KGHM Polska Miedz S.A. (KGH) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Agnieszka Winnik-Kalemba, and I will be the Chair Woman of the Ordinary General Meeting of Shareholders of the KGHM until the Chairwoman or Chairman of the ordinary meeting is selected. I would like to give a warm welcome to the Board members and the shareholders and CEO, Mr. Tomasz Zdzikot: and Mateusz Wodejko in charge of -- Vice President in charge of Finance; Marek Swider in charge of Production; Mr. Kidon, in charge of foreign assets and Vice President; Marek Pietrzak in charge of Corporate Affairs. I would also like to welcome all the representatives of the media and the employees of the company and in the minutes will be written by [ Radoswakf Stepnyak ]. And please suggest your candidates to the Chairman or Chairwoman of the General Meeting of Shareholders of the KGHM.

Good morning, Andrzej Leganowicz, a shareholder of one share and I would like to submit myself as a candidate for the Chairman. And then should I be selected, I will assume the post. Are there any other candidates?

Then please be informed that only one candidate has been submitted as Mr. Andrzej Leganowicz as the Chairman of the Ordinary General Meeting of Shareholders. And now I would like to ask a representative of Programma company to provide the shareholders with information on the instructions on how to vote.

Good morning, ladies and gentlemen. When you registered, you obtained 3 tokens. Yes, no, and withheld. And when the Chairman announces the resolution to be voted and then you wait for the information on the Board. And at the back of the token, you will have information which one it is. And after the voting, you will find out who voted in favor of yes, favor of no, or who withheld and people who share that are voting. They need to place their tokens against the tablets. And please remember that you always need to verify the votes. All the other tags will be summed up automatically. Should you have any questions, please summon me, and I will be happy to help.

And Mr. Chludzinski from the Supervisory Board has just joined us. And is everything clear as for the instructions on how to vote. Are there any questions? No questions. So I would like now to have a secret ballot of choosing -- of selecting the chairman of the meeting represented by Mr. Leganowicz. [Voting]

Voting in progress. Have you all voted. Thank you very much, and the voting is closed. And now I would like you to provide us with the results of the voting. Thank you very much. And so the number of votes cast was 136,959,927, all of them valid votes and in favor, voted 136,956,998 votes there was not a single vote against and 2,929 votes withheld. And so as a result of the secret ballot, Mr. Andrzej Leganowicz has been selected Chairman of the General Meeting of Shareholders. And the floor is yours. Thank you very much.

Thank you very much for entrusting me with the position of the Chairman of the Annual Meeting. Let me first sign the attendance list. And the list signed by the Chairman of the General Meeting of Shareholders is available for you for review. If should you have a need to take a look at the document, it is possible by the end of the General Meeting of Shareholders. And therefore, we have covered then Item 1 on the agenda. And the next item is a resolution on the propriety of convening the Annual Meeting of Shareholders as announced. And the -- on the 25th of May, on the day of publishing the announcement, the company subjected reports and drafts of resolutions which is in accordance with the regulations of public companies. And the documentation has been printed on the company's website on the day of convening the General Meeting of Shareholders and the documents fulfill the requirements of -- and the documentation is visible on the website until now. And not a single shareholder has used his or her right. To introduce an item on the agenda, outside of the existing agenda and the number of people entitled to participate in the meeting has been published according to the Polish law and according to Article 25 Item 1 of the company's statute General Meeting of Shareholders can adopt resolutions if 1/3 of the capital is represented in person or represented stakeholders total at 597. So the total number of votes present is 136,959,929. And the represented capital is 68.408%, which means that the quorum capable of adopting resolutions is represented in the room, and please be informed that electronic presence cannot be accepted, votes cannot be cast by correspondence either, we only accept votes cast personally in this room. So let me announce that the General Meeting of Shareholders is capable of adopting resolutions. And the course of meeting is presented online and representative of PricewaterhouseCoopers Is present here in the person of [ Rafa Mashutak ] . Are there any representatives of the media in the room? If so, release introduce yourselves.

Good morning. [ Tomasz Jozwiak ] from [indiscernible] website.

[indiscernible].

