactions that are translated at rates on the date  
of transaction
on the disposal of a foreign operation ie a disposal of the group’s entire interest in a foreign operation or a disposal involving 
loss of control over a subsidiary that includes a foreign operation a disposal involving loss of joint control over a jointly controlled 
entity that includes a foreign operation or a disposal involving loss of significant influence over an associate that includes  
a foreign operation all of the exchange differences accumulated in equity in respect of that operation attributable  
to the owners of the company are reclassified to profit or loss
in the case of a partial disposal that does not result in the group losing control over a subsidiary that includes a foreign operation 
the proportionate share of accumulated exchange differences are reattributed to noncontrolling interests and are not recognised 
in the consolidated income statement for all other partial disposals ie reductions in the group’s ownership interest in associates 
or jointly controlled entities that do not result in the group losing significant influence or joint control the proportionate share  
of the accumulated exchange differences is reclassified to the consolidated income statement
goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation 
are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each 
reporting period exchange differences arising are recognised in equity
exchange rates used in the preparation of the consolidated financial statements were as follows
31 december
2013
31 december
2012
russian roubleus dollar
year end 3273 3037
average for the year 3185 3009
kazakh tengeus dollar
year end 15361 15074
average for the year 15214 14911
the russian rouble and kazakh tenge are not freely convertible currencies outside the russian federation and kazakhstan 
and accordingly any translation of russian rouble and kazakh tenge denominated assets and liabilities into us dollar for the 
purpose of the presentation of consolidated financial statements does not imply that the group could or will in the future realise 
or settle in us dollars the translated values of these assets and liabilities
foreign currency transactions
transactions in currencies other than the entity’s functional currencies foreign currencies are recorded at the exchange rates 
prevailing on the dates of the transactions all monetary assets and liabilities denominated in foreign currencies are translated  
at the exchange rates prevailing at the reporting date non monetary items carried at historical cost are translated at the 
exchange rate prevailing on the date of transaction nonmonetary items carried at fair value are translated at the exchange  
rate prevailing on the date on which the most recent fair value was determined exchange differences arising from changes  
in exchange rates are recognised in the consolidated income statement
property plant and equipment
mining assets
mining assets and leases include the cost of acquiring and developing mining assets and mineral rights mining assets are 
depreciated to their residual values using the unitofproduction method based on proven and probable ore reserves according 
to the jorc code which is the basis on which the group’s mine plans are prepared changes in proven and probable reserves 
are dealt with prospectively depreciation is charged on new mining ventures from the date that the mining asset is capable  
of commercial production in respect of those mining assets whose useful lives are expected to be less than the life of the mine 
depreciation over the period of the asset’s useful life is applied 
capital constructioninprogress assets are measured at cost less any recognised impairment depreciation commences  
when the assets are ready for their intended use mineral exploration and evaluation costs including geophysical topographical 
geological and similar types of costs are capitalised if management concludes that future economic benefits are likely  
to be realised and determines that economically viable extraction operation can be established as a result of exploration  
activities and internal assessment of mineral resources
nonmining assets are depreciated to their residual values on a straightline basis over their estimated useful lives when parts  
of an item of property plant and equipment are considered to have different useful lives they are accounted for and depreciated 
separately depreciation methods residual values and estimated useful lives are reviewed at least annually
estimated useful lives are as set out below
machinery and equipment up to 20 years
transportation and other assets up to 10 years
assets held under finance leases are depreciated over the shorter of the lease term and the estimated useful lives of the assets
gains or losses on disposal of property plant and equipment are determined by comparing the proceeds from disposal  
with the asset’s carrying amount at the date the gain or loss arising is recognised in the consolidated income statement
stripping costs
when it has been determined that a mining asset can be economically developed as a result of established proven and probable 
reserves the costs to remove any overburden and other waste materials to initially expose the ore body referred to as stripping 
costs are capitalised as a part of mining assets
during the production phase of a mine when the benefit from the stripping activity is the improved access to a component  
of the ore body in future periods the stripping costs in excess of the average ore to waste ratio for the life of mine of that 
component are recognised as a noncurrent asset after initial recognition the stripping activity asset is depreciated  
on a systematic basis unitofproduction method over the expected useful life of the identified component of the ore  
body made accessible as a result of the stripping activity financial statements 116117
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
2 significant accounting policies continued 
estimated ore reserves
estimated proven and probable ore reserves reflect the economically recoverable quantities which can be legally  
recovered in the future from known mineral deposits the group’s reserves are estimated in accordance with jorc code
leases
finance leases
leases under which the group assumes substantially all the risks and rewards of ownership are classified as finance leases 
assets subject to finance leases are capitalised as property plant and equipment at the lower of fair value or present value  
of future minimum lease payments at the date of acquisition with the related lease obligation recognised at the same value  
assets held under finance leases are depreciated over their estimated economic useful lives or over the term of the lease  
if shorter if there is reasonable certainty that the lessee will obtain ownership by the end of the lease term the period  
of expected use is useful life of the asset
finance lease payments are calculated using the effective interest rate method and allocated between the lease finance cost 
which is included in finance cost and the capital repayment which reduces the related lease liability payable to the lessor
operating leases
operating lease payments are recognised as an expense on a straightline basis over the lease term contingent rentals  
arising under operating leases are recognised as an expense in the period in which they are incurred
impairment of property plant and equipment
an impairment review of property plant and equipment is carried out when there is an indication that those assets have suffered 
an impairment loss if any such indication exists the carrying amount of the asset is compared to the estimated recoverable 
amount of the asset in order to determine the extent of the impairment loss if any where it is not possible to estimate the 
recoverable amount of an individual asset the group estimates the recoverable amount of the cashgenerating unit to which  
the asset belongs 
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated future 
cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted  
if the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount the carrying 
amount of the asset or cash generating unit is reduced to its recoverable amount an impairment loss is recognised  
as an expense immediately in the consolidated income statement
where an impairment loss subsequently reverses the carrying amount of the asset or cashgenerating unit is increased  
to the revised estimate of its recoverable amount but only to the extent that the increased carrying amount does not exceed  
the original carrying amount that would have been determined had no impairment loss been recognised in prior periods
a reversal of an impairment loss is recognised in the consolidated income statement immediately
inventories
metal inventories
inventories including refined metals metals in concentrate and in process doré and ore stock piles are stated at the lower  
of production cost or net realisable value production cost is determined as the sum of the applicable expenditures and 
expenses incurred directly or indirectly in bringing inventories to their existing condition and location refined metals are valued  
at the average total cost of production per saleable unit of metal work inprocess metal concentrate and doré are valued  
at the average total production costs at each asset’s relevant stage of production ore stock piles are valued at the average  
cost of mining that ore where ore stock piles are not expected to be processed within 12 months those inventories are 
classified as noncurrent
net realisable value represents the estimated selling price for that product based on prevailing spot metal prices less estimated 
costs to complete production and selling costs
consumables and spare parts
consumables and spare parts are stated at the lower of cost or net realisable value cost is determined on the weighted average 
moving cost the portion of consumables and spare parts not reasonably expected to be used within one year is classified  
as a longterm asset in the group’s consolidated balance sheet net realisable value represents the estimated selling price  
less all estimated costs of completion and costs to be incurred in marketing selling and distribution
financial instruments
financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual provisions  
of the instrument
financial assets and financial liabilities are initially measured at fair value transaction costs that are directly attributable  
to the acquisition or issue of financial assets and financial liabilities other than financial assets and financial liabilities at fair value 
through profit or loss are added to or deducted from the fair value of the financial assets or financial liabilities as appropriate  
on initial recognition transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair  
value through profit or loss are recognised immediately in the consolidated income statement
financial instruments designated as fair value through profit and loss fvtpl
a financial instrument other than a financial instrument held for trading may be designated as at fvtpl upon initial recognition if
•	 such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise  
arise or
•	 the financial instrument forms part of a group of financial assets or financial liabilities or both which is managed and its 
performance is evaluated on a fair value basis in accordance with the group’s documented risk management or investment 
strategy and information about the grouping is provided internally on that basis or
•	it forms part of a contract containing one or more embedded derivatives and ias 39 financial instruments recognition  
and measurement permits the entire combined contract asset or liability to be designated as at fvtpl
financial instruments at fvtpl are stated at fair value with any gains or losses arising on remeasurement recognised in profit  
or loss fair value is determined in the manner described in note 30
effective interest rate method
the effective interest rate method is a method of calculating the amortised cost of a financial instrument and of allocating interest 
income or expense over the relevant period the effective interest rate is the rate that discounts estimated future cash receipts  
or payments including all fees and points paid or received that form an integral part of the effective interest rate transaction 
costs and other premiums or discounts through the expected life of the financial instrument or where appropriate a shorter 
period to the net carrying amount on initial recognition
financial assets
nonderivative financial assets are classified into the following specified categories fvtpl available for sale afs financial 
assets and ‘loans and receivables’ the classification depends on the nature and purpose of the financial assets and  
is determined at the time of initial recognition no financial instruments have been classified as available for sale
income is recognised on an effective interest basis for financial instruments other than those financial assets classified  
as at fvtpl
loans and receivables
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active 
market loans and receivables are measured at amortised cost using the effective interest rate method less any impairment 
interest income is determined by applying the effective interest rate except for shortterm receivables when the recognition  
of interest would be immaterial
afs financial assets
investments other than those classified as held for trading heldtomaturity or loans and receivables are classified as available  
for sale financial assets these assets are subsequently measured at fair value and unrealised gains and losses are recognised  
in equity until the investment is disposed or impaired at which time the cumulative gain or loss previously recognised in equity  
is included in the consolidated income statement
impairment of financial assets
financial assets other than those at fvtpl are assessed for indicators of impairment at the end of each reporting period 
financial assets are considered to be impaired when there is objective evidence that as a result of one or more events that 
occurred after the initial recognition of the financial asset the estimated future cash flows of the investment have been affected 
for equity investments classified as afs a significant or prolonged decline in the fair value of the security below its cost  
is considered to be objective evidence of impairment
for all other financial assets objective evidence of impairment could include
•	significant financial difficulty of the issuer or counterparty or
•	 breach of contract such as a default or delinquency in interest or principal payments or
•	 it becoming probable that the borrower will enter bankruptcy or financial reorganisation or
•	 the disappearance of an active market for that financial asset because of financial difficulties financial statements 118119
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
2 significant accounting policies continued 
for financial assets carried at amortised cost the amount of the impairment loss recognised is the difference between the 
asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective 
interest rate
the carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception  
of trade receivables where the carrying amount is reduced through the use of an allowance account when a trade receivable  
is considered uncollectible it is written off against the allowance account subsequent recoveries of amounts previously written 
off are credited against the allowance account changes in the carrying amount of the allowance account are recognised in the 
consolidated income statement
for financial assets measured at amortised cost if in a subsequent period the amount of the impairment loss decreases and 
the decrease can be related objectively to an event occurring after the impairment was recognised the previously recognised 
impairment loss is reversed through the consolidated income statement to the extent that the carrying amount of the investment 
at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment  
not been recognised
derecognition of financial assets
the group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or when  
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity if the group 
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset 
the group recognises its retained interest in the asset and an associated liability for amounts it may have to pay if the group 
retains substantially all the risks and rewards of ownership of a transferred financial asset the group continues to recognise  
the financial asset and also recognises a collateralised borrowing for the proceeds received
financial liabilities
other financial liabilities
other financial liabilities including borrowings are subsequently measured at amortised cost using the effective interest  
rate method
derecognition of financial liabilities
the group derecognises financial liabilities when and only when the group’s obligations are discharged cancelled or they 
expire the difference between the carrying amount of the financial liability derecognised and the consideration paid and  
payable is recognised in the consolidated income statement
derivative financial instruments
the group may enter into a variety of derivative financial instruments to manage its exposure to certain risks further details  
of derivative financial instruments are disclosed in note 30
derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently 
remeasured to their fair value at the end of each reporting period the resulting gain or loss is recognised in the consolidated 
income statement immediately unless the derivative is designated and effective as a hedging instrument in which event the 
timing of the recognition in the consolidated income statement depends on the nature of the hedge relationship
derivatives embedded in nonderivative host contracts are treated as separate derivatives when their risks and characteristics 
are not closely related to those of the host contracts and the hybrid contracts are not measured at fvtpl
borrowing costs
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets that 
necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets 
until such time as the assets are substantially ready for their intended use or sale
investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets  
is deducted from the borrowing costs eligible for capitalisation
all other borrowing costs are recognised in the consolidated income statement in the period in which they are incurred
cash and cash equivalents
cash and cash equivalents comprise cash balances cash deposits and highly liquid investments with original maturities of three 
months or fewer which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value
provisions
provisions are recognised when the group has a present obligation legal or constructive as a result of a past event it is probable 
that the group will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation
the amount recognised as a provision is the best estimate of the consideration required to settle the present obligation  
at the reporting date taking into account the risks and uncertainties surrounding the obligation where a provision is measured 
using the cash flows estimated to settle the present obligation its carrying amount is the present value of those cash flows
environmental obligations
an obligation to incur environmental restoration rehabilitation and decommissioning costs arises when disturbance is caused  
by the development or ongoing production of mining assets such costs arising from the decommissioning of plant and other 
site preparation work discounted to their net present value using a riskfree rate applicable to the future cash flows are provided 
for and capitalised at the start of each project as soon as the obligation to incur such costs arises these costs are recognised 
in the consolidated income statement over the life of the operation through the depreciation of the asset in the cost of sales line 
and the unwinding of the discount on the provision in the finance costs line costs for restoration of subsequent site damage 
which is created on an ongoing basis during production are provided for at their net present values and recognised in the 
consolidated income statement as extraction progresses
changes in the measurement of a liability relating to the decommissioning of plant or other site preparation work that result from 
changes in the estimated timing or amount of the cash flow or a change in the discount rate are added to or deducted from the 
cost of the related asset in the current period if a decrease in the liability exceeds the carrying amount of the asset the excess  
is recognised immediately in the consolidated income statement
the provision for closure cost obligations is remeasured at the end of each reporting period for changes in estimates and 
circumstances changes in estimates and circumstances include changes in legal or regulatory requirements increased 
obligations arising from additional mining and exploration activities changes to cost estimates and changes to the risk free 
interest rate
employee benefit obligations
remuneration paid to employees in respect of services rendered during a reporting period is recognised as an expense in that 
reporting period the group pays mandatory contributions to the state social funds including the pension fund of the russian 
federation and kazakhstan which are expensed as incurred
 
