Polyus 6m2021 MDA and FS (ESMA)

PJSC “Polyus”
Condensed 
consolidated 
interim financial 
statements 
for the 
three and 
six months ended 
30 June 2021 
(unaudited) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
PJSC “POLYUS” 
CONDENSED 
CONSOLIDATED 
INTERIM 
STATEMENT 
OF PROFIT 
OR LOSS 
FOR THE 
THREE AND 
SIX 
MONTHS ENDED 
30 JUNE 
2021 (UNAUDITED) 
(in millions 
of US Dollars) 
Three months 
ended 
30 June 
Six 
months ended 
30 June 
Notes
2021 
2020 
2021 
2020 
Gold sales 
5 
1,230
1,148
2,247
2,009
Other sales 
15
9
26
20
Total revenue 
1,245
1,157
2,273
2,029
Cost of gold 
sales 
6 
(355)
(326)
(656)
(607)
Cost of other 
sales 
(14)
(8)
(24)
(18)
Gross profit 
876
823
1,593
1,404
Selling, general 
and 
administrative 
expenses 
7 
(80)
(76)
(153)
(162)
Other expenses, net 
(43)
(45)
(75)
(59)
Operating profit 
753
702
1,365
1,183
Finance costs, net 
9 
(51)
(57)
(102)
(127)
Interest income 
3
4
6
15
Gain / 
(loss) on revaluation 
of derivative 
financial 
instruments, 
net 
10 
69
73
57
(461)
Foreign exchange 
gain / 
(loss), net 
2
126
(13)
(213)
Profit before income tax 
776
848
1,313
397
Income tax 
expense 
(133)
(164)
(220)
(102)
Profit for the period 
643
684
1,093
295
Profit / (loss) for the 
period 
attributable 
to: 
Shareholders 
of the 
Company 
644
685
1,093
277
Non-controlling 
interests 
(1)
(1)
-
18
 
643
684
1,093
295
Weighted average 
number of 
ordinary shares ’000 
- 
for basic earnings 
per share 
19 
135,005
134,107
134,848
133,708
- 
for diluted earnings 
per share 
19 
135,345
134,346
135,223
133,941
Earnings 
/ (loss) per share 
(US 
Dollar per share) 
- 
basic 
4.78
5.11
8.11
2.07
- 
diluted 
4.76
5.11
8.08
2.07
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
PJSC “POLYUS” 
CONDENSED 
CONSOLIDATED 
INTERIM 
STATEMENT 
OF OTHER 
COMPREHENSIVE 
INCOME 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED) 
(in millions 
of US Dollars) 
Three months 
ended 
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Profit for the period 
643
684
1,093
295
Other comprehensive income 
/ (loss) 
for the period
Items that may be subsequently 
reclassified 
to profit 
or loss: 
Effect of translation 
to presentation 
currency 
133
178
66
(183)
Other comprehensive income 
/ (loss) 
for the period 
133
178
66
(183)
Total comprehensive income 
for the period 
776
862
1,159
112
Total comprehensive income 
for the period 
attributable 
to: 
Shareholders 
of the 
Company 
774
853
1,158
107
Non-controlling 
interests 
2
9
1
5
776 
862 
1,159 
112
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
PJSC “POLYUS” 
CONDENSED 
CONSOLIDATED 
INTERIM 
STATEMENT 
OF FINANCIAL 
POSITION 
AT 30 
JUNE 2021 
(UNAUDITED) 
(in millions 
of US Dollars) 
Notes
30 Jun. 
2021 
31 Dec. 
2020 
Assets 
Non-current assets 
Intangible 
assets 
11 
142
132
Property, plant 
and equipment 
12 
4,402
4,121
Inventories 
14 
580
519
Deferred tax 
assets 
119
109
Derivative 
financial instruments 
and 
investments 
15 
36
17
Other receivables and 
non-current assets 
27
28
5,306
4,926
Current assets 
Inventories 
14 
646
595
Deferred expenditure 
41
17
Advances paid to 
suppliers and 
prepaid expenses 
55
29
Trade and other 
receivables 
16 
36
133
Taxes receivable 
17 
96
120
Income tax 
prepaid 
14
30
Cash and cash equivalents 
18 
1,532
1,445
2,420
2,369
Total assets 
7,726
7,295
Equity and liabilities 
Capital and 
reserves 
Share 
capital 
19 
5
5
Additional paid-in 
capital 
19 
2,387
2,410
Treasury shares 
19 
(226)
(288)
Translation 
reserve 
(2,979)
(3,044)
Retained earnings 
3,667
3,272
Equity attributable to shareholders 
of the Company 
2,854
2,355
Non-controlling 
interests 
23
91
2,877
2,446
Non-current liabilities 
Borrowings 
20 
2,882
3,329
Derivative 
financial instruments 
15 
282
330
Deferred tax 
liabilities 
301
259
Site restoration, 
decommissioning 
and environmental 
obligations 
63
63
Other non-current liabilities 
45
57
3,573
4,038
Current liabilities 
Borrowings 
20 
713
225
Derivative 
financial instruments 
15 
40
42
Trade and other 
payables 
21 
395
399
Taxes payable 
22 
92
101
Income tax 
payable 
 
36
44
1,276
811
Total liabilities 
4,849
4,849
Total equity and liabilities 
7,726
7,295

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 
PJSC “POLYUS” 
CONDENSED 
CONSOLIDATED 
INTERIM 
STATEMENT 
OF CHANGES 
IN EQUITY 
FOR THE 
SIX MONTHS 
ENDED 30 
JUNE 2021 
(UNAUDITED) 
(in millions 
of US Dollars) 
Equity attributable to shareholders 
of the Company 
Notes 
Number of 
outstanding 
shares 
’000 
Share capital 
Additional 
paid-in 
capital 
Treasury 
shares 
Translation 
reserve 
Retained 
earnings 
Total 
Non-
controlling 
interests 
Total 
Balance at 
31 December 
2019 
 
133,196
5
2,049
(103)
(2,727)
2,586
1,810
103
1,913
Profit 
for the 
period 
 
-
-
-
-
-
277
277
18
295
Other 
comprehensive 
loss 
 
-
-
-
-
(170)
-
(170)
(13)
(183)
Total comprehensive 
income 
/ (loss) 
 
-
-
-
-
(170)
277
107
5
112
Equity-settled 
share-based 
compensation 
(LTIP), 
net 
of tax 
 
-
-
15
-
-
-
15
-
15
Execution 
of conversion 
option 
by bondholders 
 
449
-
317
43
(3)
-
357
-
357
Shares awarded 
under 
LTIP 
 
370
-
(13)
36
(5)
(24)
(6)
-
(6)
Purchase 
of additional 
ownership 
in 
SL 
Gold 
 
246
-
5
24
-
2
31
(2)
29
Dividends 
declared 
to shareholders 
of non-controlling 
interests 
 
- 
-
- 
- 
- 
- 
- 
(1)
(1)
Balance at 
30 June 
2020 
 
134,261
5
2,373
-
(2,905)
2,841
2,314
105
2,419
Balance at 
31 December 
2020 
 
134,705
5
2,410
(288)
(3,044)
3,272
2,355
91
2,446
Profit 
for the 
period 
 
-
-
-
-
-
1,093
1,093
-
1,093
Other 
comprehensive 
income 
 
-
-
-
-
65
-
65
1
66
Total comprehensive 
income 
 
-
-
-
-
65
1,093
1,158
1
1,159
Equity-settled 
share-based 
compensation 
(LTIP), 
net 
of tax 
19 
-
-
11
-
-
-
11
-
11
Shares awarded 
under 
LTIP 
19 
351
-
(34)
74
-
(39)
1
-
1
Share 
buyback 
19 
(62)
-
-
(14)
-
14
-
-
-
Dividends 
declared 
to shareholders 
of the 
Company 
19 
- 
- 
- 
- 
- 
(711)
(711)
- 
(711)
Dividends 
declared 
to shareholders 
of non-controlling 
interests 
 