I understand that these are the only representatives of the media. Does any shareholders would like to voice restrictions against the presence of representatives of the media. If not, then in the face of the General Meeting of Shareholders, being capable of adopting resolutions. We have realized 3 declaration that the Annual General Meeting has been duly convened and is capable of adopting resolutions. So we can assume that the agenda is that all the shareholders and proxies are familiar with the agenda. Would you like to voice your comments to the agenda? If there is any comments, please stand up. No opinions. So this is the suggested resolution of the Ordinary General Meeting of KGHM Polska Miedz which resolves the following: the following agenda for the general meeting of the company is adopted. Paragraph 1, the following agenda for the Annual General Meeting of the company is adopted. And the agenda follows including 15 items which, as we have previously agreed is known to the present. And now we are on Item 4 of the agenda and in article 2 of the resolution. Are there any comments on the wording of the resolution. If there's no comments then let's vote on adopting the agenda. And please cast your votes. As I said before, proxies who have many proxy, proxies of proxy, please let us know that you have finished voting. Thank you very much. I understand that all of votes have been cast, and please present to us the results of the voting. In total, 136,959,927 valid votes have been cast and in favor 136,959,927. So I announce that the resolution has been unanimously adopted by the shareholders. And now we are headed for the report section of this meeting. And let me refer to the publications made by the company, Items 5, 6, 7 on the agenda. And the procedure is as follows -- the suggested procedure is as follows once we refer to the publications and I strongly encourage you to do that. Please listen to the presentation of the Management Board where the major lines will be presented and will include items 5, 6 and 7 of the agenda where everyone will have an opportunity to express his or her opinion. Are there any comments? No. Thank you. And I would like to ask the management Board to present the major thesis of the report.

Thank you very much. We've seen the statements already. Let me present the main components of our report, the circumstances that impacted the content. Firstly, the specificity of the industrial market and our business impact our results both in macroeconomic terms, external circumstances. Firstly, and our products, raw materials, as you can see on the slide, last year, it was characterized by relatively high level of changes, especially in the first quarter of 2022 to go down in next quarters. The annual average was considerably lower than in 2021. Similarly, when it comes to prices of silver, the drop against 21% over 13%. A going up molybdenum. What had positive favorable impact was the exchange rate of American dollar. We will discuss it more in the further part of the presentation. Discussing specific departments. Key figures consolidated income of nearly PLN 34 billion over PLN 4 billion. That was capital investment. We believe that the time despite the objective difficulties because both last year, we had still COVID and the war across our Eastern borders. So that is the time when it's worth investing in the future. We made some investments last year and have been continuing that this year. We have proven that KGHM, despite the objective difficulties, despite the instability of the raw materials market resultant from the Russian invasion of Ukraine, unstable power engineering market and disturbed chain of supplies. Our operation was stable, and we could invest in growth and the future of our company. We are very happy Mr. Swider will elaborate on that. We had the lowest accident ratio in our company. Safety is our priority. Mining industry is a very difficult industry in these terms, but we are happy with our results, and we can be satisfied with what we've achieved. When it comes to key figures, I've mentioned a few already, rates for copper and silver went down dollar against gold was favorable when it comes to production outcome, you can see some negative values, but let me iterate that on Polish market, these are favorable results. When it comes to foreign assets, we sold Franke mine bearing in mind the specificity of the deposit in Sierra Gorda. Those were the main factors that impacted our production on this level. C1 cost increased macroeconomic circumstances factors related to such things as prices of energy, inflation, these are the factors that significantly increased our C1 cost. Despite the external factors, we've achieved satisfactory level of EBITDA nearly PLN 8.9 billion and a satisfactory net result, which shall be elaborated shortly by President Wodejko. Now let's move on production results. Let me pass the mic to my colleague that's in charge of production.

Ladies and gentlemen, key figures, production figures of KGHM, copper production, 733,000 tonne domestic assets and foreign assets. As Mr. Zdzikot has just said, this is a very good result for Polish in terms of Polish assets 1% year-over-year when it comes to foreign assets, production of copper in Sierra Gorda minus 13% in international, minus 22%. Sierra Gorda that was a mining of copper of from lower content deposits. When it in terms of international, it was the south of Franke mine in the first quarter of 2022. And lower production in Robinson mine. When it comes to safety ratios, KGHM -- in KGHM, safety of employees is priority LTIF safety index is minus 10.3%. It was the safest year in the history of KGHM. We have relevant certificates of health and safety, and the company has won yet another time with a golden card of the leader in this respect. Thank you.

Let me just add that I do confirm the safety Health and safety is our absolute priority, both in Poland and abroad. That is something we can boast about. Safety parameters we've achieved in Chile, U.S. and Canada are of world class. Let's move on now to our Polish investment projects. In 2022, we've been really successful because CapEx was met in 100%. It was evenly spread on opening maintenance, but we also remember about growth. The next slide shows us implementation of our pro environmental investments. We've spent PLN 252 million. That's about 10% of all the spending, CAPEX spending. Let me draw your attention that when it comes to air protection, that's PLN 30 million. We've also delivered into a machine reduction SOLINOX system, water handling or water management is another important impact as well as waste handling PLN 93 million. These are big investment projects important for our environment in helping us manage our production in the right way. When it comes to foreign spending, very good picture, very good cash flows in Sierra Gorda, nearly USD 200 million. All in all, when it comes to foreign assets, it's $277 billion. Do notice that the reversed financial trend that has continued for a number of years, we've managed to reverse that trend, and we go in the right direction right now. The perspectives are getting better and better. Thank you. I'll pass the mic to Mateusz.

