Ladies and gentlemen, welcome to the first half production results call for Polymetal International. I'm Vitaly Nesis, the CEO of the company. We will cover production results and also touch upon the recently completed redomiciliation of the company from Jersey to Kazakhstan. In the end, we will be open for the questions, which can be asked through the webcast. Overall, I believe the second quarter and first half production overall demonstrated solid results, despite very challenging environment for the Russian part of the business and some hiccups on the Kazakhstan side of the company. For the first half of the year, we are pleased to report no fatalities among our employees and contractors, which obviously reflects the top priority of our operations being the safety of the people who work for us. Second quarter gold equivalent production grew strongly on the back of contribution from the Russian operations. The Kazakhstan business recorded a 7% decline, mostly on the reduction of third-party ore feed to Varvara. Importantly, our flagship operation, Kyzyl, continued to perform quite strongly, although continued to be impacted by logistical disruptions on the Russian railways, with concentrate shipments to Russian Far East and to Russian eastern seaports to China being impacted by a very heavy traffic. In terms of our outlook for the full year, I believe we will be able to get tough in terms of production, but also importantly, the focus will be on bridging the production sales gap, which opened very widely after the imposition of US sanctions on the Russian subsidiaries of the company. These sanctions have resulted in severe disruption to the sales channels, and right now, the Russian part of the business is struggling to reestablish those sales channels and to resume selling gold, silver, and concentrates as per normal. We expect this to be largely normalized by the fourth quarter, by the end of the fourth quarter, I should say. But right now, the Russian business is going through quite a lot of difficulties in terms of sales. In terms of Kyzyl, again, we expect the sales production gap to close in the fourth quarter. After almost full termination of railway shipments in the second quarter, now we have resumed shipments in July and found new seaports to ship stuff to China. We hope that the gap will be mostly, if not fully closed by the end of the year. Clearly, financial dynamics in terms of revenues is very positive, but that, again, reflects severe issues with sales that the company went through last year after the imposition of sanctions on Russian gold. To kind of complete the operational discussions, we I think are holding up very well in terms of operations. Sales, including logistics, are significantly problematic, but the management is confident that these issues will be resolved largely by year-end. Net debt by the end of the second quarter reached $2.6 billion. This reflects a further increase compared with the end of the first quarter. We planned actually a substantial decrease, but instead of drawing down inventories, we actually continued to accumulate them, as we, as I have mentioned, struggled with logistics and sales channels, mostly in Russia. Also would like to highlight yet again that Polymetal International has redomiciled from Jersey to Astana International Financial Centre in Kazakhstan as of Monday this week. This is an important step because it will enable the company to receive dividends from Russian operations and consequently to pay dividends to its shareholders. Now, we will be definitely looking to pay a dividend by year-end. I can't tell you the exact timing. This will depend on the speed with which the Russian business liquidates the accumulated inventory post-sanctions. It also enables the company to pursue the sale of the Russian business in an orderly manner without significant hurdles imposed by Russian regulations. Kazakhstan is not an unfriendly jurisdiction under the meaning of the current Russian law, and as such, the sale will not require very heavy, sometimes prohibitive, approvals by the Russian government. We remain committed to the disposal of the subsidiaries impacted by the U.S. sanctions. Other options, such as spin-off or distribution of the Russian subsidiary to investors, are not possible given the sanctions regime, because as much as we are keen to preserve the shareholder value, we are equally keen not to breach any sanctions. Therefore, the sale of the Russian business remains the only reasonable option, which we will pursue in the course of the next several quarters. I would also like to inform the shareholders that starting tomorrow, trading will resume on AIX, and we're also working closely with MOEX to restart trading there. Hopefully, liquidity will reappear and ensure that the shareholders have a way to trade their shares. With this, I would like to close the main presentation and pass to the questions. There are several questions about the necessity of divesting the Russian assets to post-redom. We believe that a public company cannot really hold the assets which are subject to U.S. sanctions. That more or less blocks any valuations of the parent company. Now, we also have made an undertaking to the accepting jurisdiction to the AIFC that the company will pursue its will, will do a best efforts basis to sell the Russian assets. Therefore, I think there is no alternative for us but to continue with the sale. I n terms of dividends, also quite a lot of questions. Again, it is our intention to do our best to pay dividend by the year-end. The precise timing and amount will depend on the resumption of orderly gold sales from the Russian business. Now, I can understand the frustration and the concern of many questions in terms of the need to sell the Russian business. I believe post-REDOM, the management and the board are in the position