- 
- 
- 
- 
- 
- 
- 
(31)
(31)
Decrease of 
non-controlling 
interests 
due 
to change 
in 
the 
net 
assets 
of the 
subsidiary 
19 
- 
- 
- 
- 
- 
38
38
(38)
- 
Other 
 
11
-
-
2
-
-
2
-
2
Balance at 
30 June 
2021 
 
135,005
5
2,387
(226)
(2,979)
3,667
2,854
23
2,877

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 
PJSC “POLYUS” 
CONDENSED 
CONSOLIDATED 
INTERIM 
STATEMENT 
OF CASH 
FLOWS 
FOR THE 
THREE AND 
SIX 
MONTHS ENDED 
30 JUNE 
2021 (UNAUDITED) 
(in milli 
ons of US Dollars) 
Three months 
ended
30 June 
Six 
months ended 
30 June 
Notes
2021 
2020 
2021 
2020 
Operating activities 
Profit before income tax 
776
848
1,313
397
Adjustments 
for: 
Finance costs, net 
9 
51
57
102
127
Interest income 
(3)
(4)
(6)
(15)
(Gain) / loss on 
revaluation 
of derivative 
financial 
instruments, 
net 
10 
(69)
(73)
(57)
461
Depreciation 
and amortisation 
91
86
172
160
Foreign exchange 
(gain) / loss, 
net 
(2)
(126)
13
213
Other 
17
6
22
19
861
794
1,559
1,362
Movements 
in working capital 
Inventories 
(30)
(63)
(51)
(116)
Deferred expenditure 
(5)
(6)
(22)
(25)
Trade and other 
receivables 
(14)
30
93
108
Advances paid to 
suppliers and 
prepaid expenses 
(7)
(22)
(23)
(37)
Taxes receivable 
(15)
(2)
22
7
Trade and other 
payables and 
accrued expenses 
(2)
3
14
27
Taxes payable 
(6)
1
(28)
15
Cash flows from operations 
782
735
1,564
1,341
Income tax 
paid 
(89)
(83)
(185)
(145)
Net cash generated 
from operating 
activities 
693
652
1,379
1,196
Investing activities
1
Purchase 
of property, plant 
and equipment 
(excluding purchase 
of additional 
ownership in 
LLC SL 
Gold and construction of the 
Omchak 
high-voltage 
power grid) and 
intangible 
assets 
(221)
(156)
(417)
(333)
Purchase 
of additional 
ownership in 
LLC SL 
Gold 
-
-
-
(28)
Payments 
for the Omchak 
high voltage power grid 
5 
-
(10)
-
(18)
Interest received 
4
4
7
15
Loans issued 
(17)
-
(17)
-
Net cash utilised in investing 
activities 
(234)
(162)
(427)
(364)
Financing activities
1
Proceeds 
from borrowings 
-
-
-
112
Repayment of 
borrowings 
(3)
(681)
(7)
(911)
Interest paid 
(24)
(48)
(92)
(135)
Commissions 
on borrowings paid 
-
-
-
(4)
Repayments 
of lease 
liability 
(3)
(4)
(8)
(8)
Net proceeds on 
exchange of interest 
payments 
under cross 
currency swaps 
9 
2
6
1
16
Net payment 
on exchange of interest 
payments 
under interest 
rate swaps 
9 
(1)
-
(2)
-
Payments 
for close out of revenue 
stabilizer 
programme 
-
-
-
(32)
Increase of 
ownership in 
subsidiaries 
-
-
(24)
-
Payment 
for share buyback 
19 
-
-
(32)
-
Dividends paid 
to shareholders of the 
Company 
19
(702)
-
(701)
-
Other 
 
-
-
2
-
Net cash utilised in financing 
activities 
(731)
(727)
(863)
(962)
Net (decrease) / increase 
in cash 
and cash equivalents 
(272)
(237)
89
(130)
Cash and cash equivalents 
at the 
beginning 
of the period 
18 
1,800
1,878
1,445
1,801
Effect of foreign exchange 
rate changes 
on cash 
and 
cash equivalents 
4
13
(2)
(17)
Cash and cash equivalents 
at the 
end of the 
period 
18 
1,532
1,654
1,532
1,654
1
Significant 
non-cash 
transactions 
relating to 
investing 
(right-of-use 
assets 
recognition and LTIP 
payments 
in treasury 
shares) and financing 
activities 
(lease liabilities 
recognition) 
are disclosed 
in the notes13 
and19 
to these 
condensed 
consolidated 
interim financial 
statements, 
respectively.

 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
7 
1. 
GENERAL 
Public Joint Stock Company Polyus (the “Company” or “Polyus”) was incorporated in Moscow, 
Russian Federation, on 17 March 2006
. 
The principal 
activities 
of the Company 
and its controlled 
entities 
(the “group”) 
are the 
extraction, 
refining and sale of gold
. 
The mining 
and processing 
facilities of 
the group 
are located 
in the 
Krasnoyarsk, 
Irkutsk, Magadan 
regions and 
the Sakha 
Republic of 
the 
Russian Federation
. 
The 
group also 
performs research 
and exploration 
works. Further 
details regarding 
the nature 
of the 
business of 
the significant 
subsidiaries 
of the group 
are presented 
in note27. 
The shares 
of the 
Company are 
“level 
one” listed 
on the Moscow 
Exchange. Global 
depository 
shares 
(“GDSs”) 
each representing 
interest 
in ½ of an 
ordinary 
share in the 
Company 
are traded 
on 
the main 
market for 
listed securities 
of the London 
Stock Exchange 
plc (“LSE”). 
The controlling 
shareholder 
of the Company 
is 
Polyus Gold International Limited
 
(“PGIL”), a 
company registered 
in 
Jersey. 
The most senior 
parent 
of the Company 
is Wandle 
Holdings Limited, 
а company 
registered 
in Cyprus. 
As of 30 June 
2021 and 31 
December 
2020, the 
ultimate controlling 
party 
of the Company 
was 
Mr. Said Kerimov
.
 
2. 
BASIS OF PREPARATION 
AND PRESENTATION 
2.1. Going 
concern 
In assessing 
the appropriateness 
of the 
going concern 
assumption, 
management 
has taken 
account 
of the group’s 
financial position, expected 
future trading performance, its borrowings, available credit 
facilities and its capital 
expenditure 
commitments, 
expectations 
of the future 
gold price, 
currency 
exchange 
rates and other 
risks facing 
the 
group. After 
making 
appropriate 
enquiries, 
management 
considers 
that the group 
has adequate 
resources 
to continue 
in operational existence 
for at least 
the next 12 
months from 
the date of signing 
these 
condensed 
consolidated 
interim 
financial 
statements 
and that 
it is appropriate 
to adopt 
the going concern 
basis in preparing 
these 
condensed 
consolidated 
interim financial 
statements. 
 
2.2. Compliance 
with 
the International 
Financial 
Reporting Standards 
(“IFRS”) 
These condensed 
consolidated 
interim 
financial 
statements 
have been 
prepared 
in accordance 
with International 
Accounting Standard 
34 
Interim Financial 
Reporting
 
(“IAS 34”). 
Accordingly, 
the condensed 
consolidated 
interim 
financial statements 
do not include 
all information 
and 
disclosures 
required 
for a complete 
set of 
financial statements, 
and should 
be read in 
conjunction 
with the 
group’s consolidated 
financial statements 
for the 
year ended 
31 December 
2020. 
2.3. Basis 
of presentation 
The entities 
of the group 
maintain their 
accounting 
records in accordance 
with the laws, 
accounting 
and reporting regulations 
of 
the jurisdiction in which they are 
incorporated 
and registered. 
The accounting 
principles 
and financial 
reporting procedures 
in these 
jurisdictions 
may differ 
substantially 
from those 
generally 
accepted 
under IFRS. Accordingly, 
such financial 
information 
has been 
adjusted to ensure 
that the condensed 
consolidated 
interim 
financial statements 
are presented 
in accordance 
with IFRS. 
The condensed consolidated 
interim financial 
statements of 
the group 
are prepared on 
the historical cost 
basis, except for derivative 
financial instruments and 
certain trade 
receivables, 
which are 
accounted 
for 
at fair value. 
2.4. IFRS 
standards 
first time 
applied 
in 2021 
The following 
is a list 
of new or amended 
IFRS standards 
and interpretations 
that have 
been applied 
by the group 
in these condensed 
consolidated 
interim 
financial statements: 

