KGHM Polska Miedz Stock

Good afternoon, ladies and gentlemen. A very warm welcome at the conference dedicated to the discussion of the results of KGHM Group for the first half of the year. Remigiusz Paszkiewicz, CEO; Anna Sobieraj-Kozakiewicz, Vice President of the Management Board for Foreign Assets; Zbigniew Bryja, Vice President of the Management for Development; Piotr Krzyzewski, Vice President of the Management for Finances; and Miroslaw Laskowski, Vice President for Production. We also have Janusz Krystosiak, Director of Investor Relationships Department.

I would like to inform you that our meeting is streamed online. And in the second part of the meeting, you will be able to ask questions both here in the room and by sending it to our e-mail address of the Investor Relationships department.

Now over to the CEO.

Good afternoon, ladies and gentlemen. The first half of 2026 brought very good financial results and results in terms of efficiency throughout the entire KGHM Group. Revenues up by almost 40%, almost 90% increase of EBITDA compared with the first half of the previous year. And it is worth stressing that all that happened with a simultaneous decrease of debt throughout the group and a significant strengthening of cash flows.

We also saw a significant stabilization and optimization of operations, which led to great efficiencies and costs. Of course, we continue to work on this because we want to take advantage of the good macroeconomic environment in order to build a financial base for the implementation of our investments in Poland and to take advantage of what our foreign assets offer.

Not a long time ago, we presented our strategy, which shows the priorities of our management Board. And regarding operationalization and implementation of strategic initiatives, I would like to signal that we have recently accelerated quite significantly the implementation of those strategic initiatives that were started already before we announced the latest strategy. That was mainly about domestic efforts, but also with regard to expansion of our foreign assets.

Our colleagues from the Management Board will talk you through more details of those developments. But I would like to stress that the portfolio of our product is very broad. Domestic investments are one thing but above all, we had this cost optimization program whose implementation has already started and we want to combine it with the implementation of the strategy in order to obtain the best possible base, benefiting from the good moment in the business cycle in order to increase value of KGHM to be -- continue to be a company that pays out dividends. That is as important as the fact that we continue to develop.

We also invest, thanks to co-funding from energy transformation funds. In the first half of the year, we signed contracts for over PLN 200 million with the National Fund for Environment Protection. And that will be spent on photovoltaic and wind farms. Abroad on the 1st of October, we will have the launch of our investment in the fourth line of processing in Sierra Gorda in Chile. And we are also working on possible acquisitions and alliances with other mining companies so as to achieve a certain good perspective for expansion of our resource base outside Poland.

We have also accelerated renovation downtime in Glogow foundry, and we will shorten it for sure. It is very important for our production levels, not only for copper and silver production, our core product, but it will also allow us to high production of sulfuric acid, which all in the situation of uncertainty regarding [indiscernible] and global conflicts around it became a very good product, high-margin product. This acceleration also means that we will base the decision on increasing the value chain in Cedynia smelter regarding copper [ roller ] and the construction of the fourth line in Chile.

We should also remember something that I really want to reiterate, the cost optimization program, we can achieve as much several hundred million by increased efficiencies. So we want to have a high efficiency innovation, security of work, security of employee -- employment and work conditions. Here, I would like to extend my thanks to all employees throughout the group in Poland and abroad for all their contribution to such good results. It is not only the result of the good moment in the business cycle. But in a moment, you will see some more specific reasons behind this greater performance. Foreign expansion, not only geographically but also upward the value chain. That is also Cedynia smelter, new products, new plans for the Legnica smelter.

We also have new directions. Let me mention the commencement of works on extraction of polyhalite in Puck. We have signed a relevant contract with the authorities of Puck municipality so that we can go through the formalities together, leading to the obtaining of the relevant license. We want to take the maximum advantage of the business conditions to achieve lower debt, good financial situation, the prospect of high cash flows because we want to be a company that pays out dividends.

To justify this, let me quote a few points that follow directly from our report, but which seem highlights to us. High results of the group of the entire KGHM in the first half 2026 are the result of excellent standing and implementation of development assumptions, including numerous initiatives that have been started earlier and that are covered by the current strategy. High prices in the first half of the year.

Also, I would like to say that we faced significant volatility in the quotations of our products. That regards not only high prices for core metals, but also for rhenium and sulfuric acid that I have already mentioned, almost doubling of EBITDA, operating EBITDA, you must have noticed that in our results, tenfold increase in net profit of the group year-on-year. That is particularly important for stable financial standing. Higher -- and let me stress it again, production of paid copper by 20% year-on-year and silver production, 8% up year-on-year. Increased sales volumes for all our core products, also gold.

We know it all happened in the conditions of high and stable quotations in spite of the volatility signaled earlier, which proves that we are able to navigate those slightly changeable, but overall stable quotations times marked by these conditions. It also seems to me that another important factor is that we recorded a decrease in C1 cost indicator for those who specialize in KGHM analytics, that's an important piece of information, also increase in operating margin from 25% to 34% in the entire group. That is a significant growth.

Now I would like to hand over to my colleagues from the Management Board with the request to present details for the first half of the year. Let's start with Madam Vice President.

Okay, then. Thank you. As regards production results and foreign assets, let me start with a discussion of Sierra Gorda. You can see in the graphs, the results of Sierra Gorda that account for 55% share, payable copper at 19,600 tonnes, for the entire 6 months, 40,200 tonnes. That is minus 5% year-on-year. As for silver production in the first 6 months, 38% increase in production, which stands at 14.9 tonnes. Gold and precious metals stand at 9,300 ounces and the result is thus 37% worse. However, I would like to comment on this by saying that the content of silver and precious metals in the ore depend on the nature of the ore, and that was the modeled exploitation of the deposit.

As for copper production, here, we see a slight decrease year-on-year. As we informed you earlier, Chile experienced torrential rains in the first quarter 2026. Initially, we did not see the impact of those rains on production. But after the first 6 months of the year, this negative deviation on production is visible. It is slight yet visible. Sierra Gorda is trying -- now working on making up for this, and we are optimistic about success of this. We can see that the content of metal in the ore is higher. So that proves Sierra Gorda is working to achieve the targets.

As for molybdenum production, we see a 6% growth in production year-on-year. We are at 11.8 (sic) [ 1.8 ] million pounds molybdenum up. This higher production is the result of higher output, although the ore had a lower content of the metal and lower processing levels. That means overall that the processing plant stabilized its production and the output indicators remain stable.

In this slide, you can see the future project of building the fourth production line in Sierra Gorda on the 30th of June, together with our South42 (sic) [ South32 ] partner, we decided to fund this investment. CapEx amounts to $725 million as of the end of July, and the funding will happen from debt instruments, which are available to Sierra Gorda and from operating cash flows. Why are we doing this? Well, we are doing this in order to increase metal production by 20% as a target solution, but also to further reduce C1 costs that is to optimize even further production in this mine. We expect that in line with the assumptions that construction will last 3 years. And in the fourth year, that is in the second half 2030, it will be fully operational and Sierra Gorda is working on making all this happen.

Soon, we will witness physical launch of this investment on site. The design work have been underway for quite some time. The debate on this project started some 5 years ago. And our studies as well as those of our Australian partners indicated positive NPV, hence, this decision. We expect the greatest outlays in 2027, 2028. Also, there will be an increase of employment in 2028.

Well, this slide really shows what the construction looks like. We intend to have additional crusher and the HPG mill, ball mill and flotation line. It's a complicated project because we are going to do it during the ongoing operation of the Sierra Gorda facility. So we need to coordinate the work of multiple teams and the work is underway. From January 1, 2027, we are going to become the Chair of the Sierra Gorda Supervisory Board.

One important caveat here. Since we speak about the Line 4, it means that potentially LOM is shortened by 3 years until '45, but this is based on the deposits that have been included in the metal plan. So whatever is currently available and identified as available in Catabela excavation area. But Sierra Gorda continues to work on exploration drilling around the Catabela excavation area.

New areas were identified where there is very likely high mineralization, both for copper and molybdenum. And in case of Catabela Deep, the drills also show that underneath the excavation area, there is some potential, but also in the horizontal dimension, the mineralization is passing through [ an area ] location and possible pit, which is Salvadora. So we know for sure that this is a mineralized area and an ongoing drilling project, Catabela Northeast, like 42 drills have already been performed, and we do have confirmed mineralization.

It is important to note that we are working on the intensification of the exploration drilling because it means, well, prospective deposits that may prolong the life of the entire Sierra Gorda mine. Different colors in the cross-section, like blue and red show high level of mineralization. And you can see that on your right, there is a higher density of that. So that shows that the pit, Catabela Out-Pit also has potential to have mineralization underneath the current production area.

On the left corner, we see the map that shows the position of Catabela Northeast versus Catabela Space, which is owned by BHP Spence facility. So again, the projection is based on the assumption that we shorten LOM by 3 years, but this is based on the already identified and proven deposits. However, our current exploration show that there is more potential for production around that area. Therefore, this new line will definitely support the production of the new -- from the new deposits.

Now production and the output. We do for KGHM International, we are down 34% year-on-year. This is related to the reduced output of copper, reduced content of copper in the ore and less core was -- less ore was processed. So in terms of Carlota, this is a very tiny part of our international assets. So it doesn't really contribute much to EBITDA or to overall production. In terms of silver production, it's not located there because that mine does not offer silver.

For TPM, we also see the reduction for gold. This is 15.5 ounces of gold, but this is in line with the budget. And there is a slight increase in molybdenum production. And a brief commentary on that. As we have already informed to you before, at Robinson, we currently operate Liberty pit, which is less abundant with metal. This is like a transition area from the previous pit that was previously operated, and we are underway to the ultimate pit. So we are in the transition period. So material that we are currently working with, this is not geological material that was historically heap material. So this is definitely offering less of the product. The negative surprise was that the Liberty ore turned out to be much more challenging for processing in our plant. And the ultimate output is less than anticipated. And hence, the deviation is from our forecast.

In addition to that, we had some other challenges. There were some failures with some of the machines like thickener and mill. So the operating assets that failed also contributed to that negative deviation. But we actually came up with a repair program and the Robinson is working on sort of bridging the gap during the second half of the year and deliver the budget.

In terms of numbers, the situation with Robinson with the positive macro environment and high prices of metals is really very good. Robinson generated the EBITDA, which is twice as high as the one we had in the budget. It's over PLN 780 million after the first 6 months. So the good pricing of metals have certainly contributed to this production. And Sierra Gorda and financial results also shows that the numbers outperformed our expectations and the budget.

So overall, cash flow from international assets after 6 months are at $290.3 million. Sierra Gorda contributed over $270 million, paying back all the loans, guarantees and other financial instruments. International assets after the 6 months contributed nearly 20% to the adjusted EBITDA of the entire capital group. This is nearly PLN 2.5 billion. And I think that this is the point where I will actually have my full stop and turn the floor over.

So right now, it's time for the individual segments of the Polish assets. I have been always thinking about the proper adjective to describe the situation. I was speaking about the stable production and the robust results. Now let me say that after 6 months, we have very decent numbers to show.

And again, I would like to thank our employees that work in the smelters and other facilities because there is something that we can praise about. We had a very challenging budget, but we were able to deliver. And as you can tell, the overall production and the production of the copper in concentrate or electrolytic copper or silver production, we are -- all the bars are higher than last year. And perhaps a few words about the production of the electrolytic copper, 7% up, but let me remind you that the last year, we had a low base because of the standstill and the refurbishment of one of the holes in the Glogow II smelters. Silver, 8% up compared to the last year. It is true that we take advantage of the availability of the material.

Last year, we were able to grow by 40 tonnes of the metal, mainly because of the better content of silver in the ore by 2 ppm. And I would like to provide more details about ongoing refurbishment of Glogow II smelter. We initially planned that the first concentrate will be actually loaded on the 26th of September. Today, we know that the schedule will be updated and shortened but 9 days. So we are back in business on 17th of September. So this is when we have the first load coming to the furnace. So this is truly very good, I should say, very decent result of the Polish assets.

So now development programs for KGHM. It's been a good time. And you can tell that we have really accelerated our development projects. The CapEx for the first 6 months is PLN 1.439 billion. Most of it was in the mining operations. And I think that this is natural, and it has been like that for years, and I don't think that we can expect any change in these proportions. When you want to break it down in different categories, development, recovery, maintenance, et cetera, I think that the development has accelerated. We were up 14% compared to the 6 months of 2025. And this is the result of the new shafts becoming operational.

And in terms of these categories, we can tell that there is more spending on actual refurbishment and reconstruction, a major overhaul of Glogow II smelter. The CapEx is around PLN 500 million. In Q4 2025, we started the procurement process. This year, the work is going in full swing, and we are going to wrap it up in September, as you've just heard. And I think that here, we can offer more details.

In terms of the development, the greatest part of this investment is availability of the deposit. Overall, over PLN 1.04 billion is allocated to that. And that includes everything, the fits, the shafts and all you may think of that has to do with the future production in the mines and in the smelters. So out of PLN 497 million that was spent in the first 6 months, PLN 395 million was allocated to mining operations.

Last year, we were working on the shafts for Retkow and then GG-2 and Gaworzyce. So last year, we had only GG-1. Today, we have 4 shifts that are covered by our CapEx. GG-1 is actually coming towards the final phase. So when we zoom in right here, this is the shaft, which is very much advanced. In September 2029, the first workers will start actually going down in that shaft. We have completed the first phase of work, and you see the air conditioning unit that was refurbished and refitted.

Currently, we have already installed all the temporary equipment. Now we are building cages and the bath and loading facility for fuel, et cetera. So in 3 years, 2,500 people will be actually using this shaft to go down and work in the mine.

Okay. GG-2. GG-2 is the shaft, which was located a few years ago. Regretfully, the location was not good in terms of geological properties. So we had to move 800 meters to the site. We are completing our surveillance work. In 2 years, we will start freezing and 2.5 years, we start deepening back. This is GG-2. And now Retkow. The Retkow shaft is currently at the end of the geological survey. And again, we have the confirmation that it was the excellent location, but would be another shaft for the transportation of people, materials downwards. And this is close to the bridge on the east side of our deposits. The work is very much advanced, more or less in the same way as in case of GG-2. So these 2 shafts will be going hand-in-hand in terms of advancement of work.

And Gaworzyce is the final shaft, and we currently are still in the drilling process to check all the geological properties. Is that's going to be confirmed? We don't know as the final location, we continue the discussions right now. At the horizon, you can see the Glogow smelter. So we have already spent over PLN 100 million on those shafts. You may think that this is all field work. It doesn't happen that much there. But one drill is like between PLN 12 million and PLN 15 million.

Now we also have to take into account access carrying the load and the output back. Each cubic meter of going down translates into tangible results. We have 7 licenses here marked in gray. These are areas where we currently exploit the deposit. And the remaining are exploration licenses. Radwanice Wschod will be the places for which we will apply for exploitation.

Now we only explore them. Up to the Oder River and beyond the Oder River, we have made some drillings across the river, 9 drills will be made this year. 4 have been completed, and we plan to have the same number next year. Then we are examining geologically the area near Bytom Odrzanski. Retkow-Grodziszcze is also the place where we expand our resources eastward.

At the moment, we can start from top on the left. Refurbishment in the smelter, that has already been mentioned by Mr. Paszkiewicz and Mr. Laskowski. Major refurbishment process that we repeat once in 5 years. Imagine, we have this furnace which has this inlet of ceramics is dismantled. We have to recover all those spots, specifically checking the weakest points. Then we have to replace this inlet. We bow our heads to the workers who really worked very hard. We now have such refurbishments, not every 3 years, but every 5 years. And we also shortened the time needed as downtime for the process.

In this picture, you can see the moment of placing of those ceramic bricks that are resistant to temperatures of well over 1,000 degrees, and they are supposed to resist such high temperatures for the upcoming 5 years. Here, we can see Glogow II smelter, PLN 670 million will be the cost of the refurbishment here. And also similar works are going on in Legnica. Here, we are fitting machinery for production of cathodes with fixed base or without a base. These are machines that allow us to save time and a lot of raw materials that do not need to be re-smelted to create anodes, because copper will be torn off this base and will go directly to Cedynia.

Here, you can see another fragment of this line. We faced some difficulties there because it is an installation that is completely new in our facilities. This year, we intend to complete it. And at the beginning of next year, a similar installation is to be put into operation in Glogow. Here, I would like to mention Cedynia. Cedynia is not really a smelter. It's our rolling facility. This rolling plant has been operational for over 40 years. So it's time to refurbish the -- or replace the machines. They are still performant. They are still in good condition, but we endeavor to replace them and also take this opportunity to expand our product offer with molders, shapers and other products made of copper.

So we are thinking about UPCAST as well. Exploratory and development work focus above all on maintaining highly productive geological lines. We work in increasingly difficult conditions. We are successful in withdrawing humans from the most dangerous areas. And thermic hazards are becoming the most serious ones. Now we had a robot for cleaning the passage between the furnace and the recovery boiler in Glogow II. Now we are finalizing a similar robot like this for Glogow I.

Also down in the mines, we need machines that -- well, when they emit heat, they should not emit fumes. So we have electrically propelled machines. Here in the picture, you can see a vehicle for transporting employees. It will be equipped with modern air conditioning devices, both in the cabin and in the park for carrying workers. It will be a mobile device, which will also give a chance to the workers to get a moment of rest. We work under very difficult conditions. The deeper you go, the warmer it gets. We feel it acutely.

Also, we remove humans from the front of the corridors. We now shift to automatic anchors. And all processes will be done from automated boots. We're also considering automation of drilling and automation of loading of explosives. Also all things related to removal of water, improvement of productivity of MCRs. And I would not focus too much on figures because sometimes they only signal that a certain machine was put into routine operation or was phased out. We generally increase the capacity of our exploration machinery.

So to close this presentation, I would like to say that the first half of the year was favorable for the company also in terms of what we saw in the market. In a moment, I will talk you through that in greater detail because there have been questions. But as the CEO mentioned, we improved efficiency. We improved the balance sheet and cash flows. We also tried to do anything we could to ensure a certain buffer that will help the company in a more difficult external conditions.

I would like to highlight 3 elements in the first 6 months of this year. First is the resilience of our business; two, the market; and three, consistent building of value through the strategy. And I will explain what it means for our operations and how we implemented it in the first half of the year.

Starting with the first point, that is resilience. Resilience is understood through the lens of income. And if we look at revenues, I can also say it referring to what Mr. Laskowski said, production is crucial. But given how fragmented and divided the market is, the sales also becomes a very important aspect. Production is our back office, so to speak. And now you can see that we focused more on stock.

We also replaced conditions in some contracts by focusing on products which were previously niche ones. However, they generated good margins, selenium, molybdenum, the sulfuric acid. Here, we diversified our hedging also, which provided another good element. The prices, which we achieved for the 6 months were very high. And that is the result of good market conditions, but also efficient action of our sales teams. So I would like to thank our sales teams globally. These people work from Santiago to Shanghai. So my thanks go to all the sales staff for the hard work.

We are also opening 2 new markets, new products. Importantly, we also increasingly focus on already processed products. 50% of our products go in the direction of rolled metal. And that means also that we are soon to make important decisions. For example, in Cedynia, the new production line will have an additional possibility of scrap metal input. At the next conference, we will be able to give you more details on that. But anyway, we can see that the margin generated in this project contributes to a greater profit on the company in subsequent periods.

While talking about income now, we should also mention costs as another important element to which we pay close attention. We minimize cost. That is our core activity. But we also look at the costs through the lens of production. At the end of the day, we want to generate the highest possible value added on each tonne of output.

As for costs, we might look at costs by type. On the one hand, if we look at taxes and third-party input, here, the numbers are high. But if we deduct the elements, which are beyond our control and if we look at the costs, excluding the annual bonus, which we have in collective bargaining agreements, we have a stand-alone 4% year-on-year growth. Our target was also to benchmark to inflation, but we optimize costs. The cost optimization program, which has been mentioned here repeatedly, evolved over recent periods. And we want to show you that it covers a series of activities.

Our ultimate goal is to have the benchmark of 2024 and PLN 1 billion savings are expected by 2028 compared to this benchmark of 2024. Now after 1 year of implementation of those activities showed savings of PLN 300 million. And next steps will also be reflected in KPIs, not only stand-alone KPIs for the company, but also for other companies within the group. And eventually, they will bring all those total savings. We break down this in greater detail for the last 2 quarters to show you the change that occurred from 2024. This slide shows this breakdown.

Now the question, what kind of benchmark for inflation should be adopted. We looked at CPI. A real dynamic of decrease in 2025 on materials and services was over 5%. And in the first half of the year, that was 5.7%. We stopped the cost decrease, but we still have the ambitions to improve further and look for further savings, look for optimization activities that will generate additional value. Probably with regard to costs as such, it is worth discussing those related to energy in more detail. Very often, analysts and others who watch the market are interested in that.

So when we look at the cost of electricity for the first 6 months, putting aside the volumes because the volume is up because the output is up. But if you look at the price net effect, it's PLN 57 million. Gas, PLN 20 million down. CO2, PLN 5 million up. So how much more we paid for energy for the period is PLN 32 million in terms of price outcome. To a large extent, we are actually optimizing our consumption. We are hedging in Amsterdam. We are actually active on the power exchange.

So all those transactions and optimization projects translated into really slight increase, given that PLN 1.2 billion is the cost of gas electricity for the first 6 months. So going up by PLN 32 million is really negligible given what has been actually happening in the market during the past periods.

Now resilience is also about cash flow, a strong operating cash flow over PLN 2.5 billion. And globally, after our investments, all the cash flow is PLN 774 million. But I think that inventory should be also mentioned sort of a peak in our inventory when we were collecting anodes for current processing to actually generate cash flow that is more in line with the standard operations without any refurbishment and retrofitting projects. So if you look from December through January, for inventory, it's PLN 2.5 billion and 63% is change in price and 37% is the volume.

But let me add to that, that we were able to collect over 60,000 -- or nearly 60,000 anodes. Yes. But when you look from quarter-to-quarter, we were up only by PLN 485 million, including PLN 135 million for volume and over PLN 350 million for the price. But what we are seeing now, and you will be actually watching it over the quarters to come, the value of our inventory would be actually declining. So we are going to actually free and release the cash that was frozen when we were building up our inventory to be able to deliver on the production commitments.

Now another part that I mentioned earlier is the market environment. I think that we've been all watching that. This is never black and white picture. In demand side, we have a strong demand for various categories of products. And economically, anything may happen any time. But from the point of view of projects and customers, we see stable and long-term volumes. So we are on the safe side.

However, this picture is not entirely clear. You never have, these days, global demand and supply. The market is fragmented. So when you look COMEX and LME inventories, they are very high. All the cathodes are actually now located at [ COMEX ]. Now you were asking what has been happening recently. Like we had cash settlement on the market, the sort of usual third Wednesday of the month. So cathodes were shifting towards COMEX and the spreads that you've been able to see on the market was definitely nonstandard. And therefore, through the physical market, we've been seeing some volumes being pushed. So after that peak, we were always hedging, and we will be able to show you our transactions during the next -- after the next quarter. So we took advantage of the peak.

But the market is under pressure as we can tell. But the trend that we are able to identify, whether for copper or silver, we believe that it's stable, and there is a strong demand underlying the whole picture. The main risk is supply. The supply that we see on our side and across the sector, it is likely that at some place in the world, there could be some incident that can actually undercut the supply because the mines are getting older and older, geological profile is not fully defined, and therefore, this risk is pertinent.

And the final thing is the value. At the end of the day, we are looking at it from the perspective of our new strategy. So we want to report and generate performance in the short term. But when we have long-term strategy, so taking a long-term approach, as VP Bryja said, the shaft is not built overnight. It takes years to complete such a project. And when you look around the world, what's happening out there, the regulations that are enacted and you top it with the process that is very complex. You have to appreciate it that this is a long-term CapEx commitment. But at the same time, we want to make sure that we generate value for shareholders.

As the Madam VP said, the fourth line. With brownfield, we are able to generate an additional value. And we presume that the project of the fourth line, Line 4 will generate much more additional value because we base our projections on the defined deposits. And it's very likely that the new deposits will be coming in as a result of the explorations. So that line should really generate additional value, high value.

In terms of the financing, most of the financing will actually charge Sierra Gorda. Currently, we are supporting this process. We are going to refinance. And altogether, it will be around $1 billion in banking financing, we don't want to overcharge the ongoing cash flow from that operations because it's also important for our cash flow. This is an important contribution. And we want to make sure that there is a basis for the further investment and development. Catabela Northeast, that's another component of this picture.

At the end of the day, from my point of view and yours, it is -- what does it mean in numbers? It is really hard to define the total potential for that deposit because we keep drilling. But what we were able to see so far, this is still estimates. And again, I stress that these are estimates. But we see that this deposit is a high prospect. And the copper that is sitting there makes it comparable to Sierra Gorda. So it could be another Sierra Gorda. So there are still many question marks at this point.

But since we do have a plan to actually increase our efforts when it comes to drilling in that area. And once we do it, we should be able to demonstrate the value of the deposit that is sitting there, and that will contribute to the value of the company and the entire capital group. So this is a potential upside from the point of view of our investment projects, and that should bring a high return.

Now another question that is frequently asked is about M&A. Yes, we are actually looking at it, but it's not that we will do it at any cost. We are a reasonable investor. We are currently actually during the process of the exclusive acquisition. The process is highly confidential, so I cannot disclose the details. But if we are successful during the next conference, we may actually have a new addition to our asset family. Thank you.

Ladies and gentlemen, now it's time for questions and answers. We are collecting questions from the room -- from the audience in the room.

Robert Maj. I had a question about the inventory because it was, as you said, PLN 2 billion, now you are down to PLN 480 million in Q2. What about Q3? Are you going to invert this position and you're going to actually recover the cash flow that was kind of poor in Q2?

Well, I would not entirely agree with this assessment that the cash flow was poor. But it is true that in Q3, the volume will be going down. So in Q3, Q4, it's about sort of releasing and freeing everything that has been frozen and tied up. 60,000 anodes are being processed right now. They will be sold. So you will see it in the form of the final product and then you will see it in the form of cash flow. So that's what you're going to see.

So okay, what kind of dividend can be expected for 2026? Are we shooting at PLN 5 or rather at PLN 1?

Well, I think that we will communicate that on the occasion of the General Shareholders Meeting next year. But let me emphasize that we want to take advantage of the conducive macro environment, and we want to build the financial base with the proper level of the inventory. So -- but we are in the position to continue our investments and growth and further development. But at the same time, we want to have financial buffer that would have some room for sharing that with shareholders through the dividend.

And the final question from me is about the cost of personnel. Okay. Let me start with the total cost of production in Poland. It was over PLN 55,000 per tonnes. So it was 8% quarter-to-quarter. I understand that the main culprit was the growing payroll costs, PLN 2.1 billion, right? So cash flow of the group was not able to cover these costs in Poland. And that was because of the one-off bonus that was paid out to the workers. And we may expect that the total cost that is currently at PLN 55,000 per tonne may go down in Q3. Am I right?