to extract substantial, if not full value, from that business. This will not be a fire sale or a giveaway. We definitely will not settle for any type of deferred consideration. The, the goal is to get hard cash and substantial amounts to the parent level company and to apply that cash both to dividend payouts and to the development of Polymetal International business in Kazakhstan and potentially in other Central Asian countries. How much unsold gold and stock in Russia and separately in Kazakhstan? In Russia, we currently have around 200,000 oz and in Kazakhstan maybe around 60,000 oz-70,000 oz. In light of OFAC sanctions, how do you see Kyzyl processing be impacted on an ongoing forward basis? Well, we already have switched the interaction mode between Kyzyl and POX from the sale of concentrate to tolling. We agreed that until we receive a green light from OFAC, Kyzyl is not paying for that tolling arrangement. We also had initial discussions with OFAC on tolling, and we will continue to discuss this and to explain why the continuation of the relationship between Kyzyl and POX is essential. Hopefully, we will find a way to ensure that the current arrangement is economic on both sides of the relationship, and also that it's fully compliant with the sanctions. Are you going to seek a shareholder vote before trying to give the Russian assets to a new owner? Yes, definitely. This will be put to a shareholder. Have you already identified a buyer for the Russian mines? No, we have not. This is a tricky process because we will need to ensure that the new buyer can guarantee the sustainability of the relationship between Kyzyl and POX. The new buyer should be okay to OFAC. In general, we want we want to have certainty of execution as a very important priority. We don't want to find ourselves in a situation where when we agree on the deal and then can't close it. We will be very diligent and very careful in identifying the optimal buyer. Could the shareholders on the MOEX receive the dividends that you plan to pay at the end of the year? Currently, no, we will find a way to amend the situation. At Kyzyl, what is cash cost contribution of POX processing currently in dollars per ounce? It's approximately $100 per ounce and another $50 in logistics. When approximately the trading at MOEX can be resumed? I hope it can be done by the end of August. Any views on how you think your Kazakh corporate domicile will differ from your Jersey experience? Well, we have selected AIFC as the jurisdiction, which is for us to maintain the highest standards of corporate governance, and of board experience. I hope that we will be able to maintain largely the same level of disclosure, corporate governance, et cetera, as we have done within Jersey. Do you still envisage a second listing on LSE? If so, what does this timeline look like? In order to seriously consider a second listing, we need to sell the Russian assets, and also to prepare the company for the listing in terms of establishing the proper investment case and the proper pipeline. My expectation is maybe 18-24 months. We, I feel obliged to answer this question. We went along with the redom because management said that selling the assets is no longer being considered. At the smallest inconvenience, the sale is back on. For anyone that feel you are purposefully, purposefully trying to destroy the capital, what would you say? I would say that the imposition of OFAC sanctions, U.S. sanctions, on the Russian subsidiaries of Polymetal International cannot be named the smallest inconvenience. If these sanctions hadn't happened, then we probably, you know, would have a much wider playing field. After the designation of the Russian subsidiaries as SDNs, I don't think there is there are any other reasonable options. It's painful, it destroys value, but, you know, we, we, we don't really control this. Please provide timeline for selling the Russian assets. Our, you know, optimistic timeline calls for about six months, but this can be delayed given the fact that the sale would still require an anti-monopoly approval in Russia. So I would say six to nine months, which is probably the range between optimistic and reasonable, reasonably realistic. Are you planning for a new processing plant in Kazakhstan? If so, how will we fund it? Definitely, as we have mentioned before, the plan is to build a new POX facility in Kazakhstan to ensure that Kyzyl and potentially other Kazakh assets don't depend on POX processing in Russia. You know, we have already identified the site and signed the contracts for the critical processing equipment. We plan to start construction early next year and complete it by 2027. Given our experience with POX in Russia, we believe that this project will be significantly de-risked and potentially cheaper, given better logistics and cheaper materials and labor force in Kazakhstan, compared with the Russian Far East pre-war. Would you please elaborate on the effect of OFAC designation on the link between the company's subsidiaries in Kazakhstan and its block subsidiaries in the Russian Federation? As I have mentioned, the relationship with POX transitioned to unpaid tolling, and all other commercial relationships between Russian business and Kazakhstan business have been immediately broken off. There is now no money flowing from Kazakhstan to Russia. The process of disintegration of the two businesses is ongoing full speed, and it will be completed very shortly. Definitely full managerial independence of the Kazakhstan business is essential for the reestablishment of the shareholder value and, for example, for the relisting of the business in line. How do you plan to use proceeds from the sale of the Russian business? Well, I think part of those proceeds will go for the construction of the POX in Kazakhstan, and part of it will go to dividends from Polymetal