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Дата раскрытия:  15.03.2024
Polymetal International plc
18. BORROWINGS
Actual interest rate at 31 December 2023 31 December 2022
Type of rate 31 Dec 2023 31 Dec 2022 Current Non-current Total Current Non-current Total
Secured loans from third parties US$m US$m US$m US$m US$m US$m
US Dollar denominated fixed 4.32% 2.68% 27 114 141 33 158 191
Total secured loans from third parties 27 114 141 33 158 191
Unsecured loans from third parties
US Dollar denominated floating 6.74% 5.69% 240 100 340 149 339 488
US Dollar denominated fixed 3.50% 3.75% 432 274 706 43 1,206 1,249
Euro denominated floating 4.32% 0.98% 2 18 20 2 19 21
RUB denominated floating 17.95% 9.35% 20 694 714 132 518 650
RUB denominated fixed 13.17% 8.03% 19 142 161 3 202 205
CNY denominated floating 4.95% 3.50% - 70 70 69 70 139
CNY denominated fixed 5.54% 5.99% 265 808 1,073 83 - 83
Total unsecured loans from third parties 978 2,106 3,084 481 2,354 2,835
Total loans from third parties 1,005 2,220 3,225 514 2,512 3,026

Bank loans
The Group has a number of borrowing arrangements with various lenders. These borrowings consist of unsecured and secured loans and credit facilities as detailed above.
Movements in borrowings are presented in Note 23. The Group complied with its debt covenants throughout 2023 and 2022. The table below summarises maturities of borrowings:
Year ended
31 December 2023 31 December 2022
US$m US$m
Less than 1 year 1,005 514
1-5 years 2,208 2,332
More than 5 years 12 180
Total 3,225 3,026

19. COMMITMENTS AND CONTINGENCIES
Commitments
Capital commitments
The Group’s contractual capital expenditure commitments as of 31 December 2023 amounted to US$ 171 million (2022: US$ 279 million).
Nezhda power line
The Group’s lease commitments, representing variable lease payments related to the Nezhda grid power line and substation, were estimated at US$ 24 million (undiscounted), which will be expensed as incurred (2022: US$ 36 million).
Contingent liabilities
Taxation
Russian and Kazakhstan 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 tax authorities in respect of taxes for three and five calendar years preceding the year of review for Russia and Kazakhstan respectively. Under certain circumstances reviews may cover longer periods.
Management has identified a total exposure (covering taxes and related interest and penalties) of US$ 41 million in respect of contingent liabilities (2022: US$ 125 million), mainly related to income tax as described in Note 13.

20. FINANCIAL INSTRUMENTS

Major categories of financial instruments
Year ended
31 December 2023 31 December 2022
US$m US$m
Financial assets
Derivatives designated in hedge relationships
Interest rate swaps 8 16

Financial assets at FVTPL
Receivables from provisional copper, gold and silver concentrate sales 135 54
Contingent consideration receivable 4 17
Shares held at FVTPL 2 1

Financial assets at amortised cost, including cash and cash equivalents
Cash and cash equivalents (Note 23) 842 633
Other receivables 126 49
Non-current loans and receivables 87 15
Total financial assets 1,204 785

Financial liabilities
Financial liabilities at FVTPL
Contingent consideration liability (Note 23) 44 36
Royalty payable (Note 23) 24 24

Financial liabilities at amortised cost
Borrowings (Note 18) 3,225 3,026
Deferred consideration (Note 23) - 85
Trade and other payables 148 171
Total financial liabilities 3,441 3,342

The Group’s principal financial liabilities comprise borrowings, derivatives, trade and other payables. The Group has various financial assets such as accounts receivable, loans advanced and cash and cash equivalents.
Trade and other payables exclude employee benefits and social security.
Interest expense, calculated using effective interest method, arising on financial liabilities at amortised costs is disclosed in Note 23.
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 were no significant concentrations of credit risk for receivables at FVTPL. The carrying amount reflected above represents the Group's maximum exposure to credit risk for such receivables.
Presented below is a summary of the Group’s accounts receivable with embedded derivative recorded on the condensed consolidated statement of financial position at fair value.
As of 31 December 2023, accounts receivable with embedded derivatives recognised at fair value amounted to US$ 135 million (31 December 2022: US$ 54 million) and represented receivables from provisional metal concentrate sales. In 2023 gains recognised on revaluation of these instruments amounted to US$ 4 million (2022: US$ 17 million) and was recorded within revenue.
Fair value of financial instruments
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).
At 31 December 2023 and 31 December 2022, the Group held the following financial instruments:
31 December 2023
Level 1 Level 2 Level 3 Total
US$m US$m US$m US$m