Well, according to our regulations, when we generate the profit, we have to actually make a contribution to the price and reward fund. This is like over PLN 300 million year-to-year. And this is because of our collective agreement, we had to make that and that contributed to the increased cost. So -- but this is the consequence of the profit that we were able to generate. But right now, we are not going to continue that. So we may expect that cost per unit should not be growing in Q3, not in the way it was growing so far.

[indiscernible] Well, the CEO or the deputy mentioned that the family of assets can be growing. So I wanted to ask you about international expansion, about the directions and what are the most desirable critical commodities right now? This is a question from my area.

In terms of directions for M&As. I cannot exclude any geographical regions, but we are looking closely at the South America, North America, North Africa, but we look only at the stable jurisdiction in terms of the legal safety, like the North Africa and Morocco specifically. But we do not rule out our destinations. We are looking overall across the market.

As you can tell, there are very few projects in the copper segment that would be very prospective in terms of their current development stage. Because of the prices, the projects are overstated. Therefore, we have to be very cautious. We are also surveying the American market, looking at various assets. But as it was said, we are currently performing further analysis, and we are not able to disclose more details at this point.

One of our priorities is also to explore the Ukraine. Actually, we've been doing the exploration there for some time. But now we want to update the knowledge that we have already gathered. The most prospective deposits are undergoing due diligence. This is mostly lithium and titanium. And these metals, these elements are on the radar right now.

Gentleman in the first row.

[ Dariusz Nawrot ]. When can we expect improvement of output of copper in Robinson?

That's a difficult question. I am unable to answer the question asked this way. The Robinson mine is facing some challenges because the pit and the ore exploited there are difficult. The mine is working on meeting the budget targets. The failures that occurred have been eliminated as a result of remedy measures, and we expect an improvement of output in the upcoming time.

We also have some development plans for that place. We have AI supported plans to improve our mix and enhance the quality of the output. If we implement this, that will take weeks.

Now we are at the stage of confirming that this technology, if implemented, will boost the output. So that is also a quick path to return to high output levels. But also this phase of Liberty is a transitional phase to the next one, which will start in 2028. That is the shift to the open-pit mine in [indiscernible]. And that also results from a certain modeling of the deposit that will allow us to go to a better part. But before we get there, we need to go through the part of the deposit, which contains a greater share of lower quality material.

So is that the only problem here?

Yes, only this one, the type of soil.

Then I have a question regarding the global market. What is your feeling? Because there is some pressure on the supply side in copper supply. But something that the midterm can play a role is the decision of the American administration regarding customs. By the end of June, plans were to be announced until the -- regarding actions until the end of 2027. Aren't you afraid that there might be some changes if American traders introduce some of the stock to the market and stabilize copper price?

Well, of course, there is such a risk. This storage facility that in the past was created a little by accident, now has gained strategic importance. We watch closely what the U.S. and China are doing. Copper no longer is just an element subject to supply and demand loss. And it has become the object of political games. We all see the production of cathodes in the U.S. U.S. is dependent on this type of product to a large extent. And the storage facility builds some resilience. Whether that will be sufficient, it's not something for me to comment on. This storage facility has a much broader importance than just as a storage place for cathodes.

The CEO also said that when we were at the time of higher prices, you concluded a bit more hedging transactions. Is that the strategy for the upcoming weeks or months, namely more active hedging for copper? And one more question regarding hedging with respect to silver. The prices are higher than they were at the end of January. Will you consider reducing the number of hedging transactions here?

Well, we have our strategy for this. We monitor the market on a daily basis, but we also have certain intervals at which we complete such transactions. We targeted at the level which we considered appropriate for concluding certain transactions. For silver, you will see the results in the next report with $55, some transactions were closed.

And now we monitor the market. I think I would say the market would be at $75 plus/minus 50%. We probably oscillate within that range. Silver is very strong in the industry. Also, ETF movement was visible. It is quite a shallow market. We have some institutional investors, central banks. And here, the demand is under no risk. We can see that the big players continue the purchases.

One more question from the room.

Jakub Szkopek, Ersete. I had a question. A few days ago, BHP had a conference and the CEO said the cost of new projects like buying copper project, costs well above $100,000 per tonne. Is that indicative also for your purchases that you might consider?

Let me take this. Of course, we cannot refer to this. We have no idea what the new CEO of BHP had in mind. For sure, we will inform you at the time when we are ready to do so. Talks are in progress. This is not that cost, but it is very difficult to refer to any statement made at the press conference of another institution.

Let me ask a technical question then. The VP mentioned change of guard in Sierra Gorda Supervisory Board. I understand Sierra Gorda will not change. It will continue at 50%.

No, no, no. Of course, this is like the binding JV, which defines that the leadership in this Board is cyclical with 2-year terms. Now South32 has this role. We take it over at the beginning of January next year. So nothing changes with respect to ownership.

Now online questions.

I am on the defensive today. The Management Board presented the results and the questions asked in the room also answered a series of questions that had been sent by e-mail. And I have no new questions, no new topics. So maybe there are some more questions in the room.

If there aren't any, then thank you very much for the participation in this conference. We invite you to the next one in November. And now we invite you to a little refreshments. Thank you.

Ladies and gentlemen, good morning. Let me tell you that because we have some technical problems, the technical staff has asked us for 15 minutes delay because they need to check various items. So it's now 11. So let's have a break until quarter past 11. We have to wait until then.

[Technical Difficulty]

Can I have the information from the technical stuff, it's quarter past 11. Can we start?

Ladies and gentlemen, we still need 10 minutes, so until 25 past 11.

[Technical Difficulty]

Ladies and gentlemen, we are ready, but we will wait until 11:25 because I said so and someone might have left the room. So 1 more minute, and we will start.

Good morning, ladies and gentlemen. My name is [indiscernible], and I will chair the Ordinary General Meeting of KGHM Polska Miedz S.A. until the election of the Chair of the Ordinary General Meeting of the KGHM. First of all, I would like to welcome the shareholders and their proxies representing shareholders of the company members of the Supervisory Board, Mr. [indiscernible], Mr. [indiscernible], Mr. [indiscernible], as well as the Management Board Remigiusz Paszkiewicz, President of the Management Board; Mr. Piotr Krzyzewski, Vice President of the Management Board for Finance; Mr. Zbigniew Bryjad, Vice President of the Management Board for Development; Mr. Miroslaw Laskowski, Vice President of the Management Board for Production; and Ms. Anna Sobieraj-Kozakiewicz, Vice President of the Management Board for international assets.

I would also like to welcome representatives of the media and the company employees. The minutes of this ordinary general meeting of KGHM will be taken by Mr. [indiscernible] by notary sitting beside me. And now let me ask you to put forward candidates for the position of Chair of this ordinary general meeting. Okay?

[indiscernible], I'm a shareholder. I have 1 share [ excusing ] my rights as well. So I submit my candidate from the position of Chair of the ordinary general meeting. If I let I will assume the position.

Thank you very much. Are there any other candidates? I don't see any. So one candidate has been put forward, Mr. [indiscernible] to be Chair of the Ordinary General Meeting.

Before the election of the Chair of the Ordinary General Meeting, I would like to ask a representative of the programmer company to tell the shareholders and the proxies of shareholders about the details of the terminals used in the voting procedure.

Good morning. You have received 3 [indiscernible], green, yes. Red, no, against. Yellow, abstention. So if the voting starts, wait for the blue screen, please attach the [ tack ] to the reader. If you vote when you vote, you will see information that the vote has been cast in the open thought with the information what the vote was in the secret ballot, no information. If you have more than 2 sets, you put 1 tag and then you put another tag.

Let me suggest a test vote for you to check whether your tags work. So if you have -- if you see, please say yes, please vote, put the tag to the device to the reader. Voting in progress.

The height of the arrow underneath -- have you checked -- have everybody checked whether the device works, so we finished the test vote. The vote has been finished. Thank you very much. Other any questions to you -- are there any questions? No. Thank you.

So I hereby start a [ secret ] ballot on the election of the Chair of the Ordinary General Meeting of KGHM. The candidate is Mr. [indiscernible].

[Voting]

I can see that some people are still voting, so I'm not closing the vote yet. Thank you very much. Have everybody cast their vote yet? I don't see anyone raising their hand. So I hereby close the vote, and please tell us the results.

Thank you very much. Ladies and gentlemen, minutes of the secret ballot #1. For the Chair of the Ordinary General Meeting, 141,171,162 votes were cast. All votes were valid for 140,992,158, which constitute 99.8732% of the votes cast, against 179,003 votes, which is 0.12% of all votes cast -- valid votes cast. And there was 1 abstention. So 0%. So the number of shares, 141,171,162 shares and votes on the percentage in the share capital, 70%, 70.58%. So that's the percentage of such. So in the secret ballot, Mr. Andrzej Leganowicz has been elected Chair of this Ordinary General Meeting of KGHM Polska Miedz S.A. and I leave the floor to him, and he will chair this meeting from then on. Thank you very much.

Thank you very much for electing me. By electing the Chair of the Ordinary General Meeting, we have on the second point of the agenda, point three, confirmation of the legality of convening the Ordinary General Meeting and its capacity to adopt resolutions.

First of all, I'm signing the attendance list. Let me inform you that the list signed by the Chair of the Ordinary General Meeting will be submitted for you to view -- for the shareholders to view during this ordinary general meeting. Those of you who need to see the document will have an opportunity to do so until the end of this ordinary general meeting.

Moving on to the confirmation of the legality of convening the Ordinary General Meeting. I would like to inform you that this ordinary general meeting have been convened in accordance with the current legal requirements. The announcement was published on the website of KGHM Polska Miedz at www.kghm.com on the 5th of May 2026. And this announcement is still on the website.

The contents of the announcement met the requirements specified in the [indiscernible] of commercial company, Article 402 and 17 [indiscernible] 2026, this is the number of the announcement. It was sent on the 5th of May 2026 to the electronic information database in accordance with the legal provisions on the financial instruments on the regulations on public companies.

In the report #18/2026, the proposed resolutions have been published resolution submitted to this General Meeting. The documentation submitted to the General Meeting has been published on the website of the company in line with the criteria specified in Article 402 of the [ colo ] commercial companies. These documents are still on the website. I would like to inform you that no shareholder has exercised the right, specified in 40 of the Code of Commercial companies that is submitting a proposal for a point on the agenda, but to shareholders, [indiscernible] and the state treasury before the date of this general meeting put forward candidates for the Supervisory Board, in relation to the fact that there is a point on the agenda on the resolutions on the election of members of the [indiscernible] Advisory Board.

[indiscernible] did that on the 1st of June 2026. And the company published this in the report number 2026, the state treasury informed everybody of that yesterday, the company put information on this on the report #21/2026. The list has been complied in accordance with Article 407 and 406 of the code of commercial companies in line with Section 25.1 of the status of the company. The general meeting can adopt resolutions if at least 1/4 of the share capital is represented.

Currently, the attendance is -- the attendance is as follows. We have in this room in person or represented by proxies all 843 shareholders, number of shares, 141,171,163 shares. The percentage of the capital represented 17.586 rounded up to the 100%. So I hereby announced that we have a quorum capable of holding this ordinary general meeting and adopting resolutions is there. We have a quorum.

So this general meeting was convened without possibilities of participating in it through electronic media. All the votes will be direct votes by people present in this room. So in view of the vote, I would like to say that this meeting has been convened legally. It's valid. It's capable of adopting the resolutions. And we have representatives of the media. My request to them is to introduce them [indiscernible].

Thank you very much. New shareholders or proxies have reservations about the representatives of the media taking part in this general meeting. No reservations and protest. So let me inform you, ladies and gentlemen, that we have also representatives of certified accountant responsible for checking the reports, representing PricewatershouseCoopers which can be important in the reporting part of this ordinary general meeting.

The meeting is streamed online on the Internet and the entire meeting is being recorded. As far as I know, it's recorded in the audio and video format from the information I have I can tell you that the recording will be published later on the website of the company. This is all as far as point 3 on the agenda point 4, acceptance of the agenda of the ordinary general meeting.

The agenda of the meeting is an obligatory part of the announcement of the general meeting, and I assume that everybody present here knows the agenda. Is there a need for the agenda to be read out? I don't think there is such a need. So we assume that all people present here know the agenda.

Would you like to present some comment on the published agenda? Or do you have any suggestions concerning the adoption of the agenda. If there are -- any such remarks, questions, please do so now no contribution.

So there is resolution it's resolution 2026 of the ordinary general meeting of KGHM with its registered office in [indiscernible] dated 9th June 2026 on the acceptance of the agenda of the Ordinary General Meeting of KGHM Polska Miedz S.A., the Ordinary General Meeting of KGHM resolves the following: in Section 1, the following agenda of the ordinary general meeting of KGHM is hereby accepted, and all the points are listed, and it's known to all of you, some of the points have already been done. It contains 16 points. point 16 is the closing of the Ordinary General Meeting. In Section 2 of this resolution we read that this resolution comes into force upon its adoption. Are there any comments on this proposal for a resolution? No.

So let's have a vote. The vote is an open vote, and it will be settled by an ordinary majority.

[Voting]

It is in progress at the moment. Thank you very much. I understand that we can say that all people authorized to vote have voted. So let's close the voting. Let's present the results on the screens first.

The number of votes cast for the adoption of the resolution, 140,992,158 million, against [ 179 and 4 ] abstentions none. So I hereby declare that the resolutions on the acceptance of the agenda of the ordinary general meeting has been adopted in an open ballot.

Let's move to the reporting part of this ordinary general meeting, starting from point 5 on the agenda and ending on point 10. So this means presentation as required various reports submitted to the general meeting by the management of the company and the supervisory board. The procedure of the points of the would be as follows.

First of all, I would like to suggest a reference to the publications by the company, on publications on the website of the company and SPV, the electronics information system all these reports mentioned in the agenda from point 10 -- from point 5 to point 10 have been published well in advance. So I assume that all interested parties have had access to them. So this presentation of the documents, I think, has been completed.

In addition, what we can read from point 5 to point 10. Let me also inform you that the General Meeting will be debating the report on good practice in sponsoring in sport by state treasury companies in 2025. This was added -- this report was added to the documentation presented by the company and was published together with other documents before the General Meeting on the website of the company.

As an introduction to the discussion, we will have a brief presentation by the management Board with key points of the reports. Then I suggest that we open a discussion, and this discussion will cover points from 5 and until point 10. So it will cover all the reports and all the proposals mentioned in this point, shareholders wishing to contribute to this discussion will have an opportunity to do so. Is this formula of proceedings clear to all present? I think, yes. So let me invite the management Board of the company to present reports submitted to the general meeting and report and proposals.

Ladies and gentlemen, good morning. As Mr. Chair said already, the financial performance and results have already been published before. And I'm talking not only about the entire 2025, but also I'm talking about detailed publication of Q1 performance 2026. And I would not like to dwell on the details and particular results, I would just like to present several general comments on the actions of the company and management Board in 2025. Then I will give the floor to Mr. Krzyzewski so that he can comment on the most important items pertaining to our financial performance and the operational activity of the company.

Ladies and gentlemen, as the Management Board, we believe that 2025, first of all, well, last year, the company had very good results, and I'm not talking only about the financial results, but operational activities. So this is a year of responsible decisions and very sustainable implementation of our decisions.

When looking at the stability of our operations, based on extended assets, the Management Board decided to build 3 new shafts here in the [ corporate Basin ] area. These are fundamental decisions in terms of our investments, and they will secure the continuity of production. They will also provide the security of mining and metallurgy for years to come, tens of years to come.

At the same time, the management board increase the effectiveness of the organization, and we made very good decisions. We, as a result, increased our investment capacity. Furthermore, we saw improvement in our processes in the main technological proceeds of KGM. So we made a decision, and we started implementing a cost optimization process, and I'm talking about the cost optimization process that brings us very positive effects.

So we focus on those areas that have the greatest potential with regard to cost optimization. So materials, energy, production and inventories. And it is very, very important in our operations. So these are particular actions, and I have said they bring tangible results. At the same time, I believe that we have a very good cooperation with the social party. We have a stable social dialogue within the entire group. And this has been proven by having a remuneration consensus that was reached at the beginning of this year. And also, this is based on our performance on our results from 2025 to a large extent.

We want to be good partners to the social party. And thanks to the involvement of the Management Board in 2025, and I would like to underline that we have -- now a changed tax environment. And this allowed us to release a large pool of assets for investments. And I would like to underline that this is money that comes from lower taxes and part of these assets are already invested in our country. I would also like to say that our international assets are important. So mines and our previous investments abroad. And I'm talking about Chile and the U.S.A.

So we very efficiently continued the construction of the [ Victoria mine ] in Canada. And you know the results, it's almost half of the EBITDA from the international assets that we have. So these assets are really, really significant. And they are a great stabilizer, so to say, of our financial performance, and it gives us a lot of room for improvement investment and stabilizing our operational activity. Also -- and we talked about that before. We do have certain plans regarding expansion abroad, and we are going to talk about that when presenting our strategy.

In 2025, we prepared a strategy that require certain corrections, adjustments already with the new composition of the Management Board, and this pertains to our activity abroad, strengthening our energy side and the third pillar area was the capital group, and I'm not talking only about the companies here in Poland, but also our international assets. We are going to present the strategy at the beginning of July. So this is our corporate calendar, and this is, of course, connected with the date of presenting the results for particular months.

Ladies and gentlemen, as a -- since we do have these good results, and we do have our long-term dividend policy in place, we decided to pay dividend in the amount [indiscernible] per share. And this is -- and I'm talking to our shareholders that are here in the room and the proxies. This is going to be discussed today as well. And now I would like to give the floor to Mr. Krzyzewski. Thank you very much.

Mr. [indiscernible], thank you very much, ladies and gentlemen, good afternoon. Now I would like to remind you about our performance in 2025. I will give you 2 dimensions year-on-year and then I will refer to the budget of 2025.

So as far as the consolidated revenue goes, we have an increase of 3%. So this is over [ 36 billion ] and cost discipline and the operational leverage resulted in an increase of 22% of EBITDA. So this exceeded [ 10 ] billion [indiscernible] on a consolidated level. And our profit was 28% or 20% higher this is over PLN 3.68 billion.

Now let's move on to the budget dimension. When you look at the production in permanent and abroad, the production of payable Corp was according to the budget, [indiscernible], the parameters exceeded our budget assumptions. When we look at the sales comparing this to 2025 payable copper, this was according to our budget and sales of silver exceeded the budget and purchase metals as well, which allowed us to reach the results that we're assuming in the budget. Thank you so much.

Thank you very much. In accordance with my previous announcement, I will open a discussion in a minute. And this will be our main discussion of this general meeting, and it will include point 5 to 10 of the agenda.

And the first question, I would like to know whether there are any participants would like to express their views or comments now, if you would.

Good afternoon. Ladies and gentlemen, my name is [ Mari ]. So now a request I would like to ask you, if possible, if you have prepared your questions. I would like to ask you to convey your questions or comments to the Chair of the general meeting. In a moment, I will ask you to formulate your questions that were prepared for today's general meeting. Then I would propose a short technical break. So that the Management Board or the Supervisory Board can present their answers. So now let me give the floor to Mr. [indiscernible].

Good afternoon. I'm a shareholder. My name is [ Adam Shivak ] and I'm the President of the thermal energy company and a foundation of [indiscernible].

And I have questions, but they will be preceded by a quote. A letter from the present to the shareholders. So let me quote this letter. KGHM for years have been operating in light of sustainable development, combining production needs to responsibly approach the environment and relations with local communities One of the pillars of KGHM Polska Miedz is involvement in dialogue the good neighbor relations. Energy transformation and diversification of energy sources remained a very important direction of acting of the company.

The highest operational and transparency and dialogue build value. I would like to thank all the shareholders of KGHM Group that take active part in the dialogue and support us in development sincerely.

Ladies and gentlemen, in light of the information presented in the financial statement, including the emissions, there's a question arising, is this transparency model declared in the statement. The model of environmental responsibility, dialogue and relations is reflected in the actual activities of the group.

So these questions I would like to ask you to do the Supervisory Board, especially that they are supervising the everyday activities of the company. So 3 questions. So does the Supervisory Board confirms that they received a letter on the 17th of October 2025 regarding the inspection of the responsibility to inform shareholders about the activities? So the lack of the response means that the Supervisory Board thinks that the risk is not important? Has the supervisory would analyze the decisions of the court that state that the [ organs ] of the KGHM do not provide public information with the threat of breaking or infringing on the relevant legislation.

The questions that you are asking pertain to the questions regarding the closure of the year 2025?

Okay. Yes, that is true. So I do have some more than 10 questions to the Management Board. Can the management that the financial statements for 2025 clearly -- fully reflects all the important risks, regulatory risk, environmental risk and operational risk of the group for 2025? What reserves do you have for potential environmental fines -- regulatory fines and risks related to the energy and thermal energy activities of the group?

So does the Board think that the risk included in the letter from the 17th of October, were not revealed -- fully revealed in the financial statements for 2025. Does the management think that the damages -- damage regarded to the mining activity are not present? Can the management Board explain why [indiscernible] fines to the managers of the road infrastructure water infrastructure. But in terms of the thermal energy, they say that there are no losses.

How does the management Board defines the causal relation regarding to the mining activities that might be deemed dissipated? Does the management think that there [indiscernible] risk is included in the financial statement? Do you think that this risk is important in terms of a financial statement and how is this reflected in the financial statement?

When will the management would present the current energy strategy of the KGHM Capital Group? Does the lack of this strategy impact the investment decisions and risk management? What were the reasons for refusal participation in strategy energy collaboration [ Poland ] and the study is from Denmark and [indiscernible] in the Embassy of Denmark? Even though the [ Marshall ] of the [indiscernible] Minister of Energy and the ambassador of the Kingdom of Denmark have the patronage over this project, has the management Board analyzed this cooperation or what are the results of this assessment?

Why did you refuse the dialogue in this respect with stakeholders? Does the management Board confirm that the installation of the [indiscernible] street in [ Legnica ] was [ exploited ] according to the permit and the provisions of the directive?

In 2025, immersion indexes have they been exceeded? And if so, for how long? And have you reported that to relevant bodies, have you analyze the risk of fines related to the operation of the installation of [indiscernible]. Installation of [indiscernible], was it operating in 2025? And did it produce energy? Did the management board analyze the risk of these operations without the proper concession? And the last question, can the management Board confirm that all the risks, including mining, damage and regulatory risk, environmental risk, were reliably and fully revealed in according to [ MSF ] as well. Have they been revealed to the shareholders?

And this is the only opportunity for me to ask these questions and my questions are very detailed. All the letters that we sent were not addressed. We did not receive any responses. We did not receive satisfactory answers. So thank very much for this possibility of asking these questions.

Okay. So I do not have these questions in writing, but I have the -- there are not many of them. And maybe somebody could actually write a note to the relevant bodies in KGHM. Yes, we can do that.

Question number one, it pertains to the financial statement, the separate financial statement. I'm talking about Page 26, 27 and I'm talking about the loss of the value of the assets. I'm going to wait until the present opens this statement.

Generally, in this part of the financial statement, the company said that nothing shows that the test of value loss should be performed or a test of reversing the value loss of the national assets. However, compared to the situations from 2 years ago, when this was taken into account the macroeconomic assumptions and the situation of the company were different.

I'm talking about company capitalization, prices of metals, et cetera. And now you said that you are implementing a number of cost optimization activities. We do have a change in the -- as a tax and I would like to quote [indiscernible] from the statement. This is sentence there.

Following the change of the regulation on changing the tax mining materials, there is no reason to change. There's going to be no impact on the value of the assets, national assets. However -- this is what the Board said. However, there were public documents -- like the justification to the act signed by [indiscernible]. This information about benefits that in KGHM enjoys after introducing or implementing this act. It's PLN 10 billion within 10 years. And for the first 3 years, this is about PLN 2 billion.

Looking at the quarterly results, I would like to say that these benefits are larger than expected, even this is visible in Q1. So my question is, do you still claim, [indiscernible], if we did that, the result for 2025 would be higher by PLN 3 billion. You quoted one of the financial statements presented to the general meeting. And I do believe that your statements have been well thought through.

However, today, we are not changing the wording of the statement, however, according to the acting accountant until the state is not approved, it can be changed. Theoretically, yes, but -- this is your intention?

No. Would you like to change the financial statement or one of the financial statements presenting to the general meeting because this is what I understand because you asked whether the Management Board maintains its position, but the position of the Management Board is included and reflected in the financial statement, right?

Okay. This is a statement from March. It was presented in June. And now I quoted a governmental document from October. Yes. Of course, there are numerous factors that are important to you. But I would like to know whether the Management Board took into account this governmental document concluding that the change in the tax is not a reason for value loss.

Okay. So I understand this is your first question. This question has been written down. And now can you move on to the next question.

[indiscernible] analogies question to the Supervisory Board. Is Mr. [indiscernible] here, his our main auditor, [indiscernible]? Okay. I would like to know whether you are a certified auditor and what role did you play in the statement?

I'm a managing partner of the entire process, and I represent the company.

But are you the main satisfied auditor?

I am a certified auditor responsible for the financial statement. Okay. So what's your question?

Okay. Value loss. You said that this is one of the main issues of this examination. And this is a quote from the separate financial statement. So the analysis included the understanding of the process of identifying the process of value loss reasons why there's no value loss. So can you tell me during your analysis, did you also analyze this document that I mentioned. This is a public document. This is a justification of the government for the bill regarding the tax on certain mine assets, and it was signed by Prime Minister [indiscernible]. And it says this document says that the benefits for KGHM in the first 3 years is about PLN 2 billion. And in the next years to come, it's PLN 1 billion per year. Have you analyzed that? And what other procedures did you perform in this particular scope? So I would like to focus on this value loss of the national assets.

Okay, that's your next question. We have written that down. And the next question, please. Okay. So that's the question for our certified auditor. And now the next question. And do we have any other questions?

Okay. Question number three, to the Management Board. In 2023, the company had a marginal exposure to any securing instruments, no open position for copper and silver. But at the end of 2025, the scale of these measures increased to 27 million ounces of silver over 200,000 in terms of copper and the exposure increased by [indiscernible] ounces of silver. In the statement for 2025, we have a negative value of these instruments in total profit PLN 2.3 billion. And this is the highest negative result in the history of KGHM. I'm talking about terminal values.

And my question to the Management Board is the decision of changing of the decision of risk management changes has been supported by any analysis of risk before, including the loss analysis long term? And have you also analyzed the results of internal reports, audits pertaining to the prices of hedging the metal prices.

Thank you. Next question. The question has been written down. Our next question, please.

This is a question to the Management Board. It pertains to the supervision of a particular company, the foreign company. It's a very specific characteristic question, maybe. What I'm talking about is the controlled scope over [ DMC Mining Services ]. In public materials that are currently available in the emission prospect of the aluminum metals company [ DMC Mining Services ] is indicated as a source of information pertaining to the planned investments for investments near [indiscernible].

