Q2 2026 KGHM Polska Miedz SA Earnings Call

Janusz Krystosiak: Of the results of the KGHM Group for the H1 of the year. Leszek Pruszewicz, CEO. Anna Sobieraj-Kozakiewicz, Vice President of the Management Board for Foreign Assets. Zbigniew Bryja, Vice President of the Management for Development. Piotr Krzyżewski, Vice President of the Management for Finances, and Mirosław Laskowski, Vice President for Production. We also have Janusz Krystosiak, Director of Investor Relationships Department. I would like to inform you that our meeting is streamed online, and in the second part of the meeting, you will be able to ask questions both here in the room and by sending it to our email address of the Investor Relationships Department. Now, over to the CEO. Good afternoon, ladies and gentlemen. The H1 of 2026 brought very good financial results and results in terms of efficiency throughout the entire KGHM Group.

[Translator]: Of the results of the KGHM Group for the H1 of the year. Remigiusz Paszkiewicz, CEO. Anna Sobieraj-Kozakiewicz, Vice President of the Management Board for Foreign Assets. Zbigniew Bryja, Vice President of the Management for Development. Piotr Krzyżewski, Vice President of the Management for Finances, and Mirosław Laskowski, Vice President for Production. We also have Janusz Krystosiak, Director of Investor Relationships Department. I would like to inform you that our meeting is streamed online, and in the second part of the meeting, you will be able to ask questions both here in the room and by sending it to our email address of the Investor Relationships Department. Now, over to the CEO.

[Unknown Speaker]: [Foreign language]

Speaker #1: Now, regarding the results of the KGHM Group for the first half of the year: Remigiusz Paszkiewicz, CEO; Anna Sobieraj-Kozakiewicz, Vice President of the Management Board for Foreign Assets; Zbigniew Bryja, Vice President of the Management for Development; Piotr Krzyżewski, Vice President of the Management for Finances; and Mirosław Laskowski, Vice President for Production.

Speaker #1: We also have Janusz Krystosiak, Director of the Investor Relations Department. I would like to inform you that our meeting is being streamed online, and in the second part of the meeting you will be able to ask questions both here in the room and by sending them to our email address at the Investor Relations Department.

Speaker #1: Now, over to the CEO. Good afternoon, ladies and gentlemen. The first half of 2026 brought very good financial results, as well as improvements in efficiency.

[Translator]: Good afternoon, ladies and gentlemen. The H1 of 2026 brought very good financial results and results in terms of efficiency throughout the entire KGHM Group. Revenues up by almost 40%, almost 90% increase of EBITDA compared with the H1 of the previous year, and it is worth stressing that all that happened with a simultaneous decrease of debt throughout the group and a significant strengthening of cash flows. We also saw a significant stabilization and optimization of operations, which led to great efficiencies in costs. Of course, we continue to work on this because we want to take advantage of the good macroeconomic environment in order to build a financial base for the implementation of our investments in Poland and to take advantage of what our foreign assets offer. Not a long time ago, we presented our strategy, a strategy which shows the priorities of our management board.

Remigiusz Paszkiewicz: [Foreign language]

Speaker #1: Throughout the entire KGHM Group, revenues were up by almost 40%, with an almost 90% increase in EBITDA compared with the first half of the previous year. It is worth stressing that all of this happened with a simultaneous decrease in debt throughout the group and a significant strengthening of cash flows.

Leszek Pruszewicz: Revenues up by almost 40%, almost 90% increase of EBITDA compared with the H1 of the previous year, and it is worth stressing that all that happened with a simultaneous decrease of debt throughout the group and a significant strengthening of cash flows. We also saw a significant stabilization and optimization of operations, which led to great efficiencies in costs. Of course, we continue to work on this because we want to take advantage of the good macroeconomic environment in order to build a financial base for the implementation of our investments in Poland and to take advantage of what our foreign assets offer. Not a long time ago, we presented our strategy, a strategy which shows the priorities of our management board.

Speaker #1: We also saw a significant stabilization and optimization of operations, which led to great efficiencies in costs. Of course, we continue to work on this because we want to take advantage of the good macroeconomic environment in order to build a financial base for the implementation of our investment in Poland and to take advantage of what our foreign assets offer.

Speaker #1: A long time ago, we presented our strategy, which shows the priorities of our management board. Regarding the operationalization and implementation of strategic initiatives, I would like to signal that we have recently accelerated quite significantly the implementation of those strategic initiatives that were started already before the announced latest strategy.

Leszek Pruszewicz: Regarding operationalization and implementation of strategic initiatives, I would like to signal that we have recently accelerated, quite significantly, the implementation of those strategic initiatives that were started already before the announced latest strategy. That was mainly about domestic efforts, but also with regard to expansion of our foreign assets. Our colleagues from the management board will talk you through more details of those developments, but I would like to stress that the portfolio of our products is very broad. Domestic investments are one thing, but above all, we have this cost optimization program whose implementation has already started, and we want to combine it with the implementation of the strategy in order to obtain the best possible base, benefiting from the good moment in the business cycle in order to increase value of KGHM and to continue to be a company that pays out dividends.

[Translator]: Regarding operationalization and implementation of strategic initiatives, I would like to signal that we have recently accelerated, quite significantly, the implementation of those strategic initiatives that were started already before the announced latest strategy. That was mainly about domestic efforts, but also with regard to expansion of our foreign assets. Our colleagues from the management board will talk you through more details of those developments, but I would like to stress that the portfolio of our products is very broad. Domestic investments are one thing, but above all, we have this cost optimization program whose implementation has already started, and we want to combine it with the implementation of the strategy in order to obtain the best possible base, benefiting from the good moment in the business cycle in order to increase value of KGHM and to continue to be a company that pays out dividends.

Speaker #1: That was mainly about domestic efforts, but also with regard to the expansion of our foreign assets. Our colleagues from the Management Board will talk you through more details of those developments, but I would like to stress that the portfolio of our products is very broad.

Speaker #1: Domestic investments are one thing, but above all, we had this cost optimization program whose implementation has already started, and we want to combine it with the implementation of the strategy. We know that to obtain the best possible base, benefiting from the good moment in the business cycle, in order to increase the value of KGHM and to continue to be a company that pays out dividends.

Speaker #1: That is as important as the fact that we continue to develop. We also invest, thanks to co-funding from energy transformation funds, in the first half of the year.

Leszek Pruszewicz: That is as important as the fact that we continue to develop. We also invest, thanks to co-funding from energy transformation funds. In the H1 of the year, we signed contracts for over PLN 200 million with the National Fund for Environmental Protection and Water Management, and that will be spent on photovoltaic and wind farms. Abroad, on 1 October, we will have the launch of our investment in the fourth line of processing in Sierra Gorda in Chile, and we are also working on possible acquisitions and alliances with other mining companies so as to achieve a certain good perspective for expansion of our resource base outside Poland. We have also accelerated renovation downtime in Głogów Copper Smelter, and we will shorten it for sure.

[Translator]: That is as important as the fact that we continue to develop. We also invest, thanks to co-funding from energy transformation funds. In the H1 of the year, we signed contracts for over PLN 200 million with the National Fund for Environmental Protection and Water Management, and that will be spent on photovoltaic and wind farms. Abroad, on 1 October, we will have the launch of our investment in the fourth line of processing in Sierra Gorda in Chile, and we are also working on possible acquisitions and alliances with other mining companies so as to achieve a certain good perspective for expansion of our resource base outside Poland. We have also accelerated renovation downtime in Głogów Copper Smelter, and we will shorten it for sure.

Speaker #1: We signed contracts for over PLN 200 million with the National Fund for Environment Protection, and that will be spent on photovoltaic and wind farms.

Speaker #1: Abroad, on the 1st of October, we will have the launch of our investment and the fourth line of processing in Sierra Gorda, in Chile.

Speaker #1: And we are also working on possible acquisitions and alliances with other mining companies, so as to achieve a good perspective for expansion of our resource base outside Poland.

Speaker #1: We have also accelerated renovation downtime in the Guogup foundry, and we will shorten it for sure. It is very important for our production levels, not only for copper and silver production—our core products—but it will also allow us to hire production of sulfuric acid, which, in this situation of uncertainty regarding commodities and the global conflicts around it, became a very good product.

Leszek Pruszewicz: It is very important for our production levels, not only for copper and silver production, our core products, but it will also allow us to higher production of sulfuric acid, which, in this situation of uncertainty regarding the turmoil and global conflicts around it, became a very good product, high margin product. This acceleration also means that we will base the decision on increasing the value chain in Cedynia smelter regarding copper roller and the construction of the fourth line in Chile. We should also remember something that I really want to reiterate, the cost optimization program. We can achieve as much as several hundred million by increased efficiencies. We want to have high efficiency, innovation, security of work, security of employee employment and work conditions.

[Translator]: It is very important for our production levels, not only for copper and silver production, our core products, but it will also allow us to higher production of sulfuric acid, which, in this situation of uncertainty regarding the turmoil and global conflicts around it, became a very good product, high margin product. This acceleration also means that we will base the decision on increasing the value chain in Cedynia smelter regarding copper roller and the construction of the fourth line in Chile. We should also remember something that I really want to reiterate, the cost optimization program. We can achieve as much as several hundred million by increased efficiencies. We want to have high efficiency, innovation, security of work, security of employee employment and work conditions.

Speaker #1: High-margin product. This acceleration also means that we will face the decision on increasing the value chain in the Sardinia smelter regarding copper roller, and the construction of the fourth line in Chile.

Speaker #1: We should also remember something that I really want to reiterate: the cost optimization program. We can achieve as much as several hundred million by increasing efficiencies.

Speaker #1: We want to have high efficiency, innovation, security of work, security of employment for employees, and good working conditions. Here, I would like to extend my thanks to all employees throughout the group in Poland and abroad for their contributions to such good results.

Leszek Pruszewicz: Here, I would like to extend my thanks to all employees throughout the KGHM Group in Poland and abroad for all their contribution to such good results. It is not only the result of the good moment in the business cycle. But in a moment you will see some more specific reasons behind this greater performance. Foreign expansion, not only geographically but also upward the value chain. That is also Cedynia smelter new product, new plant for the Legnica smelter. We also have new direction. Let me mention the commencement of works on extraction of polyhalite in Puck. We had signed a relevant contract with the authorities of Puck Municipality so that we can go through the formalities together, leading to the obtaining of the relevant license.

[Translator]: Here, I would like to extend my thanks to all employees throughout the KGHM Group in Poland and abroad for all their contribution to such good results. It is not only the result of the good moment in the business cycle. But in a moment you will see some more specific reasons behind this greater performance. Foreign expansion, not only geographically but also upward the value chain. That is also Cedynia smelter new product, new plant for the Legnica smelter. We also have new direction. Let me mention the commencement of works on extraction of polyhalite in Puck. We had signed a relevant contract with the authorities of Puck Municipality so that we can go through the formalities together, leading to the obtaining of the relevant license.

Speaker #1: It is not only the result of the good moment in the business cycle, but in a moment you will see some more specific reasons behind this greater performance.

Speaker #1: Foreign expansion not only geographically, but also upward in the value chain. That is also Sardinia, smelter, new products, new plan for the Legnica smelter.

Speaker #1: We also have new directions. Let me mention the commencement of works on the extraction of polyhalite in Puck. We have signed the relevant contract with the authorities of the Puck municipality so that we can go through the formalities together, leading to the obtaining of the relevant license.

Speaker #1: We want to take maximum advantage of the business conditions to achieve lower debt, a good financial situation, and the prospect of high cash flows. Because we want to be a company that pays out dividends—to justify this, let me quote a few points that follow directly from our report, which seem to be highlights to us.

Leszek Pruszewicz: We want to take the maximum advantage of the business conditions to achieve lower debt, good financial situation, the prospect of high cash flows, because we want to be a company that pays out dividends. To justify this, let me quote a few points that follow directly from our report, but which seem highlights to us. High results of the KGHM Group of the entire KGHM in H1 2026 are the result of excellent standing and implementation of development assumptions, including numerous initiatives that had been started earlier and that are covered by the current strategy. High prices in H1 of the year. Also, I would like to say that we face significant volatility in the quotations of our products. That regards not only high prices for core metals, but also for rhenium and sulfuric acid that I have already mentioned. Almost doubling of operating EBITDA.

[Translator]: We want to take the maximum advantage of the business conditions to achieve lower debt, good financial situation, the prospect of high cash flows, because we want to be a company that pays out dividends. To justify this, let me quote a few points that follow directly from our report, but which seem highlights to us. High results of the KGHM Group of the entire KGHM in H1 2026 are the result of excellent standing and implementation of development assumptions, including numerous initiatives that had been started earlier and that are covered by the current strategy. High prices in H1 of the year. Also, I would like to say that we face significant volatility in the quotations of our products. That regards not only high prices for core metals, but also for rhenium and sulfuric acid that I have already mentioned. Almost doubling of operating EBITDA.