 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
8 
Title 
Subject 
Effective for annual 
periods beginning 
on or after 
Effect 
on the condensed 
consolidated interim 
financial statements 
 
Interest Rate 
Benchmark 
Reform 
phase 2 (Amendments 
to 
IFRS 
9, 
IAS 39, 
IFRS 
7, 
IFRS 
4 and 
IFRS 
16)
Replacement 
of LIBOR with alternative 
Risk-free Rates
1 January 2021
No effect
Amendment 
to IFRS 
16 
Extension of the 
availability of the 
practical expedient 
for COVID-19-
related rent 
concessions 
1 April 2021 
No effect 
2.5. IFRS 
standards 
to be applied 
after 2021 
The following 
standards 
and interpretations, 
which have 
not been 
applied in these 
condensed 
consolidated 
interim financial 
statements, 
were in issue 
but not 
yet effective: 
Title
Subject
Effective for annual
periods beginning 
on or after
Effect 
on the condensed 
consolidated interim 
financial statements
Amendment 
IFRS 
3 
Updates of references to 
or from 
the Conceptual 
Frameworks to 
the 
IFRS 
standards 
1 January 2022 
 
No effect 
Amendment IAS 
16 
Proceeds 
before Intended 
Use 
1 January 2022 
 
Under review 
Amendment 
IFRS 
1 
Subsidiary 
as a first-time 
adopter 
1 January 2022 
 
No effect 
Amendment IAS 
41 
Taxation in fair value 
measurements 
1 January 2022 
 
No effect 
Amendment IAS 
37 
Onerous Contracts—Cost 
of Fulfilling 
a Contract 
1 January 2022 
 
No effect 
Amendment 
IFRS 
9 
Fees in the ‘10 
per cent’ test 
for 
derecognition 
of financial 
liabilities 
1 January 2022 
 
No effect 
IFRS 
17 
Insurance contracts 
1 January 2023 
No effect 
Amendments 
to 
IFRS 
17 
Insurance contracts 
1 January 2023 
No effect 
Amendment IAS 
1 
Classification 
of Liabilities 
as Current 
or 
Non-Current 
1 January 2023 
 
No effect 
Amendment 
IAS 8
New definition 
of the accounting 
estimates
1 January 2023
No effect
Amendment 
IAS 1
Disclosure 
of accounting 
policy
1 January 2023
No effect
 
3. 
SIGNIFICANT 
ACCOUNTING 
POLICIES 
The same 
accounting 
policies, 
presentation 
and methods 
of computation 
have been 
followed 
in these condensed 
consolidated 
interim 
financial statements 
as were 
applied in 
the group’s 
audited 
consolidated 
financial statements 
for the 
year ended 
31 December 
2020. 
IAS 34 
requires 
calculation of 
income 
tax benefit/expense 
for interim 
reporting 
periods to 
be based 
on the expected 
annual effective 
income 
tax rate. Non-taxable 
/ (non-deductible) 
gains / (losses) 
on 
revaluation 
of certain 
Derivative 
financial instruments
 
as well as 
certain 
other items 
of less 
predictable 
nature are excluded 
from determining 
the 
expected annual 
effective 
income tax 
rate, 
which may 
result in significant 
variations 
of effective 
income 
tax rate between 
different 
interim 
periods. 
The group 
presents its condensed 
consolidated 
interim 
financial statements 
in the 
US Dollar 
(“USD”), as 
management 
believes it 
is a more convenient 
presentation 
currency 
for international 
users of the 
condensed 
consolidated 
interim 
financial statements 
of the group 
as it is 
a common 
presentation 
currency 
in the mining 
industry. 
As of 
30 June 2021, 
quarterly-end RUB/ 
US Dollar 
exchange 
rate used in 
the preparation 
of the 
condensed consolidated 
interim 
financial statements 
was 72.37 
(31 December 
2020: 73.88).

 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
9 
4. 
CRITICAL ACCOUNTING JUDGEMENTS 
AND KEY SOURCES OF ESTIMATION 
UNCERTAINTY 
The critical 
accounting 
judgements, 
estimates 
and assumptions 
made by 
management 
of the group 
and applied 
in the accompanying 
condensed 
consolidated 
interim 
financial 
statements 
for the three 
and six months 
ended 30 
June 2021 
are consistent 
with those applied 
in the preparation 
of the 
consolidated 
financial statements 
of the group 
for the 
year ended 
31 December 
2020.
5. 
SEGMENT 
INFORMATION 
For management 
purposes 
the group 
is organised 
by separate 
business segments 
identified 
by a combination 
of operating 
activities 
and geographical 
area bases with 
separate financial 
information 
available and 
reported regularly 
to the chief 
operating 
decision maker 
(“CODM”), 
being 
the Budget 
Committee 
and the 
Investment 
Committee. 
The following 
is a description 
of operations 
of the group’s 
identified 
reportable 
segments 
and those that 
do not meet 
the 
quantitative 
reporting threshold: 
●
Olimpiada business 
unit 
(Krasnoyarsk region of the Russian Federation) – mining (including 
initial processing) and sale of gold from the Olimpiada mine, as 
well as research, exploration and 
development 
work at 
the Olimpiada 
deposit. 
●
Blagodatnoye business 
unit 
(Krasnoyarsk region of the Russian Federation) 
– mining 
(including initial processing) and sale of gold from the Blagodatnoye mine, 
as well as research, 
exploration and development work at the 
Blagodatnoye deposit. 
●
Natalka business unit 
(Magadan region of the Russian Federation) 
– mining (including initial 
processing) and sale of gold from the Natalka mine, 
as well as research, exploration and 
development work at the Natalka deposit. 
●
Verninskoye 
business 
unit 
(Irkutsk region 
of the Russian 
Federation) 
– mining (including 
initial processing) 
and sale of 
gold from the 
Verninskoye 
mine. 
●
Kuranakh business unit 
(Sakha Republic of the Russian 
Federation) 
– mining (including 
initial 
processing) 
and sale 
of gold 
from the Kuranakh 
mines. 
●
Alluvials 
business unit 
(Irkutsk 
region of the 
Russian Federation) 
– mining 
(including initial 
processing) 
and sale of 
gold from several 
alluvial deposits. 
●
Exploration 
business 
unit
 
(Krasnoyarsk, 
Irkutsk, Amur 
and other 
regions 
of the Russian 
Federation) 
– exploration 
and evaluation 
works in several 
regions of the 
Russian 
Federation 
other than 
those related 
to Sukhoi Log 
deposit. 
●
Sukhoi Log 
business 
unit 
(Irkutsk region 
of the
Russian 
Federation)
– exploration 
and 
evaluation 
works at the Sukhoi 
Log deposit. 
●
Unallocated 
– the 
group does 
not allocate 
segment 
results of 
companies 
that perform 
management, 
investing 
activities and certain 
other functions. 
Neither 
standalone 
results nor 
the aggregated 
results of 
these 
companies 
are significant 
enough to 
be disclosed 
as operating 
segments 
because quantitative 
thresholds 
are not met. 
The reportable 
gold production 
segments 
derive their 
revenue 
primarily from 
gold 
sales. 
The CODM 
performs an 
analysis 
of the operating 
results based 
on these 
separate 
business units 
and evaluates 
the reporting 
segment’s 
results, 
for purposes 
of resource 
allocation, 
based on the 
measurements 
of: 
●
 
Gold sales; 
●
 
Ounces 
of gold sold, in 
thousands; 
●
 
Adjusted 
earnings before 
interest, tax, 
depreciation 
and amortisation 
and other 
items 
(Adjusted 
EBITDA); 
●
 