Good morning. As Mr. Zdzikot said, 2022 was a good year when it comes to results. It was a year in which, despite the difficulties caused by the war in Ukraine, good year for the company, one of the best years in the history. Of course, those are compared to 2021. That was a record high, a year of very high prices of copper and silver on global markets. But either way, bearing in mind all the factors we've heard as well as the factors that I will present in a second. 2022 was a year that we can be really happy with. 2022 was also a year -- an important year when it comes to implementing new KGHM strategy. The strategy focuses on the following development directions, flexibility, effectiveness ecology, industry and energy. Bearing in mind the macro factors, indices, energy prices, 2022, was the beginning of implementing strategic programs that are continued in 2023. When it comes to efficiency, it was a stable year, high productivity both in mining and metal production. When it comes to economy, we finished -- we've completed some important projects, SOLINOX system operable in 2023 implementation of the Pro environment policy, industry continuation of certain projects energy, that involves both climate policy and energy transfer projects related to renewable sources and projects related to gas as well as nuclear power. When it comes to gas, it's a replacement of a coal unit for a modern one. When it comes to renewable energy intense activities, building own ecosystems and acquisitions, certain acquisitions when it comes to nuclear power, a house of activities finished in 2020 that led to an application for a specific location in 2023. Climate neutrality, net zero, very important objective that involves many investment measures related to energy transition. Let me remind you that in 2030, we will reduce emissions by 30%. We assume that 50% of the energy consumed by KGHM will be from own sources or obtained in different ways than renewable. EBITDA for the group consolidated that is taking into consideration our participation in Sierra Gorda, PLN 8.860 billion, slightly lower than in 2021. But we need to remember that 2021 was a record-high year. Prices of silver were different. When we check what are the components, KGHM published only PLN 85 million slightly below EBITDA. Sierra Gorda PLN 977 million, international, over PLN 300 million, what it stemmed from although in Poland, the growth offset drops in prices of copper and silver. But in Sierra Gorda and international, there was no such phenomenon. Therefore, lower raw material prices prevailed and the factors that my colleagues mentioned, different deposit characteristics, lower content of copper in the space. What is good about it is the increasing income plus 14%. Financial results. Net financial results consolidated PLN 4.77 billion lower than in 2021. But do notice that when it comes to changes in income on operating costs, then the increase offset the increasing operating cost overhead costs. The change resulted from a joint undertaking but that was a onetime event of 2021 that impacted the financial results of the year. The operations were stable on a safe and good level. The Board's recommendation for distribution of profit. Our recommendation favorably reviewed by the Supervisory Board, we recommend PLN 200,000 million for dividends, that is PLN 1 per share and PLN 3.33 trillion for the shares reserve capital. The recommendation is in line with the dividend policy of the company, which says that up to 1/3 is for dividends, taking into account the current and expected situation. So as the company's debt is on the safe level, the approach results from the fact that we are in -- during the big investment project PLN 3.250 billion capital investment over PLN 2 billion. Therefore, we assume that this financial safety requires these numbers. Thank you.

Thank you. According to the announcement, let me now start a discussion on items 5, 6 and 7 of the agenda. Is anyone interested in expressing his or her opinion. 1 person. Please introduce yourself.

My name is Marek Barylak, I am a private shareholder and I would like to present a specific draft of resolution on the representation on the appropriation of representation expenses. And if you refer to Item 11D of the agenda, we will do that because I understand that you are going to present an alternative.