taxation
income tax expense represents the sum of the tax currently payable and deferred tax income taxes are computed  
in accordance with the laws of countries where the group operates
current tax
the tax currently payable is based on taxable profit for the period taxable profit differs from profit as reported in the consolidated 
income statement because of items of income or expense that are taxable or deductible in other periods  
and items that are never taxable or deductible the group’s liability for current tax is calculated using tax rates that have  
been enacted or substantively enacted by the reporting date
deferred tax
deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated 
financial statements and the corresponding tax bases used in the computation of taxable profit deferred tax liabilities are 
generally recognised for all taxable temporary differences deferred tax assets are generally recognised for all deductible 
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible 
temporary differences can be utilised such deferred tax assets and liabilities are not recognised if the temporary difference 
arises from goodwill or from the initial recognition other than in a business combination of other assets and liabilities  
in a transaction that affects neither the taxable profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and 
associates and interests in joint ventures except where the group is able to control the reversal of the temporary difference and 
it is probable that the temporary difference will not reverse in the foreseeable future deferred tax assets arising from deductible 
temporary differences associated with such investments and interests are only recognised to the extent that it is probable that 
there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected  
to reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent  
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability  
is settled or the asset realised based on tax rates and tax laws that have been enacted or substantively enacted by the end  
of the reporting period the measurement of deferred tax liabilities and assets reflects the tax consequences that would follow 
from the manner in which the group expects at the end of the reporting period to recover or settle the carrying amount  
of its assets and liabilities financial statements 120121
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
2 significant accounting policies continued 
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against  
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends  
to settle its current tax assets and liabilities on a net basis
current and deferred tax
current and deferred tax is recognised in the consolidated income statement except when they relate to items that are 
recognised in the consolidated statement of comprehensive income or directly in equity in which case the current and deferred 
tax also recognised in consolidated statement of comprehensive income or directly in equity respectively where current  
tax or deferred tax arises from the initial accounting for a business combination the tax effect is included in the accounting  
for the business combination
revenue recognition
revenue is derived principally from the sale of gold and silver bullions and copper gold and silver concentrate and is measured 
at the fair value of consideration received or receivable after deducting discounts
revenue from the sale of gold and silver bullion and sale of copper gold and silver concentrate is recognised when the risks and 
rewards of ownership are transferred to the buyer the group retains neither a continuing degree of involvement nor control over 
the goods sold the amount of revenue can be measured reliably and it is probable that the economic benefits associated with 
the transaction will flow to the group revenue from the sale of gold and silver bullion represents the invoiced value of metal 
shipped to the buyer net of value added tax vat
sale of gold and silver bullion
the group processes doré produced in the russian federation at dukat khakanja voro omolon and amurskalbazino  
into london good delivery bars prior to sale this final stage of processing is carried out on a tolltreatment basis at four 
stateowned refineries the group sells gold and silver bullion to banks through longterm agreements the sales price  
as determined in the agreement may be variable based upon the london bullion market association lbma spot price  
or fixed but the group’s policy is not to enter into fixed price contracts for domestic sales title passes from the group to the 
purchaser at the refinery gate with revenue recognised at that point for export sales once the gold andor silver bars have been 
approved for export by russian customs they are then transported to the vault of the purchaser which is typically located  
in london title passes and revenue is recognised at the point when the gold andor silver bars are received by the purchaser
sales of copper gold and silver concentrate
the group sells copper gold and silver concentrate under pricing arrangements where final prices are determined by quoted 
market prices in a period subsequent to the date of sale concentrate sales are initially recorded based on forward prices  
for the expected date of final settlement revenue is recorded at the time of shipment which is also when risks and rewards 
pass to the buyer revenue is calculated based on the copper gold and silver content in the concentrate and using the forward 
london bullion market association lmba or london metal exchange lme price to the estimated final pricing date adjusted 
for the specific terms of the relevant agreement until final settlement occurs adjustments to revenue are made to take into 
account the changes in metal quantities upon receipt of new information and assay revenue is presented net of refining and 
treatment charges which are subtracted in calculating the amount to be invoiced
the group’s sales of copper gold and silver concentrate are based on a provisional price and as such contain an embedded 
derivative that is required to be separated from the host contract for accounting purposes the host contract is the receivable 
from the sale of the concentrate at the forward exchange price at the time of sale the embedded derivative which does not 
qualify for hedge accounting is measured at fvtpl with changes in its fair value recognised within revenue in the consolidated 
income statement for each period prior to the final settlement
sharebased compensation
the group applies ifrs 2 sharebased payments to its accounting for sharebased compensation ifrs 2 requires companies 
to recognise compensation costs for sharebased payments to employees based on the grantdate fair value of the award
the fair value of equitysettled sharebased payments awarded in 2010 was calculated by the group at the grant date using  
the twostage montecarlo simulation model the expense is recognised on a straightline basis over the vesting period  
of the awards no other share based payment awards were issued by the group during the year ended 31 december 2013 
the fair value of the awards granted is recognised as a general administrative and selling expense over the vesting period with  
a corresponding increase in the sharebased compensation reserve upon the exercise of the awards the proceeds received 
net of any directly attributable transaction costs are credited to the stated capital account and the amounts recognised within 
the sharebased compensation reserve transferred to retained earnings
earnings per share
earnings per share calculations are based on the weighted average number of common shares outstanding during the period 
diluted earnings per share are calculated using the treasury stock method whereby the proceeds from the potential exercise  
of dilutive stock options with exercise prices that are below the average market price of the underlying shares are assumed  
to be used in purchasing the company’s common shares at their average market price for the period
3 critical accounting judgements and key sources of estimation uncertainty
the following are the critical judgements apart from those involving estimations see below that management has  
made in the process of applying the group’s accounting policies and that have the most significant effect on the amounts 
recognised in consolidated financial statements
production start date
the group assesses the stage of each mine or plant construction project to determine when an asset moves into the 
commercial production stage the criteria used to assess the start date are determined by the unique nature of each 
construction project and include factors such as the complexity of a plant and its location
the group considers various relevant criteria to assess when the mine is substantially complete and ready  
for its intended use and moves into the production stage criteria considered but are not limited to the following
•	 the level of capital expenditure incurred compared to the construction cost estimates
•	the completion of a sufficient level of testing on the mine plant and equipment
•	 the ability to produce gold silver or copper in saleable form within specifications and
•	 the ability to sustain ongoing commercial levels of production
when a construction project moves into the commercial production stage and depreciation commences the capitalisation  
of certain mine construction costs and interest ceases and costs are either regarded as inventory or expensed except  
for capitalisable costs related to mining asset additions or improvements underground mine development or ore  
reserve development
the omolon merrillcrowe plant achieved commercial production in april 2012
amursk pox achieved commercial production in november 2012
the mayskoye plant and underground mine reached commercial production in april 2013
acquisitions
ifrs 3 business combinations applies to a transaction or other event that meets the definition of a business combination  
when acquiring new entities or assets the group applies judgement to assess whether the assets acquired and liabilities 
assumed constitute an integrated set of activities and thus whether the transaction constitutes a business combination  
using the guidance provided in the standard in making this determination management evaluates the inputs processes  
and outputs of the asset or entity acquired 
as a result of this evaluation process management has determined that its 2012 acquisitions of olcha semchenskoye and 
svetlobor did not meet the definition of a business combination and as such the group has accounted for these transactions  
as asset acquisitions see note 4 
key sources of estimation uncertainty
preparation of the consolidated financial statements in accordance with ifrs requires management to make estimates and 
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the 
date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period 
the determination of estimates requires judgements which are based on historical experience current and expected economic 
conditions and all other available information actual results could differ from those estimates
the following are the key assumptions concerning the future and other key sources of estimation uncertainty at the end  
of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and 
liabilities within the next financial period
the most significant areas requiring the use of management estimates and assumptions relate to
•	 fair value of net assets acquired and liabilities assumed in business combinations
•	 ore reserve estimates
•	depreciation
•	impairment of goodwill mining assets and other property plant and equipment
•	 stock piles and work inprocess
•	 s ha r e  b a s e d c om p e n s a t i o n 
•	 e n v i r o nm e n t a l obl i g a t i o n s 
•	 c o n t i ng e nc i e s  a nd
•	income taxes financial statements 122123
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
3 critical accounting judgements and key sources of estimation uncertainty continued 
fair value of net assets acquired and liabilities assumed in business combinations
in accordance with the group’s policy the group allocates the cost of the acquired entity to the assets acquired and liabilities 
assumed based on their fair values as estimated on the date of acquisition any difference between the cost of the acquired 
entity and the fair value of the assets acquired and liabilities assumed is recorded as goodwill the group exercises significant 
judgement in the process of identifying tangible and intangible assets and liabilities valuing these assets and liabilities and 
estimating their remaining useful lives the valuation of these assets and liabilities is based on assumptions and criteria that  
in some cases include management’s estimates of discounted future cash flows 
if actual results are not consistent with estimates and assumptions considered the group may have to adjust its estimates of the 
fair values of assets and liabilities recognised and the goodwill balance during the measurement period such a remeasurement 
could have an impact on the amounts reported in the consolidated income statement in current and future periods
ore reserve estimates
an ore reserve estimate is an estimate of the amount of product that can be economically and legally extracted from the group’s 
properties ore reserve estimates are used by the group in the calculation of depletion of mining assets using the unitsof
production method impairment charges and in forecasting the timing of the payment of decommissioning and land restoration 
costs also for the purpose of impairment review and the assessment of the timing of the payment of decommissioning and land 
restoration costs management may take into account mineral resources in addition to ore reserves where there is a high degree 
of confidence that such resources will be extracted
in order to calculate ore reserves estimates and assumptions are required about geological technical and economic factors 
including quantities grades production techniques recovery rates production costs transport costs commodity demand 
commodity prices discount rates and exchange rates estimating the quantity andor grade of ore reserves requires the size 
shape and depth of ore bodies to be determined by analysing geological data such as the logging and assaying of drill samples 
this process may require complex and difficult geological judgements and calculations to interpret the data
ore reserve estimates may change from period to period as additional geological data becomes available during the course  
of operations or if there are changes in any of the aforementioned assumptions such changes in estimated reserves may affect 
the group’s financial results and financial position in a number of ways including the following
•	asset carrying values due to changes in estimated future cash flows
•	 depletion charged in the consolidated income statement where such charges are determined by using the  
unitsofproduction method
•	 provisions for decommissioning and land restoration costs where changes in estimated reserves affect expectations  
about the timing of the payment of such costs and
•	carrying value of deferred tax assets and liabilities where changes in estimated reserves affect the carrying value  
of the relevant assets and liabilities
depreciation
mining assets are depreciated using the unitsofproduction method except where the useful lives of the assets are shorter  
than the life of mine the unitsofproduction depreciation calculations are based on proved and probable reserves under  
the jorc code jorc which is the basis on which the group’s mine plans are prepared as the useful lives of these assets  
are considered to be limited to the life of the relevant mine for other property plant and equipment the straightline method  
is applied over the estimated useful life of the asset which does not exceed the estimated mine life 
the calculation of the unitsofproduction rate of depreciation could be impacted to the extent that actual production  
in the future is different from current forecast production based on proved and probable ore reserves this would generally  
arise when there are significant changes in any of the factors or assumptions used in estimating ore reserves
impairment of goodwill mining assets and other property plant and equipment
the group considers both external and internal sources of information in assessing whether there are any indications that 
goodwill mining assets or other property plant and equipment owned by the group are impaired external sources of 
information the group considers include changes in the market and economic and legal environment in which the group 
operates that are not within its control and that affect the recoverable amount of goodwill mining assets or other property  
plant and equipment
internal sources of information the group considers include the manner in which mining properties plant and equipment are 
being used or expected to be used and indications of economic performance of the assets in determining the recoverable 
amounts of the group’s mining assets and other property plant and equipment the group’s management determines the fair 
value less costs to sell by estimating the discounted future aftertax cash flows expected to be derived from the group’s mining 
properties costs to sell the mining properties and the appropriate posttax discount rate reductions in metal price forecasts 
increases in estimated future costs of production increases in estimated future capital costs reductions in the amount  
of recoverable reserves and resources andor adverse current economics can result in a writedown of the carrying amounts  
of the group’s goodwill mining assets or other property plant and equipment
in making the assessment for impairment assets that do not generate independent cash inflows are allocated to an appropriate 
cashgenerating unit management necessarily applies its judgement in allocating assets that do not generate independent  
cash inflows to appropriate cashgenerating units and also in estimating the timing and value of underlying cash flows within  
the valueinuse calculation subsequent changes to the cashgenerating unit allocation or to the timing of cash flows could 
impact the carrying value of the respective assets
stock piles and work inprocess
in determining mine operating costs recognised in the consolidated income statement the group’s management makes 
estimates of quantities of ore stacked on leach pads and in process and the recoverable gold and silver in this material  
to determine the average costs of finished goods sold during the period changes in these estimates can result in a change  
in mine operating costs of future periods and carrying amounts of inventories at 31 december 2013 the carrying value  
of the ore stock piles was us194 million and work inprocess was us78 million
sharebased compensation
in november 2010 the group issued equitysettled share appreciation rights to certain employees equitysettled share 
appreciation rights are measured at fair value excluding the effect of nonmarket based vesting conditions at the date of grant 
the fair value determined at the grant date of the awards is expensed as services are rendered over the vesting period based  
on the group’s estimate of the rights that will eventually vest
the fair value of sharebased compensation was measured using the montecarlo twostage simulation model the expected  
life used in the model has been adjusted based on management’s best estimate for the effects of nontransferability exercise 
restrictions and behavioral considerations the awards include an option exercisable at the discretion of the participant  
to defer the measurement period by one year from june 2013 to june 2014 for further details see note 33
as at 31 december 2013 all options issued are fully vested and no unrecognised sharebased compensation expense  
remains no other share based payment awards were issued by the group during the year ended 31 december 2013
environmental obligations
the group’s mining and exploration activities are subject to various laws and regulations governing the protection of the 
environment the group’s provision for future decommissioning and land restoration cost represents management’s best 
estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs 
inflation movements in foreign exchange rates and assumptions of risks associated with the future cash outflows and the 
applicable interest rate for discounting the future cash outflows actual costs incurred in future periods could differ materially 
from the estimates additionally future changes to environmental laws and regulations life of mine estimates and discount  
rates could affect the carrying amount of this provision
contingencies
by their nature contingencies will only be resolved when one or more future events occur or fail to occur the assessment  
of such contingencies inherently involves the exercise of significant judgements and estimates of the outcome of future events
income taxes and mining taxes
the group is subject to income tax and mining taxes in the russian federation and kazakhstan mining taxes do not meet  
the definition of a tax under ias 12 income taxes significant judgement is required in determining the provision for these taxes  
due to the complexity of legislation there are many transactions and calculations for which the ultimate tax determination  
is uncertain the group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes 
penalties and interest will be due where the final tax outcome of these matters is different from the amounts that were initially 
recorded such differences will impact the income tax and deferred tax provisions in the period in which such determination  
is made
deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient 
taxable profit will be available to allow all or part of the deferred tax asset to be utilised the estimation of that probability includes 
judgements based on the expected performance various factors are considered in order to assess the probability of the future 
utilisation of deferred tax assets including past operating results operational plan expiration of tax losses carried forward  
and tax planning strategies if actual results differ from these estimates or if these estimates must be adjusted in future periods 
the financial position results of operations and cash flows may be negatively affected financial statements 124125
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
4 acquisitions and disposals
a business combinations and asset acquisitions
olymp ltd
on 24 january 2013 the group completed the acquisition of 100 of olymp ltd a russian legal entity holding the mining  
and exploration licence for the olcha goldsilver deposit in exchange for 775000 new ordinary shares in polymetal 
olymp ltd does not meet the definition of a business pursuant to ifrs 3 2008 thus it is accounted for as an acquisition of  
a group of assets the group purchased mineral rights at cost of us134 million and other current liabilities of 001 million
zao ‘maminskaya gornorudnaya kompania’
on 20 february 2013 the group entered into a binding memorandum of understanding with vitalex investments ltd and 
arrowline investments ltd to acquire a 100 interest in zao ‘maminskaya gornorudnaya kompania’ ‘mgk’ which holds  
an exploration and mining licence for the maminskoye gold mining field ‘maminskoye’ 
on 9 april 2013 the group completed the acquisition of 100 of the ordinary share capital and debt in mgk the consideration 
for the equity investment was us39 million payable in cash and 5491661 of polymetal’s ordinary shares valued at the 
acquisition date at us746 million the debt investment in mgk was acquired for consideration payable in cash and equalling  
its carrying value of us80 million
mgk meets the definition of a business pursuant to ifrs 3 2008 thus it was accounted for at fair value using the  
acquisition method 
the allocation of the purchase price based on the consideration paid and the fair value of the assets acquired was as follows
us’000
net assets acquired
mineral rights 115127
property plant and equipment 2952
noncurrent liabilities 9896
deferred tax liability 23025
other assets net 1400
net assets acquired 86558
consideration
fair value of shares issued in polymetal international plc 74624
cash consideration for equity investment 3900
cash consideration for debt investment 8034
total consideration 86558
in the prior year the following transactions took place
veduga 
on 7 february 2012 the group completed the acquisition from anglogold ashanti holdings plc anglogold of anglogold’s 
50 interest in various companies held in joint venture with polymetal comprising the anglogold ashanti – polymetal strategic 
alliance for us20 million it subsequently entered into a series of transactions with new investors unrelated parties retaining  
a 4265 economic interest in the principal asset – the veduga licence see note 21 for further information
semchenskoye zoloto
on 22 august 2012 the group acquired 100 interest in ‘semchenskoye zoloto llc’ semchenskoye zoloto from suntsov va 
25 interest and polister limited 75 interest both unrelated parties semchenskoye zoloto holds the exploration licence  
for semchenskoye field in karelia the group paid cash consideration of us08 million in addition a contingent consideration 
of us05 million is payable by the group in case the exploration of the licence area proves to be successful and the mining 
licence for the new gold deposit is received before 25 december 2014 another us12 million is payable depending on the level  
of proved and probable ore reserves of the new deposit 
after evaluation of the possible outcome of the contingency the group estimated fair value of the contingent consideration  
to be us01 million
semchenskoye zoloto does not meet the definition of a business pursuant to ifrs 3 2008 thus it was accounted  
for as an acquisition of a group of assets the group purchased mineral rights of us08 million and other current liabilities  
of us0024 million
svetlobor
on 17 december 2012 the group acquired 2499 interest in jsc nevyansk group ng a russian legal entity whose  
whollyowned subsidiary holds a mining and exploration licence for the svetlobor area the group issued consideration  
in the form of 130053 new ordinary shares in the company simultaneously cjsc vtb capital vtb purchased a 7501 
stake in ng in exchange for 390369 new polymetal ordinary shares which were subscribed for by a subsidiary of vtb  
for a total cash consideration of us69 million 
 
the group also entered into legally binding agreement to acquire the 7501 stake in ng from vtb as soon as this transaction 
is approved by the government commission on monitoring of foreign investments for cash consideration of us69 million 
plus any interest accrued on this amount at a rate of 725 per annum
 
the group determined 17 december 2012 to be the date when it obtained control over ng and consolidated the acquiree from 
that date the cash received from vtb has been accounted for as a loan and included within borrowings note 26 ng does  
not meet the definition of a business pursuant to ifrs 3 2008 and this transaction has been treated as an acquisition of assets  
the allocation of the consideration paid to the assets acquired was as follows
 