Speaker #1: High results for the group of the entire KGHM in the first half of 2026 are the result of excellent standing and the implementation of development assumptions, including numerous initiatives that were started earlier and are covered by the current strategy.

Speaker #1: High prices in the first half of the year. Also, I would like to say that we faced significant volatility in the quotations of our products.

Speaker #1: But this regards not only the high prices for core metals, but also for rhenium and sulfuric acid, which have already been mentioned. There was almost a doubling of operating EBITDA—you must have noticed this in our results—and a tenfold increase in net profit of the group year on year.

Leszek Pruszewicz: You must have noticed that in our results. Tenfold increase in net profit of the KGHM Group year on year. That is particularly important for stable financial standing. Higher, and let me stress it again, production of paid copper by 20% year on year. Silver production 8% up year on year. Increased sales volumes for all our core products. Also gold. We know that it all happened in the conditions of high and stable quotations in spite of the volatility signaled earlier, which proves that we are able to navigate those slightly changeable but overall stable quotations, times marked by these conditions. It also seems to me that another important factor is that we recorded a decrease in C1 cost indicator. For those who specialize in KGHM analytics, that's an important piece of information. Also increase in operating margin from 25% to 34% in the entire KGHM Group.

[Translator]: You must have noticed that in our results. Tenfold increase in net profit of the KGHM Group year on year. That is particularly important for stable financial standing. Higher, and let me stress it again, production of paid copper by 20% year on year. Silver production 8% up year on year. Increased sales volumes for all our core products. Also gold. We know that it all happened in the conditions of high and stable quotations in spite of the volatility signaled earlier, which proves that we are able to navigate those slightly changeable but overall stable quotations, times marked by these conditions. It also seems to me that another important factor is that we recorded a decrease in C1 cost indicator. For those who specialize in KGHM analytics, that's an important piece of information. Also increase in operating margin from 25% to 34% in the entire KGHM Group.

Speaker #1: That is particularly important for stable financial spending. Higher—and let me stress it again—a production of paid copper by 20% year on year, and silver production 8% up year on year.

Speaker #1: Increased sales volumes for all our core products, including gold. We know it all happened in the conditions of high and stable quotations, in spite of the volatility.

Speaker #1: Signals earlier, which proves that we are able to navigate those slightly changeable but overall stable quotation times marked by these conditions. It also seems to me that another important factor is that we recorded a decrease in the C1 cost indicator—for those who specialize in KGHM analytics, that is an important piece of information—and also an increase in operating margin from 25% to 34% in the entire Group.

Speaker #1: That is a significant growth. Now, I would like to hand over to my colleagues from the Management Board with the request to present details for the first half of the year.

Anna Sobieraj-Kozakiewicz: That is a significant growth. Now I would like to hand over to my colleagues from the management board with the request to present details for the H1 of the year. Let's start with Madam Vice President. Okay, then. Thank you. As regard production results and foreign assets, let me start with a discussion of Sierra Gorda. You can see in the graphs the results of Sierra Gorda that account for 55% share. Payables copper 19,600 tonnes for the entire 6 months, 40,200 tonnes. That is -5% year on year. As for silver production, in the H1, 38% increase in production, which stands at 14.9 tonnes. Gold and precious metals stand at 9,300 ounces, and the result is thus 37% worse.

[Translator]: That is a significant growth. Now I would like to hand over to my colleagues from the management board with the request to present details for the H1 of the year. Let's start with Madam Vice President.

Speaker #1: Let's start with Madam Vice President. Okay then, thank you. As regards production results in foreign assets, let me start with a discussion of Sierra Gorda.

Anna Sobieraj-Kozakiewicz: [Foreign language]

[Translator]: Okay, then. Thank you. As regard production results and foreign assets, let me start with a discussion of Sierra Gorda. You can see in the graphs the results of Sierra Gorda that account for 55% share. Payables copper 19,600 tonnes for the entire 6 months, 40,200 tonnes. That is -5% year on year. As for silver production, in the H1, 38% increase in production, which stands at 14.9 tonnes. Gold and precious metals stand at 9,300 ounces, and the result is thus 37% worse.

Speaker #1: You can see in the graphs the results of Sierra Gorda that account for a 55% share: payable copper 19.6 thousand tons. For the entire six months, 40,200 tons—that is minus 5% year on year.

Speaker #1: As for silver production in the first six months, there was a 38% increase in production, which stands at 14.9 tons. Gold and precious metals stand at 9.3 thousand ounces, and the result is thus 37% worse.

Speaker #1: However, I would like to comment on this by saying that the content of silver and precious metals in the ore all depends on the nature of the ore and on the modeled exploitation of the deposit.

Anna Sobieraj-Kozakiewicz: However, I would like to comment on this by saying that the content of silver and precious metals in the ore depend on the nature of the ore, and that was the modeled exploitation of the deposit. As for copper production, here we see a slight decrease year on year. As we informed you earlier, Chile experienced torrential rains in the Q1 2026. Initially, we did not see the impact of those rains on production. But after the H1 of the year, this negative deviation on production is visible. It is slight, yet visible. Sierra Gorda is now working on making up for this. And we are optimistic about success of this. We can see that the content of metal in the ore is higher, so that proves Sierra Gorda is working to achieve the targets.

[Translator]: However, I would like to comment on this by saying that the content of silver and precious metals in the ore depend on the nature of the ore, and that was the modeled exploitation of the deposit. As for copper production, here we see a slight decrease year on year. As we informed you earlier, Chile experienced torrential rains in the Q1 2026. Initially, we did not see the impact of those rains on production. But after the H1 of the year, this negative deviation on production is visible. It is slight, yet visible. Sierra Gorda is now working on making up for this. And we are optimistic about success of this. We can see that the content of metal in the ore is higher, so that proves Sierra Gorda is working to achieve the targets.

Speaker #1: As for copper production, here we see a slight decrease year on year. As we informed you earlier, Chile experienced torrential rains in the first quarter of 2026.

Speaker #1: Initially, we did not see the impact of those rains on production, but after the first six months of the year, this negative deviation on production is visible.

Speaker #1: It is slight, yet visible. Sierra Gorda is now working on making up for this, and we are optimistic about the success of these efforts. We can see that the content of metal in the ore is higher, so that proves Sierra Gorda is working to achieve the targets.

Speaker #1: As for molybdenum production, we see a 6% growth in production year on year. We are at 11.8 million pounds of molybdenum, up. This higher production is the result of higher output, although the ore had lower content of the metal and lower processing levels.

Anna Sobieraj-Kozakiewicz: As for molybdenum production, we see a 6% growth in production year on year. We are at 11.8 million pounds molybdenum. This higher production is the result of higher output, although the ore had a lower content of the metal and lower processing levels. So that means overall that the processing plant stabilized its production and the output indicators remain stable. In this slide, you can see the future project of building the fourth production line in Sierra Gorda. On 30 June, together with our South32 partner, we decided to fund this investment. CapEx amounts to $725 million as of the end of July. And the funding will happen from debt instruments, which are available to Sierra Gorda, and from operating cash flows. Why are we doing this?

[Translator]: As for molybdenum production, we see a 6% growth in production year on year. We are at 11.8 million pounds molybdenum. This higher production is the result of higher output, although the ore had a lower content of the metal and lower processing levels. So that means overall that the processing plant stabilized its production and the output indicators remain stable. In this slide, you can see the future project of building the fourth production line in Sierra Gorda. On 30 June, together with our South32 partner, we decided to fund this investment. CapEx amounts to $725 million as of the end of July. And the funding will happen from debt instruments, which are available to Sierra Gorda, and from operating cash flows. Why are we doing this?

Speaker #1: That means, overall, that the processing plant stabilized its production and the output indicators remain stable. In this slide, you can see the future project of building the fourth production line in Sierra Gorda on the 30th of June, together with our South32 partner.

Speaker #1: We decided to fund this investment. Capex amounts to $725 million as of the end of July, and the funding will come from debt instruments which are available to Sierra Gorda and from operating cash flows.

Speaker #1: While are we doing this while we are doing this in order to increase metal production by 20% as a target solution but also to further reduce C1 costs that is to optimize even further production.

Anna Sobieraj-Kozakiewicz: Well, we are doing this in order to increase metal production by 20% as a target solution, but also to further reduce C1 costs. That is to optimize even further production in this mine. We expect that in line with the assumptions, the construction will last 3 years and in the fourth year, that is in the H2 2030, it will be fully operational and Sierra Gorda is working on making all this happen. Soon we will witness physical launch of this investment on site. The design work have been underway for quite some time. The debate on this project started 5 years ago. And our studies, as well as those of our Australian partners, indicated positive NPV, hence this decision. We expect the greatest outlays in 2027, 2028. Also, there will be an increase of employment in 2028. Małgorzata.

[Translator]: Well, we are doing this in order to increase metal production by 20% as a target solution, but also to further reduce C1 costs. That is to optimize even further production in this mine. We expect that in line with the assumptions, the construction will last 3 years and in the fourth year, that is in the H2 2030, it will be fully operational and Sierra Gorda is working on making all this happen. Soon we will witness physical launch of this investment on site. The design work have been underway for quite some time. The debate on this project started 5 years ago. And our studies, as well as those of our Australian partners, indicated positive NPV, hence this decision. We expect the greatest outlays in 2027, 2028. Also, there will be an increase of employment in 2028. Małgorzata.

Speaker #1: In this mine, we expect that, in line with the assumptions, the construction will last three years, and then in the fourth year—that is, in the second half of 2030—it will be fully operational. Sierra Gorda is working on making all this happen. Soon, we will witness the physical launch of this investment on site. The design work has been underway for quite some time. The debate on this project started some five years ago, and our studies, as well as those of our Australian partners, indicated positive NPV; hence this decision.

Speaker #1: We expect the greatest outlays in 2027 and 2028. Also, there will be an increase in employment in 2028.

Speaker #2: My slide really shows what the construction looks like. We intend to have an additional crusher and the FPG mill, ball mill, and flotation lines. It's a complicated project because we are going to do it during the ongoing operation of the Sierra Gorda facility, so we need to coordinate the work of multiple teams, and the work is underway.

Anna Sobieraj-Kozakiewicz: Well, this slide really shows what the construction looks like. We intend to have additional crusher and the HPGR mill, ball mill, and flotation line. That is a complicated project because, we are going to do it during the ongoing operation of the Sierra Gorda facility. So we need to coordinate the work of multiple teams and the work is underway. From 1 January 2027, we are going to become the chair of the Sierra Gorda Supervisory Board. One important caveat here. Since we speak about the line 4, it means that potentially LOM is shortened by 3 years until 2045. But this is based on the deposits that have been included in the metal plan. So whatever is currently available and identified as available in Catabela excavation area. But Sierra Gorda continues to work on exploration drilling around the Catabela excavation area.

Mirosław Laskowski: Well, this slide really shows what the construction looks like. We intend to have additional crusher and the HPGR mill, ball mill, and flotation line. That is a complicated project because, we are going to do it during the ongoing operation of the Sierra Gorda facility. So we need to coordinate the work of multiple teams and the work is underway. From 1 January 2027, we are going to become the chair of the Sierra Gorda Supervisory Board. One important caveat here. Since we speak about the line 4, it means that potentially LOM is shortened by 3 years until 2045. But this is based on the deposits that have been included in the metal plan. So whatever is currently available and identified as available in Catabela excavation area. But Sierra Gorda continues to work on exploration drilling around the Catabela excavation area.

Speaker #2: From January 1, 2027, we are going to become the chair of the Sierra Gorda supervisory board. One important caveat here: since we speak about Line Four, it means that potentially the LOM is shortened by three years, until 2045, but this is based on the deposits that have been included in the metal plan.

Speaker #2: So, whatever is currently available and identified as available in the Kata Bella excavation area—Sierra Gorda continues to work on exploration drilling around the Kata Bella excavation area. New areas were identified where there is very likely high mineralization, both for copper and molybdenum. In the case of Kata Bella Deep, the drills also show that, underneath the excavation area, there is some potential. Also, in the horizontal dimension, the mineralization is passing through an area and possible pit, which is Salvadora.

