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5 Steps to Creating a Successful Metals & Mining IPO Bree Schuette April 3 rd , 2007 Moscow, Russia. Key #1: PEOPLE Have the “right” team in place from management to investment bankers to outside consultants/advisors Knowledge, energy and commitment are keys
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5 Steps to Creating a Successful Metals & Mining IPO Bree Schuette April 3rd, 2007 Moscow, Russia
Key #1: • PEOPLE • Have the “right” team in place • from management to investment bankers to outside consultants/advisors • Knowledge, energy and commitment are keys • not necessarily in that order • Many investors not buying into #s, but buying into management and their subjective feelings about managers • only 30-40 minutes to convince investors • “It is amazing how much you can accomplish when it doesn’t matter who gets the credit,” anonymous
Key #2: • GROUNDWORK • Laying foundation is vital for • metals & mining companies • Strong relationship with company that will prepare CPR • Track record of reporting to Western standards (financials + resources) • The IPO process is stressful, time consuming and often scary! • No time to be fixing major problems, reorganizing structures or defining strategies • The IPO process is a long road • For most companies it is at least 18 months • “The first step isn’t in the taking of the first step; it is in deciding to take the first step,” Ralph Waldo Emerson
Key #3: • IDENTIFICATION • With the help of IBs, identify and target key investors and • carefully gear your message to answer their potential concerns • North American gold and silver “bugs” have questions about Russia and emerging market issues • Emerging market funds have questions about why silver • “Never invest in any idea you can’t illustrate with a crayon,” Peter Lynch
Key #4: • TIME HORIZON • Select the correct time horizon • Time horizon should balance the concerns of the selling shareholders and the interests of potential new investors • Remember the IPO is not simply about maximizing short-term gains • The IPO is about building credibility and long-term momentum • “One way to keep momentum going is to have constantly greater goals,” Michael Korda
Key #5: • BRANDING • Polymetal is no different than Levis, Puma or Coca-Cola • Create and build brand awareness • Message cohesiveness • Messaging should be “tight” • Large number of companies chasing limited pool of funds • Ability to summarize and differentiate your company in two minutes or less • The key question: Why us? • “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well,” Jeff Bezos
Contacts Bree Schuette Director of Investor Relations bschuette@polymetal.ru Tel. 7-812-334-3666, ext. 468 Tel. 7-911-777-1804 (mobile)