us’000
net assets acquired 
mineral rights 9449 
other assets 299 
other liabilities 11
net assets acquired 9737 
consideration 
fair value of shares issued 9737 
b disposal of subsidiary
habarovsk exploration company llc
on 22 october 2013 the group sold its subsidiary habarovsk exploration company llc for us35 million in deferred cash 
consideration to an unrelated party the loss on disposal was calculated as follows
us’000
property plant and equipment 7124
other noncurrent assets 1395
current assets 4374
current liabilities 598
noncurrent liabilities 10121
net assets disposed of 2174
consideration receivable 3475
intercompany debt assigned to acquirer 10047
loss on disposal 8746
in the prior year the group disposed of the following minor subsidiaries ural’skoye grp llc severnoural’skoye grp llc  
and jsc aurum for further information on the partial disposal of amikan holding limited which owns the veduga gold 
deposits see note 21
ural’skoye
us’000
severno
ural’skoye
us’000
aurum
us’000
amikan
us’000 
total
us’000
net assets disposed of
property plant and equipment 295 2749 127 67842 71013
other noncurrent assets 1388 – 2317 3577 7282
current assets 1848 1688 – 230 3766
current liabilities 549 17 1278 – 1844
noncurrent liabilities – 3572 – 17995 21567
2982 848 1166 53654 58650
consideration receivable 1593 1475 3 28000 31071
fair value of interest in associate undertaking acquired – – – 20201 20201
intercompany debt assigned to acquirer – – – 3331 3331
lossgain on disposal 1389 627 1163 8784 10709 financial statements 126127
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
5 segment information
the group has seven reportable segments
•	 voro cjsc gold of northern urals
•	 khakanja llc okhotskaya mining and exploration company
•	dukat cjsc magadan silver olymp llc
•	 omolon omolon gold mining company llc
•	varvara jsc varvarinskoye
•	amurskalbazino albazino resources ltd amursk hydrometallurgical plant llc and
•	mayskoye mayskoye gold mining company llc
reportable segments are determined based on the group’s internal management reports and are separated based on the 
group’s geographical structure minor companies and activities management exploration purchasing and other companies 
which do not meet the reportable segment criteria are disclosed within corporate and other segment each segment is engaged 
in gold silver or copper mining and related activities including exploration extraction processing and reclamation the group’s 
segments are all based in the russian federation except for varvara which is based in kazakhstan
the measure which management and the chief operating decision maker the codm use to evaluate the performance  
of the group is segment adjusted ebitda which is defined as profit for the period adjusted for depreciation and amortization 
impairment of noncurrent assets writedowns of inventory to net realisable value sharebased compensation expenses 
rehabilitation expenses gains or losses arising on acquisition or disposal of subsidiaries foreign exchange gains or losses 
changes in the fair value of contingent consideration finance income finance costs income tax expenses and other tax 
exposure accrued within other operating expenses the accounting policies of the reportable segments are consistent  
with those of the group’s accounting policies under ifrs as described in note 2
revenue shown as corporate and other comprises principally intersegment revenue relating to the supply of inventories  
spare parts and fixed assets and rendering management services to the group’s production entities intersegment revenue  
is recognised based on costs incurred plus a fixed margin basis external revenue shown within corporate and other represents 
revenue from services provided to third parties by the group’s nonmining subsidiaries 
business segment current assets and liabilities other than current inventory are not reviewed by the codm and therefore  
are not disclosed in these consolidated financial statements
the segment adjusted ebitda reconciles to the profit before income tax as follows
for the year ended  
31 december 2013 ’000
voro khakanja dukat omolon varvara
amursk –
 albazino mayskoye
total
 reportable
 segments
corporate
 and
other
intersegment
operations 
and
balances total
revenue from external customers 214712 202641 531587 222795 189527 293778 49547 1704587 2010 – 1706597
intersegment revenue – – – 1298 760 605 – 2663 411786 414449 –
cost of sales excluding 
depreciation depletion and 
writedown of inventory to net 
realisable value 69174 102168 270576 134967 106748 172194 40612 896789 298092 316984 877897
 cost of sales 86437 126345 330341 188623 123465 231933 56409 1143553 297227 316984 1123796
 depreciation included in cost of sales 16990 23627 60666 43154 16392 59673 13177 233679 – – 233679
  writedown of nonmetal  
inventory to net realisable value 166 435 1847 10005 325 117 2594 11561 865 – 10696
 rehabilitation expenses 107 115 596 497 – 183 26 1524 – – 1524
general administrative and selling 
expenses excluding depreciation 
amortization and share based 
compensation 8086 9459 13469 11495 5074 9536 10255 67374 99476 26805 140045
  g e n e ra l  a d m i n i st ra t i v e  
and selling expenses 19776 16497 24976 17876 5555 12630 12362 109672 127384 68924 168132
 intercompany management services 10780 6799 10737 6232 302 2927 1882 39659 2460 42119 –
 depreciation included in sga 910 239 770 149 179 167 225 2639 1215 – 3854
 share based compensation – – – – – – – – 24233 – 24233
other operating expenses  
excluding additional tax charges 7325 6056 18221 14334 4368 9342 2971 62617 19630 5577 87824
 other operating expenses 7325 6056 18622 14334 4629 9342 2971 63279 19630 5577 88486
  mining taxes penalties  
and accrued interest – – 401 – 261 – – 662 – – 662
share of loss of associates  
and joint ventures – – – – – – – – 2340 – 2340
adjusted ebitda 130127 84958 228971 63297 74097 103311 4291 680470 5742 76237 598491
depreciation expense 17900 23866 61436 43303 16571 59840 13402 236318 1215 – 237533
rehabilitation expenses 107 115 596 497 – 183 26 1524 – – 1524
writedown of nonmetal  
inventory to net realisable value 166 435 1847 10005 325 117 2594 11561 865 – 10696
impairment of noncurrent assets – 104404 – 16587 80114 – – 201105 – – 201105
impairment of investment in associate – – – – – – – – 12291 – 12291
writedowns of metal inventories  
to net realisable value 2559 28160 11954 75229 19301 – 16124 153327 – – 153327
sharebased compensation – – – – – – – – 24233 – 24233
mining taxes penalties  
and accrued interest – – 401 – 261 – – 662 – – 662
operating profitloss 109395 72022 156431 82324 42475 43405 36437 75973 42616 76237 42880
foreign exchange loss       74240
loss on disposal of subsidiaries       8746
change in fair value  
of contingent consideration       8131
finance income       2850
finance costs       42735
loss before tax       157620
income tax benefit       40417
loss for the financial period       198037
current metal inventories 62154 53671 83533 72332 14527 84716 59471 430404 222 3474 427152
current nonmetal inventories 8898 54548 51414 57494 23882 46804 50354 293394 25420 18822 299992
noncurrent segment assets       
 property plant and equipment net 93866 59741 416822 250847 150564 568599 325580 1866019 264395 35672 2094742
 goodwill – – 8876 – – – 22013 30889 – – 30889
 noncurrent inventory 2554 5165 11135 16189 9178 4802 5905 54928 759 2545 53142
 investments in associates – –  – – – – – – 15651 – 15651 
total segment assets 167472 173125 571780 396862 198151 704921 463323 2675634 306447 60513 2921568
additions to noncurrent assets
property plant and equipment 19701 39443 40309 57317 42323 70997 58006 328096 40650 11929 356817
acquired in business combinations  
and acquisition of group of assets – – 13400 – – – – 13400 118079 – 131479 financial statements 128129
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
6 revenue
revenue analysed by geographical regions of customers is presented below
 year ended
31 december
2013
us’000
31 december
2012
us’000
sales within the russian federation 1060935 1055569 
sales to kazakhstan 170178 396543 
sales to europe 151970 219546 
sales to china 165368 178059 
sales to korea 90512 1429 
sales to japan 65183 1066
total metal sales 1704146 1852212 
other sales 2451 1853 
total 1706597 1854065 
metal sales to related parties sales to nomosbank are disclosed in note 34
included in revenues for the year ended 31 december 2013 are revenues which arose from sales to three of the group’s  
largest customers amounting to us391 million us273 million and us175 million respectively 2012 us357 million 
us340 million and us234 million respectively no other customers individually account for more than 10 of the  
group’s revenues
presented below is an analysis of revenue from gold silver and copper sales
 year ended 31 december 2013 year ended 31 december 2012
 
thousand
ounces
 tonnes
unaudited
 shipped
thousand
ounces
tonnes
 unaudited
 payable
average
price
 us dollar
per troy
ouncetonne
payable
 unaudited us’000
thousand
ounces
tonnes
unaudited
 shipped
thousand
ounces
tonnes
unaudited
 payable
average
price
us dollar
per troy 
ouncetonne
payable
 unaudited us’000
gold thousand ounces 818 808 1326 1070847 593 589 1640 966463
silver thousand ounces 27414 27376 22 592576 27797 27797 30 832886
copper tonnes 6468 6141 6631 40723 7011 7011  7540 52863
total   1704146   1852212
 
7 cost of sales excluding writedowns of metal inventories to net realisable value
 year ended
31 december
 2013
us’000 
31 december
2012
restated
us’000 
cash operating costs
onmine costs note 8 393067 364134 
smelting costs note 9 384192  335564 
purchase of ore from third parties 18836  29519 
purchase of ore from related parties 13983  3035 
mining tax 109421  120910 
total cash operating costs 919499 853162 
depreciation and depletion of operating assets note 10 245483  178417 
rehabilitation expenses 1524 2810 
total costs of production 1166506  1034389 
increase in metal inventories 53985 186989
writedown of nonmetal inventories to net realisable value note 23 10696  2343 
cost of other sales 579  2096 
total 1123796  851839 
     
due to significant decline in gold and silver prices during first half of the year ended 31 december 2013 the group  
has separately written down some of its metal inventories refer to note 23
5 segment information continued
for the year ended  
31 december 2012 ’000 restated
 voro khakanja dukat omolon varvara
 amursk –
 albazino mayskoye
 total 
reportable
 segments
 corporate
 and other
 intersegment 
operations
and
balances total
revenue from external customers 268427 302482 672881 295748 215241 99182 – 1853961 104 – 1854065
intersegment revenue 183 –  – –  674 9730 – 10587 480432 491019 –
cost of sales excluding 
depreciation depletion and 
writedown of inventory to net 
realisable value 72346 101595 262198 150294 103533 51240 1 741207 366971 399281 708897
 cost of sales 90417 131963 294120 187494 117147 66370 3362 884149 366971 399281 851839
 depreciation included in cost of sales 17673 29486 31698 31008 13883 14041 – 137789 – – 137789
  writedown of nonmetal inventory to 
net realisable value – 4 71 5836 269 206 3363 2343 – – 2343
 rehabilitation expenses 398 878 295 356 – 883 – 2810 – – 2810
general administrative and selling 
expenses excluding depreciation 
amortization and share based 
compensation 7823 8833 12487 9279 4329 10297 8779 61827 99428 38323 122932
  general administrative and selling 
expenses 20085 15842 23197 15581 5342 11669 9088 100804 157389 76545 181648
 intercompany management services 10322 6545 10211 6219 858 1161 147 35463 2759 38222 –
 depreciation included in sga 1940 464 499 83 155 211 162 3514 923 – 4437
 share based compensation – – – – – – – – 54279 – 54279
other operating expenses excl 
additional tax charges 6358 14535 20038 7335 6471 11946 2868 69551 17659 734 87944
 other operating expenses 6358 14535 73645 7335 18775 11946 2868 135462 17659 734 153855
  mining taxes penalties  
and accrued interest – – 53607 – 12304 – –  65911 – –  65911
share of loss of associates  
and joint ventures – – – – – – – – 1804 –  1804
adjusted ebitda 182083 177519 378158 128840 101582 35429 11648 991963 5326 54149 932488
depreciation expense 19613 29950 32197 31091 14038 14252 162 141303 923 – 142226
rehabilitation expenses 398 878 295 356 – 883 – 2810 – – 2810
writedowns of metal inventories to net 
realisable value – – – – – 4000 –  4000 – –  4000
writedown of nonmetal inventory to 
net realisable value – 4 71 5836 269 206 3363 2343 – – 2343
additional tax charges according to the 
supreme arbitration court decision – – 53607 – 12304 – – 65911 – – 65911
sharebased compensation – – – – – – – – 54279 – 54279
operating profitloss 162072 146687 292130 91557 75509 16088 8447 775596 60528 54149 660919
loss on disposal of subsidiaries           10709
gain on acquisition of remaining  
interest in joint venture          21051
foreign exchange           6677
change in fair value  
of contingent consideration           4717
finance income           4657
finance costs           26787
profit before tax           651091
income tax expense           222868
profit for the year attributable  
to the equity holders of the parent           428223
current metal inventories 58652 84983 102062 109105 51998 126924 13515 547241 486 4558 543169
current nonmetal inventories 7953 53215 49432 65786 21293 45022 31200 273901 43116 19565 297452
noncurrent segment assets           
property plant and equipment net 104708 146536 449867 285904 154276 595261 320119 2056671 176823 27762 2205732
goodwill  14238 8737  68411  23720 115106   115106
noncurrent inventory 4213 7554 10993 45987 5933 9832 10119 94631 4232 – 98863
investments in associates – – – – – – – – 29822 –  29822
total segment assets 175526 306526 621091 506782 301911 777039 398673 3087548 254477 51885 3290140
additions to noncurrent assets           
property plant and equipment 27125 28788 52452 82363 16476 104037 106262 417503 21142 4261 434384
acquired in the year – – – – – – – – 10270 – 10270
  financial statements 130131
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
7 cost of sales excluding writedowns of metal inventories to net realisable value continued 
mining tax is a royalty payable in russian federation and kazakhstan which is calculated based on the value of the precious 
metals extracted in the period this value is usually determined based on the realised selling price of precious metals or in case  
if there were no sales during the period cost of sales of metals extracted russian federation or the average market price 
kazakhstan during the period 
mining tax in respect of the metal inventories produced during the year is recognised within cost of sales while the additional 
mining tax accruals in respect of various disputes with tax authorities are recognised within other expenses see note 12
8 onmine costs
 year ended
 
31 december
 2013
us’000
31 december
2012
restated
us’000
consumables and spare parts 114679  121366 
services 165936  146876 
labour 109475  90760 
taxes other than income tax 609  1115 
other expenses 2368 4017
total note 7 393067  364134 
9 smelting costs
 year ended
 
31 december
 2013
us’000
31 december
2012
us’000
consumables and spare parts 171358  138258 
services 139489  137339 
labour 70650  57063 
taxes other than income tax 1021  902 
other expenses 1674  2002 
total note 7 384192  335564 
10 depletion and depreciation of operating assets
 year ended
 
31 december
 2013
us’000
31 december
2012
restated
us’000
onmine 159218 117504
smelting 86265 60913
total note 7 245483 178417
depreciation on operating assets excludes depreciation relating to nonoperating assets included in general administrative  
and selling expenses and depreciation related to assets employed in development projects where the charge is capitalised 
depreciation expense which is excluded from the group’s calculation of adjusted ebitda see note 5 also excludes amounts 
absorbed into unsold metal inventory balances
11 general administrative and selling expenses
 year ended
 
31 december
 2013
us’000
31 december
 2012
us’000
labour 106952  92429 
services 18739  18430 
sharebased compensation 24233  54279 
depreciation 3854  4437 
other  14354  12073 
total 168132 181648
12 other expenses
 year ended
 
 
31 december
 2013
us’000
31 december
 2012
us’000
mining taxes penalties and accrued interest note 16  662  65911 
exploration expenses  24144  32908 
taxes other than income tax  21164  14205 
social payments  10709  10544 
loss on disposal of property plant and equipment  9503  9325 
housing and communal services  6547  7860 
bad debt allowance  1089  267 
other expenses  14668  12835 
total  88486  153855 
mining taxes penalties and accrued interest have been accrued in respect of various disputes with the russian and kazakh  
tax authorities the background to these cases and their impact on the results of the group has been set out in more detail 
within note 16 
13 employee costs
the weighted average number of employees during the year ended 31 december 2013 was 
  year ended 
 
31 december
 2013
number
31 december
 2012
number
voro 913  901 
khakanja 1144  1132 
dukat 1952  1926 
omolon 910  1027 
varvara 730  695 
amurskalbazino 1158  1119 
mayskoye 941  759 
corporate and other 1484  1434 
total 9232  8993 
year ended
31 december
 2013
us’000
31 december
 2012
restated
us’000
wages and salaries 281316 252152
social security costs 64557 53963
share based payments expense 24233 54279
total payroll costs 370106 360394
reconciliation
less employee costs capitalised 52003 53831
less employee costs absorbed into unsold metal inventory balances 13815 23176
employee costs included in operating costs 304288 283387
compensation for key management personnel is disclosed within note 34 financial statements 132133
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
14 auditor’s remuneration
  year ended 
 
 
31 december
 2013
us’000
31 december
 2012
us’000
fees payable to the auditor and their associates for the audit of the company’s annual report
united kingdom 353  254 
overseas 595  588 
total audit fees 948  842 
auditrelated assurance services half year review 527  355 
total audit and halfyear review fees 1475 1197
taxation compliance services ie related to assistance with corporate tax returns 16  99 
capital project consulting services 394 –
other nonaudit services 10  10 
total nonaudit services excluding halfyear review 420  109 
total fees 1895  1306 
15 finance costs
  year ended 
31 december
 2013
us’000
31 december
 2012
us’000
interest expense on borrowings 29972 18523
unwinding discount on borrowings 9070 4643
unwinding of discount on environmental obligations 3693 3621
total 42735 26787
interest expense on borrowings excludes borrowing costs capitalised in the cost of qualifying assets of us61 million  
and us147 million during the years ended 31 december 2013 and 2012 respectively these amounts were calculated  
based on the group’s general borrowing pool and by applying an effective interest rate of 299 and 306 respectively  
to cumulative expenditure on such assets
16 income tax
the income tax expense for the year ended 31 december 2013 is as follows
  year ended 
 