Receivables from provisional copper, gold and silver concentrate sales - 135 - 135
Interest rate swaps - 8 - 8
Contingent consideration receivable - - 4 4
Shares held at FVTPL 2 - - 2
Royalty liabilities payable - - (24) (24)
Contingent consideration liability (Note 23) - - (44) (44)
Total 2 143 (64) 81

31 December 2022
Level 1 Level 2 Level 3 Total
US$m US$m US$m US$m

Receivables from provisional copper, gold and silver concentrate sales - 54 - 54
Interest rate swaps - 16 - 16
Contingent consideration receivable - - 17 17
Shares held at FVTPL 1 - - 1
Royalty liabilities payable - - (24) (24)
Contingent consideration liability (Note 23) - - (36) (36)
Total 1 70 (43) 28

During the reporting year, there were no transfers between Level 1 and Level 2.
The Group recognised the following gains and loss from revaluation of its Level 3 financial instruments:
Year ended
31 December 2023 31 December 2022
US$m US$m
Loss on contingent consideration receivable revaluation (4) (17)
(Loss)/gain on contingent consideration payable revaluation (4) 3
Change in fair value of shares held at FVTPL - (4)
Loss on royalty payable revaluation - (2)
Total change in fair value of financial instruments (8) (20)

The carrying values of cash and cash equivalents, trade and other receivables, trade and other payables and short-term debt recorded at amortised cost approximate to their fair values because of the short maturities of these instruments. Long-term loans to related parties (Note 22) are discounted at rates obtained from active capital markets. The estimated fair value of the Group’s debt, calculated using the market interest rate available to the Group as of 31 December 2023, was US$ 2,699 million (2022: US$ 2,615 million), and the carrying value as of 31 December 2023 was US$ 3,225 million (2022: US$ 3,026 million) (see Note 18).
As of 31 December 2023 the Group held several interest rate swap contracts, recognised within non-current accounts receivables and other financial instruments in the amount of US$ 8 million (31 December 2022: US$ 16 million). All interest rate swap contracts to pay fixed and receive floating interest payments are designated as cash flow hedges to reduce the Group’s cash flow exposure resulting from variable interest rates on borrowings. As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the Group performs a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying interest rates. As of 31 December 2023 and 31 December 2022 it was determined that there is no hedge ineffectiveness identified and therefore change of fair value was recognised within other comprehensive income.
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.
Valuation methodologies used in the measurement of fair value for Level 3 financial assets and financial liabilities
The main level 3 inputs used by the Group in measuring the fair value of contingent consideration assets and liabilities, represented by various royalties and net smelter returns (NSR), are derived and evaluated as follows:
• The relevant valuation model simulates expected production of metals at respective mines and are based on life of mine models prepared using applicable ore reserves and mineral resource estimations;
• Commodity prices - Commodity prices are based on latest internal forecasts, benchmarked against external sources of information. The prices applied are consistent with those described in Note 2.
• Discount rates – The Group used a post-tax real discount rate of 12.5% (2022: 14.1%) as described in Note 2. For the Monte-Carlo modelling, where inflation is incorporated into volatility estimation, a nominal discount rate of 15.1% (2022: 16%) is applied.
• Where the percentage of net smelter return (NSR) or royalty receivable or payable depends on commodity prices or foreign exchange rates reaching certain levels, the Group applies the Monte-Carlo modelling to incorporate the volatility measure into the valuation, which is applied to the prevailing market prices/rates as of the valuation date. The Monte-Carlo modelling is applied to Prognoz (NSR) contingent considerations payable and all contingent considerations receivable.
The key assumptions used in the Monte-Carlo calculations are set out below:

