Investor Presentaiton
Varvarinskoye
•
Transaction structure
Purchase price: up to US$ 20 million
- US$ 8 million in cash at completion
- Deferred consideration of up to a maximum of US$ 12 million (plus any deferral interest),
contingent on and calculable in reference to future prices of gold and copper.
Existing debt and hedge liabilities (US$ 250 million) have been restructured and transferred
to the Varvarinskoye asset level, with limited recourse to Polymetal (US$ 90 million).
- Debt obligations in the principal amount of US$83.6 million, comprising of a US$34.3
million Export Credit Insurance Corporation, South Africa Loan and a US$49.3 million
Commercial Loan
- Liabilities resulted from crystallization of gold forward sales contracts (entered into
historically at a strike price of US$574.25 per ounce) in the amount of US$166.4 million
in present value terms.
• The resulting obligations become due in 2013 (35% of the total) and 2014 (65% of the
total) respectively, with interest accruing at a rate of LIBOR + 3% per annum during the
term.
© 2009 Polymetal
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