 
31 december
 2013
us’000
31 december
2012
restated
us’000
current income taxes 105096  174444 
excess profit taxes payable in kazakhstan  8313  17111 
income tax expense arising in respect of lost litigation –  27475 
deferred income taxes 72992 3838 
  40417  222868 
a reconciliation between the reported amount of income tax expense attributable to lossprofit before income tax for the year 
ended 31 december 2013 is as follows
  year ended 
 
 
31 december
 2013
us’000
31 december 
2012
restated
us’000
lossprofit before income tax  157620 651091 
statutory income tax expense at the tax rate of 20 31524 130218 
loss incurred in taxfree jurisdictions 8309  4336
sharebased compensation 4720  10856 
excess profit taxes payable in kazakhstan 8313  17111 
effect of income tax rate adjustment – – 
income tax arising in respect of lost litigation –  27475 
income tax provision in respect of other exposures –  5055 
tax effect of nondeductible expenses and other permanent differences 50599  36489 
total income tax expense 40417  222868 
the actual tax expense differs from the amount which would have been determined by applying the statutory rate of 20  
for the russian federation and kazakhstan to profit before income tax as a result of the application of relevant jurisdictional tax 
regulations which disallow certain deductions which are included in the determination of accounting profit these deductions 
include sharebased payment expenses social related expenditures and other nonproduction costs certain general and 
administrative expenses financing expenses foreign exchange related and other costs
in the normal course of business the group is subject to examination by tax authorities throughout the russian federation  
and kazakhstan out of the large operating companies of the group tax authorities have audited cjsc gold of northern urals 
up to 2011 omolon gold mining company llc llc okhotskaya mining and exploration company cjsc and mayskoye gold 
mining company llc up to 2010 cjsc magadan silver for the period up to 2009 jsc varvarinskoye for the period up to 2010 
according to russian and kazakhstan tax legislation previously conducted audits do not fully exclude subsequent claims 
relating to the audited period 
income tax and other expenses arising in respect of lost litigation
at 31 december 2012
during the year ended 31 december 2012 the group provided for certain expenses and tax exposures in respect  
of lost litigation
the additional income tax charges incurred in respect of litigations during the year ended 31 december 2012 total 
us27 5 million and comprised us145 million paid out in respect of a case concerning magadan silver sales to abn amro  
in 2007 and us130 million in respect of cases relating to the deductibility of transportation and processing expenses and  
of foreign exchange losses in varvara including us51 million of additional income tax exposures provided for and 
us171 million excess profit tax in kazakhstan recognised for the first time in 2012 a total additional income tax  
expense of us496 million was recognised in the year ended 31 december 2012 
the group also recognised mining taxes interest and penalties totalling us659 million which were recognised within  
other operating expenses see note 12 these expenses comprised us150 million paid out in respect of the magadan  
silverabn amro case us92 million provided for in respect of the magadan silver mineral extraction tax case  
us101 million paid out in respect of varvara litigation and us316 million in respect of other exposures 
at 31 december 2013
during the year ended 31 december 2013 the group paid us83 million of mining taxes interest and penalties in respect  
of the magadan silver mineral extraction tax case us171 million of varvara excess profits tax provided for in 2012 and 
us73 million of various varvara exposures 
in respect of the year ended 31 december 2013 no additional significant income tax and mining tax exposures have  
been provided for
other exposures considered possible but not probable and therefore not provided for total to us223 million 
31 december 2012 us3 million and are described in note 29
deferred taxation
deferred taxation is attributable to the temporary differences that exist between the carrying amounts of assets  
and liabilities for financial reporting purposes and the amounts used for tax purposes
the following are the major deferred tax liabilities and assets recognised by the group and movements thereon during  
the reporting period
environmental
obligation
us’000
inventories
us’000
property
plant and
equipment
us’000
trade
and other
payables
us’000
tax losses
us’000
loan
us’000
other
us’000
total
us’000
at 1 january 2013 restated 13343 18637 90154 6078 57621 1834 8847 24736
credit to income statement 709 11555 16086 5767 32229 1749 4898 72993
acquisition – – 23025 353 595 – 556 22633
disposal – 587 484 160 37 – 6 100
exchange differences 980 1014 6323 601 5036 85 930 125
at 31 december 2013 13072 5481 91254 11437 85372 – 12253 25399
  financial statements 134135
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
16 income tax continued 
deferred tax assets and liabilities are offset where the group has a legally enforceable right to do so the following analysis 
shows deferred tax balances presented for financial reporting purposes
  year ended 
 
31 december
 2013
us’000
31 december
 2012
restated
us’000
deferred tax liabilities 63085 82760
deferred tax assets 88484 58024 
total  25399  24736
tax losses carried forward represent amounts available for offset against future taxable income generated by jsc omolon gold 
mining company zk mayskoye llc albazino resources llc amursk hydrometallurgy plant llc and the company during the 
period up to 2023 each legal entity within the group represents a separate taxpaying component for income tax purposes  
the tax losses of one entity cannot be used to reduce taxable income of other entities of the group as at 31 december 2013 
and 31 december 2012 the aggregate tax losses carried forward were us4268 million rub139 billion and us2881 million 
rub 88 billion respectively
the group believes that recoverability of the recognized deferred tax asset dta of us885 million at 31 december 2013  
is more likely than not based upon expectations of future taxable income in the russian federation and kazakhstan and 
available tax planning strategies
losses incurred in certain taxable entities in recent years have created a history of losses as of 31 december 2013 the group 
has concluded that there is sufficient evidence to overcome the recent history of losses based on forecasts of sufficient taxable 
income in the carryforward period
the group’s estimate of future taxable income is based on established proven and probable reserves which can be 
economically developed the related detailed mine plans and forecasts provide sufficient supporting evidence that the  
group will generate taxable earnings to be able to fully realise its net dta even under various stressed scenarios the amount  
of the dta considered realisable however could be reduced in the near term if estimates of future taxable income during  
the carry forward period are reduced due to delays in production start dates decreases in ore reserve estimates increases  
in environmental obligations or reductions in precious metal prices the group’s tax losses carried forward expire as follows
year ended
31 december
2013
us’000
31 december 2014 2680
31 december 2015 7401
31 december 2016 6229
31 december 2017 8971
31 december 2018 25059
31 december 2019 19939
31 december 2020 22272
31 december 2021 67575
31 december 2022 90698
31 december 2023 176034
total loss carried forward for tax purposes 426858
the deferred tax liabilities for taxes that would be payable on the unremitted earnings of certain of the group subsidiaries have 
not been recognised as the group has determined that the undistributed profit of its subsidiaries will not be distributed in the 
foreseeable future the temporary differences associated with investments in subsidiaries for which deferred tax liabilities have 
not been recognised amount to us1802 million 2012 us1712 million
17 dividends
a final dividend has been proposed in relation to the year of 8 cents per share giving a total expected dividend  
of us312 million this is subject to approval by shareholders at the annual general meeting and has therefore  
not been included as a liability in these financial statements
 
on 23 september 2013 an interim dividend of 1 cent per share was paid to shareholders by the company resulting in cash 
outflows of us39 million 
on 17 june 2013 a final dividend for 2012 of 31 cents per share was paid to shareholders by the company resulting in cash 
outflows of us1212 million on 16 january 2013 a special dividend of 50 cents per share was paid to shareholders by the 
company resulting in cash outflows of us1913 million
on 14 june 2012 a final dividend for 2011 of 20 cents per share was paid to shareholders by the company resulting in cash 
outflows of us765 million
18 impairment losses
at 30 june 2013 due to significant decline in gold silver and copper market prices in first quarter 2013 the group carried  
out an impairment review of its property plant and equipment goodwill and other noncurrent assets as a result of this review 
total impairment charges of us1991 million were recognised as at 30 june 2013
during second half of the year ended 31 december 2013 there was a stabilisation in gold silver and copper market prices 
therefore the impairment review was performed only for the omolon cash generating unit where individual impairment 
indicators exist due to downgrades in reserves and changes in the life of mine plan as a result a further impairment  
of us12 million was recognised as at 31 december 2013
in the view of management there are no indicators of impairment or impairment reversal for other cash generating units  
as at 31 december 2013 and no further impairment as at 31 december 2013 was recognised 
total impairment charges of us2134 million 2012 nil recognised during the year ended 31 december 2013 comprise  
the following
 
 
year ended 31 december 2013 
khakanja
us’000
varvara
us’000
omolon
us’000
total
operating
segments
us’000
corporate
and other
us’000
total
us’000
property plant and equipment 91184 17358 16587 125129 – 125129
goodwill 13220 62756 – 75976 – 75976
investments in associates – – – – 12291 12291
total 104404 80114 16587 201105 12291 213396
after the related tax credit of us211 million the posttax impairment charge is us1923 million
 
impairment of property plant and equipment
each cash generating unit is determined on the basis of group’s geographical structure and equals to the group’s reporting 
segments refer to note 5 the carrying amount of cash generating units excludes certain exploration assets included within  
the segment assets which are currently under development and have not reached a stage where there is enough information  
to estimate the future cash flows that might be eventually generated by the project the following amounts are excluded from 
cash generating units carrying amounts us367 million these were assessed for impairment separately
the carrying amounts of all the cashgenerating units were assessed against their recoverable amounts determined based  
on a fair value less costs to sell calculation fair value is based on the application of the discounted cash flow method dcf 
using posttax cash flows the dcf method is attributable to the development of proved and probable reserves and certain 
resources where a relevant resourcetoreserve conversion ratio can be reasonably applied
the group used a posttax real discount rate of 71 2012 71 in the dcf calculations which is equal to its nominal  
weighted average cost of capital of 9 2012 9 translated into real terms the dcf method used is based on the following key 
assumptions
commodity prices
commodity prices are based on latest internal forecasts benchmarked against external sources of information in the 
impairment tests performed the flat real longterm gold silver and copper prices of us1200 per ounce us18 per ounce  
and us7 000 per tonne respectively have been used to estimate future revenues financial statements 136137
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
18 impairment losses continued
proved and probable reserves and mineral resources
production volumes are derived from the detailed longterm life of mine plans which are based on jorc proven and probable 
reserves and certain mineral resources using a relevant resourcetoreserve conversion ratio at the end of the period 
production costs
production costs are based on management’s best estimates over the life of the mine and reflect past experience
impairment of investment in associate
the group has fully written off its investment in jsc uralpolymetal as the carrying values of the exploration assets this associate 
holds are not considered recoverable in management’s view there are no indicators of a reversal as at 31 december 2013  
see note 21
19 property plant and equipment
cost
exploration
and evaluation
assets
us’000
mining
assets
us’000
nonmining
assets
us’000
capital
construction
inprogress
us’000
total
us’000
balance at 1 january 2012 94873 1559526 87464 511427 2253290
additions 66077 186007 18756 163544 434384
transfers 74723 436721 7187 345964 8847
change in decommissioning liabilities – 3245 – – 3245
acquired on acquisition of group of assets – 10264 6 – 10270
eliminated on disposal of subsidiary – 10815 1114 – 11929
disposals 7654 19219 1897 2105 30875
translation to presentation currency 6352 96095 2299 26720 131466
balance at 31 december 2012 84925 2261824 98327 353622 2798698
additions 60355 245287 13216 37959 356817
transfers 78138 143437 6627 214948 –
change in decommissioning liabilities – 549 – – 549
acquired on acquisition 128521 6 – 2952 131479
eliminated on disposal of subsidiary – 12535 218 42 12795
disposals – 45325 6455 1828 53608
translation to presentation currency 14713 161806 6964 20154 203637
balance at 31 december 2013 337226 2430339 91279 157561 3016405
accumulated depreciation amortisation
exploration
 and evaluation
 assets
us’000
mining
assets
us’000
nonmining
 assets
us’000
capital
 construction
 inprogress
us’000
total
us’000
balance at 1 january 2012 – 335167 16149 – 351316
charge for the year – 226851 9521 – 236372
disposals – 8705 752 – 9457
eliminated on disposal of subsidiary – 8369 389 – 8758
translation to presentation currency – 23328 165 – 23493
balance at 31 december 2012 – 568272 24694 – 592966
charge for the period – 281157 6186 – 287343
disposals – 27115 3804 – 30919
eliminated on disposal of subsidiary – 5469 160 – 5629
impairment recognised in profit and loss 4670 114984 1938 3537 125129
translation to presentation currency 1 44894 2339 7 47227
balance at 31 december 2013 4669 886935 26515 3544 921663
net book value
1 january 2012 94873 1224359 71315 511427 1901974
31 december 2012 84925 1693552 73633 353622 2205732
31 december 2013 332557 1543404 64764 154017 2094742
mining assets at 31 december 2013 included mineral rights with net book value which amounted to us3763 million  
31 december 2012 us3678 million mineral rights of the group comprise assets acquired upon acquisition of subsidiaries 
and asset acquisitions
ifric 20 was adopted from 1 january 2012 see note 35 comparative balance were restated to recognise stripping assets  
of us563 million at 31 december 2012 at 31 december 2013 stripping costs of us913 million have been capitalised  
within mining assets
transfers from capital construction inprogress to mining assets during the year relate mainly to mayskoye transfers amounting 
to us133 million where assets reached commercial production in april 2013
the additions and the disposals of property plant and equipment in the year ended 31 december 2012 are shown net of 
us67 8 million of exploration and development assets recognised on acquisition of a controlling interest in amikan holding ltd 
in february 2012 and subsequently derecognised on loss of control in that entity following its disposal in may 2012 see note 21
no property plant and equipment were pledged as collateral at 31 december 2013 or at 31 december 2012
impairment losses recognised during the year ended 31 december 2013
during the current year as a result of significant gold silver and copper market price declines below levels used in the  
group’s 2012 impairment tests the group carried out a review of the recoverable amount of its property plant and equipment 
the review led to the recognition of impairment losses of us1251 million which has been recognised in the income statement 
refer to note 18 for further details
20 goodwill
 
cost and accumulated impairment losses 
31 december
2013
us’000
31 december
2012
us’000
at 1 january 115106 108587
impairment losses recognised in the year 75976 –
translation effect 8241 6519 
at 31 december 30889 115106
goodwill has been allocated for impairment testing purposes to the following cashgenerating units
31 december
2013
us’000
31 december
2012
us’000
varvara – 68411
mayskoye 22013 23720
khakanja – 14237
dukat 8876 8738
total 30889 115106
 
impairment losses recognised during the year ended 31 december 2013
as a result of significant gold silver and copper market prices decline below levels used in the group’s 2012 annual  
impairment tests during the period ended 30 june 2013 the group carried out a review of the recoverable amount of goodwill  
at 30 june 2013 the review led to the recognition of an impairment charge of us76 million of goodwill which has been 
recognised in the income statement refer to note 18 for details
during the second half of 2013 there was a stabilisation of gold silver and copper market prices in management’s view there are 
no indicators of impairment as of 31 december 2013 and no further impairment of goodwill at 31 december 2013 was recognised 
sensitivity analysis
for the cashgenerating units where the goodwill was not fully impaired at 31 december 2013 being dukat and mayskoye 
management has performed an analysis as to whether a reasonably possible adverse change to any of the key assumptions 
would lead to an impairment 
the following scenarios were considered as reasonably possible and were used for this sensitivity analysis
•	 5 simultaneous decrease in gold and silver prices over the life of mine
•	5 increase in operating expenses over the life of mine and 
•	05 increase in the discount rate applied financial statements 138139
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
20 goodwill continued
each of the sensitivities above has been determined by assuming that the relevant key assumption moves in isolation and 
without regard to potential mine plan changes and other management decisions which would be taken to respond to adverse 
changes in existing management projections
an adverse change in a key assumption described above would not cause the aggregate carrying amount to exceed  
the aggregate recoverable amount of the dukat and mayskoye cashgenerating units
21 investments in associates 
 