Price as of valuation date per ounce/tonne, $US Volatility, %% Constant correlation to gold, %%
Gold 2,062 12.15%-15.18% n/a
Silver 23.79 26.93% 65.88%
Copper 8,476 16.34% (37.98)%
Zinc 2,641 24.89% 29.53%
RUB rate 89.6883 21.51% 43.13%

Management consider that a reasonably possible change in a valuation assumption would not have a material impact on the condensed consolidated financial statements for contingent considerations receivables and payable.
21. STATED CAPITAL ACCOUNT
The movements in the Stated capital account in the year were as follows:
Stated capital account Stated capital account Share capital Share premium Treasury shares
no. of shares US$m US$m US$m no. of shares

Balance at 31 December 2021 473,626,239 2,450 - - -
Own shares exchanged during the year (39,070,838) - - - 39,070,838
Own shares issued in exchange 39,070,838 - - - -
Balance at 31 December 2022 473,626,239 2,450 - - 39,070,838
Redomiciation to AIFC - (2,450) 14 2,436 -
Own shares exchanged during the year (2,543,840) - - - 2,543,840
Own shares issued in exchange 2,543,840 - - - -
Deferred shares issued 18,902 - - - -
Balance at 31 December 2023 473,645,141 - 14 2,436 41,614,678


As a part of the re-domiciliation described in Note 1, in order to comply with the AIFC companies rules, the Company's shares were converted from 512,697,077 ordinary shares of no par value to 512,697,077 ordinary shares of US$ 0.03 each in the share capital of the Company. As result the Company recognised Share capital of US$ 14 million and Share premium of US$ 2,436 million, calculated as difference between Share capital and Stated capital account, previously recorded.
On 22 September 2022, the Board announced its intention to conduct an exchange offer. The exchange offer invited shareholders whose rights have been affected by the sanctions imposed on NSD, subject to fulfilling eligibility criteria, to tender such shares for exchange in consideration for the issuance of a certificated share, on a one-for-one basis.
The first exchange offer which was completed on 11 October 2023. 2,543,840 shares were repurchased during year ended 31 December 2023 (31 December 2022: 39,070,838 shares). The exchange of shares did not give rise to any cash settlement and hence does not give rise to any financial liability. The shares were exchanged at par, on a one-for-one basis and does not affect the Company’s net asset and resources position or capital structure.
As of 31 December 2023 total number of voting rights in the Company amounted to 473,645,141 ordinary shares of nominal value US$ 0.03 each (31 December 2022: 473,626,239 ordinary shares with no par value), each carrying one vote, and additionally the Company held 41,514,678 shares in treasury and such shares did not enjoy any voting or economic rights (31 December 2022: 39,070,838 shares).
Weighted average number of shares: Diluted earnings per share
Both basic and diluted earnings per share were calculated by dividing profit for the year attributable to equity holders of the parent by the weighted average number of outstanding common shares before/after dilution respectively. The calculation of the weighted average number of outstanding common shares after dilution is as follows:
Year ended
31 December 2023 31 December 2022

Weighted average number of outstanding common shares 473,645,141 473,626,239
Weighted average number of outstanding common shares after dilution
473,645,141 473,626,239

There were no adjustments required to earnings for the purposes of calculating the diluted earnings per share during the year ended 31 December 2023 (year ended 31 December 2022: nil). There are no dilutive potential ordinary shares with respect to earnings per share from continuing operations as these are out of money as of the reporting date (2022: no dilutive potential ordinary shares).
22. 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.
During the period ended 31 December 2023 transactions with the related parties, represented by equity method investments, included miscellaneous purchases of US$ 4 million (year ended 31 December 2022: US$ 0.7 million) and various sales of US$ 0.5 million (year ended 31 December 2022: US$ 0.5 million).
Outstanding balances as of 31 December 2023 were represented by accounts receivable of US$ 1.2 million (31 December 2022: US$ 1.2 million) from equity method investments and long-term loans advanced to the joint venture amounting to US$ 64 million (Note 16). The loans bear 0% interest date up to the start of production with maturity of 5 years.
Loans provided to equity method investments, classified as loans forming part of net investment in joint ventures, are presented in Note 16.
The remuneration of directors and other members of key management personnel during the periods was as follows:
Year ended
31 December 2023 31 December 2022
US$m US$m
Share-based payments - 1
Short-term benefits of board members 3 3
Short-term employee benefits 1 6
Total 4 10