Total 
cash cost 
(TCC); 
●
 
Total 
cash cost 
per ounce 
of gold 
sold (TCC 
per ounce); 
and 
●
 
Capital expenditures. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
 
10 
Business 
segment 
assets and 
liabilities are 
not reviewed 
by the CODM 
and therefore 
are not 
disclosed in 
these 
condensed 
consolidated 
interim 
financial 
statements. The 
group’s 
non-current 
assets are 
located 
in the Russian 
Federation.
Business units
 
Gold sales 
Ounces of 
gold sold in 
thousands
2
Adjusted 
EBITDA 
TCC
2
TCC 
per ounce 
(US dollar)
2
Capital 
expenditures 
 
For the three months ended 
30 June 2021 
Olimpiada 
 
502 
278 
370 
102 
373 
36 
Blagodatnoye 
 
212 
117 
160 
41 
351 
46 
Natalka 
 
227 
125 
165 
47 
369 
25 
Verninskoye 
 
142 
78 
109 
25 
323 
14 
Kuranakh 
 
101 
56 
62 
32 
563 
13 
Alluvials 
 
46 
25 
19 
23 
894 
6 
Exploration 
 
- 
- 
- 
- 
- 
3 
Sukhoi Log 
 
- 
- 
- 
- 
- 
13 
Unallocated 
 
- 
- 
14 
(4) 
- 
23 
 
Total 
 
1,230 
679 
899 
266 
390 
179 
For the three months ended 
30 June 2020 
Olimpiada 
 
489 
290 
370 
92 
314 
33 
Blagodatnoye 
 
200 
117 
155 
38 
324 
6 
Natalka 
 
190 
110 
136 
40 
361 
28 
Verninskoye 
 
118 
68 
91 
21 
306 
14 
Kuranakh 
 
99 
57 
63 
29 
511 
9 
Alluvials 
 
52 
30 
25 
22 
746 
5 
Exploration 
 
- 
- 
- 
- 
- 
3 
Sukhoi Log 
 
- 
- 
- 
- 
- 
6 
Unallocated 
 
- 
- 
20 
(14) 
- 
23 
 
Total 
 
1,148 
672 
860 
228 
340 
127 
 
For the six months 
ended 30 
June 2021
Olimpiada 
 
936 
521 
680 
197 
383 
64 
Blagodatnoye 
 
377 
209 
281 
74 
355 
67 
Natalka 
 
432 
240 
309 
90 
373 
45 
Verninskoye 
 
258 
143 
196 
47 
330 
29 
Kuranakh 
 
198 
110 
121 
61 
551 
25 
Alluvials 
 
46 
25 
14 
23 
887 
10 
Exploration 
 
- 
- 
- 
- 
- 
7 
Sukhoi Log 
 
- 
- 
- 
- 
- 
22 
Unallocated 
 
- 
- 
37 
(8) 
- 
37 
 
Total 
 
2,247 
1,248 
1,638 
484 
388 
306 
For the six months 
ended 30 
June 2020
Olimpiada 
 
846 
516 
622 
177 
342 
58 
Blagodatnoye 
 
365 
220 
272 
75 
341 
14 
Natalka 
 
341 
205 
230 
79 
385 
66 
Verninskoye 
 
226 
137 
169 
45 
329 
30 
Kuranakh 
 
179 
108 
107 
58 
538 
15 
Alluvials 
 
52 
30 
21 
22 
746 
9 
Exploration 
 
- 
- 
- 
- 
- 
7 
Sukhoi Log 
 
- 
- 
- 
- 
- 
10 
Unallocated 
 
- 
- 
28 
(13) 
- 
42 
 
Total 
 
2,009 
1,216 
1,449 
443 
364 
251 
2
 
Unaudited and 
not reviewed 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
 
11 
Adjusted 
EBITDA 
reconciles to 
the IFRS reported 
figures 
on a consolidated 
basis as 
follows: 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Profit before income tax
776 
848 
1,313 
397 
Finance costs, net 
(note 9) 
51 
57 
102 
127 
Interest income 
(3) 
(4) 
(6) 
(15) 
Depreciation 
and amortisation 
91 
86 
172 
160 
Foreign exchange 
(gain) / loss, 
net
(2) 
(126) 
13 
213 
(Gain) / loss on 
revaluation 
of derivative 
financial 
instruments, 
net
 
(note10) 
(69) 
(73) 
(57) 
461 
Equity-settled 
share-based plans 
(LTIP) 
(note19) 
12 
17 
22 
43 
Expenses 
related 
to COVID-19
(note25) 
20 
36 
44 
36 
Special charitable 
contributions 
16 
19 
23 
24 
Impairment 
of property, plant 
and equipment 
5 
- 
5 
2 
Gain on 
disposal 
of property, plant and 
equipment 
and intangible 
assets 
2 
- 
7 
1 
Adjusted EBITDA 
899 
860 
1,638 
1,449 
The measurement 
of TCC per 
ounce of 
gold sold 
reconciles 
to the IFRS 
reported figures 
on
a
consolidated 
basis as follows: 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Cost of gold 
sales before by-product 
362 
327 
663 
608 
Antimony 
by-product sales 
(7) 
(1) 
(7) 
(1) 
Cost of gold sales
(note6)
355 
326 
656 
607 
Adjusted for:
Depreciation 
and amortisation 
(note6) 
(93) 
(115) 
(187) 
(211) 
Effect of depreciation, 
amortisation, 
accrual and 
provisions in inventory 
change 
13 
36 
35 
66 
Expenses 
related 
to COVID-19 in cost of gold 
sales 
(9) 
(19) 
(20) 
(19) 
TCC
3
266 
228 
484 
443 
Ounces of gold 
sold, in thousands
3
679 
672 
1,248 
1,216 
TCC per ounce of gold 
sold, USD 
per ounce
3
390 
340 
388 
364 
Gold sales 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Refined gold 
1,216 
1,114 
2,233 
1,962 
Gold in flotation 
concentrate 
14 
34 
14 
47 
Total 
1,230 
1,148 
2,247 
2,009 
Gold sales 
reported above 
represent 
revenue 
generated 
from external 
customers. 
There 
were no 
inter-segment 
gold sales 
during the 
three and 
six months 
ended 30 June 
2021 and 2020. 
Gold sales 
in the Alluvial 
business unit 
are more 
heavily weighted 
towards the 
second half 
of the 
calendar 
year, with 
all annual sales 
usually 
occurring from 
May until 
October. 
Geographical 
segments 
of gold sales 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Russian Federation 
1,216 
1,121 
2,233 
1,982 
Outside of Russian 
Federation 
14 
27 
14 
27 
Total 
1,230 
1,148 
2,247 
2,009 
Reconciliation 
of capital 
expenditures 
to the property 
plant and equipment 
additions 
(note12) 
is presented 
below: 
3
Unaudited and 
not reviewed

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
12 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Capital expenditures 
179 
127 
306 
251 
Construction 
of the Omchak 
high-voltage 
power grid 
- 
10 
- 
18 
Stripping 
activity assets additions 
(note12) 
76 
49 
143 
102 
Less: intangible 
and other 
non-current assets additions 
(9)
(7)
(14)
(16)
Property plant and equipment 
additions (note12) 
246 
179 
435 
355 
6. 
COST OF 
GOLD SALES 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Depreciation 
and amortisation 
93 
115 
187 
211 
Employee 
compensation 
92 
102 
179 
182 
Consumables 
and spares 
70 
72 
134 
143 
Mineral extraction 
tax 
61 
54 
111 
98 
Fuel 
26 
27 
51 
62 
Power 
15 
15 
30 
31 
Other 
32 
31 
56 
63 
Total cost of production 
389 
416 
748 
790 
Increase in 
stockpiles, 
gold-in-process and 
refined gold 
inventories 
(34)
(90)
(92)
(183)
Total 
355 
326 
656 
607
 