Anna Sobieraj-Kozakiewicz: New areas were identified where there is very likely high mineralization, both for copper and molybdenum. In case of Catabela Deep, the drills also show that underneath the excavation area, there is some potential, but also in the horizontal dimension, the mineralization is passing through an area location and possible pit, which is Salvadora. So we know for sure that this is a mineralized area and an ongoing drilling project, Catabela Northeast. 42 drills have already been performed and we do have confirmed mineralization. It is important to note that we are working on the intensification of the exploration drilling because it means prospective deposits that may prolong the life of the entire Sierra Gorda mine. Different colors in the cross section, like blue and red, show high level of mineralization, and you can see that on your right there is a higher density of that.

[Translator]: New areas were identified where there is very likely high mineralization, both for copper and molybdenum. In case of Catabela Deep, the drills also show that underneath the excavation area, there is some potential, but also in the horizontal dimension, the mineralization is passing through an area location and possible pit, which is Salvadora. So we know for sure that this is a mineralized area and an ongoing drilling project, Catabela Northeast. 42 drills have already been performed and we do have confirmed mineralization. It is important to note that we are working on the intensification of the exploration drilling because it means prospective deposits that may prolong the life of the entire Sierra Gorda mine. Different colors in the cross section, like blue and red, show high level of mineralization, and you can see that on your right there is a higher density of that.

Speaker #2: So we know for sure that this is a mineralized area and an ongoing drilling project. At Kata Bella North East, 42 drills have already been performed and we do have confirmed mineralization.

Speaker #2: It is important to note that we are working on the intensification of exploration drilling, because it means well-prospective deposits that may prolong the life of the entire Sierra Gorda mine.

Speaker #2: Different colors in the cross-section, like blue and red, show a high level of mineralization, and you can see that on your right there is a higher density of that.

Speaker #2: So that shows that the pit Kara Bella out pit also has potential to have mineralization underneath the current production area. On the left corner we see the map that shows the position of Kata Bella North East North East versus Kata Bella space which is owned by HPBHP.

Anna Sobieraj-Kozakiewicz: So that shows that the pit, Catabela out pit, also has potential to have mineralization underneath the current production area. On the left corner, we see the map that shows the position of Catabela Northeast versus Catabela space, which is owned by HBP, a ferrous facility. Again, the projection is based on the assumption that we shorten LOM by 3 years, but this is based on the already identified and proven deposits. However, our current explorations show that there is more potential for production around that area. Therefore, this new line will definitely support the production from the new deposits. Now production and output. We do for KGHM International, we are down 34% year on year. This is related to the reduced output of copper, reduced content of copper in the ore, and less ore was processed.

[Translator]: So that shows that the pit, Catabela out pit, also has potential to have mineralization underneath the current production area. On the left corner, we see the map that shows the position of Catabela Northeast versus Catabela space, which is owned by HBP, a ferrous facility. Again, the projection is based on the assumption that we shorten LOM by 3 years, but this is based on the already identified and proven deposits. However, our current explorations show that there is more potential for production around that area. Therefore, this new line will definitely support the production from the new deposits. Now production and output. We do for KGHM International, we are down 34% year on year. This is related to the reduced output of copper, reduced content of copper in the ore, and less ore was processed.

Speaker #2: So, again, the projection is based on the assumption that we shorten LOM by three years, but this is based on the already identified and proven deposits.

Speaker #2: However, our current explorations show that there is more potential for production around that area. Therefore, this new line will definitely support the production from the new deposits.

Speaker #2: Now production the output. We do for KGHM International we are down 34% year on year this is related to the reduced output of copper reduced content of copper in the ore and the less core was less ore was processed.

Speaker #2: So, in terms of Carlota, this is a very tiny part of our international assets, so it doesn't really contribute much to EBITDA or to overall production.

Anna Sobieraj-Kozakiewicz: So in terms of Carlota, this is a very tiny part of our international assets, so it does not really contribute much to EBITDA or to overall production. In terms of silver production, it is not located there because that mine does not offer silver. For TPM, we also see the reduction for gold. This is 13.5 ounces of gold, but this is in line with the budget, and there is a slight increase in molybdenum production. A brief commentary on that, as we have already informed you before, at Robinson, we currently operate Liberty Pit, which is less abundant with metal. This is like a transition area from the previous pit that was previously operated, and we are underway to the ultimate pit. So we are in the transition period. Some material that we are currently working with, this is not geological material, but was historically heaped material.

[Translator]: So in terms of Carlota, this is a very tiny part of our international assets, so it does not really contribute much to EBITDA or to overall production. In terms of silver production, it is not located there because that mine does not offer silver. For TPM, we also see the reduction for gold. This is 13.5 ounces of gold, but this is in line with the budget, and there is a slight increase in molybdenum production. A brief commentary on that, as we have already informed you before, at Robinson, we currently operate Liberty Pit, which is less abundant with metal. This is like a transition area from the previous pit that was previously operated, and we are underway to the ultimate pit. So we are in the transition period. Some material that we are currently working with, this is not geological material, but was historically heaped material.

Speaker #2: In terms of silver production, it's not located there because that mine does not offer silver. For TPM, we also see the reduction for gold. This is 15.5 ounces of gold, but this is in line with the budget.

Speaker #2: And there is a slight increase in molybdenum production, and a brief commentary on that: as we have already informed you before, at Robinson we currently operate the Liberty pit, which is less abundant with metal.

Speaker #2: This is like a transition area from the previous pit that was previously operated, and we are underway to the ultimate pit, so we are in the transition period.

Speaker #2: So, the material that we are currently working with is not geological material that was historically heaped material. So, this is definitely offering less of the product.

Anna Sobieraj-Kozakiewicz: This is definitely offering less of the product. The negative surprise was that the Liberty ore turned out to be much more challenging for processing in our plant and the ultimate output is less than anticipated and hence the deviation from our forecast. In addition to that, we had some other challenges. There were some failures with some of the machines, like thickener and mill. The operating assets that failed also contributed to that negative deviation. We actually came up with a repair program and Robinson is working on bridging the gap during the H2 2024 and deliver the budget. In terms of numbers, the situation with Robinson was the positive macro environment and high prices of metals is very good. Robinson generated the EBITDA, which is twice as high as the one we had in the budget.

[Translator]: This is definitely offering less of the product. The negative surprise was that the Liberty ore turned out to be much more challenging for processing in our plant and the ultimate output is less than anticipated and hence the deviation from our forecast. In addition to that, we had some other challenges. There were some failures with some of the machines, like thickener and mill. The operating assets that failed also contributed to that negative deviation. We actually came up with a repair program and Robinson is working on bridging the gap during the H2 2024 and deliver the budget. In terms of numbers, the situation with Robinson was the positive macro environment and high prices of metals is very good. Robinson generated the EBITDA, which is twice as high as the one we had in the budget.

Speaker #2: The negative surprise was that the Liberty ore turned out to be much more challenging for processing in our plant, and the ultimate output is less than anticipated, and hence the deviation from our forecast.

Speaker #2: In addition to that, we had some other challenges. There were some failures with some of the machines, like the thickener and the mill. So the operating assets that failed also contributed to that negative deviation.

Speaker #2: But we actually came up with a repair program, and the Robinson is working on it through bridging the gap during the second half of the year.

Speaker #2: And deliver the budget. In terms of numbers, the situation with Robinson was that the positive macro environment and high prices of metals are really very good.

Speaker #2: Robinson generated EBITDA, which is twice as high as the one we had in the budget. It's over 780 million zlotys after the first six months.

Anna Sobieraj-Kozakiewicz: It's over 780 million PLN after the first six months. The good pricing of metals have certainly contributed to this production. Sierra Gorda financial results also shows that the numbers outperformed our expectations in the budget. Overall cash flow from international assets after six months are at $290.3 million. Sierra Gorda contributed over $270 million, paying back all the loans, guarantees, and other financial instruments. International assets after the six months contributed nearly 20% to the adjusted EBITDA of the entire KGHM Group. This is nearly 2.5 billion PLN. I think that this is the point where I will actually have my full stop and turn the floor over. Right now it's time for the individual segments of the Polish assets. I have been always thinking about the proper adjective to describe the situation. I was speaking about the stable production and the robust results.

[Translator]: It's over 780 million PLN after the first six months. The good pricing of metals have certainly contributed to this production. Sierra Gorda financial results also shows that the numbers outperformed our expectations in the budget. Overall cash flow from international assets after six months are at $290.3 million. Sierra Gorda contributed over $270 million, paying back all the loans, guarantees, and other financial instruments. International assets after the six months contributed nearly 20% to the adjusted EBITDA of the entire KGHM Group. This is nearly 2.5 billion PLN. I think that this is the point where I will actually have my full stop and turn the floor over.

Speaker #2: So, the good pricing of metals has certainly contributed to this production, and Sierra Gorda and financial results also show that the numbers outperformed our expectations and the budget.

Speaker #2: So overall, cash flow from international assets after six months is at $290.3 million. Sierra Gorda contributed over $270 million, paying back all the loans, guarantees, and other financial instruments.

Speaker #2: International assets, after six months, contributed nearly 20% to the adjusted EBITDA of the entire capital group. This is nearly 2.5 billion złoty. And I think that this is the point where I will actually have my full stop and turn the floor over.

Speaker #2: So right now, it's time for the individual segments of the Polish assets. I have always been thinking about the proper adjective to describe the situation.

Mirosław Laskowski: [Foreign language]

[Translator]: Right now it's time for the individual segments of the Polish assets. I have been always thinking about the proper adjective to describe the situation. I was speaking about the stable production and the robust results.

Speaker #2: I was speaking about the stable production and the robust results. Now, let me say that after six months, we have very decent numbers to show.

Mirosław Laskowski: Let me say that after six months we have very decent numbers to show. Again, I would like to thank our employees that work in the smelters and other facilities because there is something that we can praise about. We had a very challenging budget, but we were able to deliver and as you can tell, the overall production and the production of the copper in concentrate or electrolytic copper or silver production, all the bars are higher than last year. Perhaps a few words about the production of the electrolytic copper, 7% up, but let me remind you that last year we had a low base because of the standstill and the refurbishment of one of the holes in the Głogów II smelters. Silver, 8% up compared to last year. It is true that we take advantage of the availability of the material.

[Translator]: Let me say that after six months we have very decent numbers to show. Again, I would like to thank our employees that work in the smelters and other facilities because there is something that we can praise about. We had a very challenging budget, but we were able to deliver and as you can tell, the overall production and the production of the copper in concentrate or electrolytic copper or silver production, all the bars are higher than last year. Perhaps a few words about the production of the electrolytic copper, 7% up, but let me remind you that last year we had a low base because of the standstill and the refurbishment of one of the holes in the Głogów II smelters. Silver, 8% up compared to last year. It is true that we take advantage of the availability of the material.

Speaker #2: And again, I would like to thank our employees that work in the smelters and other facilities, because there is something that we can praise them about.

Speaker #2: We had a very challenging budget, but we were able to deliver. And as you can tell, the overall production and the production of copper in concentrate, or electrolytic copper, or silver production—all the bars are higher than last year.

Speaker #2: And perhaps a few words about the production of electrolytic copper. Production was up 7%, but let me remind you that last year we had a low base because of the shutdown and the refurbishment of one of the halls in the Głogów smelter.

Speaker #2: Silver is up 8% compared to last year. It is true that we take advantage of the availability of the material. Last year, we were able to grow by 40 tons of the metal, mainly because of the very content of silver in the ore, by 2 ppm.

Mirosław Laskowski: Last year we were able to grow by 40 tons of the metal, mainly because of the better content of silver in the ore by 2 PPM. I would like to provide more details about the ongoing refurbishment of Głogów II smelter. We initially planned that the first concentrate will be actually loaded on 26 September. Today we know that the schedule will be updated and shortened by nine days. We are back in business on 17 September. This is when we have the first load coming to the furnace. This is a truly very good, I should say, very decent result of the Polish assets. Now, development programs for KGHM. It's been a good time, as you can tell, that we have really accelerated our development projects. CapEx for the first six months is 1,439,000 PLN.

[Translator]: Last year we were able to grow by 40 tons of the metal, mainly because of the better content of silver in the ore by 2 PPM. I would like to provide more details about the ongoing refurbishment of Głogów II smelter. We initially planned that the first concentrate will be actually loaded on 26 September. Today we know that the schedule will be updated and shortened by nine days. We are back in business on 17 September. This is when we have the first load coming to the furnace. This is a truly very good, I should say, very decent result of the Polish assets. Now, development programs for KGHM. It's been a good time, as you can tell, that we have really accelerated our development projects. CapEx for the first six months is 1,439,000 PLN.

Speaker #2: And I would like to provide more details about the ongoing refurbishment of the Głogów Tool Smelter. We initially planned that the first concentrate would actually be loaded on the 26th of September.

Speaker #2: Today, we know that the schedule will be updated and shortened by nine days. So, we are back in business on the 17th of September. This is when we have the first load.