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23. SUPPLEMENTARY CASH FLOW INFORMATION
Year ended Year ended
Note 31 December 2023 31 December 2022
US$m US$m

Profit before tax 843 (332)
Adjustments for:
Depreciation and depletion recognised in the statement of comprehensive income 4 261 282
Impairment of non-current assets, net 14 126 825
(Gain)/loss on disposal of subsidiaries 3 (113) 2
(Reversal)/write-down of inventories to net realisable value 6 (6) 64
Share-based compensation 10 11 13
Finance expenses 12 162 119
Finance income (27) (8)
Change in fair value of financial instruments 20 8 20
Foreign exchange loss 174 32
Other non-cash items 21 12
1,460 1,029
Movements in working capital
Change in inventories (328) (269)
Change in VAT and other taxes 18 8
Change in trade and other receivables (159) (18)
Change in prepayments to suppliers (25) (31)
Change in trade and other payables (4) (29)
Change in prepayments received - (134)
Cash generated from operations 962 556
Interest paid (190) (123)
Interest received 19 7
Income tax paid (216) (234)
Net cash generated by operating activities 575 206

There were no significant non-cash transactions during the years ended 31 December 2023 and 31 December 2022, other than in respect of exchange of the ordinary shares (Note 21).
Cash outflows related to capitalised exploration amounted to US$ 11 million for the year ended 31 December 2023 (2022: US$ 15 million). During the year ended 31 December 2023, the capital expenditure related to the new projects, which increase the Group’s operating capacity amounts to US$ 237 million (2022: US$ 208 million).
Cash and cash equivalents
31 December 2023 31 December 2022
US$m US$m

Bank deposits -USD 17 468
- CNY 364 -
- KZT 104 15
- other currencies 39 75
Current bank accounts - USD 159 68
- CNY 107 -
- other currencies 52 7
Total 842 633

At 31 December 2023 cash balances included US$ 513 million of cash and cash equivalents (31 December 2022: US$ 118 million) held in Russia, that are subject to certain legal and sanctions restrictions and are therefore not available for general use of the Company (but fully available for use by Russian subsidiaries). The Group determined that these restrictions would not have any material effect on the Group’s liquidity position and its ability to finance its obligations.
Bank deposits as of 31 December 2023 were mainly presented by the US Dollar and CNY deposits, bearing an average interest rate of 2.98% and 4.04% per annum, respectively (2022: US Dollar deposits, bearing an average interest rate of 3.9% per annum).
Changes in liabilities arising from financing activities
The table below details changes in the Group's liabilities arising from financing activities, including both cash and non-cash changes. Liabilities from financing activities are those for which cash flow were, or future cash flows will be, classified in the Group's condensed consolidated cash flow statements as cash flows from financing activities.

Year ended 31 December 2023
Borrowings Contingent consideration payable at fair value Deferred consideration payable at amortised cost Royalty payable Lease liabilities

1 January 3,026 36 85 24 131
Cash inflow 1,324 - - - -
Cash outlow (944) - - - (21)
Changes from financing cash flows 380 - - - (21)

Disposal of subsidiary - - (88) - -
Change in fair value, included in profit or loss - 4 - - -
Unwind of discount 1 4 3 - 7
New leases and modifications - - - - (14)
Lease termination - - - - (7)
Net foreign exchange losses 371 6 4 6 -
Exchange differences on translating foreign operations (553) (6) (4) (6) (26)
Other changes (181) 8 (85) - (40)

31 December 3,225 44 - 24 70

Less current portion (1,005) (15) - (5) (18)
Total non-current liabilities at 31 December 2,220 29 - 19 52




Year ended 31 December 2022
Borrowings Contingent consideration payable at fair value Deferred consideration payable at amortised cost Royalty payable Lease liabilities