Okay. So I would like to ask the following. Is the management Board aware that this information is available in the market that the information from the subsidiary of KGHM has been used. And has this information been verified within the ownership, supervision over this company. So I'm talking about a potential risk for the future regarding the reputation. So that's what I wanted to ask.

All -- these are all your questions, right? Okay. So now [indiscernible].

[Audio Gap]

The resolution on the appropriation of profits if it you like to address the proposal for the resolution. I will give you this opportunity when we vote on the profits that would be [ 0.11]. If you -- if it's only the proposal for the resolution, if you want to formulate something more if you are talking only about a proposed resolution, please submit it on the point when we will have the voting.

Thank you very much. I agree that I will present a proposal for the relevant resolution in 0.11. To sum up, I would like to suggest that we have a 20-minute break in order for the company representatives to be able to present their position on answering the questions asked to them.

Let me say that the questions to the Supervisory Board, given the fact that -- given the fact that it is a collegiate body. The Supervisory Board specifies its position on a given matter collegially I think that the company will refer to these questions, no doubt. But these questions can be answered in limited manner during this general meeting, given the fact that the nature of the Board is collegial, the Supervisory Board is collegial. That's all. I think that our break of 20 minutes will be enough. So let's have a 20-minute break. It's 12:25. So please come back quarter one.

[Break]

Request for you to take your seats to continue our ordinary general meeting. Request for you to inform the people still in the lobby to return to the room because we will soon resume the general meeting.

I hereby resume the Ordinary General Meeting of KGHM. We are in the reporting part of this general meeting. In the course of the discussion covering points from 5 until 10 of the agenda the shareholders have formulated some questions. After the resumption of the meeting, there was a request to the Management Board to present its position all the questions asked by the shareholders.

Ladies and gentlemen, on behalf of the Management Board, I would like to confirm that all the questions submitted today at this ordinary general meeting. All the reports have been prepared in accordance with all the rules and regulations and prepared meticulously. When it comes to answers to these questions addressed to the Management Board, we will response as required by law in 14 days -- within 14 days in writing because, first of all, we have to check, and that's one of the main reasons.

We have to check whether the detailed answers to these questions do not in front a confidentiality be require us to go back to the source documents in order to prepare a good answer in order for you -- for these answers to be reliable almost and as detailed as possible given the objective situation given the requirements of confidentiality and secrecy.

Thank you very much. When it comes to the questions addressed to the Supervisory Board. Ladies and gentlemen, when it comes to the questions addressed to the Supervisory Board, one concerned November 2025. We will check that. I was not a member of the Supervisory Board then them, but we will really checked whether the Board was informed and what decisions it took on the matter. The other issue concerns March this year. Well, we are dealing with year 2025. But the Board has asked the management Board for explanations.

We have not yet received all of them because I know that talking to the President. Some decisions have already been taken, and so we are yet to receive. When it comes to the rulings, the rulings come from 2 -- from 2 weeks ago. the company received the last week, and the Supervisory Board will certainly explore that, but that concerns 2026.

Thank you very much. In view of the above, we have to decide that the discussion on the reporting part. Yes. Yes, I'm sorry. I do apologize. Please the -- please let the auditor present his position. I hereby confirm our position expressed in the opinion from the 25th of March, we have read the relevant documents confirming now that there are no grounds to -- for test for loss of value. Thank you very much.

I understand that no, no, no, no. In accordance with the rules and regulations, we have time for questions and replies. So I can -- I reply to what I can provide what I've heard. Yes. One of my questions on the position of the Management Board on the loss of value issue concerned here or now in 2 weeks -- well, I can -- I understand we will vote on the financial statement. But if you decided now that, for example, having analyzed this government document that you conclude -- well, we were wrong. We've made the mistake. Perhaps indeed, this change in the tax does give us some additional earnings and our assumptions for March were wrong. I understand that you have been talking about encouraging the Management Board on changing its position.

No. The management said that it will reply within days. But this -- I think we shouldn't receive answer the answer here.

Please let me tell you that this term with deadline within 2 weeks, it has been provided for in the code of commercial companies. So we are complying with the legal regulations and in the situation in which you are formulary your question is important for you. This requires and preparation for answers based on analysis of the relevant documents. The admissible form of reply is -- I will reply in writing within 2 weeks under Article 428 of the code of commercial companies. It's a usual procedure followed during a general meeting. So a reply is provided in the form of a report and interest to everybody. Thank you very much.

Mr. Chair, if I may. Yes, I'm aware of the procedure of the deadlines, but I do like to draw your attention to one issue. The Management Board was informed many times about the risks I mentioned and it has failed to reply. That's one thing.

The rulings that were delivered a few days ago, they do concern 2025. I would like to stress that, second part. And the third part, perhaps a verification of risks that may materialize and may influence the financial statement, leading to its correction. So if I may, I would like to ask the management Board. Well, when it comes to specific questions, that were read out. The Management Board was aware of these risks. They were -- that's all I wanted to say.

I do understand. I do confirm what I've said later. There is a procedure for providing information for transferring information relating to the ordinary meeting providing answers in the course of a general meeting, and it cannot be questioned that procedure.

When it comes to your position on the impact of specific circumstances on the content of the statement -- financial statement, let me inform you that irrespective of how important it seems to you what you are talking about. We may be dealing with what can be described as divergence of positions, not necessarily, we don't have to agree with you.

I think that every single person formulating any question of thesis during this general meeting today, is aware of the fact that the perception of company issues and the impact of various circumstances on the company operations in the opinion of the management board may be different from what it seems from the perspective of a shareholder coming to the general meeting and having a different view on the matter.

We do understand this situation. The position of the management board may be different from your position. It can be so but then have to be so. This position has been divergent different for many months, which doesn't change the situation. You have asked your questions, the Management Board has declared its willingness to reply and I assume that the Management Board will reply within 2 weeks, the statutory deadline.

So we are here by closing the discussion on the reporting part of this meeting. The statement referred from points 5 to 10. They have been submitted to the general meeting. As has been said before, we have referred to earlier publications of the company and also they have been read by the general meeting.

So next point of the agenda [ is #11 ] in A, we have approval of the separate financial statements of KGHM Polska Miedz for the financial year ended of the 31st of December 2025. That's point 8. So the proposed resolution submitted to the general meeting -- on this matter has been published among the materials for this general meeting. The question, do we need to read out the whole proposal of the resolution before we vote on it? So I see no comments on that.

So I assume that the proposal for the [indiscernible] more question on the formal issue. Perhaps we could vote on a break in the meeting. Until the moment, we receive the answers and then we can continue when the Management Board has prepared the answers. We have the 9th of June, we have time until the end of the month, so quite a lot of time. Honestly speaking, I don't know whether we can submit such a formal proposal to have a break.

Please calm down. Well, that's your contribution formulated now. That shouldn't be treated as a formal proposal for a break in this general meeting until the 30th of June 2026. Until the Management Board has prepared, we can -- what we can do, we can announce a break which, in line with the regulations of the code will not be longer than 30 days, indicated a date and place where the general meeting will be resumed.

So if the Management Board has received -- prepare the answers in 2 weeks, we can meet in 2 weeks. Let me draw your attention to the fact that a resolution on a break in the general meeting cannot be conditional. We cannot say if in the resolution. So the question is we heard that we will have answers in 2 weeks.

I have a question to you then. Are you submitting a formal proposal for a break in the General Meeting until a specific date or no?

Yes. I think 3 weeks will be enough. So until -- yes, until the 30th of June. I formally submit a proposal for a break in this general meeting in order to resume it on the 30th of June. Such a proposal is submitted on the Article 408 of the code of commercial companies on the break in the general meeting on a date different from the -- and such a proposal requires a qualified majority of 2/3 is the situation clear -- can I have your name [indiscernible]?

Ladies and gentlemen, I hear my start a vote on -- can we have a 5-minute break? Do you need time to consult? So 5 minutes, yes. So I announced a 5-minute technical break following which we will vote on the proposal by Mr. [indiscernible] to announce a break in the general meeting until the 30th of June 2026 and resume the general meeting at the place at the venue when it was convened. Thank you.

[Break]

Ladies and gentlemen, have you managed to receive the required information for you to be able to vote. Do we have everybody in the room.

So we hereby starting the vote on the proposal for announcing a break in the General Meeting until the 30th of June 2026. The hour of the resumption can be the same, so 11:00. I assume that the venue will be available on this date on this potential date of the resumption of the general meeting. So I hereby announce the vote on the proposed resolution on announcing a break in the general meeting, the ordinary general meeting of the KGHM Polska Miedz, acting under Article 408 of the code of commercial company and also a break in the General Meeting until the 30th of June 2026. Until 11:00, the meeting will be resumed and the venue of the [indiscernible] room at the venue where the General Meeting has been convened and the relevant address of the company as in the announcement of the convening of the meeting. And this resolution enters come into force upon its adoption.

If this resolution is adopted the meeting will suspend all the procedures until the day of the resumption of the meeting. So I hereby start the vote.

[Voting]

Please vote. Those of you who are for the break, use the plus tag. Those who are against the break use the minus tag. Please note that given the qualified majority required for this vote, all votes, including abstentions are taking into account in this vote. The voting is in progress. No, not yet. So the voting is still in progress.

I hereby close the voting. Please present the results. The number of votes for [indiscernible], was against 70,982,668. Abstentions, 683,134 votes. So I hereby declare that the number of votes for this resolution is not enough to adopt a resolution on a break in the general meeting.

So let us return to the agenda we have a vote on the approval of the separate financial statements of KGHM Polska Miedz for the financial year ending on the 31st December 2025. Let me stress here that the Management Board has confirmed the validity of this statement and so has the auditor. So let us vote on this proposal of resolution, and it will be an open ballot.

The proposal has been included in the material provided for the general meeting, there is no need to read out the whole draft resolution. So cast your vote on the resolution on the approval of the separate financial statements of KGHM Polska Miedz for the financial year ended on the 31st of December 2025.

[Voting]

The vote is still in progress. I would like to ask the technical staff to intervene.

I hereby close the voting. Please present the results. The number of votes cast for the adoption of the resolution, 139,992,096, against 636,145, abstentions, 542,921 votes. So I hereby declare that the resolution has been adopted by the general meeting.

Next, subpoint b, adoption of the resolution on the approval of the consolidated financial statements of the KGHM Group for the financial year ended on the 31st of December 2025. The proposal is of the resolution is included in the materials for this general meeting. So I hereby submit this for the vote of the general meeting. Please cast your votes.

[Voting]

I hereby close the vote. Please present the results. The number of votes for the adoption of the resolution of 159,992,097, against 636,144, abstentions, 542,921. So the resolution has been adopted by the general meeting.

Point three, adoption of the resolution on the approval of the Management Board's report on the activities of KGHM Polska Miedz and the proposal of the resolution has been included in the materials for the general meeting.

I hereby submitted for -- to the general meeting for -- to vote on it. Approval of the Management Board's report on the activities of the KGHM Polska Miedz S.A. and the KGHM Polska Miedz Group. Please cast your votes now.

[Voting]

I hereby close the vote, and please present the results. The number of votes for 140,438,831, against 19,410, abstentions 2,921 votes. So the resolution has been adopted by the General Meeting in an open ballot. Point [ D ] and the adoption of the resolution on the appropriation of profit for 2025.

I would like to present the proposal for the resolution. We can read the Ordinary General Meeting of the KGHM Polska Miedz hereby resolve that the profit for 2025 of KGHM Polska Miedz in the amount of PLN 1,946,423,447 be appropriated as follows: One, as a shareholder dividend PLN 300 million which represents PLN 1.5 per 1 share. Reserved capital, PLN 1,646,423,407 Section 2, the ordinary General Meeting hereby said the following: a dividend date at -- for 2025 at 25 June 2026 to payment date for dividend for 2025 as at 9 July 2026 in the amount of per share. Three, the resolution comes into force upon its adoption. The proposal is accompanied by a justification. Mr. [indiscernible] has prepared an alternative proposal for the resolution. And so I ask him to present it now.

Mr. Chair, ladies and gentlemen, operating as shareholders, I would like to proposal for a resolution on the appropriation of profit of KGHM Group for 2025. The ordinary general meeting of KGHM Polska Miedz on the 9th of June 2026 results of the following: One, the Ordinary General Meeting of KGHM Polska Miedz result to divide the net profit for 2025 in the amount of PLN 1,936,423,407, 72 grozsy in the following manner. One, for shareholder dividend, PLN 600 million. So PLN 3 par, [ 1.2% ] for reserve capital, PLN 1,346, 432,407 in 72 grozsy to the ordinary general meeting of KGHM results sets a dividend date for June 2025, a payment date of dividend for 2025 as at 9th July 2026, and the amount is PLN 1.5.

The resolution comes into force upon its adoption, justification for this proposal of resolution. The dividend is a link between the company and shareholders and is a form of reward for the capital and contribution to the success of the company. The increased amount of dividend in comparison to the recommendation of the management board will not have a measurable impact on the investment program of the company and will not cause an imbalance between the dividend and the capacity of the company to invest effectively and is in line of Article 339 of the Code of Commercial Companies.

In 2024, let me note, the Ordinary General Meeting decided to pay dividend for 2023 in the amount of PLN 150 per share despite the fact that the financial statement of the KGHM for the financial year ending on the 31st of December 2023 showed a loss -- a net loss of PLN 1.150 billion and the payment of the dividend that made no impact of -- on the operations of the company, especially given the economic aspects. Significantly from December 2025, the situation on the market has been very good when it comes to the main materials extracted by the company, both the national and international analysts say that the prices of these materials will continue given the demand on international markets.

As a result, in the first quarter of 2025, the company has achieved a net profit of 359 billion, which is a rise of over 10% in comparison with the previous year. In view of the above, given the need to maintain the relationship between the company and the shareholders and the interest of the company, the proposal is justified and necessary. Thank you very much.

Can I have this proposal in writing? Two copies. Thank you very much. Does anyone present here would like to say something about the appropriation of profit for 2025? I don't see any hands and request for the floor. I think that we should have a 10-minute break in order for proxies to consult the first principles, how to vote. And then secondly, the financial implications of the proposal needs to be checked and verified with regard to the fact whether all the amounts will balance each other out. And so I think we'll be ready to resume the proceedings in 10 minutes. So let's meet here at 1:42pm.

[Break]

Ladies and gentlemen please take your seats. We are going to resume the general meeting shortly. If you could please tell all the persons that are still outside the room to come back so that we can resume the proceedings.

Thank you. I hereby resume the proceedings of the General Meeting of KGHM Polska Miedz S.A. This is Point 11 of the agenda. And in this point, we are going to adopt a resolution on the appropriation of profit of KGHM Polska Miedz S.A. for 2025. [indiscernible], shareholder has a draft resolution with alternative wording of this resolution. We are going to vote on this draft in the first place. So here are the assumptions. The amount from the profit for a dividend is PLN 600 million, which is PLN 3 per share. And the company's reserve capital, PLN 1,346,432,407.72 and Paragraph 2 dividend date is the 25th of June 2026 and the payment date of dividend is the 9th of July 2026, PLN 3 per share. And this is the wording of the resolution read in full by Mr. [indiscernible] before that.

So let's have a voting on the resolution regarding appropriation of profit. As presented by Mr. [indiscernible], this is an open voting. Please cast your votes now.

[Voting]

If the draft resolution proposed by Mr. [indiscernible] receives a simple majority vote, the general meeting will approve the resolution that is aligned with the intention of Mr. [indiscernible]. And then we do not vote on the proposition of the Management Board. If the simple majority is not achieved, then we are going to vote on the proposal presented by the Management Board. Thank you very much.

[Voting]

Has everyone cast their votes? I'm closing the voting now, and please present the results of the voting. Votes for the adoption of the resolution, 29,266,226 votes; against 63,599,902 votes; abstention, 46,389,680 votes. I hereby state that the resolution did not achieve the required majority and is not being approved by the general meeting. Now we are going to vote on the resolution proposed by the Management Board. Let me remind you of the value PLN 300 million for dividend PLN 1.5 per share and for the company's reserve capital, PLN 1,646, 423,407.72, the dividend date at 25th of June 2026 and the payment date of the dividend 9th of July 2026, the amount of PLN 1.5. Now let's vote.

[Voting]

The number of votes for adopting the resolution 140,992,152; against 179,009 and abstentions 1. I hereby state that the resolution is adopted by the general meeting. The next point on the agenda is the approval of the report of the Supervisory Board of KGHM Polska Miz S.A. for 2025. The wording of the resolution, the Ordinary General Meeting of KGHM Polska Miedz S.A. approves the report of the Supervisory Board of KGHM Polska Miz S.A. for 2025. Paragraph 2, the resolution comes into force upon its adoption. Now let's vote on this resolution. Please cast your votes.

[Voting]

I'm closing the voting. Let's see the results, please. Number of votes for 140,449,231 votes against 179,009; abstentions, 542,921. I hereby state that the resolution has been approved. Now let's move on to 11. Regarding issuing an opinion on the report on the remuneration of the Management Board and Supervisory Board of KGHM Polska Miedz S.A. for 2025. The wording is as follows: the Ordinary General Meeting of KGHM Polska Miedz S.A. gives a favorable opinion on the report on the remuneration of the Management Board and Supervisory Board of KGHM Polska Miedz S.A. for 2025. Now let's vote on the resolution. Please cast your votes.

[Voting]

Yes okay I have I'm closed the voting. Number of votes for adopting the resolution 84,133,663 votes; against 45,951,266; abstentions, 10,935,189. I hereby state that the resolution has been adopted by the general meeting. The next point in the agenda, point #12, the approvals of the performance of duties of members of the Management Board of KGHM Polska Miz S.A. for 2025. As an introduction, let me add that all the resolutions pertaining to the performance of duties for the members of the Management Board of KGHM Polska Miedz S.A. are going to be secret ballots because these are confidential matters. And the second piece of information is that there are certain limitations to the voting rights that stem from 113 of the Commercial Companies Code. So the proxies cannot vote on the performance of duties for the members of the Management Board.

And if such a situation takes place, I'm going to ask the technical crew to exclude such a person from voting. And now in the next voting, I'm only going to provide you with that name and name of the person that is subject to that voting. I'm not going to read the entire wording of the resolution. So the first resolution pertains to Mr. [indiscernible]. And we do not want to decline the name. I'm talking about [indiscernible] And now we are going to vote on the resolution regarding the approval of the performance of duties for 2025 [indiscernible] of the Management Board of KGHM Polska Miedz S.A. So now please cast your votes. This is a secret [indiscernible].

[Voting]

The voting closed. Yes, I'm closing the voting. Let's see the results. The number of votes for adopting the resolution 140,286,934 against 251,522 [indiscernible], 632,706 so the resolution has been approved in the secret ballot. The next resolution pertains to the approval of the performance of duties for 2025 of [indiscernible] in a secret ballot. Please cast your votes.

[Voting]

The number of votes for 140,286,933; against 251,523 [indiscernible] 632,706. I hereby state that the resolution in the secret ballot has been adopted. The next resolution approval of the performance of duties for 2025 of [indiscernible] It's a secret ballot. Please cast your votes.

[Voting]

The number of votes for [indiscernible] votes against 251,521 [indiscernible] 632,76 votes. I hereby state that the resolution has been adopted in a secret ballot. The next resolution pertains to the approval of the performance of duties for 2025 [indiscernible] lets have the secret ballot on the resolution. In this case, please cast your votes.

[Voting]

The number of votes for 140,070,394 votes against 468,061 [indiscernible] 632,706. So the resolution has been adopted in a secret ballot. Now resolution on the approval of the performance of duties for 2025. Let's have a secret ballot. Please cast your votes voting is in progress.

[Voting]

I'm closing the voting. Let's see the results. The number of votes for adopting the resolution 138,263,268; against 468,060; [indiscernible] 632,706 votes. So I hereby state that the resolution has been adopted in a secret ballot by the general meeting. The next resolution pertains to the approval of the performance of duties for 2025 of Ana Kotak. Let's have a secret ballot on the case. Please cast your votes.

[Voting]

The number of votes for adopting the resolution 140,068 423 votes against 470,032 [indiscernible] 632,606 votes. I hereby state that the resolution was adopted in secret ballot. The next voting pertaining to the approval of the duties for 2025 of [indiscernible] let's vote on the resolution for the approval of the performance of duties for [indiscernible] that voting is secret please cast your votes.

[Voting]

I'm closing the voting. Let's see the results.

The number of votes for adopting the resolution 140,068,422; votes against 470,032; [indiscernible] 632,606. I hereby state that the resolution has been adopted in a secret ballot. So these are the results of the voting on the approval of the performance of duties of members of the Management Board of [indiscernible] so as I understand, all the persons from the Management Board have been included in the votes.

And now we are going to move on to the adoption of resolutions on the approval of the performance of duties of members of the Supervisory Board of KGHM Polska Miedz for 2025. These are going to be secret ballot and Article 413, as I've mentioned before First, we are going to vote on [indiscernible]. Let's vote. This is a secret ballot. Please cast your votes.

[Voting]

I'm closing the voting. Let's see the results. The number of votes for 131,361,612 votes against 9,071,202; [indiscernible] 738,342. I hereby state that the resolution has been adopted in a secret ballot. The next resolution pertains to the approval of the performance of duties for 2025 of [indiscernible]. Let's vote on the resolution. The vote is secret. Please cast your votes.

[Voting]

Closing the voting. Let's see the results. The number of votes for adopting the resolution 131,580,34 votes against 8,852,780; [indiscernible], 738,342. I hereby state that the resolution has been adopted in a secret ballot. The next resolution pertains to the approval of the performance of duties for 2025. Let's have a secret ballot on this case and please cast your votes now.

[Voting]

The number of votes for 133,088,00. We've lost the results. Can we see them again, please? Please, technical crew, we could not see the results. So again, for 133,088,187; against 384,254 [indiscernible] 738,342, I hereby state that the resolution has been adopted in a secret ballot. The next resolution pertains to the approval of the performance of duties for 2025 [indiscernible] we are going to have a secret ballot on this case. Please cast your votes now.

[Voting]

I am closing the voting. Let's see the results. The number of votes for 131,578,150 against 8,854,669; and abstentions, 12,209 I hereby state that the resolution has been adopted in a secret ballot. I have received information from the technical crew. It stands that the attendance changed, the number of shareholders present is 842. The quorum is still maintained, so the general meeting still can adopt resolutions. So one person left the room.

The next resolution that is going to be voted on is the resolution on the approval of the performance of duties for 2025 of [indiscernible]. We are going to have a secret ballot on this case. Please cast your vote now.

[Voting]

The number of votes for 139,806,551 against 626,268 [indiscernible] 712,209, I hereby state that the resolution has been adopted in a secret ballot.

The next resolution pertains to the approval of the performance of duties for 2025 of [indiscernible] we are going to have a secret ballot. Please cast your votes now.

[Voting]

The number of votes for is 123,297,474 votes against 17,035,340 abstentions 712,214. I hereby state that the resolution has been adopted in a secret ballot. Next resolution is on the approval of the performance of duties of Mr. [indiscernible] I hereby begin the vote. Please cast your votes.

[Voting]

The number of votes in total, 141,145,929; against 10,071,617; abstentions 712,209 [indiscernible] resolution has been adopted. The next resolution concerns the approval of the performance of duties of Mr. [indiscernible]. It will be voted on in a secret ballot. Please cast your votes.

[Voting]

I close the vote and please present the results. In total, the number of votes for the adoption of the resolution, 139,946,316 against 486,503 [indiscernible] 712,209. The resolution has been adopted. The next resolution concerns the approval of performance of duties of Mr. [indiscernible] Please cast your votes.

[Voting]

Number for the adoption of the resolution 127,619,719; against 12,813,100; abstentions, 712,209 so the resolution has been adopted by the general meeting in a secret. The next vote is on the approval of the perform duties of Ms. [indiscernible] I hereby start the vote. Please cast your votes.

[Voting]

The number of votes cast for the adoption of the resolution 139,957,594; against 475,225; abstentions 712,209. So the resolution has been adopted in a secret ballot. So these are the results of the votes on the approval of the performance of duties of members of the Supervisory Board. So those who were active in this financial year were taken into account in the financial year 2025.

Yes. Okay. Now let us move on to the next point of the agenda 14, adoption of resolutions on the appointment of members of the new Supervisory Board of KGHM for the new 12th term. Some background information. The procedure of the appointment of the Supervisory Board is divided in 2 stages. In the first stage, we will appoint members of the Management Board appointed by the general meeting under general rules. And in point 15, we will appoint members of the Supervisory Board designated by the employees of the company. I have the relevant documentation summing up the elections in the company with the announcement of the election commission which carried out the elections on the 14th and 15th of January 2026.

In the announcement, we read that for the next -- for the new 12th term on behalf of the company employees of the KGHM, the following have been elected, Mr. Martin [indiscernible], [indiscernible] which will be confirmed by the relevant resolutions of the general meeting. First, we will vote on the appointment to the Supervisory Board on the general terms. And here, I would like to inform you that when preparing the general meeting, as I've said, a candidate -- 7 candidates were proposed -- the first was by the shareholder National [indiscernible] , and it was on the 29th of May 2026, and the information about this was published in the current report 20/2026. And the candidate is Ms. [indiscernible]. She was put forward as an independent candidate to the Supervisory Board.

The relevant declarations were submitted to the company and the information on this is included in the report I have mentioned. 6 candidates to the Supervisory Board were submitted yesterday on the 8th of June 2026. These candidates were submitted by the State Treasury. Mr.[indiscernible] ,[indiscernible], [indiscernible], [indiscernible], [indiscernible]. And I understand that the shareholder confirm these candidates. [indiscernible], the proxy of the State Treasury. Yes, Mr. Chair, I confirm these candidates. At the same time, I would like to inform you that all candidates submitted by the State Treasury have agreed to stand as candidates and all have been -- have received the positive opinion of the relevant body.

And I would like to present to you, Mr. Chair, declarations of the candidates concerning their independence criteria. As I understand from these declarations, we can be sure that all the candidates meet the criteria specified in Section 16 of the statute referring to the act on certified auditors and public supervision. If I remember correctly, yes, I do see this request. Yes. The situation that we have in connection with these candidates under general rules, the general meeting appoints a maximum of 7 members of the Supervisory Board, 3 candidates are designated by the employees, 7 members are appointed on the general rules, at least 2 should meet the criteria of independence mentioned earlier.

As far as I see, 7 out of those 7 candidates submitted fulfill these independent criteria. Okay. I would like to ask an additional question to the representative of the State Treasury. Do these declarations refer to the provisions of the Article 129 Section 3 of the Act on certified auditors because these are very strict provisions criteria. And we know that, well, the independent criteria are differ for the stock exchange for -- they differ in various regulations. But these ones are very precise, very strict. So I would like to be reassured whether they do fulfill these criteria. The independence criteria we are referring to, these are criteria defined in the act on certified auditors and public supervision.