Are there any opinions on Items 5, 6 or 7 on the agenda, if there's no other opinions. Let me conclude that the Items 5, 6, 7 on the agenda have been presented to the general meeting and it has been also reviewed by the meeting. Items 8, 9, 10 are report of the Supervisory Board submitted before the meeting of shareholders. And I would like you to refer to the publications of the company and to hold a possible discussion when the interested parties will have an opportunity to refer to the content of these reports. Are there any reservations about this procedure? No. So let me first refer to the publications of the company, the reports published as reported in items 8, 9 and 10 of the agenda. And let me open a discussion. Is anyone interested in expressing his or her opinion on the report of the Supervisory Board as presented before the General Meeting of Shareholders, referred to in items 8, 9 and 10 on the agenda. No opinion. So I assume that reports mentioned in items 8, 9 and 10 of the agenda have been submitted before the General Meeting of Shareholders and duly reviewed. And now let me proceed to Item 11 of the agenda. We will have a series of voting, A, approving our financial statements for the financial year ending under the 31st of December 2022 and the draft is as follows. And the resolution reads as follows: the Ordinary General Meeting of Shareholders with the [indiscernible] head and it regards approval of the financial statements of KGHM and taking into account the report of the Supervisory Board on the results of its evaluation of the financial statements for the financial year and having considered it revolves as follows: a separate statement of profit and loss for the period from January 1 to December 31, 2022, showing a net profit of PLN 3.533 million separate statement of comprehensive income for the period between January 1 and December 31, showing a profit on total comprehensive income of PLN 4.435 million. And separate statement of cash flows showing a decrease in net cash for the period from January 1 and December 31 of PLN 344 million and the cash balance as of the 31st of December of PLN 985 million, the separate statement of financial position at on the 31st of December 2022, which shows total PLN 47.995 million on the assets and liabilities on the equity side. And Item 5, a separate statement of changes in equity, showing an equity balance of PLN 29.675 million and increase in equity between the 1st of January and December 31 of 3.835 million and Item 6 notes to the separate financial statements. Are there any opinions. I cannot see any opinion. So let's vote. And the simple majority of votes is adopted. Please cast your votes. [Voting]

Since has everyone voted, the voting is closed. The number of votes cast is 136,959,927 in favor of 135,869,750, against 52,211 and withheld 1,037,966. So the resolution has been adopted by the General Meeting of Shareholders. And in point B, we have approval of the consolidated financial statements of the KGHM for the financial year. And the question is, do we need to read in full the resolution in full there is no such opinion, then we assume that the present shareholders know the content of the resolution. And the question is, would you like to comment on the suggested wording of the resolution on approval of the consolidated financial statements for the financial year ended on the 31st of December 2022. No opinions I assume that we can proceed with the voting procedure. So please cast your votes. [Voting]

I understand that all the entitled voters have cast their votes. The voting is closed, and please display the result. The number of votes cast is 136,957,927 in favor of adopting the resolution, 135,869,750, against 52,211, and the number of votes withheld 1,036,966 so the resolution has been adopted in an open voting. And in point 3, is adoption of the resolution regarding approval of the report of the Management Board on the activities of the KGHM and Polska Miedz S.A. Group and the Ordinary General Shareholders Meeting taking into consideration the report of the Supervisory Board on the results of its evaluation of the report of the Management Board on the activities and article says that the resolution shall enter into force upon adoption. And so I am opening an open voting. [Voting]

Have all the entitled voters cast their votes, it's the end of the voting. The number of votes cast is 136,959,927 in favor of adopting the resolution is 135,914,996 votes against 6,965 votes and 1,037,966 votes withheld. So the resolution has been adopted in open voting. And point D of the resolution concerns the distribution of the company's profit for the year 2022 and the determination of the dividend day and the date of its payment. Here, I would like to suggest the following procedure. First, let me present to you the draft of the resolution as submitted by the Management Board, and I will open a discussion where all interested parties will have an opportunity to voice their opinions or to present alternative drafts. And as I can see, one such draft has been prepared. Then we will have a break, a 15-minute break to find out to check submitted alternative version fulfills all the formal requirements. Therefore, the resolution draft the first article reads as follows: the Ordinary General Meeting of the KGHM resolves to distribute the net profit for 2022 in the amount of PLN 3,533,251,587 as follows to allocate the following dividends for shareholders at PLN 200 billion, which is PLN 1 per share. And excuse me, let me read it again in Item 1 to allocate the following to dividends for shareholders to PLN 200 million. I'm sorry for the mistake. And in item 2 to transfer to the company's supplementary capital PLN 3,333,251,587 article to the General Annual General Meeting shall determine a dividend date of 27th of July 2023 and Item 2 dividend payment day for 2022 of PLN 1 per share as of the 10th of August 2023. Article 3, the resolution comes into force upon adoption. And let me apologize again for my mistake -- previous mistake. I understand that you would like to submit a resolution draft. Please proceed.