1 January 2,064 63 79 21 36
Cash inflow 3,885 - - - -
Cash outlow (3,029) (27) - - (18)
Changes from financing cash flows 856 (27) - - (18)

Additions as a result of acquisitions 161 - - - -
Change in fair value, included in profit or loss - (3) - 3 -
Unwind of discount - 3 6 - 7
Arrangement fee amortisation 1 - - - -
New leases - - - - 123
Lease termination - - - - (1)
Net foreign exchange losses (19) - - (2) -
Exchange differences on translating foreign operations (37) - - 2 (16)
Other changes 106 - 6 3 113

31 December 3,026 36 85 24 131

Less current portion (33) (9) - (5) (25)
Total non-current liabilities 2,993 27 85 19 106


24. SUBSEQUENT EVENTS
Оn 18 February 2024 the Group entered into contracts for the divestment of its Russian business through a sale of 100% JSC Polymetal’s shares to a third party, JSC Mangazeya Plus (the Purchaser). On 7 March 2024, following the receipt of required regulatory and shareholder approvals, the transaction was completed.
The transaction entailed US$ 50 million cash consideration which was paid to the Company at completion.
Prior to completion, an aggregate dividend of US$ 1,429 million (before tax) was paid by JSC Polymetal to the Company, of which US$ 278 million will be retained by the Company for its general corporate purposes and US$ 1,151 million were used to repay, and fully discharge, the intra-group debt and related interest owed to JSC Polymetal. Combined net cash proceeds from the Purchaser and through dividends retained by the Company, after tax of US$ 28 million, amounted to US$ 300 million.
Major classes of assets and liabilities of JSC Polymetal Group, net of dividends payable and intercompany loans receivable, that were settled in March 2024 before the actual disposal date and which will not be part of assets and liabilities of the divested subsidiaries, are presented below. Cash and cash equivalents balance as of 31 December 2023 was adjusted for the net outflow accordingly, including dividends tax effect.
31 December 2023
US$m
Assets
Property, plant and equipment 2,189
Investments in associates and joint ventures 123
Non-current accounts receivable 80
Deferred tax asset 186
Non-current inventories 74
Other non-current assets 87
Total non-current assets 2,739

Current inventories 904
Prepayments to suppliers 156
Income tax prepaid 9
VAT receivable 73
Trade and other receivables 310
Cash and cash equivalents 121
Total current assets 1,573
Total assets 4,312

Accounts payable and accrued liabilities (189)
Current borrowings (860)
Income tax payable (20)
Other taxes payable (57)
Other current liabilities (30)
Total current liabilities (1,156)

Non-current borrowings (1,863)
Deferred tax liability (44)
Other non-current liabilities (138)
Total non-current liabilities (2,045)
Total liabilities (3,201)
NET ASSETS 1,111

The rationale for the transaction is associated with the significant political and financial risks that the pre-divestment structure poses to the Group, as well as the difficulty and related uncertainty of executing any alternative transaction. Therefore management believes that the transaction terms do not represent an indicator of further impairment of any CGU within the JSC Polymetal Group. The impairment review conducted as of 31 December 2023 is described in Note 2.
25. SUPPLEMENTARY FINANCIAL INFORMATION ON DIVESTMENT (UNAUDITED)
The financial information below is to illustrate the financial effect of the divestment, so each caption of the consolidated statement of financial position and consolidated income statement was adjusted to exclude the amounts of JSC Polymetal Group. In contrast with the statement of financial position presented on the face of these consolidated financial statements intra-group balances with JSC Polymetal Group are not eliminated, instead they are treated as balances with a related party. Unrealised profits or losses are excluded from the inventory balances and accumulated profits of Polymetal International plc.
Additionally, the table below presents post-disposal Polymetal International plc pro forma financial information, which illustrates the impact of the sale transaction on the net assets of the Polymetal International plc as of 31 December 2023 as if it had taken place at that date and the results of operations of the Polymetal International plc as if the transaction had taken place at 1 January 2023.
Year ended Post-disposal pro forma based on year ended
31 December 2022 31 December 2023 31 December 2023
US$m US$m US$m
Assets
Property, plant and equipment 717 809 809
Investments in associates and joint ventures 10 6 6
Non-current accounts receivable 13 27 27
Other non-current financial assets - 9 9
Non-current inventories 24 41 41
Total non-current assets 764 892 892