7. 
SELLING, 
GENERAL 
AND ADMINISTRATIV 
E 
EXPENSES 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Employee 
compensation 
58 
56 
112 
122 
Depreciation 
and amortisation 
7 
6 
13 
12 
Taxes other than mineral 
extraction tax 
and 
income taxes 
5 
5 
9 
10 
Distribution 
expenses related 
to gold flotation 
concentrate 
- 
3 
1 
4 
Professional 
services 
3 
2 
5 
4 
Other 
7 
4 
13 
10 
Total 
80 
76 
153 
162
8. 
OTHER EXPENSES, 
NET 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Expenses 
related 
to COVID-19 (note25) 
11 
17 
24 
17 
Special charitable 
contributions 
16
19
23
24
Gain on 
disposal 
of property, plant and 
equipment 
and intangible 
assets 
2
-
7
1
Impairment 
of property, plant 
and equipment 
5
-
5
2
Other 
9
9
16
15
Total 
43
45
75
59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
13 
9. 
FINANCE COSTS, NET 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Interest on 
borrowings 
49 
61 
96 
132 
Interest on 
lease liabilities 
1 
1 
2 
2 
Gain on 
exchange of interest 
payments 
under cross currency 
swaps 
(2)
(6)
(1)
(16)
Loss on 
exchange of interest 
payments 
under interest 
rate swaps 
1
-
2
-
Unwinding 
of discounts 
2 
1 
3 
5 
Bank commission 
and 
write 
-off of unamortised 
debt 
cost due 
to early 
extinguishment 
- 
- 
- 
4 
Total 
51 
57 
102 
127
10. 
GAIN / (LOSS) ON REVALUATION 
OF DERIVATIVE 
FINANCIAL INSTRUMENTS, NET 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Revaluation 
gain / (loss) on 
cross currency swaps 
68 
118
55 
(319)
Revaluation 
loss on revenue 
stabiliser 
- 
- 
- 
(29) 
Revaluation 
gain / (loss) on 
interest rate swaps 
1 
(1)
2 
(8)
Revaluation 
loss on conversion option 
- 
(44) 
- 
(105) 
Total 
69 
73
57 
(461)
11. 
INTANGIBLE ASSETS 
 
Internally-
generated 
software 
Purchased 
software 
Internally-
generated
other
Total 
 
 
Cost 
 
85 
28 
30 
143 
Accumulated 
amortisation 
and impairment 
 
(9)
(8)
(3)
(20)
Net book value at 31 
December 2019 
 
76 
20 
27 
123 
 
 
Additions 
 
11
1
3
15
Reclassification 
 
-
1
-
1
Amortisation 
charge 
 
(2)
(3)
(1)
(6)
Effect of translation 
to presentation 
currency 
 
(9)
(2)
(4)
(15)
 
 
Cost 
 
86 
26 
30 
142 
Accumulated 
amortisation 
and impairment 
 
(10)
(9)
(5)
(24)
Net book value at 30 
June 2020 
 
76 
17 
25 
118 
 
 
Cost 
 
95 
28 
34 
157 
Accumulated 
amortisation 
and impairment 
 
(12)
(8)
(5)
(25)
Net book value at 31 
December 2020 
 
83 
20 
29 
132 
 
 
 
 
 
 
 
 
 
Additions 
 
10
2
1
13
Reclassification 
 
2
(2)
-
-
Amortisation 
charge 
 
(2)
(3)
(1)
(6)
Effect of translation 
to presentation 
currency 
 
3
-
-
3
 
 
Cost 
 
110 
28 
36 
174 
Accumulated 
amortisation 
and impairment 
 
(14)
(11)
(7)
(32)
Net book value at 30 
June 2021 
 
96 
17 
29 
142

 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
14 
12. 
PROPERTY, 
PLANT AND EQUIPMENT 
Fixed 
assets 
Stripping 
activity 
assets 
Capital 
construction
in progress
 
Exploration 
and 
evaluation 
assets
 
Total 
 
Cost 
4,484 
918 
717 
 
641 
 
6,760 
Accumulated 
depreciation 
and impairment 
(1,686)
(301)
(63)
(30)
(2,080)
Net book value at 31 
December 2019 
2,798 
617 
654 
 
611 
 
4,680 
 
Additions 
- 
102 
230 
 
23 
 
355 
Transfers 
144 
- 
(135) 
 
(9) 
 
- 
Disposals 
(2) 
- 
(1) 
 
- 
 
(3) 
Depreciation 
charge 
(213) 
(52) 
- 
 
- 
 
(265) 
Impairment 
- 
- 
- 
 
(2) 
 
(2) 
Effect of translation 
to presentation 
currency 
(322) 
(72) 
(76) 
 
(70) 
 
(540) 
Other 
10 
- 
- 
 
1 
 
11 
 
Cost 
4,097 
916 
729 
 
580 
 
6,322 
Accumulated 
depreciation 
and impairment 
(1,682)
(321)
(57)
(26)
(2,086)
Net book value at 30 
June 2020 
2,415 
595 
672 
 
554 
 
4,236 
 
Cost 
4,130 
971 
629 
 
590 
 
6,320 
Accumulated 
depreciation 
and impairment 
(1,767)
(346)
(61)
(25)
(2,199)
Net book value at 31 
December 2020 
2,363 
625 
568 
 
565 
 
4,121 
 
Additions 
- 
143 
243 
 
49 
 
435 
Transfers 
237 
- 
(237) 
 
- 
 
- 
Disposals 
(2) 
- 
(2) 
 
- 
 
(4) 
Depreciation 
charge 
(206) 
(40) 
- 
 
- 
 
(246) 
Impairment 
- 
- 
(5) 
 
- 
 
(5) 
Effect of translation 
to presentation 
currency 
52 
15 
11 
 
12 
 
90 
Other 
18 
- 
(1) 
 
(6) 
 
11 
 
Cost 
4,461 
1,138 
642 
 
646 
 
6,887 
Accumulated 
depreciation 
and impairment 
(1,999)
(395)
(65)
(26)
(2,485)
Net book value at 30 
June 2021 
2,462 
743 
577 
 
620 
 
4,402 
The carrying 
value of rights-of-use 
assets included 
in fixed assets 
is disclosed 
in note13.
Mineral 
rights 
The carrying 
values of 
mineral rights 
included in fixed 
assets and 
exploration 
and evaluation 
assets 
were as follows: 
30 Jun. 
2021 
31 Dec. 
2020 
Mineral rights 
presented within: 
 
- fixed assets 
57 
57 
 
- exploration 
and evaluation 
assets 
356 
346 
Total 
413 
403 
Exploration 
and 
evaluation 
assets 
The carrying 
values of 
exploration 
and evaluation 
assets 
were as follows:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
15 
30 Jun. 
2021 
31 Dec. 
2020 
Sukhoi Log 
434 
409 
Chertovo 
Koryto
33 
31 
Olimpiada
44 
27 
Razdolinskoye
29 
29 
Burgakhchan 
area
21 
17 
Panimba
16 
17 
Bamsky
16 
15 
Natalka
7 
7 
Blagodatnoye
7 
6 
Other
13 
7 
Total
620 
565 
Depreciation 
and amortisation 
charges are 
allocated 
as follows: 
Three months 
ended 
30 June
Six 
months ended 30 
June
2021 
2020 
2021 
2020 
Depreciation 
in change 
in inventory 
11 
37 
33 
66 
Capitalised 
within property, plant 
and 
equipment 
21 
19 
47 
46 
Less: amortisation 
of intangible 
and other 
non-current assets 
(3) 
(3) 
(6) 
(7) 
Total depreciation capitalised 
as part of other 
assets 
29 
53 
74 
105 
Depreciation 
and amortisation 
within cost of production 
(note6) 
93 
115 
187 
211 
Less: depreciation 
in change 
in inventory 
(11) 
(37) 
(33) 
(66) 
Selling, general 
and 
administrative 
expenses (note7) 
7 
6 
13 
12 
Cost of other 
sales 
2 
2 
5 
3 
Total depreciation in profit or 
loss 
91 
86 
172 
160 
Total depreciation of property, plant 
and equipment 
120 
139 
246 
265
 
13. 
LEASES 
The most significant 
leases 
of the group 
are office leases. 
Movements 
of the right-of-use 
assets 
presented 
within 
Property, 
Plant and 
Equipment
 