Marek Barylak, private shareholder, and let me take the opportunity of the rights that I have as a shareholder and present an alternative resolution, and let me read the content. Resolution of the Ordinary General Meeting of the KGHM dated 21st of June 2023 concerning the distribution of the company's profit and the determination of the dividend date and the date of its payment. The Ordinary General Shareholders' Meetings after reviewing the proposals of the management Board regarding the appropriation of profits for 2022 and setting the dividend record date and payment date, having previously reviewed and considered the assessment of the Supervisory Board resolves as follows: Article 1, the Ordinary General Meeting of the KGHM resolves to distribute the net profit for 2022 in the amount of PLN 3,533,251,587 as follows: Item 1, to allocate the following to dividends for shareholders PLN 600 million, which is PLN 3 per share. Item 2 to transfer to the company's supplemental capital PLN 2.933 billion, and the Article 2 of the resolution, the Annual General Meeting shall determine Item 1, a dividend date of 27th of July 2023. Item 2, dividend payment date for 2022 of PLN 3 per share as of August 10, 2023. Article 3 of the resolution draft, the resolution comes into force upon adoption and the justification. A dividend is a link between shareholders and the company and the recommendation of making a payout of PLN 1 per share may be among the lowest transfer of profits in the history of the -- in the company's history. Please bear in mind that the Treasurer, the State Treasurer, played the biggest role in the company and the state treasury has already made enough money on the related taxes and over 55% of the company's shares are owned by investors. This is called free float investors so the recommended payout of PLN 1 per share over PLN 3.3 billion is below the investors expectations and a payout of a dividend of PLN 3 per share will not be detrimental to the balance between the dividend payout and effective investments on the part of the company. This will be conducive to the company's dividend policy and will encourage investors to buy shares, which will be to the benefit of the company.

I understand that you have prepared this draft in writing. Yes, please submit it. Are there any other proposals referring to the appropriation of profits. If not, then the discussion is over. And as I have said, we will have an 18-minute break. It's 11:57 and please reconvene at 12:15. And they suggested voting is that we first vote of -- for or against this suggested alternative resolution. And if the vote is not -- and then we will have to take different steps should not -- should the voting be against the suggested draft. [Break]

And the meeting of the General Meeting of Shareholders is resumed, and we are on Item 11 part D of the agenda where we are supposed to adopt the resolution regarding approval of -- regarding the appropriation of profits. And the situation is as follow, a shareholder, Marek Barylak has submitted a draft of the resolution and the differences, the wording being almost the same, but the difference is that Mr. Barylak suggests that PLN 600 million are appropriated for dividend, which equals PLN 3 per share and PLN 2.933 billion be transferred to the company's profits and the payout date would be the 27th of July. And the PLN 3 share would be paid out in the 25th of August, and this is the following voting. First, I would like you to vote for or against the resolution as submitted by a shareholder, Marek Barylak. And if ordinary the number of ordinary votes prevails, then we will adopt the resolution as intended by the shareholder. If the required majority is not reached, then we will proceed with the draft of the resolution as suggested by the management Board. Is this clear to everyone before we vote, we would anyone like to voice his or her opinion. Please use the mic.

Good afternoon, [ Martin Novak ], proxy for Goldman Sachs, and I would like to refer to the shareholders' proposal of dividend totaling PLN 3 per share. That's the Management Board approved of this dividend? Is it possible to provide an answer to this question in the course of this meeting?

Yes, I will try to provide an answer. The Management Board has analyzed various scenarios as for the recommended dividend payout, especially that it has varied from 1 year to another in 2018, '19 and '20 we did not pay the dividend at all. In 2017, it was close to the amount recommended for 2022. And the analysis suggest that the KGHM needs funds for growth. And the plans for 2023 are one thing. But in long terms, the massive investment that the company needs to make in Poland and abroad requires money. In Poland, we need to maintain the excavation and the planned shafts. And all these are the elements that we need in order to maintain or increase production for years. Abroad, we are talking about some interesting developmental projects in Victoria, Sierra Gorda and the exploration concessions that -- in Chile and Canada. And of importance is also power issues, the energy transition. 2022 was highly instable when it comes to the prices of natural gas and electricity. So the conclusion is quite simple. We need to invest in new production capacity. We need to think of how to ensure stability of sources of energy so that we have regular sources of energy at acceptable prices. And we also need to bear in mind that in this year and the previous years, the prices of raw materials fluctuated. And so that the currency rates, all this affects the EBITDA, which is the key factor when it comes to debt. So we maintain our position on paying the dividend at the amount of PLN 1 per share. Because on the one hand, we need to do investment that will translate into long-term value for the shareholders and also to maintain financial security, which in changeable times of the post-COVID situation topped with the outbreak of the war in the Ukraine, hence, we maintain our recommendation. Thank you very much. So Marek Barylak would you like to express your opinion.