Current inventories 146 274 274
Prepayments to suppliers 36 24 24
Income tax prepaid 21 37 37
VAT receivable 25 58 58
Trade and other receivables 17 24 24
Receivables from related parties 100 - -
Dividends receivable from JSC Polymetal - 1,429 -
Other financial assets at FVTPL 10 5 5
Cash and cash equivalents 515 328 628
Total current assets 870 2,179 1,050

Total assets 1,634 3,071 1,942

Accounts payable and accrued liabilities (43) (126) (131)
Current borrowings (75) (145) (145)
Intercompany balances (1,097) (270) -
Income tax payable - - (6)
Other taxes payable (19) (24) (24)
Current portion of contingent consideration liability - (3) (3)
Total current liabilities (1,234) (568) (309)

Non-current borrowings (716) (357) (357)
Non-current borrowings to related parties (32) (766) -
Contingent and deferred consideration liabilities (98) (14) (14)
Deferred tax liability (57) (208) (65)
Environmental obligations (8) (17) (17)
Non-current lease liabilities (1) (1) (1)
Other non-current liabilities (5) (6) (6)
Total non-current liabilities (917) (1,369) (460)
Total liabilities (2,151) (1,937) (769)
NET ASSETS (517) 1,134 1,173


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Year ended Post-disposal pro forma based on
31 December 2022 31 December 2023 31 December 2023
US$m US$m US$m
Revenue 913 826 826
Cost of sales (407) (420) (420)
Gross profit 506 406 406

General, administrative and selling expenses (48) (59) (59)
Other operating expenses, net (30) (16) (21)
Impairment of non-current assets - (16) (16)
Operating profit 428 315 310

Foreign exchange gain, net 214 171 171
Loss on disposal of subsidiaries (2) - -
Change in fair value of financial instruments (1) (2) (2)
Finance expenses (55) (90) (90)
Finance income 5 6 6
Profit before income tax 589 400 395

Income tax (51) (218) (75)
Profit from continuing operations 538 182 320

Loss from discontinued operations - - (1,210)
Translation differences recycling on disposal of foreign operation (979)
Total from continuing and discontinued operations 538 182 (1,869)


ALTERNATIVE PERFORMANCE MEASURES
Introduction
The financial performance reported by the Group contains certain Alternative Performance Measures (APMs), disclosed to complement measures that are defined or specified under International Financial Reporting Standards (IFRS). APMs should be considered in addition to, and not as a substitute for, measures of financial performance, financial position or cash flows reported in accordance with IFRS.
The Group believes that these measures, together with measures determined in accordance with IFRS, provide the readers with valuable information and an improved understanding of the underlying performance of the business.
APMs are not uniformly defined by all companies, including those within the Group’s industry. Therefore, the APMs used by the Group may not be comparable to similar measures and disclosures made by other companies.
Purpose
APMs used by the Group represent financial KPIs for clarifying the financial performance of the Group and measuring it against strategic objectives, given the following background:
- Widely used by the investor and analyst community in the mining sector and, together with IFRS measures, provide a holistic view of the Group;
- Applied by investors to assess earnings quality, facilitate period to period trend analysis and forecasting of future earnings, and understand performance through eyes of management;
- Highlight key value drivers within the business that may not be obvious in the financial statements;
- Ensure comparability of information between reporting periods and operating segments by adjusting for uncontrollable or one-off factors which impact upon IFRS measures;
- Used internally by management to assess the financial performance of the Group and its operating segments;
- Used in the Group’s dividend policy; and
- Certain APMs are used in setting management’s remuneration.
APMs and justification for their use
Group APM Closest equivalent IFRS measure Adjustments made to IFRS measure Rationale for adjustments
Underlying net earnings • Profit/(loss) for the financial period attributable to equity shareholders of the Group • Write-down of metal inventory to net realisable value (post-tax)
• Impairment/reversal of previously recognised impairment of non-current assets (post-tax)
• Foreign exchange (gain)/loss (post-tax)
• Change in fair value of contingent consideration liability (post-tax)
• Gains/losses on acquisition, revaluation and disposals of interests in subsidiaries, associates and joint ventures (post-tax)
• Excludes the impact of key significant one-off non-recurring items and significant non-cash items (other than depreciation) that can mask underlying changes in core performance.
Underlying earnings per share • Earnings per share • Underlying net earnings (as defined above)
• Weighted average number of outstanding common shares • Excludes the impact of key significant one-off non-recurring items and significant non-cash items (other than depreciation) that can mask underlying changes in core performance.
Underlying return on equity • No equivalent • Underlying net earnings (as defined above)
• Average equity at the beginning and the end of reporting year, adjusted for translation reserve • The most important metric for evaluating a Group profitability
• Measures the efficiency with which a company generates income using the funds that shareholders have invested.
Return on assets • No equivalent • Underlying net earnings (as defined above) before interest and tax
• Average total assets at the beginning and the end of reporting year • A financial ratio that shows the percentage of profit a company earns in relation to its overall resources.