(note12) 
were as follows: 
Six months ended 30 
June 2021
Six months ended 30 
June 2020
Related party 
transactions
Non-related 
party 
transactions
Total
 
Related party 
transactions
Non-related 
party 
transactions
Total
 
 
 
 
 
 
 
 
 
 
 
Carrying value as of the 
beginning of the period
46 
11 
57 
 
58 
22 
80 
Changes in 
right-of-use 
assets due 
to lease 
indexation, modification 
and recognition 
of new 
contracts 
- 
16
 
16 
 
1 
- 
1 
Depreciation 
charge 
(2)
(3)
(5)
(2)
(3)
(5)
Effect of translation 
to 
presentation 
currency 
1
1
2
 
(6)
(3)
(9)
 
 
 
Carrying value as of the 
end of the period
45 
25 
 
70 
 
51 
16 
67 
Movements 
of the lease liabilities 
presented 
within 
Borrowings
 
(note20) were 
as follows: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
16 
Six months ended 30 
June 2021
Six months ended 30 
June 2020
Related party 
transactions
Non-related 
party 
transactions
Total
 
Related party 
transactions
Non-related 
party 
transactions
Total
 
 
 
 
 
 
 
 
 
 
 
Carrying value as of the 
beginning of the period
51 
19 
 
70 
 
53 
27 
80 
Changes in 
lease liabilities 
due to lease 
indexation, 
modification 
and 
recognition 
of new 
contracts 
- 
16
 
16 
 
1 
- 
1 
Foreign 
exchange 
loss, 
net 
(1) 
- 
 
(1) 
 
7 
2 
9 
Interest on 
lease liabilities 
2 
- 
 
2 
 
2 
- 
2 
Repayments 
of lease 
liability 
(3)
(3)
(6)
(4)
(5)
(9)
Effect of translation 
to 
presentation 
currency 
1
-
1
 
(7)
(2)
(9)
 
 
 
Carrying value as of the 
end of the period
50 
32 
 
82 
 
52 
22 
74
 
14. 
INVENTORIES 
30 Jun. 
2021 
31 Dec. 
2020 
Stockpiles 
565 
505 
Gold-in-process 
15 
14 
Inventories expected 
to be used 
after 12 months 
580 
519 
Stockpiles 
170 
150 
Gold-in-process 
124 
101 
Antimony 
in gold-antimony 
flotation 
concentrate and 
silver 
9 
4 
Refined gold 
and gold in 
flotation 
concentrate 
4 
4 
Materials 
and supplies 
366 
365 
Less: obsolescence provision 
for materials 
and 
supplies 
(27)
(29)
Inventories expected 
to be used 
in the next 12 
months 
646 
595 
Total 
1,226 
1,114
15. 
DERIVATIVE 
FINANCIAL INSTRUMENTS AND INVESTMENTS 
 
30 June 2021 
31 December 2020 
 
Non-Current 
Current 
Total 
 
Non-Current 
Current 
Total 
 
 
 
 
 
 
Cross currency swaps 
19 
- 
19 
17 
- 
17 
Loans receivable 
17 
- 
17 
- 
- 
- 
 
 
 
Total derivative financial assets 
and investments 
36 
- 
36 
17 
- 
17
 
 
 
 
 
 
Cross currency swaps 
275 
40 
315 
321 
42 
363 
Interest rate 
swaps 
7 
- 
7 
9 
- 
9 
 
 
 
 
 
 
Total derivative financial liabilities 
282 
40 
322 
330
42 
372
Cross 
currency 
swaps 
The following 
terms were 
in place 
as of 30 
June 2021: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
17 
 
Nominal 
 
 
 
Interest payments 
 
Expiration 
date 
 
Group pays 
(USD million) 
 
Group receives
(
RUB 
million) 
 
Frequency 
 
Group pays 
(in USD) 
 
Group receives 
(in 
RUB) 
 
 
 
 
 
July 2021 
 
173 
 
10,000 
 
semi-annually 
 
LIBOR + 
4.45% 
 
12.1% 
July 2021 
 
82 
 
5,300 
 
semi-annually 
 
5.9% 
 
12.1% 
March 2024 
 
125 
 
8,225 
 
quarterly 
 
5.09% 
 
MosPrime 
3m + 0.2% 
April 2024 
 
965 
 
64,801 
 
quarterly 
 
5.00% 
 
MosPrime 
3m - 0.45% 
October 2024 
 
310 
 
20,000 
 
semi-annually 
 
3.23% 
 
7.4% 
March 2025 
 
125 
 
8,169 
 
quarterly 
 
2.8% 
 
MosPrime 
3m + 0.27% 
Interest 
rate swaps 
The following terms were in place as of 30 June 
2021: 
 
Nominal 
 
 
Interest payments 
 
Expiration date 
 
(USD million) 
 
Frequency 
 
Group pays 
 
Group receives 
 
 
 
February 2024 
 
150 
 
monthly 
 
2.425%-2.44% 
 
LIBOR
 
16. 
TRADE AND OTHER RECEIVABLES 
30 Jun. 
2021 
31 Dec. 
2020 
Trade receivables for gold-bearing 
products 
16 
115 
Other receivables 
36 
32 
Less: allowance for other 
receivables 
(16)
(14)
Total 
36 
133
17. 
TAXES RECEIVABLE 
30 Jun. 
2021 
31 Dec. 
2020 
Reimbursable 
value 
added tax 
95 
118 
Other prepaid 
taxes 
1 
2 
Total 
96 
120
18. 
CASH AND CASH EQUIVALENTS 
30 Jun. 
2021 
31 Dec. 
2020 
Current USD 
bank accounts 
1,170 
1,115 
Current RUB 
bank accounts 
20 
69 
Bank deposits 
denominated 
in USD 
116 
178 
Bank deposits 
denominated 
in RUB 
226 
83 
Total 
1,532 
1,445 
Bank deposits within cash and cash equivalents include 
deposits with original maturity less than 
three months or repayable on demand without loss 
on principal and accrued interest denominated in 
RUB and USD and accrue interest 
at the following rates: 
Interest rates:
- Bank deposits 
denominated 
in USD 
0.1-0.7% 
0.5-0.9% 
- Bank deposits 
denominated 
in RUB 
3.9-5.7% 
4.0-4.7%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
18 
19. 
SHARE CAPITAL AND RESERVES 
Authorised share 
capital of 
the Company 
as of 30 June 
2021 comprised 
issued and 
fully paid 
136,069 
thousand 
ordinary shares 
at par value 
of RUB 1 each, 
of which 1,064 
thousand 
was 
included within 
treasury 
shares. 
Equity-settled 
share-based compensation 
(long-term 
incentive 
plan)
PJSC Polyus 
grants long-term 
incentive 
awards according 
to which 
the members 
of management 
of 
the group 
are entitled 
to a conditional 
award in the 
form of PJSC 
Polyus’ ordinary 
shares, 
which vest 
upon achievement 
of financial and 
non-financial 
performance 
targets 
on expiry of performance 
periods. Expenses 
arising from 
the LTIP 
are recognised 
in the condensed 
consolidated 
interim 
statement of 
profit or loss 
within 
Selling, 
general and 
administrative 
expenses. 
Share buyback 
During the 
first quarter 
of 2021, 
the group 
completed 
a share buyback 
started 
in December 
2020 by 
acquiring 
62 thousand 
of the Company’s 
ordinary 
shares 
from 
its shareholders. 
As of 31 
December 
2020, a liability 
in the amount 
of USD 
14 million 
was recognised 
in respect of 
shares 
to be delivered. 
Dividends 
On 27 May 
2021, Shareholders 
of the Company 
declared 
dividends 
of 387.15 RUR 
per share 
and 
equivalent 
of USD 717 
million 
(at the CBR 
currency 
exchange 
rate as of 27 May 
2021) in 
total 
in 
respect of the 
second half of 
financial 
year 2020 
(excluding dividends 
on treasury 
shares 
owned by 
the subsidiary 
of the Company 
and equivalent 
of USD 
6 million). 
During the 
three months 
ended 30 June 
2021, dividends 
to non-controlling 
interests 
in the amount 
of 
USD 31 million 
were declared. 
This resulted 
in a decrease 
of the share 
of the 
subsidiary’s 
net assets 
that remained 
attributable 
to the non-controlling 
interests in 
the amount 
of USD 
38 million.
 