In Article 129 of this Act, we have a catalog of criteria that the regulator deems to be relevant when it comes to defining independence. And to these criteria we refer -- are referred in Section 16.5 as well as to good practices, which also refer to this act on certified auditor and public supervision. If I'm mistaken or have admitted something, please correct me. I would also like to add that these declarations were filled and prepared using the form of the company published on its website and the company published forms of declarations used by the candidates and the request that -- and the parties submitting the candidates. And let me also add that the statutory rules concerning the appointment of independent members of the Supervisory Board are as follows: this independence should be revealed disclosed before the election and which is basically taking place -- have taken place. I would ask the question.

Apart from these candidates submitted, do you want to submit any other candidates in this -- when it comes to the appointments of members of the Supervisory Board and the general rules. Are there any other candidates you would like to submit, please do so now. So I see there are no other candidates. So the candidate list is closed. There are 7 candidates and the votes on the appointment to the Supervisory Board will be in the alphabetical border. And we have a proposal of a framework resolution. to be fill in -- fill in 2 places. One concerns the date of the start of the term of the member of the Supervisory Board because on the day of this general meeting adopting the statement, financial statements and other statements, the terms of the current members come to a close.

So it is rational to start the new terms as of tomorrow, the 10th of June. If you have a different opinion, please present it now. So we are clear on one point. Each of the proposed resolution will have this date. So the Ordinary General Meeting of the KGHM Polska Miedz SA as of the blank will be filled as of the 10th of June 2026 to the composition of the Supervisory Board of the KGHM S.A. Mr.[indiscernible] for the new 12 term. Okay. Coming back to the independence, one of the candidates is the President of the CEO of the Polska Holdings Hotel of the State Treasury company. Are there no links between this company and KGHM through the state treasury, -- perhaps this person does not meet the independence requirements.

The information on the fulfillment of the criteria of independence by the candidate is not through an investigation of the candidates. It is based on a declaration submitted by the candidate. The party -- the requesting party informs us of that the candidate has declared his or her independence, and that's all no. And -- but the Commission Supervisory Financial Supervision Commission will then verify whether the company has control procedures that make sure whether a candidate is indeed an independent or not.

So if we have a CV or resume of someone who is a CEO of a state treasury company, I think it's relevant to ask the question whether the State Treasury by proposing this particular person as a candidate has carried out some internal analysis to establish whether this declaration is true. perhaps indeed, this person may not be aware entirely of this, whether the state treasury has carried out its own verification of the declarations. We assume that the declarations submitted by the candidates for the Supervisory Board are true if there are suggestions premises to say otherwise, when it comes to the authenticity of the declarations, the company will verify that as of now, we have no grants for questioning these declarations of independence.

So let us start the votes on the resolutions on the appointment of Supervisory Board members appointed under general rules by the general meeting. We have 7 candidates and the framework draft resolution will be used each time. So in alphabetical order, the third concerns the candidacy of [indiscernible] and the appointment of [indiscernible] as a member of the Supervisory Board. So we filled [indiscernible] name. So I hereby start a secret ballot on the appointment of [indiscernible] as member of the Supervisory Board for the new 12 term. Please cast your votes.

[Voting]

I hereby close the vote. The number of votes cast for the adoption of the resolution, 97,635,790; against 41,131,499; abstentions, 2,377,739. So the resolution to appoint Ms. [indiscernible] to the Supervisory Board of KGHM Polska Miedz S.A. for the 12 term has been adopted in a secret ballot. The next resolution concerns the appointment of Mrs. [indiscernible] to the Supervisory Board. I hereby open a secret ballot on the resolution on the appointment of Mr.[indiscernible] to the supervisory board of KGHM.

[Voting]

I now close the vote and see the results. Number of votes cast for the adoption of the resolution, 97,635,790; against 41,131,498 abstentions, 2,30,07,740. And so the resolution has been adopted by the general meeting in a secret ballot. Next resolution will concern the appointment to the Supervisory Board of Mr. [indiscernible] and let us open a secret ballot on the resolution on the appointment of Mr. [indiscernible] to the Supervisory Board. And we should add the name in the native in the Polish in order to avoid any doubt as to the form of the last name. Mr.[indiscernible].

[Voting]

Number of votes cast for the adoption of the resolution, 97,637,762 against 41,129,526 abstentions, 2,377,739. So the resolution has been adopted by the general meeting in a secret ballot. The next resolution will concern the appointment to the Supervisory Board of Mr. [indiscernible]. So I hereby open secret ballot on the appointment of Mr. [indiscernible] the Supervisory Board. Please cast your votes.

[Voting]

I hereby close the vote. Please present the results. Number of votes cast for the resolution, 97,635,789; against 41,131,499; abstentions, 2,377,740. So the resolution has been adopted in a secret ballot. The next resolution will concern the appointment to the Supervisory Board of Mr. [indiscernible]. I suggest that the last name should be added in the nominative in the content of the resolution. I hereby start the vote on the appointment of Mr. [indiscernible] to the supervisory board.

[Voting]

I hereby close the vote. The number of votes cast for the resolution, 97,635,790; against 41,139,498; abstentions, 2,377,739. So the resolution has been adopted by the general meeting in a secret ballot. The next resolution will concern the appointment to the Supervisory Board of Ms. [indiscernible]. I hereby open a secret ballot on this resolution and please cast your votes. Ms. [indiscernible] submitted by [indiscernible]. An independent candid.

Here.

[Voting]

Number of votes cast for the adoption of the resolution, 97,635,791; against 41,138,497; abstentions, 2,377,740. So the resolution has been adopted in a secret ballot. And the last voting in this cycle concerns the adoption -- appointment to the Supervisory Board of Mr. [indiscernible]. I hereby open the secret ballot on the resolution on the appointment of Mr. [indiscernible] to the supervisory Board.

[Voting]

I hereby close the vote. Please present the results.

Number of votes cast for the resolution, 97,614,406; against 41,915,433; abstentions, 1,615,188. So the resolution has been adopted in a secret ballot. So here are the results on the appointments to the Supervisory Board in 14 of the agenda. Let us move now to point 15 and 3 rounds of voting on the appointment to the Supervisory Board of people selected by the employees of the group.

Each of the draft resolutions is going to be completed with the date of starting the that is the 10th of June 2026. So it is tomorrow. First, let's vote on the resolution on the appointment of [indiscernible], the Ordinary General Meeting of KGHM Board Committee. I hereby appoint as of the 10th of June 2026, Mr. [indiscernible], who is a candidate of the employees of the KGHM Polskiz Miedz S.A. for the new 12th term. Now let's vote on this resolution. It's a secret ballot of course please cast your votes now.

[Voting]

I hereby close the vote. Let's see the results. The number of votes for 103,357,399 against 10,293,19 Abstentions, 27,494,511 I hereby state that the resolution has been adopted in secret ballot. The next resolution pertains to the appointment of Mr. [indiscernible] Supervisory Board elected by the employees of the KGHM Polska S.A. Group. Let's vote on the resolution. It's a secret ballot. Please cast your vote now.

[Voting]

I hereby the vote. Let's see the results. Votes for 13,15,129 votes against 495,389 Abstentions 27,494,511. I hereby state that the resolution has been adopted in a secret ballot. The next resolution pertains to the appointment of elected by the employees of the KGHM Polska S.A. Group to the Supervisory Board. Let's have a secret ballot on the resolution. Please cast your votes now.

[Voting]

The number of votes for 19,395,544; votes against 22,594,711; abstentions, 27,494,511. I hereby state that the resolution has been adopted in a secret ballot.

So these are the results of the appointments to the Supervisory Board for the 12th term of those members of the Supervisory Board elected by the employees of KGHM Polska Miedz S.A. And having appointed these person, we have completed point #15 of the agenda. Point 16 is the closing of the Ordinary General Meeting. This is what I'm doing right now. Thank you very much to all the participants, and I hereby close the Ordinary General Meeting.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Ladies and gentlemen, welcome to the conference devoted to discussing the results of the KGHM Group for the first quarter of 2026. The results are going to be presented by Mr. Remigiusz Paszkiewicz, President of the Management Board; Janusz Krystosiak, Director of the Investor Relations department. I would like to tell you that our conference is transmitted online. And during the second part, we'll have a Q&A. [Operator Instructions] I'd like to welcome you all, and I would like to welcome all our online audience.

Ladies and gentlemen, well, let me start with the following statement. We know the figures very well. We know the results of the entire KGHM Group. For the first quarter, I would like to discuss several aspects of these results, especially the macroeconomic environment in which we obtained record high, very good results that we have not witnessed for even a decade of our activity. As far as the economic factors go, I would like to say that we did have very high levels of volatility and lack of stability in the market. We have not faced that since 2008. New war that affected the prices of energy factors, especially gas. Additionally, uncertainty regarding further paid activities regarding the change of the Chief of this committee. And these changes also affected the prices of the American dollar. And we know that the American dollar is the basic currency in the market of copper and precious metals. When the war started, gas prices went up and also, we needed to adjust metal prices. As a result, the demand for investment gold rose. And I'm talking about coins and about bars and central banks also were engaged in the prices, but also private and public investors affected this demand. As a result, precious metal prices, especially silver, went up. And in our case, it is very, very important because we are the second greatest producer of this metal in the world.

And this trend of these high prices of metals because copper after the adjustment actually go back to the high levels was maintained until the end of Q1. As far as our activities go, how did we react in this situation? First of all, we pursued very reasonable, very reliable sales policy.

We do have increased inventories, but we also had that in the Chinese copper exchange. So we were very conservative and basically, all the players in the world pursued this conservative action, but the demand did not decrease. So very conservative, very reasonable sales policy. Next, our results are due not only to the very conducive market, but also better compared to the previous year and previous quarters, better operational and cost activity. And here, I would like to mention energy factors. When the prices of gas increased, we, for example, launched our gas -- we switched off our gas dependency, and we used energy from the network, from the grid. And as a result, we compensated our costs because we only faced a very small increase in the energy factories compared to the last year.

And I'm talking about single millions of Polish zloty compared to the entire pool of costs for energy, for gas and other fuels. Next, we started using the opportunities offered by the market. So we use the local content, and we are the leader in Poland as far as cooperation with companies and businesses and suppliers go and also other entities whose services we are using in Poland. We decreased the cost of materials and services, not only because we obtained better prices, but because of the decreased use. And we managed to do that. We were successful in this area despite the fact that the production levels remained the same. As far as the production level goes, an 8% increase in the payable copper production. In the entire group, we faced a production that was higher by 4% and the cost side was very well controlled. And even though due to natural reasons and certain factors related to the natural causes, we had a certain volatility in our assets. We did have a 4% increase in the production of payable copper in the group. So as a summary, our adjusted EBITDA was over 2x higher compared to Q1 last year and 3x higher profit for the period compared to the last year. And these are record high results starting from 2014 and 2012. So for over a decade, KGHM Group has not had these results, and I'm talking about the contribution of international assets as well. So record high results for over a decade. And now I would like to give the floor to Mr. Krzyzewski, who is going to comment on the financial side and maybe he will talk about more details about the costs and inventories. And then I will give the floor to Anna Sobieraj-Kozakiewicz and other Vice Presidents of the Management Board so that they can talk about details about our production and development and our international assets. So that will happen in a minute. And now Vice President.

Ladies and gentlemen, welcome. Before I move on to my part, I would like to give you a couple of words of introduction. I'm going to talk about finances. If I were to list three features that accompanied us in Q1 and that contributed to these record high results, I would say that, first, monetization of resilience. And we've been talking about that for a long time. We've been building this resilience for a long time, and we've been doing a lot in that direction. And this quarter showed us that we are very well prepared and that we can find our place in this market very well. And the second feature, the second aspect, and I'm sure that you know that,the world is going fast -- the world is going faster, developing faster is we have actually faced that as well, and we need to react in a very rapid way. This volatility, this changeability happened, and there were various changes in the world, but this is becoming something normal.

This requires resilience from us, preparation from us, but also flexibility and fast decision-making. And we actually face that every day. We make decisions, hundreds of decisions every day and also through the prism of certain financial aspects. And the third feature may be more personal. I feel like this is an annual conference, not a quarterly conference because for the first three months, we faced numerous, numerous events and probably they would be enough for an entire year, not a quarter. But if we were to look at single months, January, as Mr. President said, the 29th of January, historical high prices of copper, 14,500 gold 1200 5,100. And silver also record high prices. So January and February, these were the months that were the points that were optimum for us. And from hindsight, I could say that these were perfect moments to implement our sales policy. And that was the positive information, but negative information in Poland, energy prices were very high in January, not much sunlight, not much wind, very high cost of generating energy.

And in a minute, we are going to show you that this did not affect negatively our company and actually, we were able to manage our sources of energy very well, and we did not increase our cost base, but actually, we use this momentum to optimize our production. I'm going to show you the production cost in a minute. February, on the one hand, this is winter, obviously, but it surprised us, and it affected our logistics also from the harbor side, but also we had different challenges and our railway logistics as well and road logistics as well.

And also Mr. President said that we had certain shifts in inventories. However, our deliveries and sales to the customers were successful. We are able to, for example, use railway transport instead of marine transport. So the customer is the most important thing for us. So we try to focus on that, and we try to address these changes in the environment. And we tried to achieve timely deliveries. So that's a good thing. And another thing that happened in February, and we discussed that with Mr. President, we visited Denmark in February, and we signed an agreement with one of our -- and this is a producer of cables. This is one of our customers. This is one of the first agreements that we signed. And this is a special agreement, why volume, EUR 5 billion to EUR 7 billion. This is the value of the agreement of the contract. And the second element is this is a 10-year contract.

So from the point of our strategy and geopolitics, I can say that in 5, 7 years, we are going to be able to supply this volume. And we are a mining company. We are a metallurgical company. We produce the wire rod, copper wire rod, and we are a producer that can answer this demand. And from the -- in the time perspective, long-time perspective, this is something that we can use to build our monetization and value. And in the next quarters, we are going to implement that, and we are going to act in this way with our strategic customers.

And March roller coaster. Every day, basically, something happened. The Hormuz was closed -- the Hormuz strait was closed then. This affected the prices of gas. It grew 2x. And again, in our financial metrics, there's no negative impact. Last year, we decided to secure gas prices. And this year also, we made some transactional decisions, and that secured us from the financial side. And as a result, we safely navigated this conflict.And from 14,500 to 12,000, prices dropped. And you can see this enormous changeability and volatility that accompanies us day by day, moment by moment, hour by hour. Maybe let me tell you something about energy prices and this energetic aspect in March.

In March, [ PSE ] , our energy operator, ask us to join the DSR system, and we receive assets because our energy grid actually provides energy to the network.

We had a test. This test was very successful, and we were remunerated for that. And this is something that shows that the energy aspect is very important for us and our energy generating sources are very important. We manage that very well, and we are very flexible in a short period of time. We can react to the changing environment. And last but not least, as far as energy goes, this pertains to the future. And Also, it relates to the European Commission decision from the 23rd of December. And nonferrous mining can actually receive remuneration from the energy high sectors and energy-intensive sectors. And Poland is obliged by the European Commission to implement that by the 30th of June. And as far as finances go, this should be related, we hope, with additional EUR 100 million every year that we should receive. And so far, we did not have this element.

So this is a new element that will be very important for us. So if I may summarize all this in one sentence, this quarter in one sentence, I would say that -- we do not manage a company just quarter-by-quarter. We focus on a long-time horizon, and we probably are going to multiply this quarter by 4, but maybe you think if this is possible, -- probably not, but there are so many factors to take into account. I would like to say that this Q1 contributed to these results, business results, and that's why we have this record high performance. We are very positive about the quarters to come.

And now I would like to give the floor to Anna Sobieraj-Kozakiewicz.

Let me just say one thing, which I want to express at the end of this part of our presentation. But after a detailed discussion of all the months in the quarter, let me now thank all the associates, all my colleagues from the entire KGHM Group, miners, metallurgy workers, all the others who have supported us so greatly in implementing decisions, they're preparing these decisions. They watch what's going on in the company and on the outside. And I would like to wish all the best to the metallurgy workers on account of the holiday. We are celebrating this very, very important moment and celebration. So now I think -- sorry, wrong order. So when it comes to national assets in the basic segments of our operating activities like copper production, extraction, production of copper in concentrate, electrolytical copper, electrical silver, we were -- in comparison with other quarters, we see the absolute numbers and percentages. But when it comes to important things that will happen at KGHM, we have been preparing for months to the overhaul at [ Glogow II ] by amassing a large inventory of anodes in order to be able to continue to work over this three month overhaul period that will start on the 20th of June and will finish on the 26th of September this year.

So we will keep informing you on an ongoing basis about what's going on in this respect. Ladies and gentlemen, when it comes to production results of international assets, our main assets, Sierra Gorda, in the first quarter of this year, we've recorded production at the level at 20.6 kilotons of payable copper. That's slightly less by 1% in comparison with the first quarter of last year. But this value is quite similar when it comes to commentary on by part, A slight deviation shows the weather situation at Sierra Gorda in February.

We were dealing with downpours of rain at the Atacama Desert. As you know, this desert is the driest place on earth yet. Once in several decades, there are downpours heavy rains, which, of course, affects the operation of the mine. So we had to deal with such heavy rains in February. But when it comes to production results concerning copper in the first quarter, they are as we expected as our budget targets were above slightly by 2% when it comes to molybdenum production, 80% increase of molybdenum production in comparison to Q1 of last year. So nearly 11% higher than budget target for the third quarter. When it comes to silver production, again, an increase in comparison with the reference period last year, so by 54% to 7.7 tonnes of silver. When it comes to gold and precious metals, we've seen a decrease, but it's a result from the quality of the ore we are mining at the moment. When it comes to production results of KGHM International, as you can see from the numbers here on the slide, we've seen a decrease of 31% in comparison with Q1 of 2025. This is a result of mining lower quality copper ore, which we've reported on production from West 5 moved to -- from West 5 pits to the Liberty pit, which has lower quality parameters of the deposit and a certain instability, geotechnical instability of this deposit.

So we can see that these production results for the first quarter are slightly lower. Nevertheless, the mine is working very intensely to reach the production target by the end of this year. When it comes to silver production, given the disposal of the Sudbury assets, we don't have the silver from there. at Robinson and Carlota mines, we're not producing silver when it comes to gold. Also because of the quality of the ore mine. At the moment, we have recorded a 37% decrease quarter-to-quarter. So I think that's a full stop now.

As for a comment, I would like to share with you the financial position of EBITDA of international assets, stable our international assets continue to contribute to the EBITDA of the entire group at the level of 20% despite the fact that the production is about -- has the share of 70%, more or less. And given the fact that the cash cost of C1 are at a very competitive level, I think it's $1.02 at 0 gold per pound for the KGHM International, even less because we are helped by metal prices and good processing premium. The EBITDA is at stable level. The international assets are contributing positively to the entire group.

In the first quarter, the foreign assets paid $175 million to the group, including 165 million by Sierra Gorda and 10 million from KGHM International. When it comes to Sierra Gorda, in total, it has paid 30 million of loans. It has paid back. So half of what was paid last year. So we are in a positive mood, and we hope -- we know that the loans will be paid back on schedule.

Good afternoon, ladies and gentlemen. When it comes to CapEx for the first three months of this year, we have been seeing what we said last year that we are focusing on development. Those proportions between development, maintenance are changing in favor of development. You see we have 24% rise of expanded share on development in comparison with the reference period. Maintenance the lower value results from the fact that we've completed some investment when it comes to the dewatering and drainage system investment when we are continuing other.But the target we had to secure mines against inflow of water.

So we have this on a safe level.

Replacement, again, I will tell you more in detail, an increase in comparison with last year by 16%. Why we are preparing for the major overhaul of the Glogow II smelter. As has already been mentioned, coming back to development, deposit Access and mining, it's being made. So the ordering of mines outfitting and as we got the permit at the 205-meter sub-sea's level with the [indiscernible] most facility. replacement of mining machinery and then preparation of this major overhaul. That's all as far as the main categories are concerned.

This slide is slightly different to what you might be used to when we used to just show you a map and comment on mining and extraction in GG-1 area. Let me remind you maybe it's not very visible. This is the GG-1 shaft GG-2 under construction and [indiscernible] shaft under construction and [ Glogow ] marked here. 24% of production from domestic assets. So we are moving north, as you can see very clearly. So the focus of our production is moving north. Hence, continued work research and development work that will be used there.

When it comes to the construction side, GG-1, we've dismantled the surface facilities, and we are completing work when it comes to outlining and outfitting. We have various permits. And at the bottom, you see the air cooling station, surface station, we are increasing its capacity to 40 megawatts, so very advanced work, I think we'll be able to manage that on target. Retkow-Grodziszcze, GG-2, the shaft, as you can see when we are advanced way ahead. And as you can see, geological service are going on. So drilling -- and we are assessing the structure and to say whether we can put the shaft here or not or move it slightly.

When it comes to GG-2, we know now that -- these will be the final places where site when the shafts will be there. Now that's all as far as mining is concerned, because we have 657 million of plan. So we've already done 602 million. But I would go on in the metallurgy, preparation for the shutdown and overhaul maintenance for Glogow II. So we're launching that this year. And I think we will finish this year what we've been in for two years at the Legnica smelter. So permanent started sheet interaction with the payment strategy system. Same when it comes to [indiscernible]. It's a place where we're preparing to launch a new line at the wire rod plant. So concept is being done to prepare the plans for the future facility. When it comes to R&D work, as I've said, the focus of our mining activities is moving north. So a lot of work is being done when it comes to prototyping machinery that would be working there at the head. So automatic bolting rig, we've been winning for that four years, the experimental unit is working, and we will finish this work that we report by the end of this year.

And after all the shortcomings have been removed, we will order the machine, the same when it comes to electric power drill. These are -- well, these have always been energy powered, but it's about the transmission. Then replacing humans when it comes to furnace. So we already have one robot for the [ Glogow I ] smelters. So the most difficult things power jobs will be replaced with machines, like working next furnaces. It's not only machine for mines and smelters. Occupational health and safety. We are doing concept work with Mr. Laskowski, prototyping vests, providing safety for workers working in high temperatures, but also we're working on solving the problem of waters with higher mineral content.

So reverse osmosis that we've tested in Lubin, in the Lubin mine, very good result, although water there is not as contaminated as here. So it was easy to achieve. So we want to do that for other mines because the problem of water high water salt content and getting into the [indiscernible] river is keep coming back.

In addition to that, work relating to problems with satellite testing of surface information and so on. So a lot is going on in this respect as well. Thank you very much.

So ladies and gentlemen, to end this financial part, let me ask for the next slide. When it comes to revenues, let me draw your attention to one aspect mentioned [indiscernible], considering wire rod. When we look at the sale of [indiscernible], 52% in this quarter were processed products or wire rod. So this is part of our strategy. We are moving into products with high added value, so more processed, which also generates an additional margin. When we looked at the cost structure, as has been mentioned by President, what has been generated by the operational leverage with the growing macro, we've managed to keep the cost on a specific level. So we see the rise in the EBITDA in all segments. From the point of view, it's silver, and this has enabled us to generate such a significant result, which we have delivered in the first quarter.

When we look at its revenue strictly revenues. Next slide, please. We see the macro impact. The biggest item is the mainly silver despite a delicately lower volume, but the sales both in April and May, we are catching up on that. It doesn't stem from the fact that there has been no demand. No, it's been our well-thought-out strategy. So these slide divisions, we see the they do not worry us. But of course, the exchange rate dollar had a negative impact. But all in all, the results we have is quite significant, and we are improving the EBITDA margin we see on domestic assets.

Next slide, expenses by nature.

If we look expenses by nature all in, we see 21% rise, two categories we have outside our control, tax, which has risen by over 20% and purchased materials, metal bearing materials, they also increased our revenues. As Mr. Laskowski has said, this is our deliberate strategy in smelting of scrap and purchase materials seeing as macro from the point of view also of golden sulfuric acid, it has enabled us to generate additional margin. So we are going with the production also through financial aspects. But again, look at the costs under our control, year-on-year, we have a rise of 2% below inflation. Well, that's the best result quarter or quarter year-on-year for many years. So that's what we've been talking about. That's our ambition that within this cost optimization program, which we -- which is within every aspect of activity, our everyday work produces results as we can see.

Coming back to I have mentioned, energy. We have two items. First, energy and energy factors, as you can see on this bar and then gas which is hidden among the materials. First, we exceeded on energy by PLN 43 million. First, we produce more. So we consumed more energy. And the price element didn't have as much impact. We produce less from gas. Gas prices rose, we we're able to optimize that. So if we add these two amounts, PLN 35 million, less cash, so the difference is PLN 89 million with a higher use of energy factors. So we haven't seen that rise in principle. What we said at the annual conference, we ask upholding our ambition to keep the prices of energy factors of the course of the year, which is an ambitious target. But we have a lot of optimization activities in order to achieve that.

On the next slide, we see the C1 costs, unit cost, as Madam President also said, 35% fall of C1, as you can see in the numbers here. But this is a product of everything, production, cost side, all these elements affect C1. In Poland, quite an interesting situation, demonstrating that any equation has its advantages and disadvantage. So C1 fall from 3.15 to 1.91. But if we deduct the tax 2.45. So without the tax, C1 is below 0, but that's the result of the amount of associated metals silver, mainly in international assets has already even said 0.7, 1.02. We are performing year-on-year well. So from this point of view, costs and C1 are very much under control.

And financial results. The key element that is positive is EBITDA. And Sierra Gorda and positive loan result quarter-on-quarter exchange rate differences also positive, also income tax, better result, but the tax is higher. So all in all, our profit is over PLN 3.5 billion. And finally, cash flow. Yes, indeed, on the one hand, this cash flow requires more information, but Present Laskowski talked about that. So we have two factors. First element resulting from the production cycle. Even though the smeltering refinery is out, we want to provide the same amount of cathodes, and we need to build inventories as far as anodes go, and we do build this inventory, but we have calculated everything, and we know it's profitable especially from the point of view of financial aspects and business leverage.

And also, we made up a lot of factoring. We decreased financial costs. And at the same time, we decreased our debt that was registered also outside the indices. So our working capital is more efficiently used but we can go back to this instrument as need be. But when you look at the entire year, and I would like to ensure you that the amount of inventories volume-wise is going to go down by the end of the year.

So this working capital in Q4 is going to be released. And as Ms. Vice President said, we expect certain flows from Sierra Gorda, so this effect should be enhanced due to positive cash flows that we are going to register.

So that is it from me. Thank you very much. And at the end of this part, when we talk about our story, I would like to say that -- or maybe let me start again. So that result is better than the market consensus. And you know together with the analysts, you know what the results are going to be. So I'm sure that you are aware that the results are higher compared to the market consensus. As a result, our capitalization increased as well. I would like to say that we went back to one of the biggest companies as far as capitalization go, one of the biggest mining companies in the world, we rank 42. And to now Q&A. So the first question, please?