Speaker #2: Coming to the furnace, this is truly a very good, I should say very decent, result of the Polish assets. So, now, development programs for KGHM.

Speaker #2: It's been a good time, as you can tell, that we have really accelerated our development projects. CAPEX for the first six months is 1 billion 449 million zlotys. Most of it was in the mining operations, and I think that this is natural and it has been like that for years. I don't think that we can expect any change in these proportions.

Mirosław Laskowski: Most of it was in the mining operations. I think that this is natural, and it has been like that for years. I do not think that we can expect any change in this proportion. When you want to break it down in different categories, development, recovery, maintenance, et cetera, I think that the development has accelerated. We were up 14% compared to the 6 months of 2025. This is the result of the new shafts becoming operational. In terms of these categories, we can tell that there is more spending on actual refurbishment and reconstruction and major overhaul of Głogów II smelter. The CapEx is around 500 million. In Q4 2025, we started the procurement process. This year, the work is going in full swing, and we are going to wrap it up in September, as you just heard.

[Translator]: Most of it was in the mining operations. I think that this is natural, and it has been like that for years. I do not think that we can expect any change in this proportion. When you want to break it down in different categories, development, recovery, maintenance, et cetera, I think that the development has accelerated. We were up 14% compared to the 6 months of 2025. This is the result of the new shafts becoming operational. In terms of these categories, we can tell that there is more spending on actual refurbishment and reconstruction and major overhaul of Głogów II smelter. The CapEx is around 500 million. In Q4 2025, we started the procurement process. This year, the work is going in full swing, and we are going to wrap it up in September, as you just heard.

Speaker #2: When you want to break it down into different categories—development, recovery, maintenance, etc.—I think that development has accelerated. We were up 14% compared to the six months of 2025.

Speaker #2: And this is the result of the new shafts becoming operational. In terms of these categories, we can tell that there is more spending on actual refurbishment and reconstruction, and major overhaul of the Głogów II smelter.

Speaker #2: The CAPEX is around $500 million in Q4 2025. We started the procurement process this year. The work is going in full swing, and we are going to wrap it up in September, as you've just heard.

Speaker #2: And I think that here we can offer more details. In terms of the development, the greatest part of this investment is the availability of the deposit.

Mirosław Laskowski: In terms of the development, the greatest part of this investment is availability of the deposit overall. Over PLN 1,040,000,000 is allocated to that, and that includes everything, the shafts and all you may think of that has to do with the future production in the mines and in the smelters. So out of PLN 497 million that was spent in the first 6 months, PLN 395 million was allocated to mining operations. Last year, we were working on the shaft for Retków and then GG-2 and Jaworzyce. Last year, we had only DG1. Today, we have four shifts that are covered by our CapEx. DG1 is actually coming towards the final phase. So when we zoom in right here, this is the shaft which is very much advanced.

[Translator]: In terms of the development, the greatest part of this investment is availability of the deposit overall. Over PLN 1,040,000,000 is allocated to that, and that includes everything, the shafts and all you may think of that has to do with the future production in the mines and in the smelters. So out of PLN 497 million that was spent in the first 6 months, PLN 395 million was allocated to mining operations. Last year, we were working on the shaft for Retków and then GG-2 and Jaworzyce. Last year, we had only DG1. Today, we have four shifts that are covered by our CapEx. DG1 is actually coming towards the final phase. So when we zoom in right here, this is the shaft which is very much advanced.

Speaker #2: Overall, over 1 billion 40 million is allocated to that. And that includes everything that fits the shafts and all you may think of, but has to do with the future production in the mines and in the smelters.

Speaker #2: So, out of the 497 million that was spent in the first six months, 395 million was allocated to mining operations. Last year, we were working on the shafts for Retków and then BG2 and Jaworzyce.

Speaker #2: So, last year we had only GG-1. Today, we have four shifts that are covered by our CAPEX. GG-1 is actually coming towards the final phase.

Speaker #2: So, when we zoom in right here, this is the shaft, which is very much advanced. In September 2029, the first workers will start actually going down in that shaft.

Mirosław Laskowski: In September 2029, the first workers will start actually going down in that shaft. We have completed the first phase of work, and you see the air conditioning unit that was refurbished and refitted. Currently, we have already installed all the temporary equipment. Now we are building cages and the bath and the loading facility for fuel, et cetera. So in 3 years, 2,500 people will be actually using the shaft to go down and work in the mine. GG-2 is the shaft which was located a few years ago. Regretfully, the location was not good in terms of geological properties. So we had to move 800 meters to the site. We are completing our surveillance work. In 2 years, we will start freezing, and 2 and a half years, we start deepening that. This is GG-2. Now, Retków.

[Translator]: In September 2029, the first workers will start actually going down in that shaft. We have completed the first phase of work, and you see the air conditioning unit that was refurbished and refitted. Currently, we have already installed all the temporary equipment. Now we are building cages and the bath and the loading facility for fuel, et cetera. So in 3 years, 2,500 people will be actually using the shaft to go down and work in the mine. GG-2 is the shaft which was located a few years ago. Regretfully, the location was not good in terms of geological properties. So we had to move 800 meters to the site. We are completing our surveillance work. In 2 years, we will start freezing, and 2 and a half years, we start deepening that. This is GG-2. Now, Retków.

Speaker #2: We have completed the first phase of work, and you can see the air conditioning unit that was refurbished and refitted. Currently, we have already installed all the temporary equipment.

Speaker #2: Now we are building cages and the bath and loading facility for fuel, etc. So in three years, 2,500 people will be actually using this shaft to go down and work in the mine.

Speaker #2: Okay. GG-2. GG-2 is the shaft which was located a few years ago. Regretfully, the location was not good in terms of geological properties.

Speaker #2: So we had to move 800 meters to the site. We are completing our surveillance work. In two years, we will start freezing, and in two and a half years, we start deepening that.

Speaker #2: This is GG2. And now Retków. The Retków shaft is currently at the end of the geological survey. And again, we have confirmation that this is an excellent location that will be another shaft for the transportation of people and materials downwards.

Mirosław Laskowski: The Retków shaft is currently at the end of the geological survey. Again, we have the confirmation that it was the excellent location. That will be another shaft for the transportation of people, materials downwards. This is close to the bridge on the east side of our deposit. The work is very much advanced, more or less in the same way as in case of GG-2. So these two shafts will be going hand in hand in terms of advancement of work. Jaworzyce is the final shaft, and we currently are still at the drilling process to check those ecological properties. If that is going to be confirmed, we do not know as the final location. We continue the discussions right now. At the horizon, you can see the Głogów smelter. So we have already spent over PLN 100 million on those shafts.

[Translator]: The Retków shaft is currently at the end of the geological survey. Again, we have the confirmation that it was the excellent location. That will be another shaft for the transportation of people, materials downwards. This is close to the bridge on the east side of our deposit. The work is very much advanced, more or less in the same way as in case of GG-2. So these two shafts will be going hand in hand in terms of advancement of work. Jaworzyce is the final shaft, and we currently are still at the drilling process to check those ecological properties. If that is going to be confirmed, we do not know as the final location. We continue the discussions right now. At the horizon, you can see the Głogów smelter. So we have already spent over PLN 100 million on those shafts.

Speaker #2: And this is close to the bridge on the east side of our deposits. The work is very much advanced, more or less in the same way as in the case of GG2.

Speaker #2: So these two shafts will be going hand in hand in terms of advancement of work. And Jaworzyce is the final shaft, and we currently are still at the drilling process to check the geological properties.

Speaker #2: If that's going to be confirmed, we don't know as the final location. We continue the discussions right now. You know, at the horizon, you can see the Głogów smelter.

Speaker #2: So, we have already spent over 100 million złoty on those shafts. You may think that this is all field work. It doesn't happen that much there.

Mirosław Laskowski: You may think that this is all field work. It does not happen that much there. But one drill is between PLN 12 and 15 million. We also have to take into account access, carrying the load and the output back. Each cubic meter of going down translates into tangible results. We have seven licenses here marked in gray. These are areas where we currently exploit the deposit, and the remaining are exploration licenses. Panice, Chynów will be the places where we apply for exploitation. We only explore them.

[Translator]: You may think that this is all field work. It does not happen that much there. But one drill is between PLN 12 and 15 million.

Speaker #2: But one drill is between 12 and 15 million lorries. Now, we also have to take into account access, carrying the load, and the output that each cubic meter of air going down translates into tangible results.

Zbigniew Bryja: [Foreign language]

[Translator]: We also have to take into account access, carrying the load and the output back. Each cubic meter of going down translates into tangible results. We have seven licenses here marked in gray. These are areas where we currently exploit the deposit, and the remaining are exploration licenses. Panice, Chynów will be the places where we apply for exploitation. We only explore them. Up to the Oder River and beyond the Oder River, we have made some drillings. Across the river, nine drills will be made this year. Four have been completed, and we plan to have the same number next year. We are examining geologically, the area near Łuków-Pszczew. Rudków-Grodziszcze is also the place where we expand our resources eastward.

Speaker #2: So we have seven licenses here marked in gray. These are areas where we currently explore or exploit the deposit. The remaining are exploration licenses, which will be the places for which we'll apply for exploitation.

Speaker #2: Now we are only exploring them. Up to the Oder River and beyond the Oder River, we have made some drillings. Across the river, nine drills will be made this year—four have been completed—and we plan to have the same number next year.

Zbigniew Bryja: Up to the Oder River and beyond the Oder River, we have made some drillings. Across the river, nine drills will be made this year. Four have been completed, and we plan to have the same number next year. We are examining geologically, the area near Łuków-Pszczew. Rudków-Grodziszcze is also the place where we expand our resources eastward. At the moment, we can start from top on the left. Refurbishment in the smelter that has already been mentioned by Mr. Paszkiewicz and Mr. Laskowski. Major refurbishment process that we repeat once in five years. Imagine we have this furnace, which has this inlaid of ceramics, is dismantled. We have to recover all those spots, specifically checking the weakest points. We have to replace this inlaid. We bow our heads to the workers who really worked very hard.

Speaker #2: We are now examining geologically the area near Buków Odrzański. Retków Grodziszcze is also the place where we are expanding our resources eastward. At the moment, we can start from the top on the left.

[Translator]: At the moment, we can start from top on the left. Refurbishment in the smelter that has already been mentioned by Mr. Paszkiewicz and Mr. Laskowski. Major refurbishment process that we repeat once in five years. Imagine we have this furnace, which has this inlaid of ceramics, is dismantled. We have to recover all those spots, specifically checking the weakest points. We have to replace this inlaid. We bow our heads to the workers who really worked very hard.

Speaker #2: The refurbishment in the smelter, which has already been mentioned by Mr. Paszkiewicz and Mr. Laskowski, is a major refurbishment process that we repeat once every five years.

Speaker #2: Imagine we have this furnace, which has this inlay of ceramics, is dismantled. We have to recover all those spots, specifically checking the weakest points.

Speaker #2: Then we have to replace this inlaid. We bow our heads to the workers who really worked very hard. We now have such refurbishments not every three years, but every five years, and we also shortened the downtime needed for the process.

Zbigniew Bryja: We now have such refurbishments, not every three years, but every five years, and we also shortened the time needed as downtime for the process. In this picture, you can see the moment of placing of those ceramic bricks that are resistant to temperatures of well over 1,000 degrees Celsius. They are supposed to resist such high temperatures for the upcoming five years. Here we can see Głogów II smelter. PLN 670 million will be the cost of the refurbishment here. Similar works are going on in Legnica. Here we are fitting machinery for production of cathodes with a fixed base or without a base. These are machines that allow us to save time and a lot of raw materials that do not need to be re-smelted to create anodes, because copper will be torn off this base and will go directly to Cedynia.

[Translator]: We now have such refurbishments, not every three years, but every five years, and we also shortened the time needed as downtime for the process. In this picture, you can see the moment of placing of those ceramic bricks that are resistant to temperatures of well over 1,000 degrees Celsius. They are supposed to resist such high temperatures for the upcoming five years. Here we can see Głogów II smelter. PLN 670 million will be the cost of the refurbishment here. Similar works are going on in Legnica. Here we are fitting machinery for production of cathodes with a fixed base or without a base. These are machines that allow us to save time and a lot of raw materials that do not need to be re-smelted to create anodes, because copper will be torn off this base and will go directly to Cedynia.

Speaker #2: In this picture, you can see the moment of placing those ceramic bricks that are resistant to temperatures of well over 1,000 degrees. And they are supposed to resist such high temperatures.

Speaker #2: For the upcoming five years, here we can see the Głogów 2 smelter. PLN 670 million will be the cost of the refurbishment here. Similar works are also going on in Legnica.