Weighted 
average 
number of ordinary 
shares
The weighted average number of ordinary shares 
used in the calculation of basic and diluted earnings 
per share (“EPS”) is as follows (in thousands of shares): 
Three months 
ended
30 June
Six 
months ended 
30 June
2021
2020
2021
2020
Ordinary shares in issue 
at the 
beginning 
of the period
135,005
133,968 
134,705 
 
133,196 
Conversion 
of convertible 
bond 
- 
293 
- 
449 
Shares awarded 
for 
LTIP 
- 
- 
351 
370 
Purchase 
of additional 
ownership 
in 
SL 
Gold 
(payable 
in 
treasury 
shares) 
- 
- 
- 
246 
Share 
buyback 
- 
- 
(62) 
- 
Other 
- 
- 
11 
- 
Ordinary shares in issue 
at the 
end of the 
period
135,005
134,261 
135,005 
 
134,261 
Weighted average number 
of ordinary shares 
– basic 
EPS
135,005
 
134,107 
134,848 
133,708 
Dilutive effect of potentially 
issuable 
shares 
under LTIP 
340
239 
375 
233 
Weighted average number 
of ordinary 
shares – 
diluted EPS
135,345
134,346 
135,223 
133,941 
Profit after tax 
attributable 
to the shareholders of 
the 
Company 
(million USD) 
644 
685 
1,093 
277 
Profit after tax attributable 
to the shareholders 
of the Company 
for diluted EPS 
calculation (million USD)
644 
685 
1,093 
277

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
19 
20. 
BORROWINGS 
 
Nominal rate % 
30 Jun. 
2021 
31 Dec. 
2020 
 
Eurobonds with fixed interest 
rate due 
in 
2022 
4.699% 
482 
481 
Eurobonds with fixed interest 
rate due 
in 
2023 
5.250% 
786 
785 
Eurobonds with fixed interest 
rate due 
in 
2024 
4.7% 
468 
468 
Notes 
due 
in 2029 
(Rusbonds) with 
noteholders’ 
early repayment 
option 
in 
2024 
7.4% 
276 
270 
Notes 
due 
in 2025 
(Rusbonds) with 
noteholders’ 
early repayment 
option 
in 
2021 
12.1% 
207 
203 
Credit 
facilities with 
financial 
institutions 
nominated 
in 
RUR 
with variable 
interest rates 
Central 
bank rate + 
2.3% 
MosPrime 
+ 0.2% 
/ + 
0.27% / - 0.45% 
1,145 
1,128 
Credit 
facilities with 
financial 
institutions 
nominated 
in 
USD 
with variable 
interest 
rates 
USD LIBOR 
+ 1.65% 
 
149 
149 
Lease liabilities 
nominated 
in USD 
and 
RUR 
5.26% 
 
82 
70 
 
Sub-total
 
 
3,595 
 
3,554
Less: current 
portion 
of long-term 
borrowings 
due 
within 12 
months 
(713)
(225)
Long-term borrowings
 
2,882 
3,329 
Unused 
credit facilities 
As of 30 
June 2021, the 
group has 
unused credit 
facilities 
in the total 
amount of 
USD 1,213 
million 
(31 December 
2020: USD 
1,243 million). 
Pledge
As of 30 
June 2021 
and 31 December 
2020, 
all shares of JSC 
TaigaEnergoStroy 
belonging 
to the 
group were 
pledged 
to secure a credit 
line. Additionally, 
the group 
pledged proceeds 
from 
certain 
gold sale 
agreements 
as a security 
for another 
credit facility. 
Other matters 
There 
were a number 
of financial 
covenants under 
several 
loan agreements 
in effect as 
of 30 June 
2021 according 
to which 
the respective 
subsidiaries 
of the 
Company and 
the Company 
itself are 
limited in their 
level of leverage 
and other 
financial 
and non-financial 
parameters. 
The group 
tests covenants 
quarterly 
and was in compliance 
with the 
covenants as 
of 30 
June 2021.
 
21. 
TRADE AND OTHER PAYABLES 
30 Jun. 
2021 
31 Dec. 
2020 
Employee 
compensation 
payable 
67 
94 
Interest payable 
59 
57 
Trade payables 
72 
49 
Accrued annual 
leave 
44 
33 
Share 
buyback (note19) 
- 
33 
Payables for shares 
of PJSC 
Lenzoloto 
- 
24 
Dividends payable 
60 
2 
Other accounts payable 
and 
accrued expenses 
93 
107 
Total 
395 
399

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
 
20 
22. 
TAXES PAYABLE 
30 Jun. 
2021 
31 Dec. 
2020 
Value added tax 
20 
33 
Social taxes 
26 
24 
Mineral extraction 
tax 
22 
24 
Property 
tax 
5 
5 
Other taxes 
19 
15 
Total 
92 
101
23. 
RELATED PARTI 
ES 
There 
were no transactions 
with related 
parties 
throughout 
the six months 
ended 30 
June 2021, 
except for 
those 
presented 
within note13 
and compensation 
of the key management 
personnel 
as 
detailed below.
Key management 
personnel
4
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Short-term 
compensation 
to key 
management 
personnel 
accrued 
4 
6 
10 
11 
Equity-settled 
share-based compensation 
(LTIP) 
9 
13 
17 
34 
Total 
13 
19 
27 
45 
24. 
COMMITMENTS 
Commitments 
for future 
lease payments 
due under 
non-cancellable 
lease 
agreements 
excluded 
from the 
scope of IFRS 
16 
The Land 
in the Russian 
Federation 
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 2065. 
Future lease 
payments 
due under non-cancellable 
operating lease 
agreements 
excluded 
from 
IFRS 16 scope 
(note13) were 
as follows: 
30 Jun. 
2021
31 Dec. 
2020
 
 
 
 
Due within one 
year 
9 
 
8 
From one to 
five years 
26 
 
24 
Thereafter 
50 
 
49 
 
 
Total 
85 
 
81 
Capital commitments 
The group’s 
contracted 
capital expenditure 
commitments 
are as follows: 
30 Jun. 
2021
31 Dec. 
2020
Projects in Krasnoyarsk 
106 
97 
Project Natalka 
100 
73 
Project Sukhoi 
Log 
32 
- 
Other capital 
commitments 
39 
26 
Total 
277 
196
25. 
OPERATING ENVIRONMENT 
- IMPACT OF COVID-19 PANDEMIC 
4
During the six 
months 
ended 30 June 
2021, following 
an analysis 
of involvement 
of each individual 
member of 
management 
in the decision 
making 
process within 
the group, it 
was concluded 
that certain 
members were 
to be 
excluded 
from 
the list of 
the key 
management personnel. 
Amounts for 
the 
three and 
six months 
ended 
30 June 
2020 were 
updated, 
respectively.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
21 
On March 11, 
2020, the World 
Health 
Organization 
declared 
the novel 
strain of 
coronavirus 
(COVID-19) 
a global 
pandemic and 
recommended 
containment 
and mitigation 
measures worldwide. 
The group may face increasingly broad effects of 
COVID-19 due to its negative impact on the global 
economy 
and major 
financial 
markets 
from production 
interruptions 
or closure of 
facilities, 
supply 
chain disruptions, 
quarantines 
of personnel, 
reduced 
demand 
and difficulties 
in raising financing. The 
significance of COVID-19 on the group’s business 
largely depends on the duration 
and the incidence 
of the pandemic 
effects on the 
world and 
Russian 
economy. 
The health 
and safety 
of employees 
remains the 
group’s 
utmost 
focus. The 
group continues 
to monitor 
the COVID-19 
threat level and 
assess 
the potential 
health risks 
for its 
employees, 
with all 
monitoring 
systems 
in place. The 
impact on the 
group’s 
operations 
was principally 
limited 
to 
provision 
of temporary 
accommodation 
and treatment 
facilities at 
the group’s production 
sites for 
the 
affected 
employees, 
implementation 
of additional 
sanitary measures, 
and charitable 
contributions 
to 
hospitals and 
other institutions 
in group’s 
operating regions. 
Costs directly 
attributable to 
dealing 
with the 
COVID-19 
pandemic comprise 
additional 
compensation 
paid to 
employees, 
donations to 
regional administrations, 
hospitals 
and other 
institutions 
as well as 
additional 
health and 
safety expenses. 
The group’s 
direct and incremental 
costs related 
to COVID-19 
were included 
in the following 
captions of 
the condensed 
consolidated 
interim 
financial statements 
as 
follows:
 