Adjusted EBITDA • Profit/(loss) before income tax • Finance cost (net)
• Depreciation and depletion
• Write-down of metal and non-metal inventory to net realisable value
• Impairment/reversal of previously recognised impairment of non-current assets
• Share-based compensation
• Bad debt allowance
• Net foreign exchange gain/losses
• Change in fair value of contingent consideration liability
• Rehabilitation costs
• Additional mining taxes, VAT, penalties and accrued interest
• Gains/losses on acquisition, revaluation and disposals of interests in subsidiaries, associates and joint ventures • Excludes the impact of certain non-cash elements, either recurring or non-recurring, that can mask underlying changes in core operating performance, to be a proxy for operating cash flow generation.
Net debt • Net total of current and non-current borrowings
• Cash and cash equivalents • Not applicable • Measures the Group’s net indebtedness that provides an indicator of the overall balance sheet strength.
• Used by creditors in bank covenants.
Net debt/EBITDA ratio • No equivalent • Not applicable • Used by creditors, credit rating agencies and other stakeholders.
Free cash flow • Cash flows from operating activity less cash flow from investing activities • Excluding acquisition costs in business combinations and investments in associates and joint ventures
• Excluding loans forming part of net investment in joint ventures
• Excluding proceeds from disposal of subsidiaries • Reflects cash generating from operations after meeting existing capital expenditure commitments.
• Measures the success of the Group in turning profit into cash through the strong management of working capital and capital expenditure.
Free cash flow post M&A • Cash flows from operating activity less cash flow from investing activities • Not applicable • Free cash flow including cash used in/received from acquisition/disposal of assets and joint ventures.
• Reflects cash generation to finance returns to shareholders after meeting existing capital expenditure commitments and financing growth opportunities.
Total cash costs (TCC) • Total cash operating costs
• General, administrative & selling expenses • Depreciation expense
• Rehabilitation expenses
• Write-down of inventory to net realisable value
• Intersegment unrealised profit elimination
• Idle capacities and abnormal production costs
• Exclude corporate costs and costs related to development assets
• Treatment charges deductions reclassification to cost of sales • Calculated according to common mining industry practice using the provisions of Gold Institute Production Cost Standard.
• Gives a picture of the Group current ability to extract its resources at a reasonable cost and generate earnings and cash flows for use in investing and other activities.
All-in sustaining cash costs (AISC) • Total cash operating costs
• General, administrative & selling expenses • AISC is based on total cash costs, and adds items relevant to sustaining production such as other operating expenses, corporate level SG&A, and capital expenditures and exploration at existing operations (excluding growth capital). After tax all-in cash costs includes additional adjustments for net finance cost, capitalised interest and income tax paid. All-in costs include additional adjustments on that for development capital. • Includes the components identified in World Gold Council’s Guidance Note on Non?GAAP Metrics – All?In Sustaining Costs and All?In Costs (June 2013), which is a non?IFRS financial measure.
• Provides investors with better visibility into the true cost of production.

3. Подпись
3.1. Наименование должности Главный операционный директор Досмукаметов К.М.

3.2. Дата "15" марта 2024 г. М.П.