Speaker #2: Here we are fitting machinery for production of cathodes with a fixed base, or without a base. These are machines that allow us to save time and a lot of raw materials.

Speaker #2: That do not need to be re-smelted to create anodes, because copper will be torn off this base and will go directly to Cedynia.

Zbigniew Bryja: Here you can see another fragment of this line. We faced some difficulties there because it is an installation that is completely new in our facilities. This year we intend to complete it, and at the beginning of next year, a similar installation is to be put into operation in Głogów. Here I would like to mention Cedynia. Cedynia is not really a smelter, it is our rolling facility. This rolling plant has been operational for over 40 years, so it is time to refurbish or replace the machines. They are still performant. They are still in good condition. But we endeavor to replace them and also take this opportunity to expand our product offer with molders, shapers, and other products made of copper. We are thinking about as well. Exploratory and development work focus above all on maintaining highly productive geological lines. We work in increasingly difficult conditions.

[Translator]: Here you can see another fragment of this line. We faced some difficulties there because it is an installation that is completely new in our facilities. This year we intend to complete it, and at the beginning of next year, a similar installation is to be put into operation in Głogów. Here I would like to mention Cedynia. Cedynia is not really a smelter, it is our rolling facility. This rolling plant has been operational for over 40 years, so it is time to refurbish or replace the machines. They are still performant. They are still in good condition. But we endeavor to replace them and also take this opportunity to expand our product offer with molders, shapers, and other products made of copper. We are thinking about as well. Exploratory and development work focus above all on maintaining highly productive geological lines. We work in increasingly difficult conditions.

Speaker #2: Here you can see another fragment of this line. We faced some difficulties there because it is an installation that is completely new in our facilities.

Speaker #2: This year we intend to complete it, and at the beginning of next year, a similar installation is to be put into operation in Głogów.

Speaker #2: Here I would like to mention Cydynia. Cydynia is not really a smelter; it's our rolling facility. This rolling plant has been operational for over 40 years.

Speaker #2: So it's time to refurbish or replace the machines. They are still performant and in good condition, but we endeavor to replace them, and also take this opportunity to expand our product offer with molder shapers and other products made of copper.

Speaker #2: So, we are thinking about abcast as well. Exploratory and development work focuses above all on maintaining highly productive geological lines. We work in increasingly difficult conditions.

Zbigniew Bryja: We are successful in withdrawing humans from the most dangerous areas. Thermic hazards are becoming the most serious ones. Now, we have a robot for cleaning the passage between the furnace and the recovery boiler in Głogów II. Now we are finalizing a similar robot like this for Głogów I. Also, down in the mines, we need machines that, well, while they emit heat, they should not emit fumes. So we have electrically-propelled machines. Here in the picture, you can see a vehicle for transporting employees. It will be equipped with modern air conditioning devices, both in the cabin and in the part for carrying workers. It will be a mobile device, which will also give a chance to the workers to get a moment of rest. We work under very difficult conditions. The deeper you go, the warmer it gets. We feel it acutely.

[Translator]: We are successful in withdrawing humans from the most dangerous areas. Thermic hazards are becoming the most serious ones. Now, we have a robot for cleaning the passage between the furnace and the recovery boiler in Głogów II. Now we are finalizing a similar robot like this for Głogów I. Also, down in the mines, we need machines that, well, while they emit heat, they should not emit fumes. So we have electrically-propelled machines. Here in the picture, you can see a vehicle for transporting employees. It will be equipped with modern air conditioning devices, both in the cabin and in the part for carrying workers. It will be a mobile device, which will also give a chance to the workers to get a moment of rest. We work under very difficult conditions. The deeper you go, the warmer it gets. We feel it acutely.

Speaker #2: We are successful in withdrawing humans from the most dangerous areas, and thermic hazards are becoming the most serious ones. Now, we have a robot for cleaning the passage between the furnace and recovery boiler in Głogów 2.

Speaker #2: Now, we are finalizing a similar robot like this for Głogów 1. Also, down in the mines, we need machines that, when they emit heat, should not emit fumes.

Speaker #2: So, we have electrically propelled machines. Here in the picture, you can see a vehicle for transporting employees. It will be equipped with more than one air conditioning device, both in the cabin and in the parts for carrying workers.

Speaker #2: It will be a mobile device, which will also give the workers a chance to get a moment of rest. We work under very difficult conditions.

Speaker #2: The deeper you go, the warmer it gets. We feel it acutely. Also, we remove humans from the front of the corridors. We now shift to automatic anchors.

Zbigniew Bryja: Also, we remove humans from the front of the corridors. We now shift to automatic anchors, and all processes will be done from automated booths. We are also considering automation of drilling and automation of loading of explosives. Also, all things related to removal of water, improvement of productivity of MCRs. I would not focus too much on figures, because sometimes they only signal that a certain machine was put into routine operation or was phased out. We generally increase the capacity of our exploration machinery. To close this presentation, I would like to say that the H1 of the year was favorable for the company, also in terms of what we saw in the market. In a moment, I will talk you through that in greater detail, because there have been questions.

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

Speaker #2: And all processes will be done from automated booths. We are also considering automation of drilling and automation of loading explosives. Also, all things related to removal of water and improvement of productivity of MCRs.

Speaker #2: And I would not focus too much on figures, because sometimes they only signal that a certain machine was put into routine operation or was phased out.

Speaker #2: We generally increase the capacity of our exploration machinery. So, to close on this presentation, I would like to say that the first half of the year was favorable for the company.

Piotr Krzyżewski: [Foreign language]

[Translator]: To close this presentation, I would like to say that the H1 of the year was favorable for the company, also in terms of what we saw in the market. In a moment, I will talk you through that in greater detail, because there have been questions. As the CEO mentioned, we improved efficiency, we improved the balance sheet and cash flows. We also tried to do anything we could to ensure a certain buffer that will help the company in more difficult external conditions. I would like to highlight three elements in the first six months of this year. First is the resilience of our business, two, the market, and three, consistent building of value through the strategy. I will explain what it means for our operations and how we implemented it in the H1 of the year. Starting with the first point, that is resilience.

Speaker #2: Also, in terms of what we saw in the market— in a moment, I will talk you through that in greater detail because there have been questions.

Speaker #2: But as the CEO mentioned, we improved efficiency. We improved the balance sheet and cash flows. We also tried to do anything we could to ensure a certain buffer that will help the company in more difficult external conditions.

Piotr Krzyżewski: As the CEO mentioned, we improved efficiency, we improved the balance sheet and cash flows. We also tried to do anything we could to ensure a certain buffer that will help the company in more difficult external conditions. I would like to highlight three elements in the first six months of this year. First is the resilience of our business, two, the market, and three, consistent building of value through the strategy. I will explain what it means for our operations and how we implemented it in the H1 of the year. Starting with the first point, that is resilience. Resilience is understood through the lens of income. If we look at revenues, I can also say it referring to what Mirosław Laskowski said, production is crucial. But given how fragmented and divided the market is, sales also becomes a very important aspect.

Speaker #2: I would like to highlight three elements in the first six months of this year. First is the resilience of our business. Two, the market. And three, consistent building of value through the strategy.

Speaker #2: And I will explain what it means for our operations, and how we implemented it in the first half of the year, starting with the first point of this resilience.

Speaker #2: Resilience is understood through the lens of income, and if we look at revenues, I can also say it referring to what Mr. Laskowski said.

[Translator]: Resilience is understood through the lens of income. If we look at revenues, I can also say it referring to what Mirosław Laskowski said, production is crucial. But given how fragmented and divided the market is, sales also becomes a very important aspect. Production is our back office, so to speak. Now you can see that we focused more on stock. We also replaced conditions in some contracts by focusing on products which were previously niche ones. However, they generated good margins. Selenium, molybdenum, sulfuric acid. Here we diversified our hedging also, which provided another good element. The prices which we achieved for the six months were very high, and that is the result of good market conditions, but also efficient action of our sales teams.

Speaker #2: Production is crucial. But given how fragmented and divided the market is, sales also become a very important aspect. Production is our back office, so to speak.

Piotr Krzyżewski: Production is our back office, so to speak. Now you can see that we focused more on stock. We also replaced conditions in some contracts by focusing on products which were previously niche ones. However, they generated good margins. Selenium, molybdenum, sulfuric acid. Here we diversified our hedging also, which provided another good element. The prices which we achieved for the six months were very high, and that is the result of good market conditions, but also efficient action of our sales teams. So I would like to thank our sales teams globally. These people work from Santiago to Shanghai. So my thanks go to all the sales staff for the hard work. We are also opening two new markets, new products. Importantly, we also increasingly focus on already processed products. 50% of our products go in the direction of rolled metal.

Speaker #2: And now you can see that we focused more on stock. We also replaced conditions in some contracts by focusing on products which were previously niche ones.

Speaker #2: However, they generated good margins. Selenium leaped; the sulfuric acid here—we diversified our hedging also, which provided another good element. The prices which we achieved for the six months were very high.

Speaker #2: And that is the result of good market conditions, but also the efficient action of our sales teams. So I would like to thank our sales teams globally. These people work from Santiago to Shanghai.

[Translator]: So I would like to thank our sales teams globally. These people work from Santiago to Shanghai. So my thanks go to all the sales staff for the hard work. We are also opening two new markets, new products. Importantly, we also increasingly focus on already processed products. 50% of our products go in the direction of rolled metal. And that means also that we soon to make important decisions. For example, in Cedynia, the new production line will have additional possibility of scrap metal input. At the next conference, we will be able to give you more details on that. But anyway, we can see that the margin generated in this product contributes to a great profit of the company in subsequent periods. While talking about income now, we should also mention cost as another important element to which we pay close attention.

Speaker #2: So my thanks go to all the sales staff for their hard work. We are also opening two new markets and new products. Importantly, we are also increasingly focused on already processed products.

Speaker #2: Fifty percent of our products go in the direction of rolled metal. And that means also that we are soon to make important decisions. For example, in Sardinia, the new production line will have an additional possibility of scrap metal input.

Piotr Krzyżewski: And that means also that we soon to make important decisions. For example, in Cedynia, the new production line will have additional possibility of scrap metal input. At the next conference, we will be able to give you more details on that. But anyway, we can see that the margin generated in this product contributes to a great profit of the company in subsequent periods. While talking about income now, we should also mention cost as another important element to which we pay close attention. We minimize costs. That is our core activity. But we also look at the costs through the lens of production. At the end of the day, we want to generate the highest possible value added on each ton of output. As for costs, we might look at costs by type.

Speaker #2: At the next conference, we will be able to give you more details on that. But anyway, we can see that the margin generated by this product contributes to greater profit for the company in subsequent periods.

Speaker #2: While talking about income, we should also mention cost. That's another important element to which we pay close attention. We minimize costs; that is our core activity.

[Translator]: We minimize costs. That is our core activity. But we also look at the costs through the lens of production. At the end of the day, we want to generate the highest possible value added on each ton of output. As for costs, we might look at costs by type. On the one hand, if we look at taxes and third-party input here, the numbers are high. But if we deduct the elements which are beyond our control, and if we look at the cost, excluding the annual bonus, which we have in collective bargaining agreements, we have standalone 4% year-on-year growth. Our target was also to benchmark to inflation, but we optimize costs. The cost optimization program, which has been mentioned here repeatedly, evolved over recent periods, and we want to show you that it covers a series of activities.

Speaker #2: But we also look at the costs through the lens of production. At the end of the day, we want to generate the highest possible value added on each ton of output.

Speaker #2: As for costs, we might look at costs by type. On the one hand, if we look at taxes and third-party input, here the numbers are high.

Piotr Krzyżewski: On the one hand, if we look at taxes and third-party input here, the numbers are high. But if we deduct the elements which are beyond our control, and if we look at the cost, excluding the annual bonus, which we have in collective bargaining agreements, we have standalone 4% year-on-year growth. Our target was also to benchmark to inflation, but we optimize costs. The cost optimization program, which has been mentioned here repeatedly, evolved over recent periods, and we want to show you that it covers a series of activities. Our ultimate goal is to have the benchmark of 2024 and PLN 1 billion savings are expected by 2028 compared to the benchmark of 2024. Now, after one year of implementation of those activities, showed savings of 300 million.

Speaker #2: But if we deduct the elements which are beyond our control, and if we look at the costs excluding the annual bonus which we have in collective bargaining agreements, we have a standalone 4% year-on-year growth.

Speaker #2: Our target was also to benchmark to inflation, but we optimize costs. The cost optimization program, which has been mentioned here repeatedly, evolved over recent periods.