31 december 2013 31 december 2012
 
voting
power

carrying 
value
us’000
voting
power

carrying
value
us’000
jsc uralpolymetal 499 – 333 10507 
polygon gold 4265 15651 4265 19315 
total –  15651 –  29822 
equity investment in polygon gold inc
polygon gold inc ‘polygon’ a private shell company was initially set up between polymetal and tyner enterprises inc  
‘tyner’ who initially held 250 and 100 shares respectively in the new venture tyner is controlled and managed  
by len homeniuk a nonexecutive director of polymetal international plc
on 7 february 2012 the company acquired anglogold’s 50 equity interest and debt investments in the various joint venture 
companies held with polymetal note 4 the principal company acquired was amikan holding limited which owns the veduga 
gold deposit in the krasnoyarsk region of the russian federation with other entities acquired not holding any material assets  
or liabilities
the total gain on acquisition of the remaining interest in the joint venture was us211 million comprising a us127 million 
revaluation to fair value of previously held interest and a bargain purchase gain of us84 million the bargain purchase gain 
resulted from anglogold ashanti limited strategic decision to exit the russian federation
on 14 may 2012 polymetal sold 100 of amikan holding limited to polygon in exchange for consideration of us20 million  
in cash and 750 ordinary shares of polygon in addition sibproekt llc ‘sibproekt’ an unrelated local partner provided  
a us21 million loan to polygon and received 100 newly issued polygon shares for no consideration this resulted in polymetal 
holding an initial 818 equity ownership in polygon under the new shareholder agreement polymetal obtained one of the  
four board seats giving it significant influence the investment has been accordingly recognised as an investment in associate
on 4 june 2012 polygon’s share capital was increased to 1571 shares by the issuance of 471 new shares to an affiliate of 
gazprombank ojsc ‘gazprombank’ for a total consideration of us142 million paid in cash the proceeds from the offering 
will be used to finance the veduga project and repay part of polygon’s debt in addition gazprombank has expressed an interest 
in providing project financing to polygon to develop veduga into a producing mine
on 7 june 2012 polymetal sold 230 of its shares in polygon to sibproekt for a total consideration of us80 million payable  
in cash us5 million of which was paid with us30 million payable by 28 february 2013
the group’s equity ownership in polygon gold inc has now decreased to 4265 it continues to exercise significant influence 
over polygon
equity investment in jsc uralpolymetal
at 1 january 2013 the group held 333 of jsc uralpolymetal a russian entity which holds an operating copper and zinc  
open pit mine and a processing plant as a result of an impairment review performed as at 30 june 2013 the investment  
in jsc uralpolymetal was written off to nil see note 18 
on 29 october 2013 the group acquired an additional 16 interest in jsc uralpolymetal for 25 million taking its share  
in the business to 499 in management’s view it continues to hold significant influence in jsc uralpolymetal however  
it does not have the ability to exercise control as a result of an impairment review performed at 31 december 2013 the additional 
investment in jsc uralpolymetal was also written off as the project development is at an early stage and a new npv estimate 
for the assets cannot be prepared at this stage therefore and consistently with the assumptions used as at 30 june 2013  
full investment in uralpolymetal is written off
the following tables summarise the aggregate financial position and the group’s share of net losses of the investments  
in jsc uralpolymetal and polygon gold inc
polygon gold inc
jsc ural
polymetal
31 december
 2013
us’000
31 december
 2012
us’000
31 december
2012
us’000 
revenue 14617 – 40794
net loss 5492 1658 3660
group’s share of net loss 2340 706 1098
polygon gold inc
jsc ural
polymetal
31 december
2013
us’000
31 december
2012
us’000
31 december
2012
us’000
noncurrent assets 78908 68609 48894
current assets 6807 13731 12970
noncurrent liabilities 30352 18150 10237
current liabilities 16508 19844 14651
equity 38855 44347 36975
22 noncurrent loans and accounts receivable
interest rate
31 december
 2013
us’000
31 december
 2012
us’000
longterm accounts receivable nil 11255 1475
loans extended to third parties 800 7334 3813
polygon gold 800 – 5469
loans extended to investments in associates 356 1017 –
employees 600 3247 4054
total – 22853 14811
23 inventories
 
 
31 december 
2013
us’000
31 december
 2012
restated
us’000
inventories expected to be recovered after twelve months 
consumables and spare parts 41885  62267 
ore stock piles 11257  36597 
total noncurrent inventories 53142  98864 
inventories expected to be recovered in the next twelve months 
ore stock piles 182269 285006 
copper gold and silver concentrate 133037  141878 
work inprocess 77848  64811 
metal for refinery 9117  21206 
doré 24881  30268 
total metal inventories 427152  543169 
consumables and spare parts 299992  297452 
total 727144  840621 
   financial statements 140141
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
23 inventories continued 
writedowns of metal inventories to net realisable value
during the year ended 31 december 2013 the group recognised the following writedowns to net realisable value of its metal 
inventories due to low content of precious metals and metal price decline see note 18 
 
year ended 31 december 2013 
year ended 
31 december 
2012  
restated
 
voro
us’000
khakanja
us’000
dukat
us’000
omolon
us’000
varvara
us’000
mayskoye
us’000
total
operating
segments
us’000
total
us’000
total
operating
segments
us’000
ore stock piles 2559  28160  11954  75229  19301  –  137203  137203  – 
copper gold 
and silver 
concentrate –  –  –  –  –  16124  16124  16124  4000 
total 2559  28160  11954  75229  19301  16124  153327  153327  4000 
after the related tax credit of us307 million the posttax impairment charge is us1226 million
writedowns of metal inventories to net realisable value were recognised during the year ended 31 december 2013 in amount  
of us153 million as a result of decline in gold silver and copper prices the key assumptions used as at 31 december 2013  
in determining net realisable value of inventories including the commodity price assumptions were consistent with the 
assumptions used in the impairment review of goodwill and noncurrent assets see note 18
in addition during the year ended 31 december 2013 the group wrotedown us46 million of costs 2012 us56 million  
in omolon which did not significantly enhance the value of the ore stock piles
during the year ended 31 december 2013 the group provided for obsolete consumables and spare parts inventory in the amount 
of us107 million year ended 31 december 2012 reversal of us33 million
the amount of inventories held at net realisable value at 31 december 2013 is us1007 million 31 december 2012 us7 million
24 trade and other receivables
 
 31 december
2013
us’000
31 december
2012
us’000
receivables from provisional copper gold and silver concentrate sales 14902  59508 
other trade receivables 2268  – 
nontrade receivables 21889  24948 
prepaid expenses 3827  5417 
accounts receivable from related parties 164  4717 
shortterm loans provided to employees 3941  2765 
shortterm loans provided to equity method investments 190  11792 
total trade and other receivables 47181  109147 
less allowance for doubtful debts 2655 1551
total 44526  107596 
trade receivables mainly relate to jsc varvarinskoye for their sales of provisionally priced copper and gold concentrate  
and to cjsc magadan silver and albazino resources ltd for their sales of provisionally priced silver concentrate of the trade 
receivables balance as of 31 december 2013 us125 million 2012 us470 million is due from one customer there are  
no other customers who represent more than 10 of the total balance of trade receivables
the average credit period on sales of copper gold and silver concentrate at 31 december 2013 was 25 days 2012 30 days  
no interest is charged on trade receivables the group’s allowance for doubtful debt relates to its nontrade receivables  
there are no trade receivables either past due or impaired as at 31 december 2013 31 december 2012 usnil
nontrade receivables include amounts receivable from sale of fuel or operating lease of machinery to contractors the average 
credit period for nontrade receivables at 31 december 2013 was 36 days 2012 93 days no interest is charged on short term 
nontrade receivables
nontrade receivables disclosed above include those that are past due at the end of the reporting period for which  
the group has not recognised a bad debt allowance because there has not been a significant change in credit quality  
and the amounts are still considered to be recoverable such past due but not impaired receivables amounted to  
us47 million as at 31 december 2013 2012 us37 million the group does not hold any collateral or other security  
over these balances nor does it have a legal right of offset against any amounts owed by the group to the counterparty
 
25 cash and cash equivalents
 
31 december
 2013
us’000
31 december
 2012
us’000
bank deposits – rub 11293  – 
bank deposits – foreign currencies 32821  4095 
current bank accounts – rub 8919 5124 
current bank accounts – foreign currencies 12364 9346 
other cash and cash equivalents 170  57 
total 65567  18622 
bank deposits as at 31 december 2013 bear interest of 02108 per annum for us dollars denominated deposits  
2012 03 per annum and 675715 for rub denominated deposits with an average maturity at inception  
of 15 days 2012 15 days 
26 borrowings
borrowings at amortised cost
 
 actual interest rate at 31 december  31 december 2013 31 december 2012
 
 type of rate 2013 2012
current
 us’000
noncurrent
us’000
total
us’000
current
us’000
noncurrent
us’000
total
us’000
secured loans 
from third parties
us dollar 
denominated floating 322 31 37500 537500 575000 222874 485862 708736
total – – 37500 537500 575000 222874 485862 708736
unsecured 
loans from  
third parties
us dollar 
denominated floating 274 28 30769 469231 500000 – 100000 100000
us dollar 
denominated fixed 75 735 – 11443 11443 6859 7712 14571
euro 
denominated floating 224 28 3757 3757 7514 5306 7243 12549
total 34526 484431 518957 12165 114955 127120
loans from 
related parties
euro 
denominated floating 490 44 8903 7624 16527 8583 15932 24515
cad 
denominated floating 569 8 402 258 660 589 711 1300
rub 
denominated fixed – 57 – – – – 2152 2152
total – – 9305 7882 17187 9172 18795 27967
 – – 81331 1029813 1111144 244211 619612 863823
 
bank loans
the group has a number of borrowing arrangements with various lenders these borrowings consist of unsecured and secured 
loans and credit facilities denominated in rubles us dollars euro and canadian dollars where security is provided it is in form 
of pledge of revenue from certain sales agreements
during the year ended 31 december 2013 the group drew down a total of us3100 million and repaid us2887 million  
a net drawdown of us213 million 
the group secured new facilities in the year for a total amount of us975 million with unrelated parties these credit facilities  
are repayable between first quarter 2014 and fourth quarter 2018 and bear interest at a rate of between libor 235  
and libor 305  financial statements 142143
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
26 borrowings continued 
at 31 december 2013 the group had undrawn borrowing facilities of us1324 million 31 december 2012 us913 million  
the group complied with its debt covenants throughout 2013 and 2012 the table below summarises maturities of borrowings
year ended
us’000
31 december 2013 81331
31 december 2014 253904
31 december 2015 306773
31 december 2016 57692
31 december 2017 403814
31 december 2018 5086
31 december 2019 2544
total 1111144
27 environmental obligations
environmental obligations include decommissioning and land restoration costs and are recognised on the basis of existing 
project business plans as follows
31 december
 2013
us’000
31 december
 2012
us’000
opening balance 66693 54463
changes in estimates for the year
decommissioning liabilities recognised in income statement 1064 –
decommissioning liabilities recognised in ppe 549 3245
rehabilitation liabilities 1814 3873
effect of unwinding of discount 3693 3621
amounts paid in the year 901 1479
translation effect 4322 2970
closing balance 65364 66693
 
rehabilitation expenses relate to the increase of the environmental obligation which arises on production phase of mining 
activities during the year ended 31 december 2013 rehabilitation expenses amounting to us03 million 2012 us11 million  
were removed from cost of production and capitalised through the application of ifric 20 see note 35 
the principal assumptions used for the estimation of environmental obligations were as follows
 
2013 2012
discount rates 578843 37469
inflation rates 412577 567721
expected mine closure dates 219 years 222 years
the group does not hold any assets that are legally restricted for purposes of settling environmental obligations
28 trade payables and accrued liabilities
 
31 december
 2013
us’000
31 december
 2012
us’000
trade payables 56667  64238 
dividends payable note 17 –  191343 
accrued liabilities 41856  40851 
labour liabilities 13033  11978 
other payables 6418  3808 
total  117974  312218 
in 2013 the average credit period for payables was 34 days 2012 51 days there was no interest charged on the outstanding 
payables balance during the credit period the group has financial risk management policies in place which include budgeting 
and analysis of cash flows and payment schedules to ensure that all amounts payable are settled within the credit period
29 commitments and contingencies
commitments
capital commitments
the group’s budgeted capital expenditure commitments as at 31 december 2013 amounted to us223 million  
2012 us37 million
forward sale commitments
the group has certain physical gold and silver forward sale commitments which are priced at the prevailing market price 
calculated with reference to the lbma or lme gold price which are accounted for as executed as the group expects to  
and has historically physically delivered into these contracts
operating leases group as a lessee
the land in the russian federation and kazakhstan on which the group’s production facilities are located is owned  
by the state the group leases this land through operating lease agreements which expire in various years through to 2058
future minimum lease payments due under noncancellable operating lease agreements at the end of the period  
were as follows
 
31 december
 2013
us’000
31 december
 2012
us’000
due within one year 2831  1832 
from one to five years 3904  4278 
thereafter 2334  2702 
total 9069  8812 
contingencies
taxation
russian tax currency and customs legislation is subject to varying interpretations and changes which can occur frequently 
management’s interpretation of such legislation as applied to the transaction and activity of the companies of the group may  
be challenged by the relevant regional and federal authorities and as a result significant additional taxes penalties and interest 
may be assessed fiscal periods remain open to review by the authorities in respect of taxes for three calendar years preceding 
the year of review under certain circumstances reviews may cover longer periods
during 2012 and 2013 the group has been involved in a number of litigations in russia and in kazakhstan see note 16  
for details of these cases and their outcomes in addition to the cases detailed within note 16 management has identified  
a total exposure covering taxes and related interest and penalties of us223 million in respect of contingent liabilities  
2012 us3 million
30 fair value accounting
the following table provides an analysis of financial instruments that are measured subsequent to initial recognition  
at fair value grouped into levels 1 to 3 based on the degree to which the fair value is observable as follows
•	level 1 fair value measurements are those derived from quoted prices unadjusted in active markets for identical assets  
or liabilities
•	level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are 
observable for the asset or liability either directly or indirectly and
•	level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability  
that are not based on observable market data unobservable inputs financial statements 144145
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
30 fair value accounting continued 
at 31 december 2013 and 31 december 2012 the group held the following financial instruments
31 december 2013
us’000
level 1 level 2 level 3 total
receivables from provisional concentrate sales – 14902 – 14902
contingent consideration liability – – 15523 15523
– 14902 15523 621
31 december 2012
us’000
level 1 level 2 level 3 total
receivables from provisional concentrate sales – 59508 – 59508
contingent consideration liability – – 25276 25276
– 59508 25276 34232
during the reporting periods there were no transfers between level 1 and level 2
receivables from provisional copper gold and silver concentrate sales
the fair value of receivables arising from copper gold and silver concentrate sales contracts that contain provisional pricing 
mechanisms is determined using the appropriate quoted forward price from the exchange that is the principal active market  
for the particular metal as such these receivables are classified within level 2 of the fair value hierarchy
contingent consideration liabilities
in 2008 the group recorded a contingent consideration liability related to the acquisition of 981 of the shares in jsc omolon 
gold mining company omolon the fair value of the contingent consideration liability was determined using a valuation model 
which simulates expected production of gold and silver at the kubaka mine and future gold and silver prices to estimate future 
revenues of omolon this liability is revalued at each reporting date based on 2 of the life of mine revenues with the resulting 
gain or loss recognised in the consolidated income statement the liability recognised at 31 december 2013 was us155 million 
2012 us253 million
the table below sets forth a summary of changes in the fair value of the group’s level 3 financial liabilities for the year  
ended 31 december 2013
 
31 december
 2013
us’000
31 december
 2012
us’000
opening balance 25276  22290 
additions –  54 
change in fair value recognised in the income statement 8131 4717 
translation effect 294 53 
settlement 1328 1838
total 15523  25276 
additions in the year ended 31 december 2012 represent the contingent consideration payable by the group  
on semchenskoye zoloto acquisition see note 4 for further details
the directors consider that a reasonably possible change in a valuation assumption would not have a material effect  
on the group
commodity forward contracts
the group enters into forward contracts for the physical delivery of metals which will be priced according to the prevailing 
london bullion market association or london metal exchange index the group’s policy is not to enter into fixed priced 
contracts the forward sales contracts qualify for the normal purchasesales or ‘own use’ exemption for accounting  
purposes and are outside the scope of ias 39 financial instruments recognition and measurement
31 risk management activities
capital management
the group manages its capital to ensure that entities in the group will be able to continue as a going concern while maximising 
the return to stakeholders through the optimisation of the debt and equity balance the group’s overall strategy remains from 
prior years
the capital structure of the group consists of net debt borrowings as detailed in note 26 offset by cash and bank balances  
as detailed in note 25 and equity of the group comprising the stated capital account reserves and retained earnings  
as detailed in note 32
the group is not subject to any externally imposed capital requirements the group’s board reviews the capital structure  
of the group on a semiannual basis as part of this review the board considers the cost of capital and the risks associated  
with each class of capital
major categories of financial instruments
the group’s principal financial liabilities comprise borrowings derivatives finance lease liabilities trade and other payables  
the group has various financial assets such as accounts receivable loans advanced and cash and cash equivalents
31 december
 2013
us’000
31 december
 2012
us’000
financial assets
financial assets at fvtpl
receivables from provisional copper gold and silver concentrate sales 14902 59508
loans and receivables including cash and cash equivalents
cash and cash equivalents 65567 18622
trade and other receivables 25797 48088
noncurrent loans and receivables 22853 14811
total financial assets 129119 141029
financial liabilities
financial liabilities at fvtpl
contingent consideration liability 15523 25276
financial liabilities at amortised cost
borrowings 1111144 863823
dividends payable – 191343
trade and other payables 63085 68046
total financial liabilities 1189752 1148488
trade and other payables exclude employee benefits and social security
the carrying values of cash and cash equivalents trade and other receivables trade and other payables and shortterm debt 
recorded at amortised cost approximate to their fair values because of the short maturities of these instruments the estimated 
fair value of the group’s longterm debt calculated using the market interest rate available to the group as at 31 december 2013 
is us1017 million and the carrying value as at 31 december 2013 is us1111 million see note 26 carrying values of the 
other longterm loans provided to related parties as at 31 december 2013 and 31 december 2012 approximated to their  
fair values
the main risks arising from the group’s financial instruments are foreign currency and commodity price risk interest rate  
credit and liquidity risks
at the end of the reporting period there are no significant concentrations of credit risk for receivables designated at fvtpl  
the carrying amount reflected above represents the group’s maximum exposure to credit risk for such receivables
derivative financial instruments
presented below is a summary of the group’s derivative contracts recorded on the consolidated balance sheet at fair value
 
consolidated
 balance sheet
 location
31 december
 2013
us’000
31 december
 2012
us’000
receivable from provisional concentrate sales
accounts
 receivable 14902  59508 
    
  year ended
 
location
of loss 
recorded
 in income
 statement
31 december
 2013
us’000
31 december
 2012
us’000
receivable from provisional concentrate sales revenue 9481 2830
        financial statements 146147
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
31 risk management activities continued 
foreign currency and commodity price risk
in the normal course of business the group enters into transactions for the sale of its commodities denominated in us dollars 
in addition the group has assets and liabilities in a number of different currencies primarily russian rouble and kazakh tenge 
as a result the group is subject to transaction and translation exposure from fluctuations in foreign currency exchange rates
the group does not use derivative instruments to currently hedge its exposure to foreign currency risk
the carrying amounts of monetary assets and liabilities denominated in foreign currencies other than functional currencies  
of the individual group entities at 31 december 2013 and 31 december 2012 were as follows
 assets liabilities
 
