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En Ru
2,440 koz of gold
produced in 2018 (2017: 2,160 koz)
348 $/oz
Total cash cost per ounce sold
605 $/oz
All-in sustaining cash cost
Ore processed, kt
28,663 2017
38,025 2018
Adj. EBITDA $ mln
1,702 2017
1,865 2018
6 6 operating assets: 5 hard-rock mines and alluvial operations
2,915 $ mln
Total Revenue in 2018
Lost time injury frequency rate (LTIFR) per 200k hours worked in 2018
Press releases

Convertible Bonds Pricing

Not for distribution in or into the United States or for the account or benefit of, U.S. persons (as defined in regulation s under the U.S. securities act of 1933) or in or into Australia, Canada, Japan, the Russian Federation, South Africa or any other jurisdiction in which such distribution would be prohibited by applicable law.

Polyus announces the placing of U.S.$250 million Senior Unsecured Guaranteed Convertible Bonds due 2021 to be issued by Polyus Finance PLC and guaranteed jointly and severally by PJSC Polyus (the “Company”) and Joint Stock Company Polyus Krasnoyarsk (together the “Guarantors”).

PJSC Polyus (LSE: “PLZL”; MICEX-RTS: “PLZL”), Russia’s largest gold producer, has completed the offering (the “Offering”) of U.S.$250 million principal amount of senior unsecured guaranteed convertible bonds due 2021 (the “Bonds”). The Bonds will be issued by Polyus Finance PLC (the “Issuer”), an indirect wholly-owned finance subsidiary of the Company incorporated under the laws of England and Wales, and will be guaranteed jointly and severally by the Guarantors. The total amount of the Guarantors’liability for any and all obligations assumed by the Guarantors in respect of or in connection with the guarantee will not in any case exceed U.S.$1.2 billion in aggregate. The Bonds are, subject to a cash settlement option at the discretion of the Issuer, convertible into Reg S Global Depositary Receipts (“GDRs”) of the Company listed on the London Stock Exchange, with two GDRs representing one ordinary share of the Company.

The Issuer intends to use the net proceeds from the issue of the Bonds primarily for debt refinancing and other general corporate purposes of the Group.

The Bonds will carry a coupon of 1.00 per cent. per annum payable semi-annually in arrear. The initial conversion price has been set at U.S.$50.0427 per GDR, representing a conversion premium of 30 per cent. above the reference price of U.S.$38.4944 (being the volume weighted average price of a GDR between launch and the close of bookbuilding of the Bonds on 19 January 2018). The conversion price of the Bonds will be subject to standard convertible market anti-dilution adjustments.

The Bonds will be issued and redeemed at 100 per cent. of their principal amount and, unless previously redeemed, converted or purchased and cancelled, will mature on 26 January 2021 (the “Final Maturity Date”). The Issuer will have the right to elect to settle redemption of the Bonds on the Final Maturity Date entirely in cash, GDRs or with a combination of cash and GDRs. The Issuer will have the option to redeem all of the Bonds at any time after the date falling 21 days after the second anniversary of the closing date at their principal amount together with accrued interest, if the value of the GDRs deliverable on conversion of the Bonds exceeds 130% per cent. of the principal amount of the Bonds over a specified period.

Bondholders will have the right, subject to a cash settlement option at the discretion of the Issuer, to convert their Bonds into GDRs of the Company at any time starting from the 41st day after the issue date up to the close of business on the seventh London business day prior to the Final Maturity Date or if the Bonds shall have been called for redemption by the Issuer prior to the Final Maturity Date, the date falling seven London business days prior to the date fixed for redemption.

The Bonds will be offered and sold outside the United States in reliance on Regulation S of the US Securities Act 1933, as amended.

Prior to the first interest payment date, the Issuer undertakes to list the Bonds on a stock exchange or trading platform which enables the Bonds to qualify for the “quoted Eurobond exemption” under the UK Income Tax Act 2007.

The settlement of the Offering is expected to occur on or around 26 January 2018.

As was announced on 18 January 2018, the Company has launched a Eurobond roadshow starting on 19 January 2018 and ending on 23 January 2018. Following the Eurobond roadshow, and subject to market conditions, the Company may launch a benchmark Eurobond offering in the near future.

Deutsche Bank AG, London Branch, J.P. Morgan Securities plc and SIB (Cyprus) Limited are acting as Joint Bookrunners in connection with the Offering, and, together with Gazprombank, are also acting as Joint Lead Managers.

Polyus Gold International Limited has entered into stock lending arrangements with Deutsche Bank AG, London Branch and J.P. Morgan Securities plc on the date hereof in respect of GDRs representing approximately 1.9% of the Company’s issued share capital for the purposes of facilitating investors’ hedging activities.


The Polyus group ( is the largest gold producer in Russia and one of the top 10 gold miners globally with the lowest cost position. Based on its 2016 Ore Reserves and Mineral Resources, the Polyus group ranks second by attributable gold reserves and third by attributable gold resources among the world’s largest gold mining companies.

The Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia).

Inside Information

This announcement contains inside information


Investor contact
Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77

Media contact
Victoria Vasilyeva, Director Public Relations
+7 (495) 641 33 77

Important notice

No action has been taken by the issuer, the guarantors, the joint bookrunners or any of their respective affiliates that would permit an offering of the bonds or possession or distribution of this press release or any offering or publicity material relating to the bonds in any jurisdiction where action for that purpose is required. Persons into whose possession this press release comes are required by the issuer, the guarantors and the joint bookrunners to inform themselves about, and to observe, any such restrictions.

This press release is not for distribution, directly or indirectly in or into the United States or for the account or benefit of, U.S. persons (as defined in regulation s under the U.S. securities act of 1933 (the “securities act“)). This press release is not an offer to sell securities or the solicitation of any offer to buy securities, nor shall there be any offer of securities in any jurisdiction in which such offer or sale would be unlawful.

This press release and the offering when made are only addressed to, and directed in member states of the european economic area (the “eea”) at persons who are “qualified investors”; within the meaning of article 2(1)(e) of the prospectus directive (“qualified investors”). For these purposes, the expression “prospectus directive” means directive 2003/71/ec, as amended.

Solely for the purposes of each manufacturer’s product approval process, the target market assessment in respect of the bonds has led to the conclusion that: (i) the target market for the bonds is eligible counterparties and professional clients only, each as defined in directive 2014/65/eu, as amended (“mifid ii”); and (ii) all channels for distribution of the bonds to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the bonds (a “distributor”) should take into consideration the manufacturers’ target market assessment; however, a distributor subject to mifid ii is responsible for undertaking its own target market assessment in respect of the bonds (by either adopting or refining the manufacturers’ target market assessment) and determining appropriate distribution channels.

The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the eea. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of article 4(1) of mifid ii; or (ii) a customer within the meaning of directive 2002/92/ec, where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of mifid ii; or (iii) not a qualified investor as defined in the prospectus directive. Consequently, no key information document required by regulation (eu) no 1286/2014, as amended (the “priips regulation”) for offering or selling the bonds or otherwise making them available to retail investors in the eea has been prepared and therefore offering or selling the bonds or otherwise making them available to any retail investor in the eea may be unlawful under the priips regulation.

In addition, in the United Kingdom this press release is being distributed only to, and is directed only at, qualified investors (i) who have professional experience in matters relating to investments falling within article 19(5) of the financial services and markets act 2000 (financial promotion) order 2005, as amended (the “order”) and qualified investors falling within article 49(2)(a) to (d) of the order, and (ii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This press release must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the eea other than the United Kingdom, by persons who are not qualified investors. Any investment or investment activity to which this press release relates is available only to (a) relevant persons in the United Kingdom and will be engaged in only with relevant persons in the United Kingdom and (b) qualified investors in member states of the eea (other than the United Kingdom).

This press release and information contained herein is not an offer, or an invitation to make offers, to sell, exchange or otherwise transfer securities in the Russian Federation to or for the benefit of any russian person or entity and does not constitute an advertisement or offering of securities in the Russian Federation within the meaning of russian securities laws. Information contained in this document is not intended for any persons who are not “qualified investors”within the meaning of article 51.2 of the federal law no. 39-fz “on the securities market” dated 22 april 1996, as amended (the “russian qis”) and must not be distributed or circulated into Russia or made available in Russia to any persons who are not russian qis, unless and to the extent they are otherwise permitted to access such information under russian law. The securities have not been and will not be registered in Russia and are not intended for “placement” or “circulation” in Russia (each as defined in russian securities laws) unless and to the extent otherwise permitted under russian law. Any decision to purchase any of the bonds should only be made on the basis of an independent review by a prospective investor of the issuer’s and the guarantors’ publicly available information. Neither the joint bookrunners nor any of their respective affiliates accept any liability arising from the use of, or make any representation as to the accuracy or completeness of, this press release or the issuer’s and the guarantors’ publicly available information.

The information contained in this press release is subject to change in its entirety without notice up to the settlement date.

Each prospective investor should proceed on the assumption that it must bear the economic risk of an investment in the bonds or the gdrs to be issued or transferred and delivered upon conversion of the bonds and notionally underlying the bonds (together with the bonds and the ordinary shares underlying the gdrs, the “securities”). None of the issuer, the guarantors or the joint bookrunners make any representation as to (i) the suitability of the securities for any particular investor, (ii) the appropriate accounting treatment and potential tax consequences of investing in the securities or (iii) the future performance of the securities either in absolute terms or relative to competing investments.

The joint bookrunners are acting on behalf of the issuer and the guarantors and no one else in connection with the bonds and will not be responsible to any other person for providing the protections afforded to clients of the joint bookrunners or for providing advice in relation to the securities.

Each of the issuer, the guarantors, the joint bookrunners and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any statement contained in this press release whether as a result of new information, future developments or otherwise.