I have two questions. One to Mr. Krzyzewski and then one to Mr. Sobieraj-Kozakiewicz investment plans.

We have record high financial performance for Q1 2026. If we add to that the situation in the global market, so copper prices, do you plan to adjust your financial plan? And I'm talking about investments in particular. Should we expect some shifts here?

And the second question to Ms. Sobieraj-Kozakiewicz, Chile KGHM, Chile. Could you talk more about this project? Could you talk more about the assumptions of this project? And do you think that this project is going to result in the international asset increase in terms of the value?

Okay. Let me answer the first question. Maybe Mr. [ Kozakiewicz ] will add something. So financial aspects. Well, we do have almost PLN 5 billion of net debt. And first of all, I would like to decrease the debt of the group and our costs. And I would like to prepare the company for the future, stable position, comfortable position. So that's the answer to your question.

And the second aspect, why are copper prices so high? Well, even if you have extraordinary cash, you cannot accelerate global production. It doesn't work that way. Investment projects have their own calendar and their own schedules. Even if you increase your assets, and we always want to be very effective financially, sometimes you just cannot pursue certain operations even if you invest more cash. So from this point of view, I do not see short term any further investment in CapEx in order to increase production because it doesn't work that way.

Let me add one thing. We would like to invite you to the strategy presentation at the beginning of July. And during that presentation, we are going to talk about our investment plans for the years to come. This year, there are no changes. We want to spend further PLN 4 billion on CapEx, and we want to maintain the CapEx level that will allow us to implement our, well, ambitious projects pertaining to investments. As far as any adjustments to our investment plans, no, we are not thinking about that because in our multiyear investment plan, we think that PLN 4 billion is enough. And we try to manage the plan in such a way as to use these assets in a very efficient way.

At the end of the year, we always collect projects that are of interest to our group and the value of these projects are about PLN 5.5 billion. But there are various stages of these projects. And sometimes you cannot implement a given project in any given year because simply, it's not ready. So this PLN 4.1 billion that we have to use this year is an optimum value, optimum amount. We have four shaft yards that are being invested in currently. And I cannot remember any other moment in my history, maybe this happened before I came to KGHM when we had four shafts in an investment plan. So GG-1, GG-2, Retkow and [ Gaworzyce ], four shafts at different stages of development. So in three of them, the investment stage is already developed, but still it's an early stage. So no huge investment. But GG-1 actually already moved from the biggest investment phase, PLN 3 billion, PLN 2.89 GG-1. So PLN 1.5 billion is the shaft pipe. So we have PLN 800 million still to dispose to work on the shift openings.

And also, we have investments for the lining. This is still ahead of us. And we do have money for modernization investment in smelters and refinement plants. And still, we are within this PLN 4 billion. So this PLN 4 billion is a very satisfactory level of investment. If we have any additional assets, then we will use them. We have two shafts at the sinking level. So yes, a lot to do. We are going to probably work on these investments for two, three years to come.

Okay. So KGHM Chile and an agreement that we signed with Freeport McMoRan in Chile, of course. This is an agreement that defines our partnership in an early exploration phase. It does not define the joint venture agreement in the future. So we do not have 100% details yet. We are talking with our partners about any potential areas when we can explore for new ores and deposits. And we know that in Chile, these deposits are huge. So we want to be present there. We want our presence to be strong. But this is a [ 4-month ] agreement at this point, and it defines cooperation framework. Later on, maybe JV agreement is going to be signed. But right now, we are at a very early stage, and we cannot tell you more at this point. However, as you know, KGHM Chile is a company that provide services for Sierra Gorda. But also, it does have a group of geologists that work there for Sierra Gorda, but they also explore the areas in the vicinity. So [ Calisa Leo ] drills are being made. That's why we would like this company to develop organically. So that's my comment on this.

And another question, please.

[indiscernible] newspaper. My question is probably to Mr. Krzyzewski because we are talking about the first quarter. So we had a rise up to PLN 1.9 billion. So what about this mechanism? Why -- despite increased investments, PLN 157 million, there is -- well, I haven't found any effect. So how does it really look?

Ladies and gentlemen, in accordance with the act -- the legislation, the indicator for this year has changed. So if it hadn't been for this change, we would have paid way over $2 billion.

The formula on which this tax is based depends on the price. And we can say that the cutoff point for silver because this act of parliament specifies the maximum level of tax. And on silver, we've reached this level at $56, $57 per ounce. So the tax has reached its maximum level. When it comes to copper, it's on the rise. But it's -- this increase is quite high to the power. So the cutoff point for copper is about $15,000 per tonne. So we are very close to that point yet we can say that this extra tax -- windfall tax is on the rise, but the results are on the rise. This is a highly dynamic situation, and this is closely correlated. We are talking all the time as the Board with the Ministry of Finance, so showing the various scenarios. And this year, about PLN 600 million provided for a plan of a tax reduction. So it's PLN 10 billion over 10 years. So we will observe that, but the tax base is behaving like the macro.

Are there any questions from the floor?

I have a question about the very good results, but we have this figure, PLN 286 million of loan. What was that loan for?

Let me answer to you. As we look at liquidity over the last periods, we've had over PLN 3 billion in factoring. And from the point of view of liquidity, it was recorded in working capital and operating flows. Now we're down to 0 basically as of now at the end of March, it was PLN 800 million. Now it's down to 0. So we've had to extend this financing. But please, we're paying back when it's the most expensive, we're continuing where it's the least expensive. So that's a technical issue. So the debt of the company globally, including factoring and debt -- bank debt, it has fallen down considerably. So the stability -- financial stability of the company is increasing every quarter.

So a question to Mr.[ Bry ]. We've heard at the European Congress that KGHM is strongly entering the electromobility battery market. Will those investments be on the current assets or we are building something new? Will it be [indiscernible]? Or are there any plans for that?

Well, we are entering this in the sense that we need electromobility, we need batteries, although not all the machinery underground can utilize them, drillers, boating rigs, carriers carrying people, loading machinery, they need so much power we have to exchange batteries, they place batteries every several times per shift. So that's the most expensive part of the machine.

So the company producing equipment for us, [indiscernible] and [ MineMaster ] in Lower [indiscernible] , so local content again, although not our group. These are companies producing drills and bolting rigs. We are experimenting with battery power, but we are experimenting with vehicles crew carrying vehicles. We will buy some more such vehicles. The battery safety is a prime factor for us and norms and standards concern surface. We have to do such tests because as you realize, a fire on the ground is dangerous. Underground, it's a disaster. So briefly speaking, it will take some time. But when it comes to electromobility, yes, we are looking at this, what types of batteries we can use. [ ZAMAN ] is open to that, and it will be -- this is a company that will provide us with such equipment.

So I understand that you maybe mean what we would like to do something innovative with other alloys, let's say. Let me stress that all the new ideas we are considering when it comes to location, they are focused mainly on the Legnica smelter, but to have powder to produce. Yes, and let me stress again, we said that at the Congress, we are exploring this with entities interested cooperation when it comes to obtaining new products, new alloys, new pellet powder products. Perhaps Mr. [indiscernible] will add to that.

Well, indeed, we have to add something to that. We are thinking about powders for producing foil used in batteries. And another thing at Legnica smelter, and we have been doing testing alloys, metal plus non-metallic material, so lead and calcium alloy used in batteries. We've done such text. There are companies interested in such alloys.

Any other questions from the floor? Janusz, the floor is yours now.

Thank you very much. Now for questions asked online. We've already talked about the change in the inventories effect, but we need a little more explanation. Analytical centers are asking for explanations and the vision of such a great effect of change in inventories given the constant macro. Is it an effect after the sale of the products and use of semi-finished products is reversed a little bit with the cost of sales? What can we expect in the following quarters given this reversal effect, I would like to ask for a slide we have about capital inventories?

Yes. As you can see, we are looking on the volume side, global volume, we are at the peak -- the volume peak when it comes to inventories, there are changing proportions resulting from repairs, overhaul processing and so on. I wouldn't like to go into details. The volume has peaked. It will continue until June, and then we will release volume.

When it comes to price, the price of inventories is based on the real average cost of production. So if macro is stable, we can say that from the point of view of changes in the valuation of inventories, we will not see that and the lowering volumes should release working capital. But changes -- macro changes may lead to a valuation from the point of view of working capital the valuation of inventories.

To illustrate that, what does it mean after the first quarter? The value of inventories increased by PLN 2 billion, 2/3 of that increase is an increase on -- from the point of view of valuation and 1/3 is from the point of view of value of this volume. We can see that the beginning is lower than the end of the quarter. So that's what I'm talking about, 2/3 and 1/3. By December, we should be below the opening. So this should continue to fall below the level we saw at the end of last year.

Sticking to flows and question from [indiscernible], Ipopema Securities. Cash conversion, working capital EBITDA ratio. The EBITDA in the first quarter was PLN 5.5 billion, but given such high prices of metals, the demand for working capital increases and the tax burden -- mineral tax burden. What part of this EBITDA has translated into operating and free cash flow?

Perhaps in the next quarters, some of that will be eaten by the higher taxes, for example. From that point of view of that risk, from the point of view of working capital, we don't see that. But from the point of view of tax, the only risk or a factor we need to take into account, we are paying advanced income tax, and we will see that in the following years, we will pay the difference resulting from the calculated tax and taking into account what we paid in advance.

What we saw between 2023, 2024, there was a big difference then. So we can see that it's the only factor which from the point of view of cash flow and converting cash flow should take place. From the point of view of working capital, we are saying that the factoring we have, we have PLN 3 billion, which we can use any time over a short period to release some. But looking continually at the third and fourth quarters, we see from -- on the side of volume and the flow from international assets, there will be many events supporting our liquidity. And we assume that the liquidity at the end of the year will be very high.

Question also from [indiscernible]. It's about the performance of Sierra Gorda. It has improved its result year-on-year, but its contribution to the group was limited with regard to KGHM Polska Poland. So what about other leverages, greater coverage of molybdenum unit costs or possible expansion of capacity? Do the current copper prices changing change the priorities for this Sierra Gorda asset?

Well, that's an interesting and complex question. When it comes to operational performance of Sierra Gorda, it's a dissatisfying level. When it comes to processing and the production of molybdenum -- processing of copper production of molybdenum, it has stabilized. So everything is under control. When it comes to operating costs, working with our partners, South32 and the management of Sierra Gorda, we are actively working to maintain those costs in check in order not -- for them to rise year-on-year, although the prices of metals are conducive to that situation.

When it comes to development and expansion, we are talking about investment plans for expanding the mine to add fourth grinding line. So we are revising documents. And at the right moment, we will inform you about our decisions. I think it's an answer to this question.

Dan Major from UBS. KGHM has announced a payment of the dividend, PLN 1.5 per share, so 15% of dividend -- 15% of the profit for the period for the parent company. If the prices of copper and silver continue at this level, do you expect that this dividend indicator will rise as of this year?

Well, our dividend policy, we are maintaining, we see no need to change it. According to this policy, by 30% of the profit is paid in the form of dividend. Key -- two key points. We are analyzing short, mid- and long-term liquidity, taking into account of what Mr. Bryja has said and the investment project that will evolve if we see that we build shareholder value through investments and better results, we will try to provide this value.

Well, it's hard to define now what the macro will look, what our environment will look. We can imagine any possible scenario in which the dividend will be higher or lower, but we will make this decision on the basis of the data we have as we have the results for the next period.

Robin [indiscernible], Kepler Cheuvreux the unit cost in Poland minus the anode slime, it has increased year-on-year? Of course, personnel costs have increased and energy costs have increased year-on-year by 9%. You've talked about hedging on gas volumes or LNG. So should we expect higher increases of energy costs in the following quarters?

Well, let me we will reply in writing. We may not be able to find them in the financial statement. When we look at the volume and the prices of energy versus gas because we have to interpret it together. We don't see such a threat when it comes to precious metals credit unit costs. And when prices continue to rise and we have the hedging at 55% and the non-hedge side, we may perform worse, but we are working differently in such a situation with our sources. We will continue to work in order to keep the energy prices in check. So we would like to maintain this rate -- this price year-on-year unchanged.

Thank you very much. Do we have any other questions from the floor? I'm still looking for online questions perhaps.

Having analyzed the questions that we are receiving, I would like to say that the view is that you are interested in the financial points which we discussed. So there are no new questions.

Thank you so much for participating in the conference. And I would like to invite you to participate in another one. And I would like to thank everyone. Thank you so much.

[Statements in English on this transcript were

spoken by an interpreter present on the live call.]

Good afternoon, ladies and gentlemen, a very warm welcome at the conference at which we will present the results of KGHM Group for 2025. Remigiusz Paszkiewicz, CEO; Anna Sobieraj-Kozakiewicz, Vice President for Foreign Assets; Zbigniew Bryja, Vice President for Development; Piotr Krzyzewski, Vice President for Finance; and Miroslaw Laskowski, President for Production. We also have Janusz Krystosiak, Director of Investor Relationships Department at KGHM.

I would like to inform you that our conference is broadcast online. And the second part, you will have a Q&A session. And the questions can be asked both here in the room or by e-mail. All answers will be published on our website in the Results section.

Now over to the CEO.

Good afternoon, ladies and gentlemen. Once again, a very warm welcome at the annual conference summing up the results and above all, the efforts of the entire KGHM Group throughout 2025. If I were to summarize the year 2025, I could say that it was a good year for the entire group. I'm talking not only about KGHM Polska Miedz S.A., but I would also like to focus on the Polish group and its foreign assets, which contributed very significantly to excellent results achieved by the group globally, both in production, processing and first of all, sales which translated finally into financial results, which again translated into a significant increase in the value of the entire group at the end of 2025.

The company and the group had excellent results, thanks to a number of factors, which we will talk you through in a moment. I would like to say that these good results were achieved against the background and under the pressure of changing macroeconomic environment last year as well as in the context of additional factors, which are more global geopolitical. When we talk about stability with regard to mining output, in particular in Poland, which was a major achievement and brought excellent results, I would like to mention something that was not noted by everyone last year. It was somewhere on the margin, while, in fact, it very much helped us in defining the future of mining in Poland, namely minimizing the risk of mine flooding in Poland.

I would like to emphasize that under a longer period of emissions or even negligence, if I can put it bluntly, the Management Board of KGHM and the entire group of employees engaged in projects which minimized it to 0, the risk of mining waters destroying the mines. And those projects were finalized in 2025. As a result of which, we can look at mining output in Poland without this risk. But coming back to this broader context, which we operate in, in 2025, the macroeconomic volatility was characterized mainly by the impact of a greater demand, which was reflected in the quotation of our core products.

Let me remind you that at the beginning of 2025, for example, the quotations of copper, $8,500 and at the end of year on the 30th of December, that was already $12,500 and this stable high level of increased quotations continues, meaning that we are in the conditions of higher than last year quotations for both copper and silver. As you can see in the annual report and financial statements published yesterday, that also contributed to an excellent result for the entire group for last year.

As for more geopolitical environment, I think for the first time in many years, we had experienced deep destabilization of tariff policy. And it is not only about the U.S. or response to the U.S. actions in key markets in which we are active, those countries in response to the developments in the U.S. modified or changed completely the tariff policies. In spite of that, KGHM responded very well. And the major reaction was the diversification of sales markets, somewhat [ weaker ] diversification than in the previous years. But also, I would like to mention not sales, but also the production that makes sure that we have what to sell and what to trade in.

As for production results in mining and metal [ origin ] in Poland, we had very good results, and I will allow Mr. Krzyzewski to discuss specific numbers. But you can see them in the slides, and you probably had an opportunity to get acquainted with them. We also faced turbulences on the part of our competitors. There were some industrial accidents. There were some weather issues in certain parts of the world, which decreased the supply of raw materials, including copper concentrate with high utilization of the concentrate by China. As you know, China concentrates a large part of copper production. But we returned with a better margin to some customers on copper concentrate.

After a certain break in trading with customers, we were able to return to them offering better margins. So the global situation in the market helped us. That was also driven by changes in the policies of key countries worldwide. We were also helped, apart from the increase in quotations, we were helped by major demand for gold, maybe it is not a major or the most important item in our production, but we know what happened with gold reserves and what policy was pursued, not only by the National Bank of Poland, but also by other Central Banks and private investors worldwide.

We also experienced volatility in foreign currencies market. Dollar and PLN prices changed, PLN grew in value versus the U.S. dollar. And thanks to our stable policy of hedging, prices of core products as well as ForEx hedging and securing our energy raw materials, including fuels, all that had a positive impact on our operations because we were able to avoid turbulence or negative impact of those factors in 2025.

I mentioned 3 parts of our group. All this division into KGHM Polska Miedz, capital group in Poland and foreign assets. And I would like to stress now that for the first time in the history of the group, foreign assets, our foreign companies became financially independent. It is also worth adding here that we saw the first major repayment of loans to the mother company, KGHM Polska Miedz, from those foreign asset businesses. And that came from U.S. and Chilean assets. At the end of the year, we revalued Sierra Gorda assets. And after the test, the result was positive [ $504 million. ] That's an important aspect because that was a check at history of that part of operations over the past years, even in the past decade, there were varied opinions about the value of those investments, their exposure.

Now, we can say, however, at this stage is over. Foreign assets started generating appropriate profits. And I would also like to stress here that in the near future, we would like to utilize those profits in the investment program that we plan for the future, for the upcoming years, starting already in 2026.

Also, we do not forget about building the foundation that will -- consolidated position of KGHM worldwide. That is the base of our results. Of course, at the time when the quotation of our resources, metals are high. This building of the base is difficult because there are a few opportunities to do so. There are a few well-developed investments with regard to the mining of copper or metals that we deal with on a regular basis. That is why this is a very cautious, very prudent search, not so much opportunities as for things that can help us develop and increase value of the entire group.

We also have the Victoria project in Canada. 2025 was a year of intense investing and development of this project, and our drilling went down to 1,400 meters. Now we are starting lateral drilling, which will allow us to operationalize not only the deposit, but also its surroundings. We want to operate it in a foreseeable period, which is now longer according to our estimates than initially expected in the project, and that has a very positive impact on the projections here.

Among the factors that I would also like to mention as the ones that contributed to the 2025 results, I would like to say that in the context of our foreign assets, I talked to our -- to the CEO of our Chilean partner. It's a very good relationship, the partnership based on last year's experiences is going to be developed. We will increase our efforts with regard to looking for opportunities abroad. And also, we made some decisions regarding the development of Sierra Gorda itself, that is the fourth line of processing and preparation of the concentrate.

Ms. Sobieraj-Kozakiewicz, I do apologize, Madam President, that's because of my -- today's presentation, the stage fright made me confused, and I do apologize.

Stable hedging policy. That's something I have already mentioned. The beginning of this year was marked by turbulences in the market of gas and fuels, but thanks to those previously prepared and proven solutions, we were able to go through this difficult situation, maybe not completely unharmed but we've had better than those who are more heavily dependent on fuel prices.

I think maybe I should mention some extra things. The first view of what we would like to do this year and in the following years, building on what was achieved in 2025. We would like to focus on preparing the entire capital group, strengthening some key companies in Poland so that they can develop, so that we can benefit from the potential even more. We would like to enhance their capacity to be able to better use capacity and potential of those companies in Poland.

This already was reflected in 2025 and was true in early 2026. That is the cooperation and mutual respect with the [ social act ] that's involved. And towards the end of my preliminary remarks, let me extend my gratitude to a large group of over 34,000 people who work throughout the world for our group. This is an effort of all of them, all of our colleagues across the group, not just in Poland, let me reiterate that. So they are the ones that have done it.

So once again, many thanks for that. We're hoping to continue our great successful cooperation, not just in the current year, but also going forward because I want to announce that towards the end of quarter 2, we will be announcing our strategy, work has been completed. There are some pathways that we want to emphasize again that have been addressed already adequately, and I think that the ending of quarter 2 will be a good time for us to announce the strategy. The baseline also will be the experience from early 2025 and early this year. And I think that will be the baseline for the final touches to the strategy.

And now over to Mr. Laskowski for the production part, that's the baseline and the core operations.

Indeed, you spoke about the water risk. Let me just perhaps bring you closer to what has been done over the last 2 years in KGHM to mitigate this natural threat.

First of all, extending the 2 mine through the Polkowice-Sieroszowice water draining system injections to the leak site. And those injections have allowed us to stabilize the water flow to the mining fields on -- at the pace of 36 cubic meters per minute. And then the Lubin mine dedicated for not so -- low mineralized water from the Rudna mine, and what was our biggest concern was the water management on the [indiscernible] retention. And we started work there on 2024. The capacity of this container was 14 million cubic meters, right now the latest measurement show us that there's only just over 5 million cubic meters of water in this location.

So a lot of work there. And a lot of work has been done. We managed to get -- we managed to get a permit to extend this location, which will allow us to stock floating deposits in this tank.

And before I describe our results for 2025. Let me just say that we have managed to perform all our production goals in all our production segments, starting from mining, but also copper processing. This is not mentioned in my presentation. However, it's important to say that our budgets have been fulfilled and exceeded.

So now regarding the results that you can see on the screen here. Let me just comment on 2025 from the point of view of our production schedule. It was not quite so favorable to us compared to 2024. 2025 is just 28 working days in February compared to 29, the year before, 2024. And also an additional day off, which is Christmas Eve, and that was the first historically in our country. This is specifically meaningful for mining production because our crew and ourselves, we do not systemically work on public holidays. So this is based on a voluntary basis.

Despite the unfavorable calendar, let's look at the bars here comparing 2025 to 2024. You can see that the output was quite similar or even better. So let me go back to what I said initially. This will allow me to comment the production results of 2025 in 3 words: stable, solid and good.

And now going to details, the output, the first mining segment, over 30 million tonnes, but that perhaps might not be quite as important as the fact that we have already been able to get 1.49% of copper in the output and silver is 51 grams. And that directly translates to producing copper and concentrate, which was higher in 2025 than 2024 by about 1,000 tonnes, and it attained a level of 401,000 tonnes, and the Cu in concentrate is 22.6%.

The production of silver is stable over 1,300 tonnes in total, together with the silver in our overseas assets allows us to keep in the top 3 silver producers in the world. And the electronic copper production, you can see a slight decrease vis-a-vis 2024, but we already communicated that on multiple occasions throughout the first semester of 2025. We were conducting some refurbishment work in electro refinery hall in Glogów II. But already in quarter 3 and quarter 4, the work showed us that the capacity was being used to its maximum extent. And the production of the electrolytic copper was over 50,000 tonnes per quarter.

I also would like to say a few words about copper processing. In 2025, we produced over 262,000 tonnes in Cedynia copper mine, and then [ 17,836,000 ] [indiscernible] of wire. Why am I saying that? Because this is the biggest figure in our over 45 years history of the copper plant in Cedynia. Now early this year, this was a very good result. We already announced them for 2 months, and they are also over -- the budget over the assumed budget and the production in our national assets, stable, solid and good. Again, the same 3 words of line.

Ladies and gentlemen, let's move on to the production results of our overseas assets. Now regarding Sierra Gorda, 55% of the share that we have in this enterprise. The production results for the extraction of copper were very good, and they went according to the budget, and that was and [ 86,800 tonnes ] of paid copper, and that's 8% higher year-on-year. We were able to obtain that, thanks to a higher copper content in the ore, but also a higher output despite lower volume of the ore extracted processed.

Now for silver production, we also see a 3% growth year-on-year. For silver production, we were able to produce 24 tonnes. And for gold, we can see a 15% decrease year-on-year. But you must remember that silver and precious metals only account for 11% of the revenue of Sierra Gorda, and these -- this is mostly due to the metal content in the ore.

Now we can, however, proudly say that we had a very good year for molybdenum. The value of the production was 5 million pounds, and that's a 52% growth year-on-year, which also results from higher content of this metal in the extracted ore and a higher output despite a lower volume.

Now to comment in just a few words about Sierra Gorda. Last year, we managed to stabilize the copper production on the processing plant, and we managed to maintain a high cost discipline. Thanks to that, of course, thanks to the support from metal prices and other macroeconomic indicators, Sierra Gorda may actually close -- was able to close the year with very good financial results. This was a historically good year for Sierra Gorda in terms of production, but I will talk about it further on.

Now for international, for the international segment. Let me initially remark that because we disposed of Sudbury -- of the assets in Sudbury in Canada, in March, early March, we stopped actually commenting on the production of copper, gold and silver, which lowered the balance of these metals in KGHM International. We are remarking here that there is a decrease by 14% of paid copper year-on-year to the level of [ 52,200 tonnes, ] lower copper content despite higher output, but there is a slightly higher production of copper in the mine, but due to very low volumes, this is the Carlota mine, of course. But due to low volumes and copper production, this is not really meaningful for the whole segment and this asset's financial results.

For silver production, we're also remarking that there is a drop, 87%, similarly to gold, 19%. But like I said, it's mostly due to, first of all, disposing of the assets in the Sudbury, but also lower content of precious metals in [indiscernible] in the Robinson mine. Robinson mine is our main asset in the United States in the KGHM International segment. But ladies and gentlemen, we may also say that molybdenum is increasing up to 43%, thanks to higher content of this metal in [indiscernible].

Now a brief comment. Let me go back to the fact that we were able to complete a lot of work in terms of optimizing the costs. We also need to be clear about the fact that last year, we had very good conditions in our mines in Chile and in Robinson. The metal content in the ore extracted was very high. And thanks to that also, we were able to use the favorable macroeconomic conditions and the TCRC premiums, our overseas assets positively contributed to the whole capital group EBITDA. And they, in total, accounted for 48% of the adjusted EBITDA of the whole capital group. So from that point of view, this was a record year. And I think that we can perhaps cover potential development plans further on.

And to sum up, last year, overseas assets paid into the budget of the group $379.7 million, Sierra Gorda over $300 million of that. In total, Sierra Gorda has repaid over $1 billion to Polish copper. Thank you.

Thank you very much. And now let's hear about our development initiatives, Mr. Zbigniew Bryja.

Good afternoon again. Rational and responsible investment program, this is a slogan that best illustrates what we are trying to do for CapEx for 2 years now in our company. On the one hand, we need to sustain the production. We need to replace the machinery part, which is naturally getting old and, well, is devalued every year. But we need to think about the future, look forward, not just maintaining the volume, but we need to think ahead of what we are going to do in 10, 15 or 20 years or even perhaps further from that.

We have adopted an investment plan for this year in CapEx on the level of PLN 3.8 billion, PLN 126 million of reserve, PLN 3.563 billion was actually performed, adding on top of that external financing. On the right-hand side, you'll see PLN 3.829 billion, plus leasing, [ PLN 3.926 billion ]. Now what has been in the books is 96% of that. The slight difference results from the fact that many of our investments are still in the pipeline due to some delayed contracting processes, a very good results, a large discipline, and you must say that all our services have really done their job excellently.