31 december
 2013
us’000
31 december
 2012
us’000
31 december
 2013
us’000
31 december
 2012
us’000
us dollar 60524  78544  1099804  1022458 
euro 119  99  25883  39938 
gbp 99  79  720  31 
total 60742 78722 1126407 1062427
currency risk is monitored on a monthly basis by performing a sensitivity analysis of foreign currency positions in order  
to verify that potential losses are at an acceptable level
the table below details the group’s sensitivity to changes in exchange rates by 10 which is the sensitivity rate used  
by the group for internal analysis the analysis was applied to monetary items denominated in respective currencies  
at the reporting dates
31 december
 2013
us’000
31 december
 2012
us’000
profit or loss rub to us dollar 106524 93453
profit or loss rub to euro 3637 4979
profit or loss rub to gbp 107 5
profit or loss kzt to us dollar 1786 8570
provisionally priced sales
under a longestablished practice prevalent in the industry copper gold and silver concentrate sales are provisionally priced  
at the time of shipment the provisional prices are finalised in a contractually specified future period generally one to three 
months primarily based on quoted lbma or lme prices sales subject to final pricing are generally settled in a subsequent 
month the forward price is a major determinant of recorded revenue
interest rate risk
the group is exposed to interest rate risk because entities in the group borrow funds at both fixed and floating interest rates  
the risk is managed by the group by maintaining an appropriate mix between fixed and floating rate borrowings the group 
does not currently hedge its exposure to interest rate risk
the group’s exposure to interest rates on financial assets and financial liabilities are detailed in the liquidity risk section  
of this note
for floating rate liabilities the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting 
period was outstanding for the whole period a 100 basis point increase or decrease is used when reporting interest rate risk 
internally to key management personnel and represents management’s assessment of the reasonably possible change  
in interest rates
if interest rates had been 100 basis points higherlower and all other variables were held constant the group’s profit for the year 
ended 31 december 2013 would have decreasedincreased by us98 million 2012 us77 million this is mainly attributable 
to the group’s exposure to interest rates on its variable rate borrowings
the group’s sensitivity to interest rates has increased during the current period mainly due to the increase in variable rate  
debt instruments
credit risk
credit risk is the risk that a customer may default or not meet its obligations to the group on a timely basis leading to financial 
losses to the group the group’s financial instruments that are potentially exposed to concentration of credit risk consist primarily 
of cash and cash equivalents and loans and receivables
accounts receivable are regularly monitored and assessed and where necessary an adequate level of provision is maintained 
trade accounts receivable at 31 december 2013 and 31 december 2012 are represented by provisional copper gold and  
silver concentrate sales transactions a significant portion of the group’s trade accounts receivable is due from reputable  
export trading companies with regard to other loans and receivables the procedures of accepting a new customer include  
checks by a security department and responsible onsite management for business reputation licences and certification 
creditworthiness and liquidity generally the group does not require any collateral to be pledged in connection with  
its investments in the above financial instruments credit limits for the group as a whole are not set up
the credit risk on liquid funds is limited because the counterparties are banks with high creditratings assigned by international 
creditrating agencies the major financial assets at the balance sheet date other than trade accounts receivable presented  
in note 24 are cash and cash equivalents at 31 december 2013 of us656 million 2012 us186 million
liquidity risk
liquidity risk is the risk that the group will not be able to settle its liabilities as they fall due
the group’s liquidity position is carefully monitored and managed the group manages liquidity risk by maintaining detailed 
budgeting cash forecasting processes and matching the maturity profiles of financial assets and liabilities to help ensure  
that it has adequate cash available to meet its payment obligations
the following tables detail the group’s remaining contractual maturity for its financial liabilities with agreed repayment periods 
the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which 
the group can be required to pay the tables include both interest and principal cash flows to the extent that interest flows are 
floating rate the undiscounted amount is derived from interest rate curves at the end of the reporting period the contractual 
maturity is based on the earliest date on which the group may be required to pay
presented below is the maturity profile of the group’s financial liabilities as at 31 december 2013   
31 december
 2013
us’000
31 december
 2012
us’000
less than
3 months 312 months 15 years
more than
5 years total total
special dividend payable – – – – – 191343
borrowings 20194 94772 1096285 8130 1219381 923155
accounts payable and accrued expenses 59754 3331 – – 63085  68046 
contingent consideration – 1169 16940 2192 20301 36259
total 79948 99272 1113225 10322 1302767 1218803
32 stated capital account and retained earnings
as at 31 december 2013 the company’s issued share capital consisted of 389472865 ordinary shares 2012 383206204 
ordinary shares of no par value each carrying one vote the company does not hold any shares in treasury 2012 none  
the ordinary shares reflect 100 of the total issued share capital of the company
the movements in the stated capital account in the year were as follows
stated 
capital
 account
number 
of shares
stated 
capital
 account
 us’000
balance at 1 january 2012 382685782 1566386
issue of shares to acquire svetlobor 520422 9737
balance at 31 december 2012 383206204 1576123
issue of shares to acquire olcha 775000 13423
issue of shares to acquire maminskoye 5491661 74624
balance at 31 december 2013 389472865 1664170
retained earnings
reserves available for distribution to shareholders are based on the available cash in the company under jersey law the ability 
to distribute cash up to the company from the russian and kazakh operating companies will be based on the statutory historical 
information of each standalone entity which is prepared in accordance with russian or kazakh accounting standards and 
which differs slightly from ifrs russian legislation identifies the basis of distribution as accumulated profit however current 
legislation and other statutory regulations dealing with distribution rights are open to legal interpretation consequently actual 
distributable reserves may differ from the amount of accumulated profit under russian statutory accounting rules financial statements 148149
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
32 stated capital account and retained earnings continued
weighted average number of shares diluted lossearnings per share
the group had potentially dilutive securities namely the group’s equitysettled share appreciation plan which was established 
during 2010 see note 33
both basic and diluted lossearnings per share were calculated by dividing lossprofit for the year attributable to equity holders  
of the parent by the weighted average number of outstanding common shares beforeafter dilution respectively the calculation 
of the weighted average number of outstanding common shares after dilution is as follows
year ended
31 december
 2013
number
31 december
 2012
number
weighted average number of outstanding common shares 387932387 382705692
weighted average number of outstanding common shares after dilution 387932387 382705692
the outstanding ltip awards at 31 december 2013 and 2012 represent antidilutive potential ordinary shares with respect  
to earnings per share for continuing operations therefore basic and diluted earnings per share are the same for the current  
and prior year
33 sharebased payments
the us24 million share based payment expense recognised during 2013 2012 54 million represents the final accrual  
made in respect of the longterm employee incentive programme adopted in 2010 the options vested in june 2013 however 
recipients had the option to defer their measurement period by one year to june 2014 though in doing so the benchmark share 
price needed to receive the awards would increase 
following significant gold and silver price declines in april 2013 the company’s share price fell below the minimum target price 
such that no ltips would have been awarded to option holders in june 2013 all recipients opted to defer their measurement 
period to 2014 and with it the award vesting dates albeit sufficiently close to the original june 2013 vesting date such that the 
share based payment expense had already been fully recognised in the income statement
at the annual general meeting in june 2013 shareholders approved the new longterm incentive plan the ‘new ltip’  
the first grant of options under the new ltip is expected to take place in april 2014 provided that the relevant participants  
do not hold any options under the old eip  sharebased payment expenses in relation to the new ltip are therefore expected  
to be recognised in 2014
 
the fair value of the awards granted during the year ended 31 december 2010 was estimated using a two–stage montecarlo 
model the fair value determined was then recognised on a straightline basis over the vesting period use of twostage monte
carlo option pricing requires management to make certain assumptions with respect to selected model inputs the following 
assumptions were used to determine the grant date fair value
•	 expected forfeitures this assumption is estimated using historical trends of executive director and employee turnover  
as the group typically only grants awards to senior employees and the turnover rate for such employees is minimal the  
group has estimated expected forfeitures to be 5 estimated forfeitures are adjusted over the requisite service period  
to the extent actual forfeitures differ or are expected to differ from such estimates changes in estimated forfeitures are 
recognised in the period of change and impact the amount of expense to be recognised in future periods
•	 expected volatility expected volatility has been estimated based on an analysis of the historical stock price volatility  
of the jsc polymetal gdrs from february 2007  when the jsc polymetal gdrs became publicly traded
•	 expected life the average expected life was based on the contractual term of the option of 36 years as the plan has  
a 26 years vesting condition and the participant may exercise their right to redeem shares within one year after vesting  
occurs the group used the 26 years expected term for the first stage of the montecarlo simulation the first date  
and 36 years for the second stage the second date
•	fair value of common stock is equal to the market price of jsc polymetal’s underlying global depositary receipts gdrs  
at the grant date
•	 riskfree interest rate the riskfree rate is based on us treasury zerocoupon issues with a remaining term equal to the 
expected life assumed at the date of grant
at the grant date the group had not historically declared dividends and management believed the company would not declare  
a dividend over the life of the option as such the expected annual dividend per share was therefore nil any subsequent change 
in dividend policy will be taken into account when valuing options granted in the future
risk free rate 079 for the first date 124 for the second date
expected dividend yield nil
expected volatility 40
expected life years 26 for the first date 36 for the second date
fair value per share us dollars 1697
34 related parties
related parties are considered to include shareholders affiliates associates joint ventures and entities under common 
ownership and control with the group and members of key management personnel in the course of its business the  
group entered into various transactions with nomosbank an entity in which alexander nesis a significant shareholder  
of the company also previously held a substantial interest and equity method investees as presented in tables below
nomosbank ceased to meet the definition of a related party from 27 february 2013 due to changes in its shareholder structure 
and composition of its board of directors however in line with ias 24 related party transactions deposits or borrowings taken 
out with nomos where terms were agreed prior to this date continue to be recognised as related party transactions
 year ended
31 december
 2013
us’000
31 december
 2012
us’000
income from transactions with related parties
revenue from sales to nomosbank 81641 466250
interest income on deposits placed with nomosbank 34 1500
other income 1740 3680
expenses from transactions with related parties
interest expense on loans provided by nomosbank 996 2016
purchases from associates 13983 3035
   
outstanding balances owed to or from related parties at 31 december 2013 are presented below
31 december
 2013
us’000
31 december
 2012
us’000
shortterm loans provided to equity method investments 190 11792
longterm loans provided to equity method investments 1017 5469
total loans provided to related parties 1207 17261
shortterm loans provided by nomosbank 9305 9172
longterm loans provided by nomosbank 7882 16643
longterm loans provided by equity method investments – 2152
total loans provided by related parties 17187 27967
accounts receivable from related parties 164 4717
interest receivable from related parties 242 836
carrying values of other longterm loans provided to related parties as at 31 december 2013 and 31 december 2012 
approximate their fair values details of the significant terms of the loans provided by related parties are disclosed in note 26 
the amounts outstanding at the balance sheet dates are unsecured and expected to be settled in cash no expense has been 
recognised in the reporting period for bad or doubtful debts in respect of the amounts owed by related parties all trade payable 
and receivable balances are expected to be settled on a gross basis
the remuneration of directors and other members of key management personnel during the periods was as follows
 year ended
31 december
2013
us’000
31 december
2012
us’000
sharebased payments 12359 27682
shortterm benefits of board members 1866 2454
shortterm employee benefits 2565 2981
postemployment benefits 399 264 financial statements 150151
annual report 2013  
polymetal international plc
financial statements
notes to the consolidated financial statements
continued
35 restatement
the impact of adopting ifric 20 on the prior periods consolidated financial statements is presented in the tables below
adjustments to the condensed consolidated balance sheet
31 december
 2012
 previously
 stated
us’000
adjustment 
for change in
 accounting
 policy
us’000
31 december
 2012 
restated
us’000
property plant and equipment 2149400 56332 2205732
noncurrent inventories 100972 2108 98864
current inventories 859856 19235 840621
deferred income tax liability 75938 6822 82760
translation reserve 54366 1105 53261
increase in retained earnings 27062
adjustments to the condensed consolidated income statement 
year ended year ended
31 december
 2012
 previously
 stated
us’000
adjustment
 for change
 in accounting
 policy
us’000
31 december
 2012 
restated
us’000
cost of sales excluding writedowns of metal inventories to net realisable value 875199 23360 851839
writedowns of metal inventories to net realisable value 14366 10366 4000
income tax expense 216204 6664 222868
increase in profit for the financial period 27062
equity shareholders of the parent 394348 26848 421196
noncontrolling interest 6813 214 7027
profit for the financial period 401161 27062 428223
adjustments to the condensed consolidated statement of comprehensive income
 year ended year ended 
31 december
 2012
 previously
 stated
us’000
adjustment
 for change
 in accounting
 policy
us’000
31 december
 2012 
restated
us’000
profit for the period 401161 27062 428223
effect of translation to presentation currency 110550 1106 111656
total comprehensive income for the period 511711 28168 539879
     