Speaker #2: And we want to show you that it covers a series of activities. Our ultimate goal is to have the benchmark of 2024, and PLN 1 billion in savings are expected by 2028, compared to this benchmark of 2024.

[Translator]: Our ultimate goal is to have the benchmark of 2024 and PLN 1 billion savings are expected by 2028 compared to the benchmark of 2024. Now, after one year of implementation of those activities, showed savings of 300 million. Next steps will also be reflected in KPIs, not only standalone KPIs for the company, but also for other companies within the group, and eventually, they will bring all those total savings. We break down this in greater detail for the last two quarters to show you the change that occurred from 2024. This slide shows this breakdown. Now, the question, what kind of benchmark for inflation should be adopted? We looked at CPI. A real dynamic of decrease in 2025 on materials and services was over 5%, and in the H1, that was 5.7%.

Speaker #2: Now, after one year of implementation, those activities showed savings of 300 million. The next steps will also be reflected in KPIs—not only standalone KPIs for the company, but also for other companies within the group. Eventually, they will bring all those total savings together.

Piotr Krzyżewski: Next steps will also be reflected in KPIs, not only standalone KPIs for the company, but also for other companies within the group, and eventually, they will bring all those total savings. We break down this in greater detail for the last two quarters to show you the change that occurred from 2024. This slide shows this breakdown. Now, the question, what kind of benchmark for inflation should be adopted? We looked at CPI. A real dynamic of decrease in 2025 on materials and services was over 5%, and in the H1, that was 5.7%. We stopped the cost decrease, but we still have the ambition to improve further and look for further savings, look for optimization activities that will generate additional value. Probably with regard to costs as such, it is worth discussing those related to energy in more detail.

Speaker #2: We break down this in greater detail for the last two quarters to show you the change that occurred from 2024. This slide shows this breakdown.

Speaker #2: Now, the question is what kind of benchmark for inflation should be adopted. We looked at CPI. The real dynamic of the decrease in 2025 on materials and services was over 5%.

Speaker #2: And in the first half of the year, that was 5.7%. We stopped the cost decrease, but we still have the ambition to improve further, look for further savings, and look for optimization activities.

[Translator]: We stopped the cost decrease, but we still have the ambition to improve further and look for further savings, look for optimization activities that will generate additional value. Probably with regard to costs as such, it is worth discussing those related to energy in more detail. Very often, analysts and others who watch the market are interested in that.

Speaker #2: That will generate additional value. Probably, with regard to costs as such, it is worth discussing those related to energy in more detail. Very often, analysts and others who watch the market are interested in that.

Janusz Krystosiak: Very often, analysts and others who watch the market are interested in that.

[Analyst] (PKO BP Securities): The next-

[Unknown Speaker]: The next-

Speaker #2: So, when we look at the cost of electricity for the first six months—putting aside the volumes, because the volume is up since the output is up—but if you look at the price net effect, it's 57 million.

Piotr Krzyżewski: [Foreign language]

Piotr Krzyżewski: When we look at the cost of electricity for the first 6 months, putting aside the volumes, because the volume is up, because the output is up. But if you look at the price net effect, it's PLN 57 million. Gas, PLN 20 million down. CO2, PLN 5 million up. So how much more we paid for energy for that period is PLN 32 million in terms of pricing outcome. To a large extent, we are actually optimizing our consumption. We are hedging in Amsterdam. We are actually active on the power exchange, so all those transactions and optimization projects translated into really slight increase, given that PLN 1.2 billion is the cost of gas electricity for the first 6 months. So going up by PLN 32 million is really negligible given what have been actually happening in the market during the past periods.

[Translator]: When we look at the cost of electricity for the first 6 months, putting aside the volumes, because the volume is up, because the output is up. But if you look at the price net effect, it's PLN 57 million. Gas, PLN 20 million down. CO2, PLN 5 million up. So how much more we paid for energy for that period is PLN 32 million in terms of pricing outcome. To a large extent, we are actually optimizing our consumption. We are hedging in Amsterdam. We are actually active on the power exchange, so all those transactions and optimization projects translated into really slight increase, given that PLN 1.2 billion is the cost of gas electricity for the first 6 months. So going up by PLN 32 million is really negligible given what have been actually happening in the market during the past periods.

Speaker #2: Gas: 20 million down. CO2: 5 million up. So, how much more we paid for energy for that period is 32 million, in terms of price outcome.

Speaker #2: To a large extent, we are actually optimizing our consumption. We are hedging in Amsterdam. We are actually active on the power exchange. So all those transactions and optimization projects translated into a really slight increase, given that 1.2 billion is the cost of gas and electricity for the first six months.

Speaker #2: So, going up by $32 million is really negligible, given what has actually been happening in the market during the past periods. Now, resilience is also about cash flow.

Piotr Krzyżewski: Now, resilience is also about cash flow, a strong operating cash flow over PLN 2.5 billion. And globally, after our investments, all the cash flow is PLN 774 million. But I think that inventory should be also mentioned that sort of that peak in our inventory when we were collecting anode for current processing to actually generate cash flow that is more in line with the standard operations without any refurbishments and retrofitting projects. So if you look from December through January, for inventory, it's PLN 2.5 million, and 63% is change in price and 37% is the volume. But let me add to that we were able to collect over 60,000 or nearly 60,000 anode. But when you look from quarter to quarter, we were up only by PLN 485 million, including PLN 135 for volume and over PLN 350 for the price.

[Translator]: Now, resilience is also about cash flow, a strong operating cash flow over PLN 2.5 billion. And globally, after our investments, all the cash flow is PLN 774 million. But I think that inventory should be also mentioned that sort of that peak in our inventory when we were collecting anode for current processing to actually generate cash flow that is more in line with the standard operations without any refurbishments and retrofitting projects. So if you look from December through January, for inventory, it's PLN 2.5 million, and 63% is change in price and 37% is the volume. But let me add to that we were able to collect over 60,000 or nearly 60,000 anode. But when you look from quarter to quarter, we were up only by PLN 485 million, including PLN 135 for volume and over PLN 350 for the price.

Speaker #2: A strong operating cash flow—over $2.5 billion—and globally, after our investments, all the cash flows add up to $774 million. But I think that inventory should also be mentioned; there was sort of a peak in our inventory when we were collecting anodes for current processing. To actually generate cash flow that is more in line with standard operations, without any refurbishment and retrofitting projects.

Speaker #2: So if you look from December through January for inventory, it's 2.5 million, and 63% is changing price and 37% is the volume. But let me add to that, that we were able to collect over 60,000, or nearly 60,000 annually.

Speaker #2: Yeah. But when you look from quarter to quarter, we were up only by 485 million, including 135 for volume and over 350 for price.

Speaker #2: But what we are seeing now—and you will actually be watching it over the quarters to come—is that the value of our inventory will be declining.

Piotr Krzyżewski: What we are seeing now, and you will be actually watching it over the quarters to come, the value of our inventory will be actually declining. So we are going to actually free and release the cash that was frozen when we were building up our inventory to be able to deliver on the production commitments. Now, another point that I mentioned earlier is market environment. I think that we've been all watching that. This is never a black and white picture. On demand side, we have a strong demand for various categories of products, and economically, anything may happen any time, but from the point of view of projects and customers, we see stable and long-term volumes. So we are on the safe side. However, this picture is not entirely clear. You never have these days global demand and supply. The market is fragmented.

[Translator]: What we are seeing now, and you will be actually watching it over the quarters to come, the value of our inventory will be actually declining. So we are going to actually free and release the cash that was frozen when we were building up our inventory to be able to deliver on the production commitments. Now, another point that I mentioned earlier is market environment. I think that we've been all watching that. This is never a black and white picture. On demand side, we have a strong demand for various categories of products, and economically, anything may happen any time, but from the point of view of projects and customers, we see stable and long-term volumes. So we are on the safe side. However, this picture is not entirely clear. You never have these days global demand and supply. The market is fragmented.

Speaker #2: So, we are actually going to free and release the cash that was frozen when we were building up our inventory, to be able to deliver on the production commitments.

Speaker #2: Now, another point that I mentioned earlier is the market environment. I think that we've all been watching that. This is never a black and white picture. On the demand side, we have strong demand for various categories of products, and economically, anything may happen anytime. But from the point of view of projects and customers, we see stable and long-term volumes, so we are on the safe side.

Speaker #2: However, this picture is not entirely clear. You know, you never have these days global demand and supply. The market is fragmented. So when you look at COMEX and LME inventories, they are very high.

Piotr Krzyżewski: When you look COMEX and LME inventories, they are very high. All the cathodes are actually now located at the credits. You were asking what has been happening recently. We have cash settlement on the market, the sort of usual third Wednesday of the month. So cathodes were shifting towards COMEX, and the spread that you've been able to see on the market was definitely non-standard. Therefore, through the physical market, we've been seeing some volumes being pushed. After that peak, we were always hedging, and we will be able to show you our transactions after the next quarter. We took advantage of the peak. The market is under pressure, as we can tell. The trend that we are able to identify, whether for copper or silver, we believe that it's stable, and that is a

[Translator]: When you look COMEX and LME inventories, they are very high. All the cathodes are actually now located at the credits. You were asking what has been happening recently. We have cash settlement on the market, the sort of usual third Wednesday of the month. So cathodes were shifting towards COMEX, and the spread that you've been able to see on the market was definitely non-standard. Therefore, through the physical market, we've been seeing some volumes being pushed. After that peak, we were always hedging, and we will be able to show you our transactions after the next quarter. We took advantage of the peak. The market is under pressure, as we can tell. The trend that we are able to identify, whether for copper or silver, we believe that it's stable, and that is a

Speaker #2: All the catalogs are actually now located at the carrots. Now, you were asking what has been happening recently, like we have cash settlement on the market, that sort of usual third Wednesday of the month.

Speaker #2: So, catalogs were shifting towards comics, and the spread that you've been able to see on the market was definitely nonstandard. And therefore, through the physical market, we've been seeing some volumes being pushed.

Speaker #2: So after that peak, we were always hedging, and we will be able to show you our transactions after the next quarter.

Speaker #2: So we took advantage of the peak. But the market is under pressure, as we can tell. But the trend that we are able to identify, whether copper or silver, we believe that it's stable, and there is a strong demand underlying the whole picture.

Piotr Krzyżewski: A strong demand underlying the whole picture. The main risk is supply. The supply that we see on our side and across the sector, it is likely that at some place in the world, there could be some incident that can actually undercut the supply because the mines are getting older and older, geological profile is not fully defined and therefore this risk is pertinent. The final thing is the value. At the end of the day, we are looking at it from the perspective of our new strategy. We want to report and generate performance in the short term, but when we have long-term strategy, so taking a long-term approach as the VP 3S said, that the shaft is not built overnight. It takes years to complete such a project.

[Translator]: A strong demand underlying the whole picture. The main risk is supply. The supply that we see on our side and across the sector, it is likely that at some place in the world, there could be some incident that can actually undercut the supply because the mines are getting older and older, geological profile is not fully defined and therefore this risk is pertinent. The final thing is the value. At the end of the day, we are looking at it from the perspective of our new strategy. We want to report and generate performance in the short term, but when we have long-term strategy, so taking a long-term approach as the VP 3S said, that the shaft is not built overnight. It takes years to complete such a project.

Speaker #2: The main risk is supply. The supply that we see on our side and across the sector, it is likely that at some place in the world there could be some incident that can actually undercut the supply, because the mines are getting older and older, the geological profile is not fully defined, and therefore this risk is pertinent.

Speaker #2: And the final thing is the value. At the end of the day, we are looking at it from the perspective of our new strategy.

Speaker #2: So we want to report and generate performance in the short term, but we have a long-term strategy. So, taking a long-term approach—as VP Bria said, the shaft is not built overnight.

Speaker #2: It takes years to complete such a project. And when you look around the world at what's happening out there, the regulations that are enacted, and on top of that, the process is very complex.

Piotr Krzyżewski: When you look around the world, what's happening out there, the regulations that are enacted and you top it with the process that is very complex. You have to appreciate it that this is a long-term CapEx commitment, but at the same time, we want to make sure that we generate the value for shareholders. As Madam VP said, the fourth line. With brownfields, we are able to generate an additional value. We presume that the project of the fourth line 4, will generate much more additional value because we've based our projections on the defined deposit and it's very likely that the new deposit will be coming in as a result of the exploration. That line should really generate additional value and high value. In terms of the financing, most of the financing will actually charge Sierra Gorda. Currently, we are supporting this process.