As this circle on the right-hand side, the [ analytical ] categories, we generally have 3 areas: recovery, maintenance. Recovery is this replacement of machine part. Development is everything that stands for the future, which is slightly more distant here, year-by-year. And last year, we started development of 3 shafts in the KGHM area, those 3 shafts in the future are supposed to pump in additional to the mines. This production will grow. Now we're in a very early stage, but very soon, the proportions will change significantly.

Annually, we have about 500 investment projects of smaller and bigger size. So the discipline in spending CapEx here is very important to us. Here, in this amount of PLN 3.014 billion, we are looking at the split of funds for mining. Both here and at other conferences, I mentioned that mining is the kind of enterprise, whatever you give to it, it's an enterprise that every day consumes part of its resources and every day has to prepare another portion. Hence, expenditures at 70%. That's nothing out of the ordinary, that's a natural way of investing.

Out of those PLN 3.014 billion, 17% goes to maintenance of mine carriers. They were partially handed over for an operation, but they need some fine-tuning like extension of conveyor belts and minor improvements that guarantee our ability to keep production at a high level.

Another big area of expenses is replacement of machine. We bought new machinery, and this is the level which we also kept in previous years. We watch closely the lifetime of our machinery. Maybe in the future, we will readjust the number of machines. Now this is the minimum necessary for our operation in mines.

Another area is water removal -- water drainage in mines. Mr. Laskowski mentioned this task that we dealt with 2 years ago when we found the company, maybe not in a disastrous situation, but in a difficult one. The [indiscernible] tank, which is our tank for retention of our technological water was practically completely failed. The condition of pipelines, retention of water in underground corridors did not give us the peace of mind necessary for regular operations, in particular in the context of the [indiscernible]. So we had to apply for repairs, development of [ returned ] pipelines and all activities needed water drainage, both up and down. So this explains this high item in expenditures.

Then extension of the Zelazny Most tank, elevation of the [indiscernible]. We started intense work here at the end of 2024. Then in 2025, we continue this work. We changed the parameters of the land around the mine to change the hydrostatic pressure conditions. The recovery of mines and hydrotechnical plant. We had shaft relocators. This was not really maintenance but a recovery of obsolete machinery park.

Then the next item, exploration. This is output from the deposit that we are only going to operate. Thanks to good planning, we are able to carry out our operations in the right way. And there is a dual mode of performing this exploration. Here, the trend is constant. We are ahead of time so that our geological knowledge about the relevant sections of the deposit is up to date.

Then the next item, maintenance of the shaft. Now this is mainly SW-4 shaft, which has no casing. And now the plan is that 116 meters of salt section will be cleaned salt regularly. PLN 73 million out of PLN 170 million was spent on this task. And the next item, the program of making the deposit available for operations. In fact, I should have started with that. This is the largest portion because out of the PLN 3.014 billion, PLN 1.3 billion goes to this program. That is preparation of deposits for future operations, future shafts, identifying subsequent sections that will be handed over for operation, but it is also the construction of shafts. In a moment, I will go to the slide that will show you the GG-1 shaft works. And we will be soon starting the construction of one more shaft. We were 300 meters short to get PLN 800 million, which is a very significant amount. What contributed to this PLN 1 billion result in the program of deposit availability program.

In this slide, you can see our favorite image showing the areas on which we have licenses, where we work. This dark circle, the GG-1 shaft , Glogów, the deepest shaft in Poland at the moment, definitely, our deepest shaft, 1,348. Then Retkow GG-1 and Gaworzyce shaft. In June last year, they were identified in the field, geological study started. In the Retkow, we had 3 drills done, including 1 down to 1,370 meters. Gaworzyce is where we are now drilling. And we are able to start drilling in GG-2.

Let me remind you that GG-2 is where started drilling, but the previous location was not fortunate. We had to change it. It took us 1.5 years. Unfortunately, the planning procedures, finalization of the plot purchase and so on. In GG-1, we started utility connection. And now we are eliminating the structures from the transition part. When we were just building the shaft, now we are getting ready to hand over the infrastructure with all necessary installations at the moment of handing over the shaft for the operation is September 2029.

That is the [indiscernible] shaft. I would like to draw your attention to the bars at the top. The ones that we showed previously showed very significant differences. Now GG-1, the one marked in black circle, that was joined with underground areas now. Our crew is working regularly there. Last year, we had ups and downs at 38%, 40%. That shows how very important it is. It is something extremely relevant to us.

And then the next slide, PLN 3.014 billion was mining. Now we move on to foundries. This mainly recover investments or maintenance investments, but also to some extent, development. If we go from the top components and significant renovations [indiscernible], these are renovations with Glogów and Legnica foundries, electrolizers, convectors, anode, furnaces. Then we have grinders that are renovated.

The next major item is the recovery of the foundry, again 34% of CapEx, and that is the money that was spent on preparatory works, mainly purchases and preparation of some elements that will be necessary to renovate Glogów II foundry. At the end of June, we will start a major renovation program of Glogów II. We wouldn't be able to buy everything this year. Hence, we started expenditures over the last year as part of this project.

Then we have this major furnace and recovery that is dispatch board purchases of new mills, classifiers and new type of engines with permanent magnets. That is an element that contributes to environment protection and cost reduction. Then the alignment of the functioning and the operation of the foundry with current regulations. We have storage boxes, modernization of ventilation in the lead hole in Glogów. That accounts for about 8% of CapEx spend on foundries.

Then we have modernization of those furnaces in Legnica, change of the refinement methodology. The project has been running for the third year now. We believe that this year, it is likely to see the completion of a major part, the preparation of anodes for Glogów II and development of machine park for Form and Caissons in Glogów III. This year, we spent PLN 3.8 million on documentation of new [indiscernible] line for Cedynia. And that's it from me. Thank you.

Thank you so much. Now the financial part of our presentation, Vice President for Finance, Piotr Krzyzewski.

Good afternoon, ladies and gentlemen. It's good to be the last one making the presentation, so I will be able to refer to what my colleagues have said. Undoubtedly 2025 and almost the entire first quarter of 2026 have one common denominator, namely high volatility in the raw materials in [indiscernible], which we will represent this volatility even greater. So our major objective, something very clear to us is focus on efficient production, which we are able to translate into sales and that can translate into cash while cash translates into investments, all that building value for shareholders.

If you look at production on its own, major facts about 2025 had already been stated. I would like to stress some elements relevant to 2026 that you might have inferred from your reading of the report. I would like to draw your attention to silver. [ Mirek ], I extend great thanks to you and your team for the fact that you were able to produce more silver than planned and was then able to sell this, and that was excellent placing because the silver prices in January and February were very high. So that was our very intentional action and informed decision. We left more silver in storage for the end of the year, and then we were able to sell that in the first quarter.

This is not random. This is based on our informed decisions. And as you can see, the actions from 2026 translate into our actions at prices at which we sell this year. I think this is the right moment now to thank our entire sales team, both in Poland and Toronto, Santiago and Shanghai. Just to remind you, 2025, 2 April, Liberation Day, we had breakage and part of our standard connections between China and the U.S. The U.S. and Canada also faced some challenges. Europe, U.S. also faced some difficulties with delivering our products. Nevertheless, the CEOs diversification and change of directions.

We also needed to recognize higher prices ultimately. It's very difficult probably for all of us to say what's going -- tomorrow is going to bring. But we have built our organizational resilience. We are prepared to find our way through this volatility. However, we will probably much prefer for it to be more stable and calm. It's something that everyone needs to be able to better plan investments.

Also, what has already been said, let me remark what has been said about South. We are 100% responsible for Sierra Gorda sales, but the decision that's taken there and then is something that we sometimes agree and sometimes disagree with. So I'd like to thank our partners for that because this creative discussion, which is sometimes quite powerful that we have with them always allows us to develop a common ground and its optimal from the point of view of the output in results.

Going to cash flow, what you're seeing in the -- in our equity and cash flow. We have put some of the copper and some of the silver into the inventory, 36,000 tonnes I understand of anodes, 38,000 actually. Why we do that? The goal is simple, but also very ambitious, 90 days of interruption for the Glogów plant, but we want to have a higher production than last year, higher by 20,000 tonnes exactly. So this seems logically not an easy thing to do. It will not be simple, but we know how to go ahead to do it. So the anode will be growing. And I note that the use -- we will get to 50,000 tonnes per [indiscernible] in anodes, but that's only to that in quarter 3 and 4. We can strengthen the production. There will be a lot of cash there. We don't know what the macro will be like. But I can say that the end of the year, we'll be very aggressive on our side from -- in terms of production and sales, which is something that we are prepared for.

Now referring to what Mr. Bryja has said about the shaft since they are a priority. But again, this is our ambition, and I think we will attain it. It's not easy to add the CapEx of the shaft and to produce the total CapEx. No, that is our ambition for the total CapEx to be smaller, of course, it will be slightly larger than now, but it won't be 1 plus 1 equals 2. We want it to be 1.5. It's not going to be simple, but seeing that we managed to do that when we try to optimize cost, I will show you the details soon. I think that this is also something that we can do.

And the last component for building value and flows. It's a very important asset for you, it's the dividend. It is too early to say to talk about its value, but we can see grounds to be able to pay the dividend. So from that point of view, I think it's a component that's worth discussing. And we will be making that recommendation to the shareholders meeting.

Now with reference to 2 components that are a day-to-day item right now is energy and gas. In the point of view of energy, we are the biggest consumer, industrial consumer of energy in Poland. Now for gas, [ 2, 2.5 ] terawatt hours, one of the big ones as well. What we have done and what the CEO has mentioned is focus on our basic goals where whenever we have some unknown data, we are trying to make sure that we have informed risk management processes in place. We are secured for gas supplies, 50% at least for this year. It's not a coincidence. It's an informed choice we made.

Looking at our toolbox here in Poland and seeing that gas is being delivered by ORLEN, we have been actually contracting deals with ORLEN. We have hedged some of our exposure in gas. [ TTF ] listed in Amsterdam so we can manage this exposure to make sure that it's beneficial at the end of the day for our shareholders. Now for gas, one more point here. As you will know, we have gas and steam engines as one of our production equipment. This is also arbitrarily launched. Sometimes we reduced the power but we have also launched carbon units as well. And they are going to support us slightly, but also from a point of view of purchasing energy and gas.

And one more thing about energy is the transaction from BGK, 94 megawatts of photovoltaic installations. These will be something powering our units directly. There is a subsidy included in there. But to illustrate that to you, the ultimate cost of producing this energy should be even below PLN 200. So this project will be supporting us. We will have our own sources. We will be more resilient, but also the purchasing cost of this energy will positively contribute to our EBITDA.

And the last topic, managing risk from the point of view of revenue, as you can see in our financial statement, we are well secured from copper 20%, silver 32%. And that's an informed choice and a strategy of ours. We put in more building blocks, which you cannot yet see, we will show you after quarter 1. We have added some components here, small ones.

Well, if I were to say what transaction they are, they are mostly silver and copper with higher exchange rates, and they will contribute a few hundred million zlotys to our results. But that's not the way we look at it. We implement some strategies step by step focusing on the elements that I mentioned earlier.

Now let me move on to our presentation to sum up the key components on the side of the revenues, as you can well see, 3% increase in the capital growth. A lot of attention attributed to costs, I will show you that. But you can see the outcome here on the side from the point of view of the EBITDA. All of these segments, both Poland, KGHM International and Sierra Gorda have a positive contribution to our EBITDA.

Let me just remind you that already last year, when we were looking at '23-'24, the growth of EBITDA was [indiscernible] this year, 2023 was 5-something. So we tripled over the last 2 years. We have had some favorable in contributions from the macroeconomic circumstances, but it's not just that, the job. There was a lot of work put into that, but a lot of work is still ahead of us.

Now from the point of view of revenues, one thing is the volume that negatively impacted that electric refinery and some of the refurbishment in Robinson that was according to the plan. We got some support from the market. The dollar to zloty rate and the negative valuation impacted our revenue, the adjustment from the derivative instruments, PLN 678 million this year. Well, we have the securities in various places. But when we take into account all of them from 2025 was more than PLN 250 million and plus that we actually got as a company.

Now in-kind costs, 8% about. But if we were to list 2, third-party input is one of the impacts, one of the factors. We bought more of the third-party input and something that's also outside of our control is the copper attacks. And there's been a large increase, 21%. If we were to cut off those 2 elements, you could say that those in-kind costs year-on-year grew by about 4%. But also third-party services, in fact, their costs decreased year-on-year. We spoke about it last year. This was something that we put a lot of attention to, and we continue doing so, and you can see the outcome.

Please look at quarter 2 of 2024 and compare it to quarter 4 of 2025. The quarter-to-quarter increase is just over 3%. So we're trying to lower that just to the inflation level. So the cost discipline is definitely being applied. And the outcome is from the point of view of C1, it dropped by 3% throughout the group. But the tax contributes to quite a large component of that. If we were to exclude tax and look at C1 then the drop would have been minus 17% year-on-year. If we look at specific segments, KGHM S.A. has an increase of 3%, I could say. But on the other hand, it was determined by the tax that grew by 27%. Without that, we would see minus 10% on C1 in Poland.

And the operational leverage is well performing. And the cost discipline has made it possible for KGHM International to attain minus 32% and Sierra Gorda minus 46%, plus the accompanying metals, TCRC, which you are, I'm sure, observing. This has positively supported us as has the very good sales we have attained.

So to sum up the results of the capital group, we've had the positive contribution of that, of the EBITDA vis-a-vis 2024. The exchange rate differences were quite significant because the dollar to zloty got stronger. And the outcome of our involvement in the joint enterprises according to international accounting standards, that was Sierra Gorda mostly, perhaps a few words of explanation.

In 2025, Sierra Gorda accounted a loss that we have been settling. So this was the first trigger, and we then saw an improved performance. And that's so good in Sierra Gorda that the asset after tax represents a value in our books because before that, the value was 0, let me remind you. So we are reconstructing its value, but that's not yet the end for Sierra Gorda. If it continues to perform so well in the subsequent periods, we will probably be talking to you about its impact from the point of view of presenting it in our accounts in our books.

And the last thing, key, I think, actually, financial flows, but we are trying to make sure that we do it by the book. So the operations will fund investment, and that's done, that's attained. But to a large extent, what Madam President has said for the investment activity, we have had quite a lot of support from the repayment of debt from Sierra Gorda, that's over PLN 1 billion that has positively impacted the financial flows in the group.

As you can see, we are landing -- we are dropping our indebtedness, which I'm sure you will see that in the following periods. We will try to positively surprise you to make sure that our -- the cost of the debt servicing is as low as possible. Thank you very much.

Thank you for presenting the results and now the Q&A session, which will be moderated by Mr. Krystosiak.

I open the floor for questions. Please introduce yourself.

[indiscernible] Congratulations on the excellent results. About the dividend, the cap is [ 324 ] if we take into account the strategy that you listed. Can we expect about PLN 2, PLN 2.5? What is the outlook?

And the second is on your working capital. The second question. On what level can we expect the increase of the working capital in the subsequent period of 2026, that's quarter 1 and quarter 2? And I wanted to ask you about Morocco. Can we get any further information about it? Analysis indicate that Morocco also has 12% of the world resources of rare minerals. So the question is whether KGHM will want to also follow that or focus on copper and silver instead? Thank you very much.

Okay. So we will take it right now. As for the dividend or some potential in this regard. We do not want to -- and we will not depart from our to date dividend policy, which means that although the company did not pay out or the group did not pay out a dividend last year, which was linked above all to the need to secure for ourselves the visibility for CapEx, tax and tax reduction. We obtained this, and we want to use all funds that were not distributed as our CapEx. And that means that we can return to the dividend policy.

As you know perfectly well, it can be said that this is not going to be over 30% of net profit. The decision about the amount to be distributed will be made in about a month. And we want to make the distribution as part of our overall dividend policy.

So Morocco, Madam President.

As for Morocco, more broadly, the development of our resource basis of the group, we operate following a long-term plan of developing our base of resources in foreign assets with policy envisages development of assets at various levels of advancement from greenfield stage where we are only seeking to obtain exploration licenses through development projects to already operational mines based on the benchmarks with which we [ stake ] that is stable legislation, a stable deposit expected and predictable annual output and lifetime of the mine. Based on those parameters, we developed a map of future development.

As for Morocco, indeed, we did sign an agreement with 2 public entities operating in that market. One of them is a company that seeks exploration licenses. The other is a company that extract copper as well as other metals. I would like to say this is an open agreement at this stage yet, which allows us to explore those projects very broadly, also including noncorporate products.

Our main priority is and will be copper and its accompanying metals. Nevertheless, we have a broad view of the market, which we follow quite closely, and we're interested in developing our competencies with regard to other metals. I hope that in the near future, we will be able to communicate something more specific to you. At this stage, it is just a memorandum which is nonbinding yet, which opens out potential field for cooperation.

Let me add that as regards expansion of the company based on foreign assets, potential foreign assets. We will give you more details about our prudent exploration when we get to the presentation of our strategy. This working capital over to the colleague.

As you know, there are a lot of variables in this equation of working capital. If I isolate only the anodes, that will be an extra PLN 1 billion. But also, we are going to reduce our stocks of a large part of ready-made products.

Maybe I should also make some comments on January and February production results, mainly in copper. The lower sales was driven by a few factors. January was difficult in [ cold ] in harvest from the perspective of their availability, and that considered not only us but also other [ industries ] almost does not affect us directly, the other [indiscernible] does not affect us directly, but indirectly, it does because the loading of containers takes an increased amount of time and that can have some impact on working capital.

But if I were to make some predictions, we will probably grow until June, then probably there will be some growth in September, a very strong flows in the fourth quarter, positive ones. We will focus on the strategy to make sure that the working capital is optimized.

Pawel Puchalski, Santander. I have two sets of questions, one set concerns the volume, the other CapEx. As for the volume, in the second half 2025, you had very high levels of copper and silver in both group and parent company. Was it an exceptional semester and the following quarters will reduce those levels?

And talking of volumes, I would also like to mention KGHM International because we can see the first 2 months were very weak in production. So I would like to find out whether this is only a minor glitch that will soon be overcome? Or should we expect a reduction of guidance for this project? That was in volumes.

As for volumes, the figures concerning copper content in the deposit and silver content and deposit remain at a similar level that is the third decimal point in the budget. For 2026, we plan similar numbers to the actuals for 2025.

As for volumes in KGHM International, you should bear in mind that we make reference to the previous year where copper was produced from [ Five West, ] which had better deposit parameters. Now we are operating all from Liberty deposit, which has much worse parameters. We also have stripping from Veteran deposit.

And you can see the difference, if you make comparison year-on-year in the budget, but we strive to make sure that budget items for production are achieved as planned.

Let me note that the volumes in International are worse not only year-on-year, but also worse compared to your budget. I do not make comparisons between years, I make comparison to your budget.

Indeed, there are some challenges of geological nature and technological nature that we are grappling with. But we are not commenting our forecast. We are analyzing the reasons that we will strive to achieve our budgeted numbers.

And the second set of questions regarding CapEx. I wonder when and if at all, KGHM will start a new investment, KGHM 2.0 that is building a new mine across the other. And the second question from this set, you mentioned talks about the fourth production line in Sierra Gorda. I would like to understand the economic rationale of building the fourth line because from my perspective, it's difficult to find such a rationale, but maybe there is one. So I would like to discover what it is.

Let me start with the second question that is also about bringing us to the same page with our partners. We are now together analyzing what we are going to communicate as for our decisions. And the directional announcement of the decision whether we are going into this project or not, that will come at the end of the first semester.

Maybe the production will increase even up to 20%, thanks to the fourth line. But this is still conditional on at least 2 factors. First of all, we accelerated exploration works that is drilling in further part of the Sierra Gorda deposit. That's the first thing, which will also affect the decision on the fourth line. We are also waiting for a report on the matter, which we are to receive in the upcoming weeks, so as to be able to prepare the overall calculations for the project by midyear. Another thing is talks about additional processing from neighboring mines. This is as much as I can tell you right now answering your question.

And Madam President?

To add to what you have said, the fourth line assumes increase in the processing plant by about 20%. While maintaining the output that we have right now, we can expect an increase in production by about 20%. We are now at the stage of analyzing the project, not only financially, but also technically to make sure whether the fourth grinding line will meet our expectations, or maybe there are alternate ways to invest in this mine. We are talking with our partner in South32. And also importantly, Sierra is preparing a strategy for its mine development that relies on additional drillings of deposits in the surrounding area around Sierra Gorda pit.

And the financial decision, which is to be made by midyear regarding the extension of the mine will be the result of all those studies, not just technological analysis but above all, a combination of technical, financial and the strategy with accepted by [ owners council ] with regard to the strategy of developments for Sierra Gorda.

As for CapEx, you know more or less what CapEx would be. This has already been mentioned. We expect it to be about USD 700 million. Sierra Gorda has this financial capacity to rely on debt funding and finance extension of the company. Final decision in this regard will be communicated in the formal way.

Coming back to KGHM 2.0. Let me just add one thing. I think I know Mr. Puchalski's point about the model of the transaction. We shorten [ LOM, ] we discount our flows. That is the major purpose of the fourth line. So by shortening LOM, we will shorten the cost, we will discount our flows faster. That is the whole point underlying the fourth line.

[indiscernible] comment. This is exceedingly interesting point. The fourth line will shorten LOM. But this is why we discuss details of strategy expansion including the operation of neighboring deposits to minimize the risk of shorter LOM.

Back to KGHM 2.0, as for the exploration license on the licensed area, [indiscernible] granted many years ago was appealed against to the international arbitration. No geological works were carried out there that could be used for the future operations. We did not carry out exploration across the other because we were unsure of the settlement. The situation now is that the license is maintained. We ask for its extension until 2036. [indiscernible] deposit till the other will be operated based on the existing licenses of our company. And this year, we will start a major exploration of 12 drills at least across the other to confirm the parameters of the deposit.

Additionally, we are drilling in [indiscernible], just neighboring area. We have information from [ Glogów ] that geological information will allow us design the whole thing. In a nutshell, in over a decade, we will be able to start building at least 2 shafts because that is the beginning that we plan. So you need to wait a few years more, although we can't very much on this development.

When we talk about KGHM 2.0, we have to realize that we're operating on 3 mines. And there will be a huge area, and there will be one there. So this is also something that you have to bear in mind. Of course, going back to your question, specifically in at least 10 years, we will start work in the field.

Okay, very briefly now. A question from our mailbox, Jason Fairclough, Bank of America. Could the new CEO take us through his priorities, please? And how is he going to manage the company? Could we have a comment on that?

First of all, ladies and gentlemen, this is a team effort, especially for a public company that has quite a big range in terms of functioning many areas of activity, et cetera, et cetera. And there's one priority, basic priority, and that's not just an empty slogan. The development of KGHM and building its value through a few of the components that we have already touched upon.

First of all is to raise the production effectiveness and an optimization of cost program has been established, especially for the acquisition policy that we want to improve, but also effectiveness in terms of technology searching for solutions, et cetera. And add on top of that is what Krzyzewski has mentioned that some of the strategy has to be devoted to obtaining cheaper energy because the scope of production and of the industry that we are operating in means that we are individually one of the bigger energy and gas consumers, industrial consumers, so we want to improve and prepare a program so that we can be far lower than what it is now.

What we have now in terms of energy prices, especially the contracts with -- from offshore wind energy or the predicted energy prices for nuclear. So we are looking for the golden means, and we might not be able to find an individual one, but that's one of the basic cost elements that we're looking at.

On top of that, what I mentioned before, a big emphasis on improving the capital group functioning by deepening our actions for better corporate governance, but also putting emphasis on better use for the group for the whole company. That includes part of what we define as local content. So sometimes reaching out for more expensive solutions from outside. We have small companies with a lot of potential that can ensure that especially for the CapEx programs that we have -- can ensure better use of the already existing resources, and this is what we want to do, and we want to do it even cheaper.

So we want to also deepen further our diversification in terms of sales and what Madam President has also mentioned, this is one of my personal priorities but it's never a one-person effort. We also have set a priority for the research of further resources in order to reinforce and build further value for potentially overseas assets, whether it's Morocco or any other deposits. We're looking high, low. There are no bargains right now available. We don't want to just look at things that are more expensive. We're looking at smaller but high in potential, the assets that are higher in potential.

Okay, from Jason. Melting copper on the market is not perceived as good investments. It does not generate a good return on capital. Have you spoken about -- that's not really a question, about building a plant in the U.S. Is that an actual consideration of yours?

It might have been my fault in one of my interventions a few weeks back, I might have mentioned about this potential idea of building a copper smelter plant in the U.S. This is not just a slogan, although this notion for me is -- let me explain what it is to me. We are considering our potential participation in the value chain for copper production globally. What we have here in Poland, metallurgy is half of the European potential in copper metallurgy. We want to be stable. We want to at least maintain that. We want to use the green policy. We can see that in Legnica, there's a potential for waste copper smelter plant.

Now for foreign investments, potentially a plant in the U.S., we can see how Polish companies are developing and investing in the value chain that's based predominantly on copper in the United States. That's a growing market. There's a lot of potential still to tap on and to grab on the market. And we have already -- for old copper, rolled copper, we are also considering our participation perhaps up to a final product.

Okay. Ladies and gentlemen, if we were asked right now whether it is profitable right now to open a copper smelter right now anywhere geographical with the current TCRC, perhaps not so much but we may not reveal, we are able to reveal exact destinations. But the last copper smelter other than the Chinese technology built was in [ Glogów. ] So we have some know-how right now. And various countries, I'm wondering whether to direct such an installation.

It's too early to say. We cannot really review any details at this point, but we are really touching on the geopolitical aspects rather than financials because if any country wants to construct one in order to become more independent in the supply chain and to have an asset like this, this asset could be built. Potentially, we can design, construct one, so we are party to various talks, but that's very sensitive information at this point, and it's also too early to disclose anything in particular. So yes, we are active in various market with various services, not necessarily good, but also services and the know-how that we have in our capital group.

[ Noble Securities. ] The work of analysis and research in Morocco, what kind of expenditure could this entail in 2026 to 2027, please?

Ladies and gentlemen, like I said earlier, at this stage, we have signed a memorandum of understanding. It's a nonbinding document. It does not trigger any expenditure in the outlay. And this is where I will stop. We are not going to talk about the future. We're not aware yet of what the consequences will be of this MOU. We are analyzing the data. And at this stage, we can't reveal any further information about potential CapEx or expenditures.

One question about the sulfuric acid. There is a problem here in various mines. You are well secured that you have your own production, the 600,000 tonnes annually in Poland. If you could say anything else about the product or the process. Could you sell more of it if you are producing 600,000 tonnes? How much can you sell to the regional customers? And another question is whether segment and Robinson are using this product? And are they not experiencing any problems with the availability of this resource?