I would like to refer to what the CEO has just said. Ladies and gentlemen, I do not share the board's opinion. The COVID situation is stable or post of it. And mind you, there was a time when the company would pay out dividends of equaling to 50% of the profit, which did not -- which was not detrimental to the company's operations, and the company was on the right course. And I also said before that the dividend is a link between the shareholders and the company. And as I have presented in the justification, the dividend of PLN 3 per share will not negatively affect the balance between the dividend payout and the company's capability to invest. I understand the draft as presented by you reflects the differences in opinions.

And now let's vote. First, we will vote for or against the draft as presented by Mr. Marek Barylak, the payout of PLN 3 per share. And let's start the voting. This is open voting by a simple majority of votes. So please start the voting procedure now. [Voting]

Have you all cast your votes? Let's close the voting, and let's move on to the results. In total, 136,959,928 votes valid votes were cast. For -- the number for is 13,768,583 votes, against 64,969,884, 58,221,461 votes were abstained. So the draft resolution has not gained the required majority. Let's move on to voting on the draft resolution submitted to the General Meeting of the Shareholders of the company. Let me remind you the amount for the dividend, the amount to be distributed is PLN 3,533,251,587 dividend would be PLN 200 million. That is PLN 1 per share. Dividend day would be 27th July 2023 payment date would be 10th, August 2023. Let's move on to voting. Do cast your votes. [Voting]

The total number of votes cast is 136,959,927 votes for are 136,954,703 votes against 5,223 and 1 vote was withheld. So the resolution in the wording suggested by the Board has been adopted an open ballot in open voting. Let's move on to Item F item, approval of the report of the supervisory Paragraph 2, the Ordinary General Meeting of KGHM approves the report of the supporting Board of the Supervisory Board for the year 2022. The resolution shall enter into force upon adoption. Other any comments or reservations regarding the wording. Let's move on to cast your votes. [Voting]

The total number of votes cast value votes is 136,959,927. Votes for amounted to 135,914,996, votes against 6,965, 1,037,966 abstained. The resolution has been adopted by the meeting of the shareholders. Let's move on to Item 12 regarding opinion of the ordinary opinion on the General Meeting of KGHM on the report of the remuneration of the members of the Management Board and Supervisory Board for the year 2022, the ordinary general meeting of the shareholders expresses a positive opinion on the contents of the report and the resolution comes into force upon adoption. I see now comments and our reservations. [Voting]

This voting will be open voting resolved by ordinary majority. Voting still in progress. Let me close the voting. Let's see the result. In total, 136,959,926 valid votes were cast. In favor of the resolution, were 91,675,932 votes, 37,533,082 votes were against, 7,750,912 votes were withheld. So the resolution has been adopted. Now let's move on to granting discharge in respect the members of the Supervisory Board -- Management Board and Supervisory Board members. As for the manner of voting, all the voting in respect of the discharge will be of secret nature. The second piece of news is the results from relevant article of commercial code stating that there is voting can be either in person or by proxy. If that is the case, technical support people, will exclude certain persons from the voting. Moving on to the proper voting for members of the Board. The Ordinary General Meeting of KGHM Polska Miedz with its registered head in Lublin grant Adam Bugajczuk a discharge in respect of his duties for the year of 2022. Paragraph 2, Article 2, the resolution comes into force upon adoption. Let's move on to the secret voting. [Voting]

In the meantime, let me let you know that the list of attendance has been changed. One of the shareholders has left the meeting the current number of shareholders is 596. The number of shares, 136,959,928, the same number -- the same is the number of votes and the capital was relevantly reduced. But we have the quorum. Total number of votes -- valid votes 136,959,926 million for the resolution 135,345,887, 887 million against the resolution, 580,249, abstained 1,133,790. The resolution has been adopted in secret voting. The next draft regarding discharge of the duties by [indiscernible] for the year 2022, the General Meeting of the Shareholders hereby acknowledges that a member of the Management Board has filtered his duties in a proper manner and [indiscernible] in respect of the performance of his duties in the period from January 1, 2022, to 11th of October 2022. The resolution shall enter into force upon adoption, I hereby open secret voting. [Voting]

Let me close the voting. The total number of valid votes cast is 136,959,903, vote for 135,245,887, votes against 580,249 votes withheld 1,133,767. The resolution has been adopted in secret voting. The next draft resolution of the Ordinary General Meeting of the shareholders hereby acknowledges that a member of the Management Board Pawel Gruza, fulfills his duties in the proper manner. From January 1, 2022 to 9 August 2022. The resolution comes into force upon adoption. I hereby open the secret voting on. [Voting]

