KGHM Polska Miedz S.A. ($KGH)

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.]