International. We currently are not planning to do a share buyback because of its unfavorable tax treatment in Kazakhstan. I think dividend resumption will be much more likely in Q4 than in Q3. Inventory levels will be published along with the first half financial results in September. On Russian assets, is there an expectation of a market price being achieved, or will it get sold at a significant discount? I don't think I don't, I don't, I don't know what a market price is in terms of the Russian assets nowadays. Clearly, we don't want, and we will not sell at the levels that some other gold assets have been sold by foreign buyers. But in terms of, for example, EBITDA multiple, clearly, we cannot expect that they will be on par with a public market multiples achieved in North America. There will be a discount, but I think it will be a reasonable discount. What is the approximate value of accumulated inventory? Our estimate currently is around $500 million. There are several questions related to the rights of the shareholders in National Settlement Depository and the options that we have. While we are keenly aware of this issue, I am personally keenly aware because my personal shares are also stuck in NSD. We are working closely with AIX and with MOEX to find a reasonable solution. We hope that within a couple of months, we'll be able to present a game plan going forward. Do you plan to pay dividends before, by all means, after the Russian asset sales? I think we can pay and will pay dividends before the sale of Russian assets, as long as we are able to resolve the inventory unwind in Russia. Can cash travel from Kazakhstan to Russia at this point? Yes, it can, as long as the transfer complies with the U.S. sanctions imposed on the Russian side of the business. Polymetal has in the past not focused on fully characterizing reserves. Will any effort be made to fully determine the reserve of Russian mines before sale? I disagree with this statement. We publish JORC-compliant reserve and resource statements every year as it was a disclosure requirement on LSE. I believe we have a full technical report, the CPR, available. Definitely we will proceed to sell the assets, understanding fully what their intrinsic resource base is. How did you decide most of the loans belong to Russian, wholly not, wholly Kazakhstan? Well, we understand that the future of the public value is in Kazakhstan, so we tried to shift the loans into Russia, where, by the way, the majority of reserves and production, as well as the majority of CapEx over the last three or four years. There are quite a lot of questions on the value of sale value of the Russian business. I will not comment on the precise number. This is too early. We definitely should be able to extract substantial value well above the level of debt currently held by the Russian business. The Russian business definitely has substantial equity value, which will be transferred post-sale to the shareholders of Polymetal International. Are there plans for new mine acquisitions in Kazakhstan? Well, there are no specific plans, but we definitely are looking at several potential targets, and reestablishing the size of the company through both exploration and potentially some M&A is a top priority for the management. Should a potential buyer of Russian assets to agree with unpaid tolling scheme until Polymetal builds its own POX in Kazakhstan? The game plan is that we will ask OFAC to allow paid tolling scheme, because obviously, if we sell the Russian business, it's highly unlikely that the buyer will agree with unpaid toll. The plan is to present to OFAC a bundle solution of selling the sanctioned business and ensuring that the sale does not destroy value on the Kazakhstan side of the business. Several questions on cost forecasts. Honestly, with huge volatility of ruble dollar exchange rate, and huge volatility of ruble tenge rate, together with inflation in both Russia and Kazakhstan, we currently are a bit, you know, disoriented in terms of the cost levels. Additionally, the level of inventory matters a lot. My gut feel is at current exchange rates, and if we are able to sell the inventory, the cost levels are likely to be lower than the guidance at the beginning of the year. A continuation of discussion on the sale. I don't understand why it's not an option to maintain the Russian assets and pay down debt on them. The company could review in a few years. What will you say if I claim there isn't a legal challenge to do this? Well, there isn't a legal challenge to do this, but there is a huge risk that if the assets are not sold, the next step in terms of sanctions will be the imposition of sanctions on Polymetal International parent company. I think it's myopic to think that, you know, you have gangrenous left leg, and you can keep it on as long as you, you know, as you, as you can walk on the right leg. Your right leg can also become gangrenous, and then you'll die. That's why it's not an option to keep the SDN subsidiary within the public company. It's just, it's not realistic. Will the proceeds of the Russian sale be used to pay dividend? Yes, as I have mentioned, partially to fund the construction of POX in Kazakhstan, partially to pay dividend. Will management's position change possibly on outcome of U.S. elections? No. Are there any potential buyers of the Russian assets? Quite a lot of questions on this. Several parties have expressed interest, but it won't be an open auction process for sure. We want to maintain the discipline and the spirit within the Russian workforce, and also don't want to disrupt the production. We will think very clearly before we make the decision who to get involved with in terms of negotiations. What will happen if you're not successful by vote on selling the Russian assets? I think from my experience talking to large shareholders, this vote