Let me close the voting. In total, 136,959,926 valid votes were cast, out of which votes for accounted for 135,245,887 against 580,249 and votes withheld 1,133,790 votes. The resolution has been adopted in secret voting. The next draft resolution regards granting Mr. Miroslaw Kidon able to accept his for the discharge of his duties in the year 2022 from 10th of December '22 to 31st of December '22. Let's move on to secret voting on this resolution -- draft resolution. [Voting]

Let me close the voting. Total valid votes cast is 136,959,926 votes for 135,245,887 votes against 580,249, 1,133,790 votes were withheld. The resolution has been adopted in secret voting. The next draft resolution regarding granting Mr. Jerzy Paluchniak at discharge in respect of his duties for the year, 2022 from September 1 2022 to 11th of October 2022. I hereby open secret voting on this issue. [Voting]

The voting is closed. In total, 136,959,926 votes have been cast in favor, 135,245,887 vote against 580,249 and withheld 1,133,790. So the resolution has been adopted in a secret ballot and another draft resolution pertains to granting Mr. Marek Pietrzak a vote of acceptance for the discharge of his duties for the year 2022. This is a secret ballot. [Voting]

The voting is closed. The total number of votes cast 136,959,926 in favor 135,245,887 against 580,249 and withheld 1,133,790. So the resolution has been adopted in a secret ballot and another resolution draft with respect to granting Mr. Marek Swider, a Board member, a discharge in respect of the performance of his duties for the financial year in 2022 between March 15, '22 and December 31, '22. And let's start the secret ballot. [Voting]

The voting is closed. The total number of votes cast is 136,959,926 in favor of 135,245,910 against 580,249, withheld 1,133,767 which makes the resolution voted adopted, excuse me, and another resolution pertains to granting Mr. Dariusz Swiderski discharge in respect of his duties performed between the 1st of January 2022 and to the 21st February 2022. This is a secret ballot with respect to the resolution. [Voting]

The voting is closed. The total number of votes cast is 136,959,926 votes. In favor, 135,245,910 against 580,249 votes and withheld 1,133,767 which means that the resolution has been adopted in a secret ballot and another resolution pertains to granting Mr. Mateusz Wodejko, a Board member of the KGHM say, discharge in respect of his duties performed between the 21st December 2022 to the 31st December '22, and this is a secret ballot. [Voting]

The voting is closed. The total number of votes cast is 136,959,926 in favor of the resolution 135,245,887, against 580,249 and withheld 1,133,790. So the resolution has been adopted in secret ballot and other draft concerns granting Mr. Tomasz Jozwiak a vote of acceptance for the discharge of his duties as performed between the 1st September 2020 and the 31st December 2020. This is a secret ballot. [Voting]

The voting is closed. The total number of votes cast is 136,959,927 in favor of 135,245,911 against 580,249, withheld 1,133,767, which makes resolution deemed adopted in a secret ballot. As I understand, all the people, all the Board members in the financial year of 2022 have been included in the voting. Item 14 on the agenda, granting discharges of the -- in respect of the duties of the specific Board members in 2023. And the first in the series comes is discharge granted to Mr. Jozef Czyczerski Member of the Supervisory Board of the KGHM in respect of the performance of his duties in 2022. Let's vote. [Voting]

The voting is in progress. The voting is closed. The total number of votes cast is 136,959,926 in favor of the resolution, 125,412,314 against 10,413,822 and withheld 1,133,790 which means that the resolution has been adopted in a secret ballot. And another resolution pertains to granting Mr. Przemyslaw Darowski a member of the Supervisory Board of the KGHM discharge on the performance of its duties for the year '23. This is a secret ballot. [Voting]

The voting is closed. The total number of votes cast is 136,959,926 in favor of 125,412,337 and against 10,413,822 withheld 1,133,767 votes, which means that the resolution has been adopted in a secret ballot. Another draft pertains to granting Mr. [indiscernible] , member of the Supervisory Board of the KGHM discharge for the performance of his duties in the financial year '22 between June 22 and October 7, 2022, this is a secret ballot. [Voting]

The voting is closed. The total number of votes cast is 136,959,926 in favor of the resolution, 125,415,134 votes against 10,411,025 votes withheld 1,133,767 votes, so the resolution has been adopted in a secret ballot. Another draft pertains to granting Mr. [indiscernible] , a member of the Supervisory Board of the KGHM, a vote of acceptance for the discharge of his duties performed between the 1st of January to the 21st of June 2022. Article says of the resolution says that the resolution comes into force upon adoption, and this is a secret ballot. [Voting]