[Translator]: When you look around the world, what's happening out there, the regulations that are enacted and you top it with the process that is very complex. You have to appreciate it that this is a long-term CapEx commitment, but at the same time, we want to make sure that we generate the value for shareholders. As Madam VP said, the fourth line. With brownfields, we are able to generate an additional value. We presume that the project of the fourth line 4, will generate much more additional value because we've based our projections on the defined deposit and it's very likely that the new deposit will be coming in as a result of the exploration. That line should really generate additional value and high value. In terms of the financing, most of the financing will actually charge Sierra Gorda. Currently, we are supporting this process.

Speaker #2: You have to appreciate it, but this is a long-term capex commitment. At the same time, we want to make sure that we generate value for shareholders.

Speaker #2: As the Madam VP said, the fourth line—you know, with brownfield, we are able to generate additional value. And we presume that the project of the fourth line—line four—will generate much more additional value, because we based our projections on the defined deposits.

Speaker #2: And it's very likely that the new deposits will be coming in as a result of the explorations. So that line should really generate additional value.

Speaker #2: High value. In terms of the financing, most of the financing will actually charge Sierra Gorda. Currently, we are supporting this process. We are going to refinance and, all together, it will be around $1 billion in banking financing.

Piotr Krzyżewski: We are going to refinance and altogether it will be around $1 billion in banking financing. We don't want to overcharge the ongoing cash flow from that operations because it's also important for our cash flow. This is an important contribution and we want to make sure that there is a basis for the further investment and development. Catabela Northeast, that's another component of this picture. At the end of the day, from my point of view and yours, what does it mean in numbers? It is really hard to define the total potential for that deposit because we keep drilling. But what we were able to see so far, this is still estimates and again I stress that these are estimates. But we see that this deposit is a high prospect and the copper that is sitting there makes it comparable to Sierra Gorda.

[Translator]: We are going to refinance and altogether it will be around $1 billion in banking financing. We don't want to overcharge the ongoing cash flow from that operations because it's also important for our cash flow. This is an important contribution and we want to make sure that there is a basis for the further investment and development. Catabela Northeast, that's another component of this picture. At the end of the day, from my point of view and yours, what does it mean in numbers? It is really hard to define the total potential for that deposit because we keep drilling. But what we were able to see so far, this is still estimates and again I stress that these are estimates. But we see that this deposit is a high prospect and the copper that is sitting there makes it comparable to Sierra Gorda.

Speaker #2: We don't want to overcharge the ongoing cash flow from that operation because it's also important for our cash flow. This is an important contribution.

Speaker #2: And we want to make sure that there is a basis for further investment and development. Catabella Northeast—that's another component of this picture.

Speaker #2: At the end of the day, from my point of view and yours, it's what does it mean in numbers? It is really hard to define the total potential for that deposit because we keep drilling.

Speaker #2: But what we were able to see so far—this is still estimates, and again, I stress that these are estimates—but we see that this deposit is a high prospect. And the copper that is sitting there makes it comparable to Sierra Gorda.

Speaker #2: So it could be another Sierra Gorda. There are still many question marks at this point, but since we do have a plan to actually increase our efforts when it comes to drilling in that area, once we do it, we should be able to demonstrate the value of the deposit that is sitting there. That will contribute to the value of the company and the entire capital group.

Piotr Krzyżewski: So it could be another Sierra Gorda. There are still many question marks at this point. But since we do have a plan to actually increase our efforts when it comes to drilling in that area and once we do it, we should be able to demonstrate the value of the deposit that is sitting there and that will contribute to the value of the company and the entire KGHM Group. This is a potential upside from the point of view of our investment projects and that should bring a high return. Another question that is frequently asked is about M&A. Yes, we are actually looking at it, but it's not that we will do it at any cost. We are a reasonable investor. We are currently actually during the process of the exclusive acquisition. The process is highly confidential so I cannot disclose the details.

[Translator]: So it could be another Sierra Gorda. There are still many question marks at this point. But since we do have a plan to actually increase our efforts when it comes to drilling in that area and once we do it, we should be able to demonstrate the value of the deposit that is sitting there and that will contribute to the value of the company and the entire KGHM Group. This is a potential upside from the point of view of our investment projects and that should bring a high return. Another question that is frequently asked is about M&A. Yes, we are actually looking at it, but it's not that we will do it at any cost. We are a reasonable investor. We are currently actually during the process of the exclusive acquisition. The process is highly confidential so I cannot disclose the details.

Speaker #2: So, this is a potential upside from the point of view of our investment projects, and that should bring a high return. Now, another question that is frequently asked is about M&As.

Speaker #2: Yes, we are actually looking at it, but it's not that we will do it at any cost. We are a reasonable investor. We are currently actually during the process of the exclusive acquisition.

Speaker #2: The process is highly confidential, so I cannot disclose the details. But if we are successful during the next conference, we may actually have a new addition to our asset family.

Janusz Krystosiak: But if we are successful during the next conference, we may actually have a new addition to our asset family. Thank you. Ladies and gentlemen, now it's time for questions and answers. We are collecting questions from the room, from the audience in the room. Hello, rubber mic. I have a question about the inventory because it was as you said, 2 point billion, now you're down to 480 million in Q2. What about Q3? Are you going to invert this position and you are going to actually recover the cash flow that was kind of poor in Q2? Well, I would not entirely agree with this assessment that the cash flow was poor. But it is true that in Q3, the volume will be going down. So in Q3, Q4, it's about sort of releasing and freeing everything that has been frozen and tied up.

[Translator]: But if we are successful during the next conference, we may actually have a new addition to our asset family. Thank you.

Speaker #2: Thank you. Ladies and gentlemen, now it's time for questions and answers. We are collecting questions from the audience in the room.

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

Speaker #2: Hello, Robert, Mike. I have a question about the inventory, because it was, as you said, $2.0 billion. Now you are down to $480 million in Q2.

[Analyst 1]: Hello, rubber mic. I have a question about the inventory because it was as you said, 2 point billion, now you're down to 480 million in Q2. What about Q3? Are you going to invert this position and you are going to actually recover the cash flow that was kind of poor in Q2?

Speaker #2: What about Q3? Are you going to invert this position, and are you going to actually recover the cash flow that was kind of poor in Q2?

Speaker #2: Well, I would not entirely agree with this assessment that the cash flow was poor. But it is true that in Q3, you know, the volume will be going down.

Piotr Krzyżewski: [Foreign language]

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

Speaker #2: So in Q3 and Q4, it's about sort of releasing and freeing everything that has been frozen and tied up. Sixty thousand annons are being processed right now.

Piotr Krzyżewski: 60,000 amounts are being processed right now. They will be sold, so you will see it in the form of the final product and then you will see it in the form of cash flow. So that's what you're going to see. Okay, what kind of dividends can be expected for 2026? Are we shooting at PLN 5 or rather at PLN 1? Well, I think that we will communicate that on the occasion of the general shareholders meeting next year. But let me emphasize that we want to take advantage of the conducive macro environment and we want to build the financial base with the proper level of the inventory. So we are in the position to continue our investments and grow and further development.

Speaker #2: They will be sold, so you will see it in the form of the final product, and then you will see it in the form of cash flow.

Speaker #2: So that's what you're going to see. So, okay. What kind of dividend can be expected for 2026? Are we shooting at 5 PLN or rather at 1?

[Analyst 1]: Okay, what kind of dividends can be expected for 2026? Are we shooting at PLN 5 or rather at PLN 1?

Speaker #2: Well, I think that we will communicate that on the occasion of the general shareholders' meeting next year. But let me emphasize that we want to take advantage of the conducive macro environment, and we want to build the financial base with the proper level of inventory.

Remigiusz Paszkiewicz: [Foreign language]

[Translator]: Well, I think that we will communicate that on the occasion of the general shareholders meeting next year. But let me emphasize that we want to take advantage of the conducive macro environment and we want to build the financial base with the proper level of the inventory. So we are in the position to continue our investments and grow and further development.

Speaker #2: So, we are in a position to continue our investment and grow, with further development. But at the same time, we want to have a financial buffer that would leave some room for sharing that with shareholders through the dividend.

Leszek Pruszewicz: But at the same time, we want to have a financial buffer that would have some room for sharing that with shareholders through the dividend. The final question from me is about the cost of personnel. Okay, let me start with the total cost of production in Poland. It was over PLN 55,000 per ton, so it was 8% quarter-to-quarter. I understand that the main culprit was the growing payroll cost, PLN 2.1 billion, right? So cash flow of the group was not able to cover these costs in Poland, and that was because of the one-off bonus that was paid out to the workers. And we may expect that the total cost, which is currently at PLN 55,000 per ton, may go down in Q3. Am I right?

Remigiusz Paszkiewicz: But at the same time, we want to have a financial buffer that would have some room for sharing that with shareholders through the dividend.

Speaker #2: And the final question from me is about the cost of personnel. Okay. Let me start with the total cost of production in Poland. It was over 55,000 per ton.

[Analyst 1]: The final question from me is about the cost of personnel?

Remigiusz Paszkiewicz: [Foreign language]

[Translator]: Okay, let me start with the total cost of production in Poland. It was over PLN 55,000 per ton, so it was 8% quarter-to-quarter. I understand that the main culprit was the growing payroll cost, PLN 2.1 billion, right? So cash flow of the group was not able to cover these costs in Poland, and that was because of the one-off bonus that was paid out to the workers. And we may expect that the total cost, which is currently at PLN 55,000 per ton, may go down in Q3. Am I right?

Speaker #2: So it was 8% quarter to quarter. I understand that the main culprit was the growing payroll cost—$2.1 billion, right? So the cash flow of the group was not able to cover these costs in Poland.

Speaker #2: And that was because of one of the bonuses that was paid out to the workers. We may expect that the total cost, which is currently at 55,000 per ton, may go down in Q3.

Speaker #2: Am I right? Well, according to our regulations, when we generate the profit we have to actually make a contribution to the price and reward fund.

Piotr Krzyżewski: Well, according to our regulations, when we generate the profit, we have to actually make a contribution to the price and reward fund. This is over PLN 300 million year to year. This is because of our collective agreement, we had to make that, and that contributed to the increased cost. This is the consequence of the profit that we were able to generate. But right now, we are not going to continue that. So we may expect that the cost per unit should not be growing in Q3, not in the way it was growing so far. Hello. BJM Stachura. Well, the CEO or the Deputy mentioned that the family of assets can be growing, so I wanted to ask you about international expansion, about the directions, and what are the most desirable critical commodities right now? This is a question from my area.

Piotr Krzyżewski: [Foreign language]

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

Speaker #2: This is like over 300 million year to year. And this is because of our collective agreement—we had to make that, and that contributed to the increased cost.

Speaker #2: So, but this is the consequence of the profit that we were able to generate. But right now, we are not going to continue that.

Speaker #2: So, we may expect that the cost per unit should not be growing in Q3—not in the way it was growing so far.

[Analyst 4]: [Foreign language]

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

Speaker #2: Hello, Andrzej Stachura. Well, the CEO or the deputy mentioned that the family of assets can be growing, so I wanted to ask you about international expansion.

Speaker #2: About the directions, and what are the most desirable critical commodities right now? This is a question from my area. In terms of directions for M&As, I cannot exclude any geographical regions.

Anna Sobieraj-Kozakiewicz: In terms of directions for M&As, I cannot exclude any geographical regions, but we are looking closely at South America, North America, North Africa, but we look only at the stable jurisdictions in terms of the legal safety, like North Africa and Morocco specifically. But we do not rule out other destinations. We are looking overall across the market. As you can tell, there are very few projects in the copper segment that would be very prospective in terms of their current development stage. Because of the prices, the projects are overstated. Therefore, we have to be very cautious. We are also surveying the American market, looking at various assets. But as it was said, we are currently performing further analysis, and we are not able to disclose more details at this point. One of our priorities is also to explore the Ukraine.

Anna Sobieraj-Kozakiewicz: [Foreign language]

[Translator]: In terms of directions for M&As, I cannot exclude any geographical regions, but we are looking closely at South America, North America, North Africa, but we look only at the stable jurisdictions in terms of the legal safety, like North Africa and Morocco specifically. But we do not rule out other destinations. We are looking overall across the market. As you can tell, there are very few projects in the copper segment that would be very prospective in terms of their current development stage. Because of the prices, the projects are overstated. Therefore, we have to be very cautious. We are also surveying the American market, looking at various assets. But as it was said, we are currently performing further analysis, and we are not able to disclose more details at this point. One of our priorities is also to explore the Ukraine.

Speaker #2: But we are looking closely at this South America, North America, North Africa. But we also we look only at the stable jurisdiction in terms of in terms of the legal safety.

Speaker #2: Like North Africa, and Morocco specifically. But we do not rule out other destinations. We are looking overall across the market. As you can tell, there are very few projects in the copper segment that will be very prospective in terms of their current development stage.