adjustments to the condensed consolidated statement of cash flows
year ended year ended
31 december
 2012
 previously
 stated
us’000
adjustment
 for change
 in accounting
 policy
us’000
31 december
 2012
restated
us’000
profit before income tax 617365 33726 651091
adjustment for the following items
 depreciation 156102 13876 142226
 rehabilitation expenses 3873 1063 2810
 writedowns of metal inventories to net realisable value 14366 10366 4000
 writedown of nonmetal inventories to net realisable value 3288 5631 2343
 increase in inventories 219678 30954 188724
cash generated from operations 568740 45006 613746
purchases of property plant and equipment 350807 46269 397076
net cash used in investing activities 350807 46269 397076
effect of foreign exchange rate changes on cash and cash equivalents 14947 1263 16210
adjustment for writedown of nonmetal inventories to net realisable value relates to writedown of us56 million costs in omolon 
which did not significantly enhance the value of the work inprocess which was previously presented within increase in inventories
36 notes to the consolidated statement of cash flows
 year ended
notes
31 december
 2013
us’000
31 december
 2012
restated
us’000
profit before tax 157620 651091 
adjustments for   
depreciation and depletion recognised in statement of comprehensive income  237533  142226 
mining taxes penalties and accrued interest 12 –  39150 
writedown of exploration assets  –  7654 
writedown metal inventory to net realisable value 23 153327  4000 
writedown of nonmetal inventory to net realisable value 7 10696  2343 
impairment of noncurrent assets 18  201105  – 
impairment of investment in associate 18  12291  – 
sharebased compensation 11 33 24233  54279 
finance costs 15 42735  26787 
finance income  2850 4657
loss on disposal of property plant and equipment 12 9503  9325 
change in contingent consideration liability 30 8131 4717 
change in allowance for doubtful debts 12 1089  267 
rehabilitation expenses 1524 2810 
share of loss of associates and joint ventures 21 2340  1804 
foreign exchange lossgain  74240  6677
loss on disposal of subsidiaries  8746  10709 
gain on acquisition of remaining interest in joint venture 4 –  21051
other noncash expenses  2528  5152 
movements in working capital   
increase in inventories before impairment  62957 188724
decrease in vat receivable  11560  14262 
increase decrease in trade and other receivables  60675  34284
decrease in prepayments to suppliers  11560  9307 
increase in trade and other payables  2246  7305 
decreaseincrease in other taxes payable  10744 8480 
cash generated from operations  625629  746274 
interest paid  35921 34629
income tax paid  128041 170805
net cash generated by operating activities  461667  540840 
additions to property plant and equipment of us37 million and us80 million during the year ended 31 december 2013  
and 31 december 2012 respectively were acquired on deferred payment terms 
other noncash transactions during the year ended 31 december 2013 represents issuance of shares amounting  
to us88 million 2012 the issuance of us15 million of shares for the acquisition of assets
37 subsequent events
a final dividend has been proposed in relation to the year of 8 cents per share 2012 31 cents per share giving a total expected 
dividend of us312 million 2012 us1190 million appendices 152153
annual report 2013  
polymetal international plc
appendices
reserves and resources
as at 1 january 2014
mineral resources and ore reserves as at 1 january 2014
1
mineral resources tonnage content
kt au koz ag koz cu kt ge koz
measured 11110 870 39532 15 1665
indicated 39156 2534 38053 61 3705
measured  indicated 50266 3404 77585 76 5370
inferred 88057 10026 39613 69 11293
measured  indicated  inferred 138324 13430 117198 145 16663
ore reserves
proved 53525 4950 129354 8 7161
probable 59440 3950 90107 69 6116
proved  probable 112965 8900 219461 77 13277
1  
mineral resources and ore reserves are reported in accordance with the jorc code 2012 mineral resources are in addition to ore reserves  
discrepancies in calculations are due to rounding
ore reserves precious metals deposits as at 1 january 2014
1
ore reserves tonnage grade content
proved kt au gt ag gt ge gt au koz ag koz ge koz
dukat 5330 10 443 88 171 76013 1505
voro
2
13230 28 4 28 1186 1504 1195
lunnoye 1330 16 296 66 68 12676 283
arylakh 345 09 478 87 10 5301 97
khakanja 1370 15 112 28 65 4939 124
mayskoye 3310 90 – 90 955 – 955
albazino 6700 51 – 51 1093 – 1093
sopka kvartsevaya 2970 24 95 38 230 9053 360
birkachan 3050 17 5 18 166 488 172
dalnee 1250 43 92 54 172 3693 218
oroch
3
930 40 172 66 119 5154 197
tsokol kubaka 430 63 11 65 87 157 89
avlayakan 170 113 89 127 61 484 69
ozerny 380 39 43 44 47 519 53
maminskoye
4
4810 19 – 19 295 – 295
total proved 45605  46  4725  119981  6704 
probable
dukat 4670 08 386 76 119 57959 1136
lunnoye 1320 11 346 69 45 14683 294
arylakh 310 10 500 92 10 4985 92
mayskoye 3820 86 – 86 1058 – 1058
albazino 2460 52 – 52 409 – 409
sopka kvartsevaya 80 45 145 74 13 406 19
birkachan 730 130 58 139 306 1364 325
oroch
3
190 42 197 72 26 1206 44
tsokol kubaka 440 81 13 83 114 178 117
avlayakan 280 184 163 208 166 1473 188
ozerny 400 59 29 63 76 369 81
maminskoye
4
9890 19 – 19 618 – 618
total probable 24590 55 2959 82622 4380
proved  probable
dukat 10000 09 416 82 290 133972 2640
voro
2
13230 28 4 28 1186 1504 1195
lunnoye 2650 13 321 68 113 27359 577
arylakh 655 10 489 90 20 10286 189
khakanja 1370 15 112 28 65 4939 124
mayskoye 7130 88 – 88 2013 – 2013
albazino 9160 51 – 51 1501 – 1501
sopka kvartsevaya 3050 25 97 39 242 9459 379
birkachan 3780 39 15 41 471 1853 497
dalnee 1250 43 92 54 172 3693 218
oroch
3
1120 40 177 67 144 6360 241
tsokol kubaka 870 72 12 74 201 335 207
avlayakan 450 157 135 178 227 1956 257
ozerny 780 50 36 54 123 887 134
maminskoye
4
14700 19 – 19 913 – 913
total proved  probable 70195 49 7684 202603 11084
1 
ore reserves are reported in accordance with the jorc code 2012 discrepancies in calculations are due to rounding 
2 
including voro south 
3 
estimate prepared by polymetal as at 01012014 price au  us1300oz ag  us23oz
4 
initial estimate prepared by snowden as at 01012013 revised estimate prepared by polymetal as at 01012014 appendices 154155
annual report 2013  
polymetal international plc
appendices
reserves and resources
as at 1 january 2014
continued
ore reserves polymetallic ore deposits as at 1 january 2014
1
ore reserves tonnage grade content
proved kt au gt ag gt cu  ge gt au koz ag koz cu kt ge koz
goltsovoye 470 – 623 – 107 – 9373 – 162
varvara
2
7450 09 – 046 12 225 – 79 295
total proved 7920 18 225 9373 79 457
probable
goltsovoye 450 – 519 – 89 – 7485 – 129
varvara
2
34400 09 – 045 15 991 – 691 1607
total probable 34850 15 991 7485 691 1736
proved  probable
goltsovoye 920 – 572 – 99 – 16858 – 291
varvara
2
41850 09 – 045 14 1216 – 770 1902
total proved  probable 42770 16 1216 16858 770 2192
1 
ore reserves are reported in accordance with the jorc code 2012 discrepancies in calculations are due to rounding 
2 
cu grade only represents average grade of float feed ore reserves of float feed 17 mt proved and 155 mt probable
mineral resources precious metals as at 1 january 2014
1
mineral resources tonnage grade content
measured kt au gt ag gt ge gt au koz ag koz ge koz
dukat 1190 12 490 98 46 18808 376
voro
2
800 21 4 21 53 105 54
lunnoye 510 26 604 128 42 9913 210
arylakh 50 13 880 157 2 1404 25
khakanja 350 54 341 95 61 3818 106
mayskoye 660 89 – 89 188 – 188
albazino
3
1150 52 – 52 193 – 193
sopka kvartsevaya 70 19 97 32 4 216 7
birkachan 160 151 24 155 79 123 81
dalnee 90 30 58 40 9 177 11
oroch
4
230 21 92 35 16 677 26
tsokol kubaka 40 60 10 61 8 14 8
avlayakan 10 124 119 143 5 49 6
ozerny 10 31 37 36 1 7 1
maminskoye
8
980 14 – 14 44 – 44
total measured 6300 66 751 35312 1336
indicated
dukat 1170 08 383 75 31 14446 284
lunnoye 420 17 390 83 23 5287 113
arylakh 40 12 625 115 2 796 15
khakanja 100 48 199 71 17 689 25
mayskoye 1090 87 – 87 306 – 306
albazino
3
9930 45 – 45 1443 – 1443
sopka kvartsevaya 10 25 85 29 1 21 1
birkachan 180 103 34 107 59 197 62
oroch
4
180 24 131 44 14 756 26
tsokol kubaka 110 92 11 94 31 36 31
avlayakan 40 153 104 169 20 138 22
ozerny 30 34 29 37 3 24 3
maminskoye
8
1150 15 – 15 55 – 55
total indicated 14450 51 2003 22390 2385
measured  indicated
dukat 2360 10 436 86 76 33254 660
voro
2
800 21 4 21 53 105 54
lunnoye 930 22 508 108 65 15200 323
arylakh 90 13 767 138 4 2200 40
khakanja 450 53 308 89 77 4507 131
mayskoye 1750 88 – 88 493 – 493
albazino
3
11080 46 – 46 1636 – 1636
sopka kvartsevaya 80 19 96 32 5 237 8
birkachan 340 126 29 130 138 321 143
dalnee 90 30 58 40 9 177 11
oroch
4
410 22 109 39 30 1433 51
tsokol kubaka 150 83 11 85 39 50 39
avlayakan 50 146 108 162 25 187 28
ozerny
 
40 33 30 37 3 31 4
maminskoye
8
2130 14 – 14 99 – 99
total measured  indicated 20750 56 2754 57702 3721 appendices 156157
annual report 2013  
polymetal international plc
appendices
reserves and resources
as at 1 january 2014
continued
mineral resources tonnage grade content
inferred kt au gt ag gt ge gt au koz ag koz ge koz
lunnoye 550 19 667 132 33 11791 233
arylakh 130 07 385 70 3 1598 29
khakanja 10 28 199 52 1 49 1
mayskoye 10990 101 – 101 3569 – 3569
albazino
3
12470 49 – 49 1980 – 1980
birkachan 20 137 63 146 10 47 11
oroch
4
790 39 394 99 99 10001 250
tsokol kubaka 50 75 13 77 11 19 12
avlayakan 50 163 88 176 28 150 30
kirankan
5
142 65 8 67 30 39 30
svetloye
6
4083 58 4 59 767 544 776
ozerny 30 39 28 42 3 23 4
kutyn
7
5505 41 – 41 717 – 717
tamunier
9
24070 19 19 1475 1475
olcha
10
9200 22 12 24 653 3590 713
total inferred 68090 45 9379 27852 9830
measured  indicated  inferred
dukat 2360 10 437 87 76 33254 660
voro
2
800 21 4 21 53 105 54
lunnoye 1480 21 567 117 98 26991 555
arylakh 220 09 541 98 7 3798 69
khakanja 460 52 306 89 78 4556 132
mayskoye 12740 99 – 99 4062 – 4062
albazino
3
23550 48 – 48 3615 – 3615
sopka kvartsevaya 80 19 96 31 5 237 8
birkachan 360 126 31 131 148 368 154
dalnee 90 30 58 40 9 177 11
oroch
4
1200 33 296 78 128 11434 302
tsokol kubaka 200 81 11 83 50 69 51
avlayakan 100 155 98 169 53 337 58
kirankan
5
142 65 8 67 30 39 30
svetloye
6
4083 58 4 59 767 544 776
ozerny 70 36 29 39 7 55 7
kutyn
7
5505 41 – 41 717 – 717
maminskoye
8
2130 14 – 14 99 – 99
tamunier
9
24070 19 – 19 1475 – 1475
olcha
10
9200 22 12 24 653 3590 713
total measured  indicated  inferred 88840 47 12132 85554 13551
1 
mineral resources are reported in accordance with the jorc code 2012 mineral resources are additional to ore reserves discrepancies in calculations are due to rounding
2 
including voro south
3  
revaluation performed only for mineral resources of anfisa and olga zones for openpit mining initial estimate of mineral resources performed by snowden as at 01082012  
price au  us1500oz zones ekaterina 1 and 2 and resources of anfisa and olga zones including nadezhda for underground mining remained unchanged
4 
estimate prepared by polymetal as at 01012014 price au  us1500oz ag  us26oz
5 
estimate prepared by snowden as at 01072011 cog  15 gt
6 
estimate prepared by snowden as at 01072011 cog  30 gt
7 
estimate prepared by snowden as at 01072011 cog  20 gt
8 
initial estimate prepared by snowden as at 01012013 revised estimate prepared by polymetal as at 01012014
9  
estimate prepared by snowden as at 01012012 cog au  10 gt the mineral resource estimate includes ore zone 2 where inferred mineral resources are estimated at 840 kt  
grading 40 gt au 49 gt ag containing 109 koz au and 1327 koz ag in other parts of the deposit there are no silver mineral resources
10 
estimate prepared by mir resources as at 07072011 cog  10 gt
mineral resources polymetallic ore deposits as at 1 january 2014
1
mineral resources tonnage grade content
measured kt ag gt ag gt cu  ge gt au koz ag koz cu kt ge koz
goltsovoye 160 – 837 – 144 – 4220 – 73
varvara
2
4650 08 – 042 17 119 – 154 256
perevalnoye
3
– – – – – – – – –
total measured 4810 21 119 4220 154 329
indicated
goltsovoye 120 – 616 – 106 – 2434 – 42
varvara
2
23490 07 – 044 14 531 – 570 1039
perevalnoye
3
1096 – 375 034 68 – 13229 37 239
total indicated 24706 17 531 15663 608 1320
measured  indicated
goltsovoye 280 – 740 – 128 – 6654 – 115
varvara
2
28140 07 – 044 14 650 – 724 1295
perevalnoye
3
1096 – 375 034 68 – 13229 37 239
total measured  indicated 29516 17 650 19883 762 1649
inferred
goltsovoye 470 – 738 – 127 – 11248 – 194
varvara
2
19420 10 – 056 20 648 – 686 1259
perevalnoye
3
78 – 206 046 41 – 513 04 10
total inferred 19968 23 648 11761 690 1463
measured  indicated  inferred
goltsovoye 750 – 739 – 127 – 17902 – 309
varvara
2
47560 08 – 049 17 1297 – 1411 2554
perevalnoye
3
1174 – 364 035 66 – 13742 41 249
total measured  indicated  inferred 49484  20  1297  31644  1452  3112 
1 
mineral resources are reported in accordance with the jorc code 2012 mineral resources are additional to ore reserves discrepancies in calculations are due to rounding
2 
cu estimate is listed for fresh ore and powder ore that has high cu grade total mineral resources for fresh ore and powder ore with high cu grade of 235 and 54 tonnes of ore respectively
3 
estimate prepared by snowden as at 01072011 prices ag  us13oz cu  220clb
compliance statement
this estimate was prepared by employees of jsc polymetal management company and cjsc polymetal engineering 
subsidiaries of the company led by mr valery tsyplakov who assumes overall responsibility for the mineral resources  
and ore reserves report mr tsyplakov is the employed fulltime as the managing director of cjsc polymetal engineering  
and has more than 13 years’ experience in gold silver and polymetallic mining he is a member of the institute of materials 
minerals  mining mimmm london and a competent person under the jorc code 
listed below are other competent persons employed by the company that are responsible for relevant research on which  
the mineral resources and ore reserves estimate is based
•	geology and mineral resources – roman govorukha head of geologic modelling and monitoring mimmm with 13 years’ 
relevant experience
•	mining and ore reserves – igor epshteyn head of mining process department fimmm with 32 years’ relevant experience
•	concentration and metals – igor agapov deputy director of science and technology mimmm with 16 years’  
relevant experience
•	 environmental issues – tatiana kuleshova director for ecology mimmm with 22 years’ relevant experience
all above mentioned competent persons have sufficient experience that is relevant to the style of mineralisation and types  
of deposits under consideration and to the activity being undertaken to qualify as a competent person as defined in the 2012 
edition of the ‘australasian code for reporting of exploration results mineral resources and ore reserves’ jorc code
 