Three months 
ended
30 June 
Six 
months ended 
30 June 
2021 
2020 
2021 
2020 
Cost of gold 
sales (Employee 
compensation) 
9 
19 
20 
19 
Other expenses, net
11 
17 
24 
17 
Total expenses related to COVID-19 
recognised 
in profit or loss 
20 
36 
44 
36 
(Decrease) / 
increase in 
stockpiles, 
gold-in-process and 
refined gold 
inventories 
(1)
9
3
9
Property 
plant and equipment 
additions (infrastructure 
facilities and 
stripping 
activity asset) 
6
11
13
11
Total costs related to COVID-19 
25 
56 
60 
56 
26. 
FAIR VALUE 
OF FINANCIAL INSTRUMENTS 
The carrying value of cash and cash equivalents, current 
trade and other receivables and accounts 
payable approximate their fair value given the 
short-term nature of these instruments. Non-current 
other receivables are discounted at discount rates derived 
from observable market input data. Trade 
receivables for gold-bearing products are carried at fair value through 
profit or loss (Level 2 of the fair 
value hierarchy in accordance with IFRS 13). 
Determination of fair value of derivative financial instruments 
Fair value inputs 
Derivative financial 
instrument 
Valuation technique 
Inputs to valuation techniques 
used to measure fair 
value
Fair value hierarchy of 
inputs in accordance 
with IFRS 13
Cross-currency swaps 
Discounted 
cash flow 
valuation technique 
Spot currency exchange 
rates, USD 
LIBOR and 
RUB interest 
rates 
Level 
2 
Interest rate 
swaps 
Discounted 
cash flow 
valuation technique 
USD LIBOR 
rates 
Level 
2 
The fair value of derivative financial instruments includes an adjustment 
for credit risk in accordance 
with IFRS 13. The adjustment is calculated based on the expected 
exposure. For positive expected 
exposures, credit risk is based on the observed credit default swap spreads for each 
particular 
counterparty or, if they are 
unavailable, for equivalent peers of the counterparty. 
For negative expected 
exposures, the credit risk is based on the observed credit default swap spread 
of the group’s peer. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
 
22 
Borrowings and deferred 
consideration 
are carried at amortised cost. The fair value of the group’s 
borrowings excluding lease liabilities is estimated as follows: 
30 June 2021 
31 December 
2020 
Carrying amount 
Fair value 
Carrying amount 
Fair value 
Eurobonds (Level 
1) 
1,736 
1,840 
1,734 
1,852 
Borrowings (Level 2) 
1,294 
1,299 
1,277 
1,278 
Rusbonds 
(Level 1) 
483 
486 
473 
497 
Total
3,513 
3,625 
3,484 
3,627 
The fair value of all of the group’s borrowings except for the Eurobonds 
and Rusbonds is within Level 
2 
of the fair value hierarchy in accordance with IFRS 13. The fair value of the Eurobonds and 
Rusbonds 
is within Level 1 of the fair value hierarchy in accordance with IFRS 13, because 
the Eurobonds and 
Rusbonds are publicly traded in an active market. The fair value of borrowings 
and bonds is 
determined using a discounted cash 
flow valuation technique with reference to observable market 
inputs: spot currency exchange rates, forward USD LIBOR 
and RUB interest rates, the company’s own 
credit risk and quoted price of the convertible bonds.
27. 
INVESTMENTS IN SIGNIFICANT SUBSIDIARIES 
The basis 
of distribution 
of accumulated 
retained 
earnings 
for companies 
operating in 
the 
Russian 
Federation is defined by legislation as the current year net profit of the 
company, as calculated 
in 
accordance with Russian accounting 
standards. However, the 
legislation and other statutory laws and 
regulations dealing with profit distribution are open to legal interpretation and accordingly management 
believes at present it would not 
be appropriate to disclose 
an amount for distributable profits and 
reserves in these condensed consolidated interim financial statements.
Information 
about significant 
subsidiaries 
of the group 
Effective % held at
5
Subsidiaries 
 
Nature of business 
30 Jun. 
2021
 
31 Dec. 
2020 
 
 
Incorporated in Russian 
Federation
JSC Polyus 
Krasnoyarsk
Mining 
(open pit)
100
100
JSC Polyus 
Aldan 
Mining 
(open pit)
100
100
JSC Polyus 
Verninskoye
Mining 
(open pit)
100
100
JSC GMC 
Lenzoloto 
Holding company 
of Alluvials 
business unit
100 
100 
JSC Polyus 
Magadan
Mining 
(open pit)
100
100
LLC Polyus Stroy
Construction
100
100
LLC Polyus Sukhoi 
Log (renamed, 
previously LLC 
SL Gold)
Exploration 
and evaluation 
of 
the Sukhoi 
Log deposit
100
100
JSC Polyus 
Krasnoyarsk 
regional 
investment project 
(Blagodatnoye 
business unit) 
JSC Polyus Krasnoyarsk is undertaking an investment project 
to increase mining and processing 
facilities of the Blagodatnoye mine (Mill-5 project). According 
to the Directive of the Government of the 
Krasnoyarsk region JSC Polyus Krasnoyarsk 
was included in the register of the participants of regional 
investment projects (RInvP) starting from 2021. As a result, the subsidiary 
has been granted a right to 
apply reduced corporate income tax rates 
in relation to the Mill-5 project income and reducing MET 
coefficients in relation to minerals extracted under the Mill-5 project. 
 
Considering the expected start of production under the Mill-5 project, JSC Polyus Krasnoyarsk 
expects 
to apply the following reduced tax rates: 
●
 
Mineral extraction tax (MET): 0% for 2025-2026 increasing by 
1.2% every two years thereafter to 
6%. 
The amount of tax savings should not 
exceed the amount of investments in Mill-5 project; 
5
 
Effective 
% held by the Company, 
including holdings 
by other subsidiaries 
of the group. 

 
PJSC “POLYUS” 
NOTES 
TO THE CONDENSED 
CONSOLIDATED 
INTERIM FINANCIAL 
STATEMENTS 
FOR THE 
THREE AND 
SIX MONTHS 
ENDED 
30 JUNE 
2021 (UNAUDITED)
(in millions 
of US Dollars) 
23 
●
 
Corporate income tax: 5% for 2025-2028. 
JSC Polyus 
Verninskoye 
regional 
investment 
project (Verninskoye 
business unit)
In July 2021, the amount of mineral extraction tax savings exceeded 
the amount of investments in the 
regional investment project, therefore, starting from August 
2021, JSC Polyus Verninskoye 
does not 
benefit from the reduced mineral extraction tax, and a reduced 
income tax rate is not applied as well. 
 
28. 
EVENTS AFTER THE REPORTING DATE 
There 
were no events 
subsequent to 
the reporting 
date that would 
adjust amounts 
of assets, 
liabilities, 
income 
or expenses 
or that should 
be disclosed 
in these 
condensed 
consolidated 
interim 
financial 
statements, except 
for the 
following; 
●
 
In July 2021, 
the group 
exercised 
its call-option 
and repaid 
in advance 
of maturity 
USD 203 
million 
of Rusbonds 
(RUB 15,000 
million translated 
at exchange 
rate at 
the date 
of 
transaction). 
In connection 
with this 
on expiration 
of cross 
currency swaps 
the group 
exchanged 
principal amounts 
paying USD 
255 million 
and receiving 
RUB 15,300 
million.