Speaker #2: Because of the prices, the projects are overstated. Therefore, we have to be very cautious. We are also surveying the American market, looking at various assets.

Speaker #2: But as was said, we are currently performing further analysis and are not able to disclose more details at this point. One of our priorities is also to explore Ukraine; actually, we've been conducting exploration there for some time.

Janusz Krystosiak: Actually, we have been doing the exploration there for some time, but now we want to update the knowledge that we have already gathered. The most prospective deposits are undergoing due diligence. This is mostly lithium and titanium, and these metals, these elements are on the radar right now. Gentlemen in the first row?

[Translator]: Actually, we have been doing the exploration there for some time, but now we want to update the knowledge that we have already gathered. The most prospective deposits are undergoing due diligence. This is mostly lithium and titanium, and these metals, these elements are on the radar right now.

Speaker #2: But now we want to update the knowledge that we have already gathered. The most prospective deposits are undergoing due diligence. This is mostly lithium and titanium.

Speaker #2: And these metals, these elements, are on the radar right now. Gentlemen in the first row. Darek Nawrot. When can we expect improvement of output of copper in Robinson?

Janusz Krystosiak: [Foreign language]

[Translator]: Gentlemen in the first row?

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

[Analyst 4]: [Foreign language]

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

Anna Sobieraj-Kozakiewicz: That is a difficult question. I am unable to answer the question asked this way. The Robinson Mine is facing some challenges because of the pit and the ore exploited there are difficult. The mine is working on meeting the budget target. The failures that occurred have been eliminated as a result of remedy measures, and we expect an improvement of output in the upcoming time. We also have some development plans for that place. We have AI-supported plans to improve our mix and enhance the quality of the output. If we implement this, that will take weeks. Now we are at the stage of confirming that this technology, if implemented, will boost the output. That is also a quick path to return to high output levels. This phase of Liberty is a transitional phase to the next one, which will start in 2028.

Anna Sobieraj-Kozakiewicz: [Foreign language]

[Translator]: That is a difficult question. I am unable to answer the question asked this way. The Robinson Mine is facing some challenges because of the pit and the ore exploited there are difficult. The mine is working on meeting the budget target. The failures that occurred have been eliminated as a result of remedy measures, and we expect an improvement of output in the upcoming time. We also have some development plans for that place. We have AI-supported plans to improve our mix and enhance the quality of the output. If we implement this, that will take weeks. Now we are at the stage of confirming that this technology, if implemented, will boost the output. That is also a quick path to return to high output levels. This phase of Liberty is a transitional phase to the next one, which will start in 2028.

Speaker #2: That's a difficult question. I am unable to answer the question asked this way. The Robinson mine is facing some challenges because the pit and the ore exploited there are difficult.

Speaker #2: The mine is working on meeting the budget targets. The failures that occurred have been eliminated as a result of remedial measures, and we expect an improvement of output in the upcoming time.

Speaker #2: We also have some development plans for that place. We have AI-supported plans to improve our mix and enhance the quality of the output.

Speaker #2: If we implement this, that will take weeks. Now we are at the stage of confirming that this technology, once implemented, will boost the output.

Speaker #2: So, that is also a quick path to return to high output levels. But also, this phase of liberty is a transitional phase to the next one, which will start with the shift to the open-pit mine in Etterand.

Anna Sobieraj-Kozakiewicz: That is the shift to the open-pit mine in Ekurand. That also results from a certain modeling of the deposit that will allow us to go to a better part. Before we get there, we need to go through the part of the deposit, which contains a greater share of lower quality material. Is that the only problem? Yeah. Only this one, the type of soil.

[Translator]: That is the shift to the open-pit mine in Ekurand. That also results from a certain modeling of the deposit that will allow us to go to a better part. Before we get there, we need to go through the part of the deposit, which contains a greater share of lower quality material. Is that the only problem? Yeah. Only this one, the type of soil.

Speaker #2: And that also results from a certain modeling of the deposit that will allow us to go to a better part. But before we get there, we need to go through the part of the deposit which contains a greater share of lower quality material.

Speaker #2: So, is that the only problem? Yeah, the only one is this one—the type of soil. Then I have a question regarding the global market.

Dariusz Nawrot: Then I have a question regarding the global market. What is your feeling? Because there is some pressure on the supply side in copper supply, but something that in mid-term can play a role is the decision of the American administration regarding customs. By the end of June, plans were to be announced regarding actions till the end of 2027. Aren't you afraid that there might be some changes if American traders introduce some of the stock to the market and destabilize copper prices? Well, of course, there is such a risk. This storage facility that in the past was created a little by accident, now has gained strategic importance. We watch closely what the US and China are doing. Copper no longer is just an element subject to supply and demand laws, it has become the object of political gains.

[Analyst 4]: [Foreign language]

[Analyst 4]: Then I have a question regarding the global market. What is your feeling? Because there is some pressure on the supply side in copper supply, but something that in mid-term can play a role is the decision of the American administration regarding customs. By the end of June, plans were to be announced regarding actions till the end of 2027. Aren't you afraid that there might be some changes if American traders introduce some of the stock to the market and destabilize copper prices?

Speaker #2: What is your feeling? Because there is some pressure on the supply side in copper supply, but something that in the midterm can play a role is the decision of the American administration regarding customs.

Speaker #2: By the end of June, plans were to be announced regarding actions until the end of 2027. Aren't you afraid that there might be some changes if American traders introduce some of the stock to the market and destabilize copper prices?

Speaker #2: Well, of course there is such a risk. This storage facility, which in the past was created a little by accident, now has gained strategic importance.

Piotr Krzyżewski: [Foreign language]

[Translator]: Well, of course, there is such a risk. This storage facility that in the past was created a little by accident, now has gained strategic importance. We watch closely what the US and China are doing. Copper no longer is just an element subject to supply and demand laws, it has become the object of political gains. We all see the production of cathodes in the US. US is dependent on this type of product to a large extent, and the storage facility builds some resilience. Whether that will be sufficient is not something for me to comment on. This storage facility has a much broader importance than just as a storage place for cathodes. The CEO also said that when we were at a time of higher prices, you concluded a bit more hedging transactions.

Speaker #2: We watch closely what the US and China are doing. Copper is no longer just an element subject to supply and demand laws. It has become the object of political games.

Speaker #2: We all see the production of cathodes in the US. The US is dependent on this type of product to a large extent, and the storage facility builds some resilience.

Piotr Krzyżewski: We all see the production of cathodes in the US. US is dependent on this type of product to a large extent, and the storage facility builds some resilience. Whether that will be sufficient is not something for me to comment on. This storage facility has a much broader importance than just as a storage place for cathodes. The CEO also said that when we were at a time of higher prices, you concluded a bit more hedging transactions. Is that the strategy for the upcoming weeks or months, namely more active hedging for copper? One more question regarding hedging with respect to silver. The prices are higher than they were at the end of January. Will you consider reducing the number of hedging transactions here? Well, we have our strategy for this.

Speaker #2: Whether that will be sufficient is not something for me to comment on. This storage facility has a much broader importance than just as a storage place for cathodes.

Speaker #2: The CEO also said that when we were at a time of higher prices, you concluded a bit more hedging transactions. Is that the strategy for the upcoming weeks or months?

[Translator]: Is that the strategy for the upcoming weeks or months, namely more active hedging for copper? One more question regarding hedging with respect to silver. The prices are higher than they were at the end of January. Will you consider reducing the number of hedging transactions here?

[Analyst 4]: [Foreign language]

Speaker #2: Namely, more active hedging for copper. And one more question regarding hedging with respect to silver: the prices are higher than they were at the end of January.

Speaker #2: Will you consider reducing the number of hedging transactions here? Well, we have our strategy for this. We monitor the market on a daily basis.

Piotr Krzyżewski: [Foreign language]

[Translator]: Well, we have our strategy for this. We monitor the market on a daily basis, but we also have certain intervals at which we complete such transactions. We targeted the level which we considered appropriate for concluding certain transactions. For silver, you will see the results in the next report. With $55, some transactions were closed, and now we monitor the market. I think I would say the market would be at $75, plus or minus 50%. We probably oscillate within that range. Silver is very strong in the industry. Also, ETF movement was visible. It is quite a shallow market. We have some institutional investors, central banks, and here the demand is under no risk. We can see that the big players continue the purchases.

Piotr Krzyżewski: We monitor the market on a daily basis, but we also have certain intervals at which we complete such transactions. We targeted the level which we considered appropriate for concluding certain transactions. For silver, you will see the results in the next report. With $55, some transactions were closed, and now we monitor the market. I think I would say the market would be at $75, plus or minus 50%. We probably oscillate within that range. Silver is very strong in the industry. Also, ETF movement was visible. It is quite a shallow market. We have some institutional investors, central banks, and here the demand is under no risk. We can see that the big players continue the purchases. One more question from the room? Esther, I had a question.

Speaker #2: But we also have certain intervals at which we complete such transactions. We targeted the level which we considered appropriate for concluding certain transactions. For silver, you will see the results in the next report.

Speaker #2: With $55, some transactions were closed. And now we monitor the market. I think I would say the market would be at $75, plus or minus 50%.

Speaker #2: We probably oscillate within that range. Silver is very strong in the industry. Also, ETF movement was visible. It is quite a shallow market. We have some institutional investors, central banks, and here the demand is under no risk.

Speaker #2: We can see that the big players continue the purchases. One more question from the room—Jakub Szkodek, Erste. I have a question. A few days ago, BHP had a conference, and the CEO said the cost of new projects, like buying copper projects, costs well above $100,000 per ton.

[Analyst 4]: One more question from the room? Esther, I had a question. A few days ago, BHP had a conference, and the CEO said the cost of new projects, like buying a copper project, costs well above $100,000 per ton. Is that indicative also for your purchases that you might consider?

Dariusz Nawrot: A few days ago, BHP had a conference, and the CEO said the cost of new projects, like buying a copper project, costs well above $100,000 per ton. Is that indicative also for your purchases that you might consider? Let me take this. Of course, we cannot refer to this. We have no idea what the new CEO of BHP had in mind. For sure, we will inform you at the time when we are ready to do so. Talks are in progress. This is not that cost, but it is very difficult to refer to any statement made at a press conference of another institution. Let me ask a technical question then. The VP mentioned change of guard in Sierra Gorda Supervisory Board. I understand Sierra Gorda will not change. It will continue at 50%. No, of course.

Speaker #2: Is that indicative also for your purchases that you might consider? Let me take this. Of course, we cannot refer to this. We have no idea what the new CEO of BHP had in mind.

Remigiusz Paszkiewicz: [Foreign language]

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

Speaker #2: We will certainly inform you at the time when we are ready to do so. Talks are in progress. This is not about cost, but it is very difficult to refer to any statement made at a press conference of another institution.

Speaker #2: Let me ask a technical question, then. The VP mentioned a change of guard in the Sierra Gorda supervisory board. I understand Sierra Gorda itself will not change.

[Analyst 4]: [Foreign language]

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

Speaker #2: It will continue at 50 percent. No, no, no. Of course, this is like the binding JV, which defines that the leadership in this board is cyclical.

Piotr Krzyżewski: This is like the binding JV, which defines that the leadership in this board is cyclical with two-year terms. Now South32 has this role. We take it over at the beginning of January next year, so nothing changes with respect to ownership. Now online questions. I am on the defensive today. The management board presented the results and the questions asked in the room also answered a series of questions that had been sent by email, and I have no new questions, no new topics. So maybe there are some more questions in the room? If there are none, then thank you very much for the participation in this conference. We invite you to the next one in November, and now we invite you to a little refreshment. Thank you.

Remigiusz Paszkiewicz: [Foreign language]

[Translator]: No, of course. This is like the binding JV, which defines that the leadership in this board is cyclical with two-year terms. Now South32 has this role. We take it over at the beginning of January next year, so nothing changes with respect to ownership.

Speaker #2: With two-year terms, now, self 32 has this role. We take it over at the beginning of January next year. So nothing changes with respect to ownership.

Speaker #2: Now, online questions. I am on the defensive today. The management board presented the results, and the questions asked in the room also answered a series of questions that had been sent by email.

Janusz Krystosiak: [Foreign language]

[Translator]: Now online questions. I am on the defensive today. The management board presented the results and the questions asked in the room also answered a series of questions that had been sent by email, and I have no new questions, no new topics. So maybe there are some more questions in the room? If there are none, then thank you very much for the participation in this conference. We invite you to the next one in November, and now we invite you to a little refreshment. Thank you.

Speaker #2: And I have no new questions, no new topics, so maybe there are some more questions in the room. If there aren't any, then thank you very much for your participation in this conference.

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