all competent persons have given their consent to the inclusion in the report of the matters based on his or her information  
in the form and context in which it appears
metals prices used in estimating mineral resources and ore reserves are listed below unless otherwise indicated in the footnotes
au  us1300oz
ag  us225oz
cu  us7000t
mineral resources precious metals as at 1 january 2014
1 
continued appendices 158159
annual report 2013  
polymetal international plc
appendices
glossary
abbreviations
agm annual general meeting
cis commonwealth of independent states
fsu former soviet union
imn indigenous minorities of the north
jorc australasian joint ore reserves committee
jsc joint stock company
lbma london bullion market association
ltip longterm incentive programme
na not applicable
ngo nongovernmental organisation
nm not meaningful
npv net present value
pgm platinum group metal
pox pressure oxidation
units of measurements
gt gram per tonne
km kilometres
koz thousand ounces
kt thousand tonnes
ktpa thousand tonnes per annum
m metres
moz million ounces
mt million tonnes
mtpa million tonnes per annum
oz or oz troy ounce 311035 g
pp percentage points
t tonne 1000 kg
tpd tonnes per day
glossary of technical terms
assay  a chemical test performed on a sample  
of any material to determine the amount  
of valuable metals contained in the sample
ag silver
ageq silver equivalent
au gold
autoclave a lined stainlesssteel vessel in which a 
technological operation of pressure oxidation 
takes place
carboninleach 
or cil
 a technological operation in which slurry 
containing gold and silver is leached by  
cyanide in the presence of activated carbon 
gold is absorbed onto activated carbon in 
parallel with leaching
carboninpulp  
or cip
 means a technological operation in which slurry 
containing gold and silver is leached by cyanide 
initially without and subsequently in the presence 
of activated carbon gold absorption onto 
carbon starts only after preliminary leaching
concentrate a semifinished product of mineral processing 
flotation or gravity separation containing 
significantly more value per unit of weight than 
ore and subject to further processing for the 
production of metals or other substances  
in final useful form
cu copper
cutoff grade the minimum grade at which mineralised material 
can be economically mined and processed 
used in the calculation of ore reserves
cyanide leaching leaching with cyanide as the leaching agent
decline a permanent inclined underground tunnel 
leading from the surface to an ore body
dilution the share percentage of material below the 
cutoff grade that is extracted together and 
irretrievably mixed with ore during mining  
all other things being equal higher dilution leads 
to lower grade in ore mined
doré one of the traditional endproducts of a gold
silver mine an alloy containing 90 in sum  
of gold and silver as well as 10 of impurities
exploration activity ultimately aimed at discovery  
of ore reserves for exploitation consists  
of sample collection and analysis including 
reconnaissance geophysical and geochemical 
surveys trenching drilling etc
flotation a technological operation in which orebearing 
minerals are separated from gangue minerals  
in the slurry based on variance in the interaction 
of different minerals with water particles  
of valuable concentrate are carried upwards  
with froth and collected for further processing
reserves and resources
as at 1 january 2014
continued
gold equivalent data is based on reporting of metal equivalent ratios provided below lead and zinc ore reserves and mineral 
resources have not been assessed in this report due to immateriality
reporting of metal equivalents
silvergold equivalent conversion ratio for precious metals deposits
ge  agk
where k is the silver to gold equivalent conversion rate based on the difference in respective metals’ value using the following formula
k  au price311035 – au price311035 – treatment charge auroyalty au100 – treatment charge aurecovery au 
ag price311035 – ag price311035 – treatment charge agroyalty ag100 – treatment charge agrecovery ag
where royalty is the mineral extraction tax at applicable rate recovery – lifeofmine expected recovery of the respective the metal in the 
processing technology applied
silvergold equivalent conversion ratios for precious metals deposits
deposit ore processing technology k
dukat conventional flotation 57
voro heap leachingmerrillcrowe process 121
cyanidation carboninpulp 177
lunnoye cyanidationmerrillcrowe process 59
arylakh cyanidationmerrillcrowe process 61
khakanja cyanidationmerrillcrowe process 84
sopka cyanidationmerrillcrowe process 61
heap leachingmerrillcrowe process 85
birkachan cyanidation carboninpulp 71
heap leachingcarbonincolon 79
dalnee cyanidationmerrillcrowe process 77
heap leachingmerrillcrowe process 100
oroch cyanidationmerrillcrowe process 66
tsokol kubaka cyanidation carboninpulp 71
avlayakan cyanidationmerrillcrowe process 66
kirankan
1
 cyanidationmerrillcrowe process 60
svetloye
1
 heap leachingmerrillcrowe process 60
olcha
1
cyanidationmerrillcrowe process 60
ozerny cyanidationmerrillcrowe process 81
1  
silver to gold equivalent conversion ratios were not recalculated to deposits that were evaluated in 20112012
gold equivalent conversion ratio for polymetallic deposits
ge  mek
where me is the evaluated metal content copper silver
where k is the silver to gold equivalent conversion rate that is calculated considering the difference in metals value issuing the following formula
for silver similar to the formula for precious metals deposits for copper 
k  100au price311035treatment charge au1royalty auchange aurecovery aucu pricetreatment charge cu 
1royalty curecovery curecovery cu
where royalty is the mineral extraction tax at applicable rate recovery – lifeofmine expected recovery of the respective the metal in the 
processing technology applied
gold equivalent conversion ratios for polymetallic deposits
deposit ore processing technology k
ag cu
goltsovoye
1
conventional flotation 58
varvara powder ore with high copper content
2
036
primary ore with high copper content – conventional flotation 036
perevalnoye
3
 conventional flotation 60 064
1  
due to the lack of gold in ore the ratio equals silvergold ratio
2  
this type of ore is currently not being processed it is stockpiled and reflected only in mineral resources
3  
silver to gold equivalent conversion ratios were not recalculated to deposits that were evaluated in 20112012 appendices 160161
annual report 2013  
polymetal international plc
appendices
glossary
continued
grade means the relative amount of metal in ore 
expressed as grams per tonne for precious 
metals and as a percentage for most  
other metals
head grade the grade of ore coming into a processing plant
heap leach a technological operation in which crushed 
material is laid on a sloping impervious pad 
where it is leached by cyanide solution  
to dissolve gold andor silver metals are 
subsequently recovered from pregnant leach 
solution by cic or the merrillcrowe process
inconel an alloy of nickel chromium and iron that  
is highly resistant to high temperatures  
and corrosion
indicated  
resource 
means that part of a resource for which  
tonnage grade and content can be estimated 
with a reasonable level of confidence it is based 
on exploration sampling and testing information 
gathered through appropriate techniques from 
locations such as outcrops trenches pits 
workings and drill holes the locations are  
too widely or inappropriately spaced to  
confirm geological andor grade continuity  
but are spaced closely enough for continuity  
to be assumed
inferred resource means that part of a resource for which tonnage 
grade and content can be estimated with a low 
level of confidence it is inferred from geological 
evidence and assumed but not verified 
geological andor grade continuity it is based  
on information gathered through appropriate 
techniques from locations such as outcrops 
trenches pits workings and drill holes which 
may be limited or of uncertain quality  
and reliability
infill drilling a conventional method of detailed exploration  
on already defined resource of reserve 
consisting of drilling on a denser grid to allow 
more precise estimation of ore bodyparameters 
and location
leaching the process of dissolving mineral values from 
solid into liquid phase of slurry
measured 
resource 
means that part of a resource for which tonnage 
densities shape physical characteristics grade 
and mineral content can be estimated with  
a high level of confidence it is based on detailed 
and reliable exploration sampling and testing 
information gathered through appropriate 
techniques from locations such as outcrops 
trenches pits workings and drill holes  
the locations are spaced closely enough  
to confirm geological and grade continuity
production the amount of pure precious metals measured 
in thousands of ounces for gold millions of 
ounces for silver and tonnes for copper 
produced following processing
proved reserves the economically mineable part of a measured 
resource which represents the highest 
confidence category of reserve estimate  
the style of mineralisation or other factors  
could mean that proved reserves are not 
achievable in some deposits
pt platinum
reclamation the restoration of a site after mining  
or exploration activity is completed
recovery or 
recovery rate
the percentage of valuable metal in the ore  
that is recovered by metallurgical treatment  
in the final or semifinished product
refractory a characteristic of goldbearing ore denoting 
impossibility of recovering gold from it by 
conventional cyanide leaching
reserves the economically mineable part of a measured 
andor indicated mineral resource it takes into 
account mining dilution and losses appropriate 
assessments and studies have been carried out 
and include consideration of and modification  
by realistically assumed mining metallurgical 
economic marketing legal environmental 
social and governmental factors these 
assessments demonstrate at the time of 
reporting that extraction could reasonably be 
justified reserves are subdivided in order of 
increasing confidence into probable reserves 
and proved reserves
resources a concentration or occurrence of material of 
intrinsic economic interest in or on the earth’s 
crust in such form quality and quantity that  
there are reasonable prospects for eventual 
economic extraction the location quantity 
grade geological characteristics and  
continuity of resources are known estimated  
or interpreted from specific geological evidence 
and knowledge resources are subdivided  
in order of increasing geological confidence  
into inferred indicated and measured categories
sag mill a semiautogenous grinding mill generally used 
as a primary or first stage grinding solution
stockwork one of the types of mineralisation a complex 
system of structurally controlled or randomly 
oeirnted veins stockworks are common  
in many ore deposit types
stope a large underground excavation entirely  
within an ore body a unit of ore extraction
strike a horizontal extension of an ore body  
or mineralisation
stripping the mining of waste in an open pit mine
merrillcrowe 
process
a technological operation for extraction  
of gold andor silver after cyanide leaching  
in the first step slurry containing gold andor 
silver is separated into liquid and solid phases  
by washing the solids off in countercurrent 
decantation thickeners in the second step 
pregnant leach solution liquid phase of slurry  
is filtered to remove impurities and deaerated 
finally gold and silver are deposited onto the 
solid bed of claylike material where they replace 
zinc particles which pass into a solution 
merrillcrowe is preferentially used  
for silverrich ores
mill a mineral processing plant
mineralisation a rock containing valuable components  
not necessarily in the quantities sufficient  
for economically justifiable extraction  
consists of ore minerals and gangue
openpittable amenable for economically feasible mining  
by openpit methods
openpit mine a mine that is entirely on surface also referred  
to as opencut or opencast mine
ore the part of mineralisation that can be mined  
and processed profitably
ore body a spatially compact and geometrically  
connected location of ore
ore mined ore extracted from the ground for  
further processing
ore processed ore subjected to treatment in a mineral 
processing plant
ore stacked the ore stacked for heap leach operations
oxidised ore ore in which both ore minerals and gangue  
are fully or partially oxidised thus impacting its 
physical and chemical properties and influencing 
the choice of a processing technology
pd palladium
pox or pressure 
oxidation
a technological operation in which slurry is 
subjected to high pressure and high temperature 
in an autoclave with the goal to destroy sulphide 
particles enveloping gold particles and make 
slurry amenable to cyanide leaching
precipitate the semifinished product of mineral processing 
by merrillcrowe process normally containing 
very high concentrations of silver andor gold
primary ore unoxidised ore
probable  
reserves
the economically mineable part of an indicated 
and in some cases measured resource which 
has a lower level of confidence than proved 
reserves but is of sufficient quality to serve  
as the basis for a decision on the development  
of the deposit
tailings part of the original feed of a mineral  
processing plant that is considered devoid  
of value after processing
underground 
development
excavation which is carried out to access  
ore and prepare it for extraction mining
vein a relatively narrow ore body with significant  
dip and strike dimensions and sharply  
defined boundaries
waste barren rock that must be mined and  
removed to access ore in a mine appendices 162163
annual report 2013  
polymetal international plc
appendices
shareholder information notes
as at 31 december 2013 the company’s issued share capital consisted of 389472865 ordinary shares of no par value  
the company does not hold any ordinary shares in treasury the ordinary shares reflect 100 of the total issued share capital  
of the company
substantial shareholdings as at 30 march 2014
shareholder
beneficial owner
number
of shares
percentage
of issued
share capital
 
nature 
of holding
fodina bv mr petr kellner 79840437 2050 indirect
powerboom investments limited mr alexander nesis 71997758 1849 indirect
vitalbond limited ann capital management fund limited mr alexander mamut 38740784 995 indirect
mbc development limited mr alexander mosionzhik 17000000 436 indirect
staroak limited mr oleg shuliakovskii 16335275 419 indirect
registrar
computershare investor services jersey limited
queensway house
hilgrove street
st helier jersey je1 1es
channel islands
 
auditors
deloitte llp
2 new street square
london ec4a 3bx
united kingdom
 
brokers
morgan stanley  co international plc
25 cabot square
london e14 4qa
united kingdom
 
rbc europe limited
riverbank house
2 swan lane
london ec4r 3bf
united kingdom
 
legal counsel
jersey legal advisors to the company
carey olsen
47 esplanade
st helier jersey je1 0bd
channel islands
 
english us and russian legal advisers to the company
freshfields bruckhaus deringer llp
65 fleet street
london ec4y 1hs
united kingdom
 
freshfields bruckhaus deringer llp
kadashevskaya nab 142
moscow 119017
russian federation
 
cypriot legal advisors to the company
mouaimis  mouaimis
1618 zinas kanther street
3035 limassol
cyprus
 
advisers as to kazakh law to the company
grata law firm
104 m ospanov street
almaty 050020
republic of kazakhstan
 
registered office of the company
ogier house
the esplanade
st helier
jersey je4 9wg
channel islands
44 1534 504000
registered no 106196
 
company secretary
tania tchedaeva
 
media contacts
instinctif partners
leonid fink
tony friend
44 20 7457 2020
 
investor relations
polymetal international
maxim nazimok
evgenia onuschenko
elena revenko
7 812 313 5964 russia
44 20 7016 9503 uk
irpolymetalinternationalcom appendices
notes
designed and produced by instinctif partners wwwinstinctifcom polymetal international plc
ogier house
the esplanade
st helier
jersey je4 9wg
channel islands
registered no 106196


Summary:
 strategic report
annual report 2013  
polymetal international plc
strategic report
introduction
our aim is to become the leading  
precious metals mining group in russia  
and the cis  delivering sustainable value  
to all our stakeholders
despite significant market volatility during  
the year we remain strongly committed  
to our strategy and business model and  
to our principles of capital discipline and  
the development of highquality assets
combined with our focus on high standards  
of corporate governance and responsibility  
we believe that this approach will enable  
us to build on our strong track record and  
continue to deliver aboveaverage returns
and 
resilient

 st ron g progress
we have achieved the objectives that 
we set ourselves at the time of our 
london listing in 2011 and are now 
strongly positioned for the next stage 
of our development
f ocuse d
1

 stra te gic report
2 at a glance
4 where we operate 
6  performance highlights
8 development focus 
10 operational focus 
12 financial focus
14 chairman’s statement
16 chief executive’s review
18 business model
19 strategy update
22 operating review 
 22 overview
 27 dukat hub
 30 omolon hub
 33 amursk pox hub
 36 albazino
 38 mayskoye
 40 khakanja hub
 42 voro
 44 varvara
 46 standalone exploration projects
48 sustainability
56 financial review
70 risks and risk management
 
govern ance
74 board of directors
75 senior management 
76 corporate governance
81 audit and risk committee report
86 directors’ report
88 remuneration report
 
f inanci al st atements
102 directors’ responsibility statement
103 independent auditor’s report
106 consolidated income statement
1 0 6  c o ns o li d a t e d s t a t e m e n t  
of comprehensive income
107 consolidated balance sheet
108 consolidated statement of cash flows
109  consolidated statement of changes  
in equity
110  notes to the consolidated  
financial statements
 
appendices
152 reserves and resources
159 glossary
162 shareholder information strategic report
strategic report 23
annual report 2013  
polymetal international plc
polymetal at a glance
resilient 
perfor mance
 1 33 moz
ore reserves ge oz
 3 7 gt
average reserve grade  
ge gt
 54
licences
 6
mining operations
 1 6 7 moz
mineral resources ge oz
37 gt
average resource grade  
ge gt
 10  650
total licence area km
2

 
production
production structure ge
■ gold 63
■ silver  35
■ copper  2
 1 2 8 2 koz
gold equivalent 
2012 1 063 koz
  2 1
increase of gold equivalent 
production over 2012
how we’ve delivered
we beat our original production guidance for the second 
consecutive year and delivered 128 moz 2012 106 moz 
of gold equivalent in 2013 up 21 yearonyear and 7 
above original expectations this robust achievement was 
driven by the successful rampup of our key growth 
projects amursk pox and mayskoye and exceptional 
operational delivery at the dukat hub 

 reserves an d resou rces
3

 asset por tfolio
what sets us apart
strong capital discipline 
as demonstrated in 2013 we are able to react dynamically  
to the changing market environment this has allowed  
us to maintain free cash flow generation and sustain  
a significant dividend stream to our shareholders
highquality assets
our high reserve grade supports relatively low cost profile  
and lower capital spending per ounce which taken together 
drive better returns on invested capital and resilience  
to price shocks 
 1 7 0 7
sales revenue us million 
2012 us1854 million 
 74 5
total cash cost  
usge oz
2
  
2012 us690ge oz
 59 8
adjusted ebitda
1
 –  
total us million  
2012 us932 million
 138
free cash flow  
us million  
2012 us138 million
1
  the company defines adjusted ebitda a nonifrs measure as profit for the period 
adjusted for depreciation expenses rehabilitation expenses writedowns of inventory  
to net realisable value sharebased compensation listing expenses additional mining  
tax penalties and accrued interest income on disposal of subsidiaries bargain purchase  
gains foreign exchange gainslosses changes in fair value of derivatives changes  
in fair value of contingent considerations finance income finance costs and income  
tax expenses adjusted ebitda margin is adjusted ebitda divided by revenue  
see note 5 to the financial statements 
2
  total cash costs comprise cost of sales of the operating assets adjusted for depreciation 
expenses rehabilitation expenses and writedowns of inventory to net realisable value  
and general administrative and selling expenses of the operating assets gold equivalent 
sales volume is calculated based on average realised metal prices in the relevant period 
total cash cost per gold equivalent ounce sold is calculated as total cash costs divided  
by total gold equivalent unit ounces sold
3
  mineral resources and ore reserves are estimated in accordance with the jorc code 
2012 mineral resources are additional to ore reserves
 
key financi al fi gures as at 31 december 2013
record production volume
polymetal achieved an alltime record 
production volume with 
810 koz
of gold equivalent this strong performance 
was bolstered by 
•	debottlenecking of the omsukchan 
concentrator dukat hub
•	the expansion of the kubaka plant and 
•	mining and processing commencing  
at albazino
premium listing on the lse
polymetal was admitted to the london  
stock exchange in november and included 
in ftse 100 listing
strong operational performance
metal sales for the full year exceeded 
production for both gold and silver  
polymetal produced
 1 063 koz
of total gold equivalent up 31 compared to 
2011 and exceeding original guidance by 6 
resource base increased
there was a dramatic increase in the resource 
base at albazino successful exploration  
has also identified potential new growth 
assets at kutyn and svetloye as a result  
total gold equivalent resources grew by 35
increased dividend payout 
polymetal’s inaugural dividend payment  
in respect of 2011 was made in june 2012  
a new dividend policy was adopted  
raising the payout ratio to 30 and 
introducing an annual consideration  
of special dividends in order to ensure  
value is delivered to shareholders
mayskoye mine started  
and ramped up
the mayskoye plant was started up in april 
and achieved design capacity by q4 this 
marked the completion of a major investment 
cycle to bring the second generation of assets 
into production and the first 48 koz of gold 
were sold to offtakers
new dividend policy in action
a total of us082 per share was paid  
in dividends in 2013 resulting in an industry
leading dividend yield the increased dividend 
payments were underpinned by commitment 
to capital discipline and strong free cash  
flow generation
destockpiling on track
progress made with scheduled stockpile 
reductions and with total gold equivalent  
sales exceeding production destockpiling 
was driven mainly by the dukat hub  
and albazino 
net debt decreased
positive cash flows resulted in a stable net 
debt at us1045 million driven by continued 
strong operating cash flow and decreased 
capital spending 
production guidance exceeded
polymetal exceeded its original annual 
production guidance for the second 
consecutive year and produced  
1 282 koz
of gold equivalent up 21 yearonyear 
amursk pox rampup  
successfully completed 
the amursk pox plant delivered a full 
quarter at design throughput and recovery 
averaging 93 in q4 this is an important 
strategic milestone for polymetal which 
now possesses a unique competitive 
advantage in the fsu listing on the london stock exchange
first operating pox plant in the  
former soviet union launched
the first operating pressure oxidation plant 
pox in russia’s gold industry polymetal’s 
amursk pox was started up and produced 
its first gold in april 2012 
amursk pox plant
a doré bar at voro

 2011 

 2012 

 2013

 t he futu re
we are fully on track to meet  
production guidance for 2014  
of 13 moz total gold equivalent 
increasing to 135 moz in 2015 
in 2014 we expect total cash costs  
of us700750gold equivalent  
‘ge’ oz allin sustaining cash costs  
of us9751025ge oz and capital 
expenditure of us250 million 
including exploration and  
capitalised stripping
 1 4 moz
total gold equivalent in 2016
our achievements