will be overwhelmingly in favor of selling the Russian assets. Honestly, I just can't picture a situation in which the sale is not approved. When you refer to end of year for dividends, is that calendar year? Yes, it is the end of calendar year 2023. How can I buy in the future Polymetal shares in Astana? I think you can either open an account with brokers active on AIX, or use their online application called Tabys. As far as I know, it's pretty user friendly. Is Poly getting proper market value for its gold? Well, right now, the discounts for gold sold out of Russia have widened to about 1.52%, discounts for silver around 5%-7%. Notable, but not really dramatic. Could you rule out something akin to a management buyout, or did that become an option again now? I will certainly not participate in any type of sale. I will not be part of the purchasing group. This is just impossible. I, I think the reaction first time around was a clear indication of what the shareholders think about management buyouts. Would it be possible to fast-track the construction of new POX in the event that OFAC is not content with the proposed arrangements? Realistically, no. You can't fast-track construction of an industrial project of that scale and capacity. This is just not feasible. Do you expect that NSD shareholder rights will be restored by year-end? This is my sincere, and I hope realistic, expectation. Have Polymetal purchased any shares to its treasury in the past two months? No, we, we don't have any treasury shares. Several questions again on the kind of benchmarking the potential value of the Russian business. You should understand that I will not be able to provide any firm figures on that. We also will not provide any forward-going financial figures, either for the full company or for the Russian business. Would the number of shareholders be the same after selling the Russian assets? Yes, it will. The number of shares will not change. What is the annual rate of shareholder dilution you expect due to issuance of new shares on the open market or to management? I don't think there will be any issuance to the open market. In terms of the management, we haven't thought really about the new stock ownership program for the top management, but that issuance definitely will not happen in the next, you know, three, four years. Don't expect any dilution. Could you provide breakdown of your debt portfolio by currencies? Right now, I think it's about 55% US dollar and 45% Russian ruble. Are you planning to expand production in Kazakhstan? As I have mentioned, before, we will definitely look at growth opportunities, both organic and M&A. Would you consider Hong Kong listing? We looked at that option. It's really difficult. Also, Hong Kong exchange is more for the Chinese companies attracting ex-China investors, not for, you know, foreign companies looking for the Chinese investors. We also looked at Shanghai. I don't think this is realistic in the next few years. What will you provide in the way of review of the statement, "Selling the Russian assets is the only viable option?" I'm trying to drive the point that after SDN designation, there is really no other way. The Russian assets became tainted, if we don't sell them, the top co is a significant risk. We just need to do that. What are you going to do with the Baksy property? We recently bought Baksy, we will continue to drill it. I think part of the high-grade ore will find its way to the Varvara processing plant, and there is potential for a larger, lower-grade operation with the new processing. I think the final answer we'll be able to give in two years. What is the AISC cost for KZ mines? My sense is it's probably will be around $1,000 per ounce. But again, this depends heavily on tenge and dollar exchange rate. Shares sold in the last few days of trading in London, where do you think the shares went? Who bought them? I have no idea. What is the production targets for the KZ assets? Do mines have a long life, life of mine? Yes, both operations have life mines in excess of 25 years, and production target is at least 500,000 oz. Why the spinoff is not the option if the Russian company will be fully separated from the group? Because the majority of shareholders will not be able to receive shares in the SDN entity. They will refuse the shares. So a spinoff would benefit a small minority of shareholders, who are, you know, immune to the threat of American sanctions. I think, you know, this is not a reasonable option. Will Kazakhstan be debt-free before the point of the Russian business sale? I think so. Is it possible that my brother, Alexander Nesis, participates in receiving the assets? Absolutely not. These assets are sanctioned property under the meaning of the American sanctions law. They are tainted, they are poisonous to anyone who wants to do anything to do outside of Russia. This is just not realistic to find a buyer outside of Russia. Do you think that Russian government can block the sale of the Russian assets? This is a risk, but I think the redom has dramatically reduced that risk, probably to the level where I believe this risk is not particularly. Do we hedge? We don't hedge. I don't think it's possible to hedge nowadays in Russia. There are several questions on the use of Tabys, and I really ask people to write to our IR team, because I'm, I'm, I'm really not fluent with the details of using Tabys. How much of inventory do you hope to clear by year-end? I actually, you know, I'm optimistic that 80% + of the current $500 million will be gone by the end of December. Again, this may be overly optimistic. Okay, I see no further questions. I say thank you to all of you who asked more than 100 questions in total. Please don't hesitate to ask further questio ns to the management or to the IR team. I wish you all, a very good day. Thank you very much. Bye-bye.