Like you said, yes, we are producing about 600,000 tonnes. This is an important product for us also from a point of view of security because, as you know, we do not have a lot of retention, a lot of tanks. So the product needs to have -- needs to be sold quite quickly. So it's natural that geography plays a big role here, a big proportion of that remains in the country, and we will not be changing that. The prices perhaps are not quite what you are saying.

Let me just tell you why producers cannot -- producers of sulfur cannot get net prices that they wish around the world, but the expert that we have and sulfuric acid is quite significant in various destinations. But let me tell you why $150 or $200 cannot be attained because freight has become a lot more expensive. So availability of tanker ships is quite scarce.

So when we ship through [indiscernible], only few large vessels can actually enter the harbor. So also in terms of railway transportation, [indiscernible]. However, this is a product that has been playing an important role for the last 2 years because so far, prices were even down to 0 on sulfuric acid, but we are now making money selling this product, quite a lot of money, but it is quite an exceptional product looking at our portfolio.

Now the other question. We sell concentrate. We do not use this product in Sierra Gorda or in Robinson. We will probably be doing [ meaningless ] in the future. If we start leaching it, the importance of the substance is mainly for fertilizing industry. Our main partner is [indiscernible], and the -- as of the groups or the nitrate group here domestically, it has slightly slowed down its production, I must say, to cut expenditure. So we will, I'm assuming, have more sulfuric acid for sale outside.

Any other questions in the room?

My name is [indiscernible]. I wanted to ask you about the shaft construction in '29. You said the shaft, GG-1 is going to be just for the staff. What about the others? What are you planning this year in terms of that initiative?

Are you asking about the GG-1 shaft? Right now, we are reinforcing -- the reinforcement of the main shaft has been completed. We want to increase the capacity from 34 megawatts to 40 megawatts. And then following from that, we will be eliminating the temporary units and constructing the permanent ones. We have a contract with our engineers. This is [ PBKR ] company that's ours. So it remains in the group. The supervision will be carried out by [indiscernible], also a company that's owned by us. Other than the climate station and high technology devices, all of that, it will be local content other than just the technological solutions.

Okay. And again, from our main box, Morgan Stanley. What are the securities indicators for natural gas and electricity for 2026?

Like I said, 2026, especially the first semester is over 50% on gas and more or less this 50% electricity. If I were to illustrate that it is our ambition to -- well, despite the fact that electricity was a lot expensive, a little more expensive in January. Now gas is a lot more expensive. We would like to wrap up inside the [indiscernible] to meet the same budget as last year. From the point of view of the cost curve, we want -- we don't want the energy prices to increase vis-a-vis last year. But it is highly unpredictable whether we can do that. We will be monitoring this on an ongoing basis.

A technical question, perhaps a follow-up. Are the securities on copper and silver, are they going to be encumbered in advance? Or are they going to be -- or is this going to be distributed over the next 3 years?

According to the accountancy, the transaction, first of all, needs to be effective. If it is effective, we will put it in operations, but they are settled once sold. So you will see in our note what the dates are. So I'm sure looking at the Annex, you can trace the details. So this will be -- this will take a year or 2, depending on which specific hedging transaction you are talking about.

Any other questions in the room, please? No, none? Okay. Let me use this moment. A question from the Internet from our mailbox. Can we -- that's a question from [ ESM. ] Can we say how we are going to distribute our capital between expansion in Europe, 3 new shafts and international expansion? So capital allocation.

Let me briefly comment on the backstage of it. Each project is evaluated on an individual basis. At the end of this analysis, one by one, we build a list of projects, which meet certain parameters. One of these parameters is a risk development increase, decrease of maintenance. And then we make our strategic decisions based on risk diversification. This is a structured process, and it is not the case that we consider one project that's worse than another, just like that. We have specific metrics that defined with a given project fits into strategy or not. So as a rule, it is a very structured process.

The investment in 3 shafts is necessary for maintaining our production. Now it is designed in a manner that will allow us not to exceed certain CapEx thresholds throughout the investment process. There are all calculations supporting this project. We can also use some of those studies to use, for example, the funds as leverage of the obtained capital.

Globally, the company is not excessively burdened with debt. So we have a few opportunities. If we have a good, reasonable and one that gives hopes for profits project, we can do that.

I can see no further questions here in the room. There are more questions in the mailbox, but they concern the aspects that have already been covered. So we will answer all those individual questions, specifically adding additional information. And that brings us to the end of the question. So is the CEO going to sum up?

No, I will not really wrap up the whole presentation. I just want to thank you for presence here and for your attention, your interest in our results for 2025 and your questions regarding our near and more distant plans.

I would like to say also that with the macroeconomic background, we continue to see great uncertainty and volatility. It's enough to have a look at the prices of energy, each development brings changes, sometimes downward, sometimes upward. We have an in-company mechanism that is in place that triggers certain hedging solutions. We do our best to operate in a prudent, reasonable manner that balances our activities in the context of our objective of increasing the company value, and keeping that in equilibrium with expenditures. We also do our best to strike the right balance between securing the resources and output to sell. We will stick to our diversification plans. For sure, we will not make any sudden changes unless the macroeconomic environment gives us an extremely powerful blow.

For the time being, in terms of hedging responses to market developments and geopolitical situation, we stick to the manner of operating that was presented to you earlier, and that was reflected in our results for 2025. We want to continue along those lines so as to be able to share with you mostly good news.

Thank you very much for today's meeting. Please follow us regarding our plans to present the strategy. The strategy will be presented after the results of the first quarter this year. And I also invite you to track our plans in this regard. Thank you very much, and have a nice afternoon.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. My name is Aleksander Cieslinski. I'm the Chairperson of the Supervisory Board of KGHM Polska Miedz S.A. I will be convening of -- heading this Extraordinary General Meeting herein after EGM up until the point we elect the Chairman of the meeting today. So I hereby open today's EGM. And first, I would like to welcome all the shareholders and proxies of shareholders Particularly, I would like to welcome the members of the authorities of the company because it is -- thanks to them, their work, thanks to the current composition of the management and authorities. It attains these high results.

I would also like to welcome the members of Supervisory Board, Mr. [indiscernible]. Mr. [indiscernible] and Mr. Darowski. Welcome members of the Management Board, Chairman, Mr. Szydlo; Deputy Chairman for Corporate Affairs, Piotr Stryczek; Deputy Chairman for Financial Affairs; Mr. [indiscernible]; Deputy Chairman for Developmental Affairs, Mr. Bryja; and Deputy Chairman for production, Mr. Laskowski. I would also like to welcome the representatives of the media and employees of the company.

Let me inform you that the protocol of today's EGM is going to be conducted by notary [indiscernible]. So right now, we need to proceed to election of the Chairman of today's EGM. Would the candidates, please raise their hands to be the chairperson of today's EGM. There is 1 hand raised.

My name is Andrzej Leganowicz, shareholder entitled to participate in today's meeting. I hereby offer myself as the Chairperson of today's EGM and I will take this position if selected.

Any other candidates? If not, let me inform you that only 1 candidate was shown to the chairperson of today's EGM. Before we start the procedure, I would like to ask the representative of Programmer Company to tell us about the voting terminals and how to operate them.

Welcome, ladies and gentlemen, the registration, you got 3 tags. Green, vote for. Red, against and yellow, abstain. Once the voting is started, you wait for the display, the blue display. And then you close the tag to the NFC reader. After the vote was given, was cast, you will get the information. If it's an open ballot, you will get the information who casted the ballot. If it's secret ballot, then you will just get the information that the vote was cast.

Right now, let's start a trial voting. Just to check if everything works correctly if you see the blue screen on the display, you can touch the screen with your tags.

I hope everything is okay. So let's close the vote, the trial vote. Okay. So I hereby open the secret ballot regarding the election of the Chairman of the Extraordinary General Meeting of KGHM Polska Miedz S.A. to be Mr. Andrzej Leganowicz. Let's start the vote now.

Has everyone cast their vote. If so, I hereby close the vote. And please let's display the results.

Ladies and gentlemen, results are as follows: regarding the election of the Chairman of the Extraordinary General Meeting, 139,380,438 votes were cast. Votes for, 138,315,292. Against, 1,065,146. No votes abstained. As a result of the secret ballot, Mr. Andrzej Leganowicz has been selected as Chairman of the Extraordinary General Meeting of KGHM Polska Miedz S.A. So I hereby give them the floor.

Thank you very much for choosing me. I hereby accept my position. I'm signing the attendance list first and foremost. The list was signed by the Chairperson of today's EGM, and it is presented for your viewing, for the shareholders viewing for the time of the meeting. If you need to have a look at it, you may do so by the end of today's meeting. By selecting the chairperson of today's EGM, we have conducted Point 2 of the agenda.

Now Point 3 is confirming the legality of convening today's EGM and its capacity to adopt resolutions. And I would like to inform you that today's EGM is happening on request appointed by the Treasury of State on the 17th of December 2025, and the EGM was announced on the website of KGHM Polska Miedz S.A. on the address www.kghm.com, on 22nd of December 2025, and it was kept there up until today.

The content of the announcement fulfills the conditions defined in proper provisions of the code of commercial companies. The report was sent by the company on 22nd of December 2025, in line with the resolutions on public offers and conditions of introducing financial instruments to organized system -- commercial system and public companies report 33/2025. And in the report, 34/2025, the company sent the draft resolutions presented today -- at today's EGM.

The documentation was presented on the website of the company at the address www.kghm.com. And the entire set of documents fulfills the requirements defined in proper articles of the code of commercial companies and the documentation is kept there up until today.

Let me just inform you that from the moment of appointing today's EGM, there were no request of broadening the agenda. And in the form of relevant articles of the code of commercial prudent companies there were no requests in this result. And the same shareholder appointed 4 candidates for the company's Supervisory Board and the company informed that in the current report, #2/2026 published on the 16th of January 2026. And in the report, the company informed of appointing the following candidates [indiscernible] and Mr. [indiscernible] to the Supervisory Board. And the report also included the biographical notes of the candidates.

Let me just inform you that the list of those authorized to participate in today's EGM has been compiled in line with relevant provisions of the code of commercial companies and in line with the relevant provisions of the company statute. The EGM may appoint resolutions provided that there are at least 1/4 of the share capital represented. And the current attendance is 738 shareholders present both here or represented by proxies, the number of represented shares is 139,380,439. The capital represented is 69.69% or 69.7%. So I hereby stated that we have the quorum to adopt resolutions in today's EGM.

The attendance may change during today's EGM, if you would like to leave the room with not -- and not continue their attendance. Please note that fact on the attendance list and please also let the technical operators know about that. And then we will amend the attendance list and the voting procedure. Today's EGM has been appointed without the possibility of remote participation. All the votes are going to be conducted directly by those who are present here. The regulations of general meetings does not provide for the voting by letters. So let me hereby 1 more time state -- confirm the legality of convening the EGM and its capacity to adopt resolution within the agenda that was published.

Let me just also inform you that the -- today's EGM is also broadcasted online, and there are representatives of media present here, please. Can you introduce yourselves?

[indiscernible]

Unknown Attendee

Lubin 24.

Radio Elka.

Polish [indiscernible].

Lubin.pl portal.

We also have a photographer with us.

[indiscernible] portal.

Thank you very much. Would any of the proxies or shareholders would like to present their concerns in terms of the presence of the media representatives here in the room during our today's EGM? I don't see any. Then it means that we have conducted the third point of the agenda. So in terms of confirmation of the legality of convening the EGM and its capacity, the resolutions.

Number 4, acceptance of the agenda. Let me present the agenda in the part that has not been completed. Point 5, changes to the composition of the Supervisory Board of the company. Number 6, adoption of a resolution of covering cost of convening and holding the EGM. And Point #7 is closing of the Extraordinary General Meeting.

Has anyone -- does anyone have any remarks to the agenda presented in a way or suggestions about the way of its commencing? If you have so, please let us know. I don't see any. So the -- then resolution content is the resolution number, next number/2026 of the Extraordinary General Meeting of KGHM Polska Miedz S.A. dated 20th of January 2026 regarding the acceptance of the agenda of the Extraordinary General Meeting of KGHM Polska Miedz S.A.

Point 1, the EGM of KGHM Polska Miedz S.A. hereby accepts the following agenda. And here is the agenda containing 7 points, partially already done and known. And then Point 2, the resolution comes into force upon its adoption. Any remarks regarding the proposed content of the resolution? I don't see any. Are we ready to start the vote? If so, I will open the vote now. Please cast your votes. The voting is open by majority.

[Voting]

I would like to ask people who have proxies or proxies, please let us know that you finished voting. So I'm closing the vote, and let's see the results. 139,380,438 votes were casted, that were valid, the 138,315,292 votes for. Against, 1,065,146. Abstained, 0. So this resolution has been adopted.

Let's move on to Point 5 of the agenda. We have the changes of the composition of the Supervisory Board of the company. We proposed 2 resolutions. These are of dismissals of a member of Supervisory Board. The second is about appointments of the member of Supervisory Board. So I will present to you both sections. So now about dismissal. In Paragraph 1, the Extraordinary General Meeting of KGHM Polska Miedz S.A. dismisses from the composition of the Supervisory Board of KGHM.

Of course, we provide here the name and surname. And Section 2, the resolution comes into force upon its adoption and justification, we have also here the appointment of a member of the Supervisory Board of KGHM Polska Miedz S.A. Here, we have the name and the surname of the person appointed to the Supervisory Board. And Section 2, information that the resolution comes into force upon its adoption.

So first of all, I would like to create a list of motions regarding dismissals from the Supervisory Board of KGHM Poland. So I have a question to you to proxy to stakeholders, are there any propositions to do so? Okay. We have the [indiscernible] proxy of the State Treasury. I would like to dismiss from the Supervisory Board, the following people: Mr. Aleksander Cieslinski, Mr. Tadeusz Kocowski, Mr. [indiscernible] and Mr. Dominik Januszewski.

Thank you -- are there any other proposals of dismissals from the supervisory board? No other proposals. So let me close the list of motions regarding the missile of members of Supervisory report and summarize it. There was a motion to dismiss Mr. Aleksander Cieslinski, Mr. Tadeusz Kocowski, and Mr. Dominik Januszewski. The question to proxies, do you need break to consulted with your stakeholders.

Unknown Attendee

We need 10 -- 15-minute break to consult it with our clients.

Yes, let's have a 15-minute break. It's 11:23, let's say, 11:20, so let's meet at 11:40. So please keep the time regime. And here, we are having the break.

[Break]

So as I assume that you decided on the voting type, please inform all the people that are outside that we are going to have the meeting that is going to be convened again. So please take your seats.

So I reconvene EGM of Polska Miedz [indiscernible]. So we are now -- a dismissal of member of the Supervisory Board. So there was a motion to dismiss from the Supervisory Board for people. The voting will be held in secret ballot in the alphabetical order, and we will vote each person 1 by 1, who are or not going to be dismissed.

So the first voting is about dismissal of a member of the Supervisory Board, Mr. Aleksander Cieslinski. We have Section 1 of the Extraordinary General Meeting of KGHM Polska Miedz S.A. dismisses Mr. Aleksander Cieslinski from the composition of the Supervisory Board of KGHM. Section 2, the resolution comes into force upon its adoption. Are there any remarks on the voting type? No. So the voting is going to be secret. Please vote and do it now.

[Voting]

Have all people were able to cast the vote. If yes, I'm closing the voting and let's see the results. A total of 139,380,438 votes were cast. For, 67,508,770. Against, 42,837,762 votes. Abstained, 29,033,906. I will remind you that the resolution of the Extraordinary General Meeting of KGHM are done or assumed in the majority of votes, general majority. So we looked at for and against votes. And I now declare that this resolution was adopted.

Another resolution is about dismissal of [indiscernible]. Part 1, Section 1, the Extraordinary General Meeting of KGHM Polska Miedz dismisses Mr. [indiscernible] from the composition of the Supervisory Board Section 2, the resolution comes into force upon its adoption. Here, we are going to have a secret ballot. Let's vote.

[Voting]

Have you all cast your votes? If yes, I'm closing the voting and let's see the results. A total of 139,038,438 valid votes were cast. For the resolution 76,508,770. Against the resolution 42,837,762. And abstained, 29,033,906 votes were cast. So I hereby declare that this resolution was adopted in the secret ballot.

Another resolution is about dismissal of Mr. Januszewski. The Extraordinary General Meeting of KGHM Polska Miedz dismisses from the composition of the Supervisory Board, Mr. Dominik Januszewski. Section 2, the resolution comes into force upon its adoption. So please let's have a vote. It's going to be a secret ballot.

[Voting]

Have you been able to cast your vote, if yes, I'm closing the ballot and let's see the results. A total of valid votes, 139,380,438. Votes for the adoption, 67,508,770. Against the resolution, 42,837,762 votes. And abstained, 29,033,906 votes. So I hereby declare that the resolution in the secret ballot was adopted. Another Resolution is about dismissal of Mr. Tadeusz Kocowski from the Supervisory Board. Section 1, the Extraordinary General Meeting of KGHM Polska Miedz S.A. dismisses from the composition of the Supervisory Board of KGHM Polska Miedz S.A., Mr. Tadeusz Kocowski. Section #2. This resolution comes into force upon its adoption. So please let's vote in the secret ballot.

[Voting]

Have you been able to cast your votes? Okay. Yes, I'm closing the ballot and let's see the results. A total of valid votes, so 139,380,438. Votes for the resolution, 67,508,770. Against the resolution, 42,837,762. And abstained votes, 29,033,906. So I hereby declare that the resolution was adopted in the secret ballot.

Ladies and gentlemen, now we have another situation, 10 people -- 10 members of Supervisory Board. Now we -- because we dismissed, we have 2 vacancies. According to the statute and to the previously adopted resolution in 2014, the resolution of the Supervisory Board declared that the number of Supervisory Board should be -- of the general meeting should -- from 2014 declared assumed the same number of the people, the same composition of general meeting from 7 to 10. Now we have only 6 people. So we need to appoint at least 1 person. We have 4 candidates. Are there any other candidates besides that, that you would like to propose.

I don't see any. So the list of candidates is being closed right now. Let me summarize those candidates right now. In alphabetical order, Mr. Zbigniew Cwiakalski; Mr. Remigiusz Paszkiewicz; Mr. Artur Ulrich; and Mr. Lukasz Zelewski. Let me inform you that all the candidates have expressed their agreement to become candidates have been presented the declaration of participation to be appointed as a member of the Supervisory Board, proxy of the of the motion, the submitter. Is there any problem in relation to the statute or the code of commercial procedures or the good practices of companies on the stock market reported on the Warsaw stock market? Any other any statements?

Let me say that Mr. Artur Ulrich has presented their statement on independence criteria. And then to confirm the other -- all the 4 candidates, let me just say that all the 4 candidates have been granted the company Board agreement. So in relation to the report, the technical break used for confirming with the clients by proxies is not needed since the candidates were known before. So let's start and let's move on with the votes. It's going to be in the alphabetical order, one by one, of course.

The first one is going to be regarding the appointment of Mr. [indiscernible], of a member of the Supervisory Board. The resolution reads as follows: Section 1, the Extraordinary General Meeting of KGHM Polska Miedz S.A. appoints Mr. [indiscernible] to the composition of the Supervisory Board of KGHM Polska Miedz S.A. Section 2, the resolution comes into force upon its adoption. I'm hereby opening the secret vote on this resolution. Please cast your votes.

[Voting]

Has everyone managed to cast their votes? If so, I -- closing the meeting -- the voting, and let's see the results. Ladies and gentlemen, a total votes cast, 139,380,438 of valid votes. Votes for, 83,770,223. Votes against, 42,837,762. And votes abstained, 12,772,453. So the resolution was hereby adopted in the secret ballot.

Next, voting pertains to the appointment to the Supervisory Board Mr. Remigiusz Paszkiewicz. Section 1 of the resolution draft is as follows: the Extraordinary General Meeting of KGHM Polska Miedz S.A. appoints Mr. Remigiusz Paszkiewicz to the composition of the Supervisory Board of KGHM Polska Miedz S.A. Section 2, the resolution comes into force upon its adoption. I'm here by opening the vote -- secret vote.

[Voting]

Has everyone managed to cast their votes? If so, I'm closing the vote. And the results, total votes, 139,380,438. Votes for, 83,770,223. Votes against, 42,837,762. Votes abstained, 12,772,453. So I hereby declare that the resolution was adopted in the secret ballot.

The next voting regarding appointment of Mr. Artur Ulrich to the Supervisory Board of KGHM Polska Miedz S.A. So let me just inform you that Mr. Ulrich has provided key statement on providing -- or fulfilling the independence criteria mentioned in section -- in the relevant section of the company's statute. So he is appointed to the Supervisory Board as an independent candidate. And the resolution draft is as follows: Section 1, the extraordinary general meeting of KGHM Polska Miedz S.A. appoints, Mr. Artur Ulrich to the composition of the Supervisory Board of KGHM Polska Miedz S.A. And -- let me also clear out the doubts as to the pronunciation and reading the name and then Section 2, this resolution comes into force upon its adoption. I am hereby opening the secret ballot.

[Voting]

Have you managed to cast your votes? If so, I'm closing the voting. Ladies and gentlemen, total votes cast 139,380,438. Votes for, 83,770,223. Votes against, 42,837,762. And votes abstained, 12,772,453. So the resolution has been adopted. The next resolution draft regards Mr. Lukasz Zelewski. Section 1, the Extraordinary General Meeting of KGHM Polska Miedz S.A. appoints Mr. Lukasz Zelewski to the composition of the Supervisory Board of KGHM Polska Miedz S.A. Section 2, the resolution comes into force upon its adoption. I'm hereby opening the secret ballot.

[Voting]

Have you managed to cast your votes? If so, I'm closing the voting. Please display the results. Ladies and gentlemen, total votes cast is 139,380,438. Votes for, 83,770,223. Votes against, 42,837,762. Votes abstained, 12,772,453. So the resolution is hereby adopted in the secret ballot. These are the results on the appointments to the Supervisory Board. And this is the end of Point 5 of the agenda.

Point 6 is adopting the resolution regarding covering costs of convening and holding the extraordinary general meeting of KGHM Polska Miedz S.A. The draft of the resolution sounds -- reads as follows: Section 1, the cost of convening and holding the EGM of KGHM Polska Miedz S.A. shall be covered by KGHM Polska Miedz S.A. Section 2, this resolution comes into force upon its adoption. Let me just add that this is -- this resolution is a standard point of the agenda in relation to meetings organized on the request of the shareholder.

If there are no comments, let's start the voting regarding convening cost of -- covering cost of convening and holding the Extraordinary General Meeting of KGHM Polska Miedz S.A. Please cast your votes.

[Voting]

Have you managed to cast your votes? If so, I'm closing the voting. Please display the results. The number of votes cast in total, 139,380,438. Votes for, 100,656,797. Votes against, 32,998,932. Votes abstained, 5,724,709. So the resolution has been adopted in an open ballot.

And ladies and gentlemen, this is the end of today's agenda of today's EGM. I would like to thank all those who have participated in it. And I'm hereby closing today's EGM of KGHM Polska Miedz S.A.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen, to a conference devoted to talking about the results of the KGHM Group for the third quarter of first 9 months of 2025. We have President, Anna Sobieraj-Kozakiewicz with us; Mr. Zbigniew Bryja, Deputy Manager for Development; Piotr Krzyzewski, Deputy Board President for Industrial; and Mr. Laskowski, Deputy Board President for Investment and Investor Relations Director. The meeting is broadcasted online, and you will be able to send your questions to -- during the conference and afterwards, and all the answers are going to be published either during the conference or afterwards.

And now Mr. President, over to you.

Welcome, ladies and gentlemen, and apologies to the investors who are watching us from the Western Hemisphere. Apologies for atypical time of the meeting. But due to the tight schedule, we needed to move the time of the conference a little bit back. Due to also the tight schedule I mentioned, I will try to make it very brief today not to get into the competence of further speakers today.

So to give you the bird's eye view of our situation, I'll start with an anecdote. But yes, this slide and the trends that we have been seeing for many months about KGHM and influences its results. I think I can jokingly say that maybe LME -- copper prices on LME should be in Polish zloty because what does this slide show us? 5% copper price in terms of USD year-on-year. So 9 months -- first 9 months of 2024. The exchange rate for between USD and PLN is minus 4% year-on-year, which gives us the stable results, unchanged results. So the status quo is unchanged. So if the stock market would be in Polish zloty, this chart would be much more predictable.

And then average copper price for 9 months were at the level of $9,556 in dollars and PLN 36,257. We see a marked increase in terms of silver price, which is a very important product of KGHM.

Let me remind you, we are the second top producer of silver in the world. And here, we have 23% of increase in terms of zloty and 29% of increase in terms of dollars. Of course, that influences our results. However, this increase of copper prices in dollars happened by the end of the reporting period. And strengthening of zloty has been observed throughout 2024. Let me just remind you that at the end of last year, the dollar versus zloty was PLN 4, PLN 4.08, PLN 4.10.

Next slide, please. In reference to the previous slide, we see a minus 1% in terms of adjusted EBITDA in KGHM Group. And in KGHM Polska Miedz S.A., we have minus 1%. So almost the same year-on-year, of course. And judging by the fact that the copper prices remained unchanged and in the first half of the year, we had a major renovation in Glogów smelter, so a decreased production year-on-year compared to 2024 by 20,000 tonnes of electrolytic copper. The drop of revenues by 1% can be treated as as only 1%. Then adjusted EBITDA of KGHM Polska Miedz plus 5% compared to 2024 and plus 16% in terms of adjusted EBITDA in KGHM Group. And then net profit, a bit of deja vu because the first 6 months -- throughout the first 6 months, we had the same results. So it's worse than first 9 months of 2024, both in terms of KGHM Polska Miedz and consolidated.

Key production indicators, as I said, 20,000 tonnes of electrolytic copper less. And it is due to planned maintenance on smelter infrastructure in Glogów smelter. So in KGHM Polska Miedz S.A., that was 421,000 compared to 441,000; better results in terms of Sierra Gorda, as you can see, plus 14%, which is almost 8,000 tonnes of copper more in Sierra Gorda. And in KGHM International, a little less than 5,000 tonnes less, which is minus 11%.

I think Ms. President will talk about the reasons of decreases in Robinsons mine, in Robinson mine. So again, I'm not going to precede her part of the presentation.

We see a constant trend, about 66%, 67% of payable copper in national domestic assets comes from own concentrate, KGHM, 1/3 that would be purchased metal either imported or scrap. This is no surprise. It's a stable level. And we do hope that this stability won't move towards lower production from own concentrate towards purchased metals.

And here, we have the production results in terms of other assets. So Sierra Gorda and KGHM International. Silver production slightly higher, plus 1%. TPM production, minus 6%. And molybdenum production markedly higher, plus 95% better efficiency and better molybdenum concentration in Sierra Gorda.