The voting is closed. The total number of votes cast 136,959,903 in favor of the resolution, 125,412,314 against 10,413,822 withheld 1,133,767 votes, which means that the resolution has been adopted in a secret ballot. Another draft pertains to granting Mr. Robert Kaleta, Member of the Supervisory Board of the KGHM, a discharge for the performance of his duties performed between the 1st of January 2022 to the 7th of October 2022. And this is a secret ballot. [Voting]

Can we close the voting? The voting is closed. The total number of votes cast is 136,959,903 votes in favor of the resolution, 125,415,134 against 10,411,002 votes and withheld votes 1,133,767 votes, which makes the resolution adopted. And the next draft pertains to acknowledgment of the fulfillment of duties by Mr. Andrzej Kisielewicz for the year '22 and this is a secret ballot pertaining to the resolution. [Voting]

The voting is closed. The total number of votes cast is 136,959,903 valid votes in favor of the resolution, 125,412,314 against 10,413,822 and 1,133,767 votes withheld, which means that the resolution has been adopted in a secret ballot. Another draft pertains to granting Ms. Katarzyna Krupa, member of the Supervisory Board of the KGHM Polska Miedz a discharge in respect of the performance of her duties for the financial year 2022 and this is a secret ballot. [Voting]

The voting is closed. The total number of votes cast 136,959,903 valid votes in favor of the resolution, 125,404,423 against 10,421,713, withheld 1,133,767 votes, which means that the resolution has been adopted in a secret ballot. Another draft pertains to granting Mr. Bartosz Piechota member of the Supervisory Board of the KGHM Polska Miedz a discharge in respect of his duties performed between the 1st of January to the 21st of June 2022. This is a secret ballot. [Voting]

The voting is closed. The number of votes cast in favor of the resolution, 136,959,903 against 125,412,314 against 10,413,822 withheld 1,133,767 and the next resolution pertains to granting Mr. Boguslaw Szarek member of the Supervisory Board of the KGHM Polska Miedz a discharge in respect of his duties for the year of 2022, and this is a secret ballot. [Voting]

The voting is closed. The total number of votes cast in favor, 125,412,337 against 10,413,822 withheld 1,133,767, votes, which means that the resolution has been adopted in the secret ballot, and another draft pertains to concerning the acknowledgment of the fulfillment of duties by Ms. Agnieszka Winnik-Kalemba, member of the Supervisory Board for the duties performed in 2022, and this is a secret ballot. [Voting]

The voting is closed. The number of votes for adopting the resolution was 125,412,314 votes against 10,413,845, withheld 1,133,767. The resolution has been adopted in a secret ballot. The next draft regards granting Mr. Marek Wojtków discharge for the performance of his duties in the financial year 2022 on the Supervisory Board of KGHM from 7th October 2022 to 31st of December 2022. This is a secret ballot. [Voting]

The voting is closed. The number of votes cast for the resolution was 125,407,243 against 10,418,893 withheld 1,133,767. The resolution has been adopted in secret ballot. The next draft resolution regarding acknowledgment of the fulfillment of duties by Mr. Wojciech Zarzycki , the member of the Supervisory Board of KGHM. Regarding his duties performed from 22nd of June 2022 to 31st of December 2022. Let's move on to secret ballot. [Voting]

The voting is closed. The number of votes cast for the resolution is 125,415,134 against 10,411,002 withheld 1,133,767 the resolution has been adopted in secret ballot. The next draft resolution in regards acknowledgement of the fulfillment of duties by Mr. Radoslaw Zimroz, the member of the Supervisory Board of KGHM in respect of the fulfillment of his duties in the period from 7th of October 2022 to 31st of December 2022. Cast the votes in secret ballot. [Voting]

The voting is closed. The number of valid votes cast for the resolution was 125,407,243 against 10,418,893, withheld 1,133,767. The resolution has been adopted in secret ballot. And the last of the voting in this cycle is voting for acknowledgment of the fulfillment of duties by Mr. Piotr Ziubroniewicz for the year 2022, a member of the Supervisory Board of KGHM for performance in respect of the fulfillment of his duties in the period from 24th of November 2022 to 31st of December 2022. This ballot is secret. [Voting]

The voting is closed, let's see the result. Number of votes cast for the resolution 125,407,243 votes against 10,418,916 withheld 1,133,767. The resolution has been adopted in secret ballot by the General Meeting of the Shareholders. So all the persons from the Management Board and Supervisory Board have been taking account of. Let's move to Item 15 of the agenda that is closing of the general meeting of the shareholders. Having covered all the items of the agenda. Thank you, everybody, for the participants. I hereby announce closing of this General Meeting of the Shareholders. Thank you.