And to finish up, what I would like to emphasize, the results are really good, especially the EBITDA. The exchange rate differences affect the net result. And we are very happy that -- with what we've been commenting on for many years -- for many quarters, the cost discipline because the increase of costs that we had in the previous years, systematic increase due to the cost of work or cost of energy, we have managed to stabilize it. I'm pretty sure that President Krzyzewski will talk about it. There is no increase, even decrease of C1 cost in foreign assets, international assets, domestic assets, the increase of C1 cost is minimal. And if we look at C1 without the tax, we even are dealing with a decrease.

Okay. Now President Laskowski.

Yes, let me give you a bit of details in production. In terms of production results in all the segments, ore extraction, production of copper and concentrate, production of electrolytic copper and metallic silver production, we are within or even above the budget. And the Q3 of 2025 is one of the best production quarters compared to other -- previous year's period and compared to the other -- the previous 5 quarters.

So metallic silver, as you can see, plus 1.5% year-on-year. And Q3, as I said, of 2025, 330 tonnes, and this is one of the best results across these 5 quarters that we compare it with here. Electrolytic copper, in Q3, we returned to the production level of 149 tonnes. These are the amounts that we got in Q3, Q4 last year. The President Szydlo talked about the maintenance in electro refinery department in Glogów II smelter, this would contribute to the lower production results of the first 2 quarters of 2025.

And in terms of production -- in terms of ore extraction, it's similar to 2024, over 23 million tonnes. And Q3, that would be a level of extraction of 6 -- 7.8 million tonnes, the highest in comparable periods. And production of copper in concentrate, it is slightly, but still higher than the compared 2024 year-on-year. So again, 304,000 tonnes, the highest level of production in compared -- with compared periods.

These are really good results. And I need to emphasize that we had unfavorable production calendar. 2024 was an off year, and February had 29 days, 1 production day more for KGHM S.A. is 100 tonnes -- 100 more tonnes of extraction, more concentrate, 1,000 copper in concentrate, 1,700 electrolytic copper or 1,000 tonnes of wire copper. So this is one more day only in our production results.

So -- and then one more thing about Zelazny Most reservoir. We have safe level of filling it, 6 million cubic meters of water. This is what we mean by safe. To compare in summer last year, when we got to KGHM, the filling of the reservoir of the main and southern part reached dozens of cubic meters. And one more important thing in terms of Zelazny Most, we have obtained all the agreements and permits to the level of 205. So that gives us a couple of -- or more than a dozen years of safe work in KGHM.

And in terms of production results of international assets, another very good year for that sector in terms of payable copper production. In Sierra Gorda for 55 assets, the level of payable copper production was 64,900 tonnes by -- it's an increase by 14% year-on-year, an increase of the production results. This result is due to the higher grade copper ore as well as higher recovery despite the lower volume of ore produced. Very good results in line with our budget assumptions. It's worth emphasizing that thanks to the optimization activities, we have stabilized production in Sierra Gorda, and we see more predictability of production, both in terms of copper and molybdenum.

In terms of molybdenum production, here, we can boast almost 100% increase of molybdenum production year-on-year. In Q3, that was over 2 million pounds. And so by the end of September, we have 4 million pounds in total. And then molybdenum production starting from May -- end of May, actually, we see a marked increase of that. And this is due to higher concentration of molybdenum in the ore as well as higher recovery despite the lower volume of ore processed. And what we need to emphasize here, molybdenum production in Q3 was one of the highest in the history of Sierra Gorda.

In terms of silver and gold production, we see slight decreases, but this is due to lower volume of ore processed.

In terms of gold, compared to the budget of this year, we see that we are still higher than our budget expectations, which, thanks to high prices of this metal and good TCRC premiums, contributes to a very good level of C1 below $1 per pound.

Next slide, please. When it comes to the production results of KGHM International, the production of payable copper after 9 months is 40,600 of tonnes of payable copper, so a decrease of 11% compared to the reference period, and this is the result of the lower content of copper, lower volume and yield of metal. But here, we need to highlight that we are referencing to the previous year where the results were record high. And this year, the production of ore goes into liberty which has lower parameters of ore. However, we can see that we are within the budget when it comes to the production of copper of 75% of the production. When it comes to the production of the gold in Robinson, we are above the assumptions for the given year. And I was referencing to Robinson mine.

Ladies and gentlemen, we can see that the production results of international assets are very good, which transfers to the good financial condition of international units. So at the end of September, we had $240 million, from which $210 million was paid by Sierra Gorda and $30 million KGHM International, and those are payments from guarantees, loans and provision of other services. So I can say that this is a very good year for international assets. Thank you very much.

So Professor, right now, when it comes to the advancement of development initiatives, we have similar parameters compared to the previous year for the given period. So when it comes to the development plan, it was 62%. Right now, we have 63%. So we can compare those values at the end of the year. In accordance with the conversations that we had with the departments, we can say that we've completed our tasks when it comes to investments and the execution would be at a similar level. So 96%, which is a very good result.

Let me remind you, the investment plan, so PLN 3 billion, PLN 800 million. Also the reserve that we will not be touching, will not be moving the assets. When it comes to the distribution divisions, as mentioned during the previous conferences, mining industry when it comes to the development spending is PLN 2.492 billion from which PLN 2.406 billion is for financing, leasing, PLN 86 million. So let me tell you 3/4 of 80% is the spendings for mining.

When it comes to division for tasks of recreation development, it's 35%. In total, it's not what we would like to see, but this is something that we can do because the recreation and maintenance are very important components that provide us with the chance to survive, and we cannot -- those cannot suffer because of our investment plans. So we need to divide those assets so that every party is happy with the values they receive.

So let's go to the next slide right now. Okay. This slide, the circular slide that we can -- this pie chart. So we can go to the segments. So PLN 2 billion of the execution, PLN 492 million, [ 2 billion 90 million ] is mining. So of course, outfitting of the mines because we are mentioning that this is a type of activity that every day, we are extracting every part of the deposit, let's say, so a part, we should also prepare for the excavation for every other day. So that's why maintenance of the mining region, so the construction of conveyor belts and stuff like that is important.

Also, for the construction of the transformer station, those are all basic tasks. There are plenty of basic tasks that make our work in the industry mining -- in the mining industry profitable. So we need to have active mining department.

Another very important item in here is replacement of machine park. And we undertaken plenty of actions in here in accordance with the regulations that are in force to rationalize the purchase of machines. And this year, right now in -- for 3 quarters, we have 201 machines, and the goal is 256 machines. And this is the approximate number because every year, depending on the needs, it's always the approximate. So 5 -- plus/minus 5 to 10 machines. And so that's why we shouldn't be mentioning any delays because this is a result of the previous year. So 256 machines. This is something that we want to purchase until the end of the year.

The next item, mine dewatering. So we know the problem. So the water in Polkowice-Sieroszowice. so for example, the anti-filtration barrier needs to be prepared under the shaft SW4. So PLN 187 million. The development of the Zelazny Most tailings storage facility, and we are referencing to that because it was all related to Q3 to get all the acceptances, permits for the exploitations, for the construction, the environmental authorizations and licenses as well, so we can proceed with the construction of the storage. So we need to be consistent and go step by step, but this is also complemented by the investment in the construction of the so-called barriers surrounding the reservoir. So in order to decrease the pressure, and this is the so-called -- so those also -- some wells, special wells, relief wells in order to relieve the area.

Also, the next part, so the replacement of mines and tailings divisions. So different types of modernizations of conveyors, shafts, ACs, ventilations in the hydro facility, hydrotechnical facility. So for example, pipes, the network of pipes because as you can probably recall, one of the reasons of gathering a substantial amount of water when we arrived to KGHM was exactly that. So the infrastructure of pipelines was not good. So we are removing this downside. And right now, we can maintain the safe level of water of Zelazny Most.

And we can proceed. So exploration, this is not significant, so PLN 86 million. And the next year due to the entrance of [ Bitamznski, ] we will be drilling new holes in order to get some more exploration within that region, and this is in perspective. Maintenance of shafts, those are mostly -- so PLN 56 million, and this is mostly for the SW4 shaft complex. So step by step, we need to remove the salt and move the infrastructure. And the biggest part, so deposit access program, so 34% for all investment -- mining investments. And on the first slide, we have 35%. We have development. So this is, in fact, this position, this item plus exploration, of course. So it's still mining and mostly prepared for north, for shafts because a shaft without the possibility of connecting to the mining system becomes a well, and we are not constructing wells. So that's why we are very much interested in the intensification of work for Retków, Scinawa and Grodziszcze.

And for the planned areas, the gallery areas that we have, for Q1, we have 32.4. So within the plan and the execution is not endangered in here, and we are right now going back to the situation from a year ago. So the excavations were underwater. And right now, they are well prepared and accessible. So we are sort of like trying to get the time back. But the excavations are not everything. And for example, we need conveyor belts for those. We need to prepare roads. Those need to be limited because, of course, we need to prepare the proper conveyor belt systems for that.

And it's all when it comes to the basic inflows, and this is also a slide that shows the scope of our works for the upcoming years. And in green, we have the upcoming shafts that we will be constructing in the future. And please pay attention that in June 2023, we have the deconstruction of the shaft. We have been noticing the increase, and it all transfers into the ton of excavation of yield. So right now, we have a stabilization of Glogów. So those amounts are not so relevant anymore. But when it comes to the construction of the following shafts, so GG-1 and on the surface and the equipment of the facility, we have the reinforcement prepared for the shaft and anti-weight in -- for one of the machines, so machine 1. And we are also preparing for the construction of the target cage. We are also increasing from 33 to 34 when it comes to AC of megawatts, but it will be given for the exploitation in September '29. And -- so PeBeKa 2 units from our group, so the general contractor for the surface works, so the liquidation of the temporary facilities and Vipromet, so a company that plays a role of the so-called engineer of the contract will be overseeing the progress of work.

When it comes to GG-2, apart from the planning work for the municipality because we need to get the permits because as you know, in some other words, the GG-2 will be in different place as compared to what was planned before. And the works are going in accordance with the schedule when it comes to the transformator station. So the first hall is done already. So there will be no dislocation and the shaft will be there.

When it comes to Gavoza shaft, we have everything prepared. We are preparing for the geological drills right now. So it's all when it comes to the shaft.

Let's proceed to the next slide when it comes to the execution in metallurgy. So it's PLN 358 million and the main investments and the point of interest of ours at the end of the year. There will be a renovation -- mine conducted. But in general, we are preparing for Glogów 2 that will be taking place next year. So the first contracts, purchases as well, and those are the main points of interest when it comes to metallurgy. When it comes to ZWRs, it's modernization of mills, crushers, ball mills and press fillers -- filters, sorry. And we are counting on ending the Lagnita smelter as well. So the new technology without no caps, no cap -- and until the end of the next year, this installation will be accessible and available.

So that's all when it comes to the investments, the basic info. Thank you very much.

I will digress for a moment here. Such detailed presentation by President Bryja results from 2 things. First, his passion; and secondly, the importance KGHM puts on investment and development and providing long-term efficiency of our facilities. Thank you very much, President. You can see -- we can see your enthusiasm and heart, but time is running out. So let's move on.

Thank you. So let's move on to financial results. Piotr Krzyzewski.

Yes, it's good to be last because I can start from a summary. So I will borrow some of the words that my predecessors used.

So to summarize, the Q3, but also all 3 quarters of this year, we've observed and have been observing good production levels with good cost discipline. At the same time, we're using our opportunities. In consequence, we have good financial results and creation of additional value for shareholders and stockholders. This is what we focused on, and you can see that after these 9 months.

Before we move on to the presentation, 3 key aspects I would like to emphasize. If I started from finances, I would say the first important element here, President Szydlo mentioned that is the exchange rate. We discussed a lot about tariffs. They are important. However, through the prism of our results, we are able to manage our trade activities so that tariffs do not affect us so much. But the exchange rate affects us just like all the other European economy and all the other industries in Europe. And this is a great challenge in terms of competitiveness for the industrial -- from the European industry.

In Poland, it's particularly important because zloty is also very strong right now. So as the President said, on one hand, the copper prices raised by 5%, and our currency also raised by 5%. So at the end of the day, all the national assets, the price of copper in dollars then calculated -- recalculated into zloty has the same value, even though it increased in general.

In terms of trade, again, the last quarter was very dynamic. On one hand, spread between LME and CME grew by PLN 3,000 almost. And then we had the 2nd of August when we finished the claim based on Paragraph 232 in the States and the decision was made of not imposing tariffs on semi-finished products, but raw materials were tariff -- were taxed. So again, it did not affect us so much. We were able to rechannel our goods and the flow of our goods. So thank you very much for the commercial team and our clients, our logistics department. So we -- there was a lot of time pressure there. But as you can see, the results are impressive.

And energy aspects. Again, very volatile, first transactions, first PPAs in the history of the company. We purchased 110-megawatt hours, 2 big wind farms that will provide energy for us next year. To give you the bigger picture, this is 5% of the purchased energy a year. And if we look at it from the perspective of the infrastructure, it's like Legnita will be covered by 72% by wind energy. And from the perspective of ESG, it's like in Scope 2, we reduced Scope 2 by 5% next year. So energy transition is important, but I also have to emphasize the fact that this is a very efficient financial instrument, and it will contribute very well to lower cost of purchasing energy in the next year and years to come.

Moving on to the presentation now. In terms of group revenues, it's 1% lower. But as President Laskowski mentioned, it has its reasons. President Szydlo, the maintenance on electro-refinition at Glogów was responsible for that. I will show you what it means. We produced less, but we managed to earn more. And this is something we focus a lot. It's not about production volume, but we want to produce as efficiently as possible in terms of finance.

Operating costs, also lower by 1%. What was mentioned during our first quarter conference, we focus on cost discipline. Cost optimization program is working very well. And then if we take into -- exclude depreciation, then it's minus 2%. So this is something we will be doing in the coming periods, as you will see.

So the adjusted EBITDA, as you can see, is plus 16% year-on-year. But again, keep in mind the fact that in 2024 for 9 months compared to 9 months 2023, EBITDA -- adjusted EBITDA was plus 43%. So very, very high dynamics of growth. So we're raising the bar.

In terms of the contributions, as you can see, over PLN 1 billion higher EBITDA, out of which Sierra Gorda, PLN 7 million, then KGHM Polska Miedz, KGHM International, also strong contributors as well. President also mentioned Sierra Gorda here. What we do in our domestic assets, we also do in international assets. So we focus on one hand, fulfill our cost discipline. And in Sierra Gorda, it's a low-grade mine. This is the most important aspect. So the financial lever is very important here. And we've made a lot of changes here, both personnel and managerial, minus 1 level, relations with our partners, Safr2 is also doing very well. So the team of the President also contributes in many areas to Sierra Gorda. And the cooperation between the assets is also very good, and we see very positive results of that here.

Here, looking at group sales revenue, the first is, yes, the renovation in electro-refinition. You can see the sales -- changes in sales volumes is copper and this is due to the maintenance in electro-refinition. So by 16% own contribution, own concentrate and 4% only in foreign inputs. So it shows how well we are able to adjust. A great thank you for the smelter departments. So we're looking at production through the perspective of finances. And the results are really, really well.

The other positions should be connected. So position 2, 3 and 4. If we combine them, we have PLN 800 million plus. So this is how efficiency and management looks like, risk management looks like. This is plus PLN 800 million. To remind you, last year, we have generated PLN 670 million plus. In this year, it's over PLN 100 million. And again, our strategies work in a way that they can allow us to participate in exchange rate increase. So this contributed positively to the result.

Here, we have the expenses by nature. Again, we're getting very close to the inflation levels, 4%, both in terms of capital group and similarly on domestic assets, again, again, plus 4%. The biggest value positions here are well, tax, unfortunately, plus 10%. In terms of value, I would say, cost of -- labor costs, PLN 300 million in the capital group in Poland, PLN 200 million. Also here, we have the reserve for the pension expenses.

And let's take a look at the use of materials here. It's also going -- it's still going down. And a great work -- a great achievement of the capital group here. Energy and energy factors here, the quantity decided here, the price is lower, but we used more energy, less gas. This was also a result of some of the maintenance activities on steam and gas blocks. So I would say the budget of gas plus energy keeps being optimized, and that contributes to very good results.

And that -- that gives us the image we see. So C1 unit cost. In the capital group, we have minus 6%, but if we exclude the tax, the decrease is minus 13%, which is a very good result. And that here is a result of both production efficiency and cost regime. Taking a look at some particular clusters of assets in Poland, plus 2%. But again, if we exclude the tax from that, that would be minus 4%. So from that perspective, again, great cost discipline and all the factors that we could influence determine the fact that C1 go down. And then C1 is recalculated and dependent on the USD rate. So if we exclude that as well, then that would place us on the level of minus 9% almost. So this is the real value if we eliminate both the tax and the exchange rate from our analysis.

Then taking a look at KGHM International, as the President mentioned already, good levels of production, both on Robinson mine and TCRC is supporting us here. Logistics costs got down mostly. All that contributed to the fact that C1 in KGHM International got down by almost 40%. And Sierra Gorda marked decrease of almost 50%. And here, TPMs are very, very important. And the facts that were already mentioned, TCRC, molybdenum, all the opportunities on the market we have used. And that is showed in C1.

And then the financial results. The first column, let me just mention that it's without -- Sierra Gorda excluded. So KGHM International and domestic assets, positive contribution. And what was mentioned by President Laskowski, I would like to thank the mining departments that contributes very, very well in both assets. And as the President said, the last quarter in Poland in terms of ore extraction is very good in Poland. And we see that this tendency is being continued also now. So these perspectives are really good.

Second parameter that contributed positively would be our loans and loans also sent to Sierra Gorda. And the biggest negative element, exchange rate differences. To give you the picture. These are the exchange rate differences resulting from our loans granted to Sierra Gorda. And because of that, the change of exchange rate, the result is around PLN 1 billion. And part of our debt, part of all the bank liabilities we have is also denominated in dollars that contributed positively, gave us PLN 200 million plus, but then we are still minus PLN 800 million minus. That influenced detrimentally the financial result of the group.

Last thing, cash flow, also very important, if not the most important because cash is what matters in the end. Looking at operational cash flow, comparing it with investing activities, we are very close to financing our investing activities with operating activities. And here, I would like to point one thing to your attention. EBITDA positive -- contributes very positively. But then stock, something that will be connected with the maintenance in Glogów smelter. We have some last corrections on our budget for the next year. We don't want it to influence our cathode production. So we are calculating right now how many anodes we need to create to make it in time without this smelter to provide stability of the company. So by the end of September, in semi-finished products, you probably observed that it's over PLN 1.4 billion is semi-finished product, mainly anodes that we are producing right now for stock. We have it very well calculated and it pays off, I have to assure you. It will cost us some of the current assets. But still by the end of the day, it will positively contribute to our results. So I think on the annual conference, we will show you that and this element is going to be growing. It's going to be increasing.

One more thing that I would like to mention in the last days to conclude the cash flow. We will be [ emitting ] our bonds in December. This is a planned transaction that contributes to the strategy that writes in the strategy of stable financing. One of the important elements, apart from bank financing, would be bond financing. We have the whole program written down. We already emitted bonds once. Right now, we will refinance that emission and that issuance, we want to prolong the refinancing terms, and we want to use the positive situation, market situation. So this is something that you will be shown by the end of the year for sure. Thank you very much.

I would like to thank the Management Board for the presentation of results. Now feel free to ask the questions. And due to time limitations, please focus on the questions for this presentation today. Do we have any questions from the room? No questions from the room. I think I have a question from the Internet, from the web.

Jakub Szkopek, Erste. It's pretty long. When it comes to 2 years ago when the Management Board was taking job at KGHM, they were basing their actions on the assumed copper prices. Right now, the copper prices are 11,000 increase the prices of gold and silver, increase tax on excavation. When the Management Board will test again and reverse the -- and write-offs, and to reverse the write-offs.

Yes. So to answer those questions, when I remember from PLN 8,000, PLN 8,250. Right now, we are close to PLN 11,000. We need to add one more parameter. Back then, the exchange rate was PLN 4.10. Right now, it's PLN 3.60. It's a very important element when it comes to the increase because it's not high when it comes to Polish zloty, but some other aspects as well because as I understand, the matter of the change when it comes to the taxation, the tax for the balance date, we'll be talking to the auditor to the supervisor, and this is an aspect that was -- is being analyzed by us, whether there is a reason for that. So we need to have a broader look, not only through the prism of the copper price itself. Thank you very much.

And to continue with the questions via e-mails, I think it's for Ms. President and for Mr. President Piotr Krzyzewski. So 2 questions from Morgan Stanley. Number one, when can we expect an update on the Sierra Gorda development? What areas are the feasibility studies conducted for?

So ladies and gentlemen, we are trying to have a very detailed approach when it comes to investments for Sierra Gorda. At the current stage, we are in the preparation of the feasibility study. For which, the end date is at the end of this year or the beginning of the next year. And only then we'll have the full package of information that will be the basis for our decision. And we can -- we will be able to talk about the further investment decisions. Right now, the gathering information stage is in progress.

Question number 2 from Jannis. What part of the turnover capital -- working capital can be reversed in Q4?

So as mentioned, the key element will be the matter of the construction of the optimal state of semi-finished products. So -- and what will be the burden of the turnover capital? And we are working on some other elements as well to free up the capital as well, and this is something that you can observe too. So it's very difficult for me to provide the details when it comes to the numbers. But just to add on what Ms. President was saying, our strategy from the very beginning was for our assets to be developed, and we are focusing on what you can see right now, and we have agreed with our partners that, first, the assets need to be produced effectively, the goals, the results need to be reached, and then we can talk about the investments.

The first one is executed, reached and needs to be continuously reached. But right now, we can talk about the investments. And I think that this aspect is very complex because from the perspective of the fourth line, green line, this aspect is much more complex. So we are making the drills in the concession area. So the mineralization is in the neighborhood. And the layout, the exact layout of Sierra Gorda, this is something that we are having discussions over. And we are considering all the assets that are developing in terms of operations, and we are looking at the investments from the financial efficiency.

So I'll just add on this. From the very beginning, so for a longer period of time right now, we have been saying that, first and foremost, the international assets should be organized and optimized, and this is something that is being done.

And secondly, not so long ago, we had a problem of the due date of loans. And this problem was resolved too.

The third thing, this year, Ms. President was referring to the payment of loans. And it's good that it's happening. So this will also be contributing to -- for us to protect us from the proper levels of the pay of the loans when it comes to the exchange rates.

And the last thing, the most important one, the CapEx that are pretty relevant when it comes to the off-sites and the fourth line. And to be truth with you, the burden of the investments when it comes to the group, we all know it, and we have been signalizing it as a Management Board. The biggest challenge when it comes to the investment is at KGHM. S.A. And of course, the project that can be attractive, so increase of the -- increasing the Sierra Gorda production capacity when it comes to the fourth line, provided that it's going to be effective, efficient, can go hand-in-hand with what we are planning when it comes to the finances for KGHM. So for example, if we consider this to be very efficient with relatively short return rate, we need to remember that fourth line is working negatively -- in a negative manner for the so-called loans. And we are turning this capital well, it's working well. So when it comes to the answer, we need to search for the proper balance for the investments.

First, we need to proceed with the ones that are the most important. So for example, the ones that we need to execute, then we need to proceed with the ones that are the most profitable ones.

So just to add on that answer. the last sentence from me. We would like to focus on the production to be at a foreseeable level, and this is something that we are putting a lot of effort into right now. We're talking about the Millennia CapEx, $700 million for the fourth line of Millennia. So this is something that we need to keep in mind.

And what was stated before, the international assets are contributing positively to EBITDA. So right now, 46% of corrected EBITDA. But at this CapEx, we need to be sure that the return rate will be proper.

So just at the very end, to remember, for Sierra Gorda, the decisions are made with our partners. So we are -- we have 50% of shares, but this is not a monopoly for the decision. So we need to agree upon those, and we are co-referencing and searching for proper solutions.

I would like to add one more sentence when it comes to financing because ladies and gentlemen, this is something that we have been communicating and saying to you. We are trying to separate the international assets from the banking perspective. So for example, $500 million for Sierra Gorda, there's a bigger option in here to get more financing. KI is getting more financing for different assets as well with our support from the substantial part. So I would like to say that we are not defining the risk of cannibalization of CapEx because I think there is no risk as such.

But when it comes to the loans and changing the philosophy not to generate additional loans, yes, this is something that we have been focusing on from the very beginning, and we have been -- so we will be providing the financing from the operational standpoint, but for respective assets.

If I can just ask President Krzyzewski, you said that we produced less but earned more. So at KGHM, Q4 usually was the biggest sales. So what is the prediction for the future that in Q4, we produced more and we sold more and earned more. Is that possible for the future for Q4?

A very good question. But I have to answer when it comes from the sort of like the back office perspective. And I think that this is actually publicly available when it comes to the European market. So the benchmark, so [indiscernible] for cathodes is 40% higher compared to this year. So I will not comment on that. But for sure, we will be optimizing that in the long perspective. The company earns as much as possible on its products, of course, depending on the availability of the items on the market. And this is something -- we also need to remember about the geopolitical world. So we are responsible for the 50% of the copper in Europe. So this technological track is dependent on us in Europe, depending on the partners, depending on the availability of the product and raw materials, too. Thank you very much.

One more question from mBank from Mr. President Bryja. When it comes to, what will be the profile of the expenses for new 3 shafts in time? So the CapEx will be divided in even amounts. Are there any more intensive -- intense periods?

When it comes to the construction of the shaft, the most expensive part is the deepening part and then equipment of the shaft when it comes to GG-1 and Glogów is of different purposes. And this is transferring to the providing proper equipment for the shafts because we need to remember that any additional equipment is sort of like limiting the amount of air within the shaft. When it comes to the first hole drilled in Retków, we are just waiting for 2 more, the construction of the freezing units, so 44 holes need to be drilled the whole installation. When it comes to the deepening of the hole, we are assuming at 2028, 2029. When it comes to the shaft, it will be deepened and evened out in accordance with our schedule around 2036. And this is the most important part for Retków, but all the remaining shafts within the period of 2 or 3 years will be going after that shaft. So that will be the concentration of the period from 2034 to 2040. So those will be the expenses in different parts of time for 3 shafts. So Retków will be finished in 2040, the next one in 2042, and the next one in 2044.

So if we are talking about the deepening as being the most expensive part and then providing the proper infrastructure for the shaft is the 30s, but it's very difficult to indicate a specific year because we haven't started the deepening period yet. So it's a matter of a year or 2 years. So thank you very much.

Thank you very much. So do we have any questions from the room? If not, then it's...

The last question, a bit technical, analytical from me. I will try to answer that and maybe Mr. President will -- -- so Adam Milewicz from PKO BP. Why in Q3 of this year, why is it the income tax CIT, corporate income tax, is so high.

So last year, we've been observing the return of CIT from the previous years, and this is sort of like distorting the analytics part of this tax. And this one that we have right now is a standard level. So please consider that for -- in terms of the previous periods as well.

Right. Thank you very much for attending this conference and feel invited to the next one that will be happening next year. Thank you very much.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]