Polymetal International plc

Dear ladies and gentlemen, welcome to the Solico Resources Full Year 2025 Financial Results Webcast. Joining us today are Vitaly Nesis, Chief Executive Officer, and Evgeny Anushenko, Chief Financial Officer. We will begin with a presentation followed by a Q&A session. You can submit your questions in writing via the webcast platform. Vitaly, over to you.

Thanks a lot, Kirill. Welcome to the traditional financial results call for Select4Resources. Today we'll cover the results for financial year 2025 and we'll provide update on our strategic projects and outlook for 2026. I will start with the national disclaimer on forward-looking statements. Please take care to read it carefully. And I will start with the key figures for 2025. Obviously, this year, the last year, rather, was quite successful for the company. Despite the material decrease in payable production, of which more later, Solidcore managed to demonstrate substantial improvements in all measures of profitability. Obviously, this was mostly due to very favorable bull price environment, but nonetheless, we are pleased to report a very strong set of results. And I think probably the most important result in 2025 was the fact that the company reported no lost time injuries among our employees and our contractors. We also had zeroed the loss to work-related injuries. And we are proud to report that 2025 was the eighth consecutive year with no fatalities at Solid Core's operations in Kazakhstan. In terms of highlights for 2025, production went down, payable production went down mostly as a result of inventory accumulation at a most fast in Russia. But we managed to record a 37% increase in adjusted EBITDA on only 13% rise in revenue. So the margins have improved quite strong. In terms of cost performance, I will just briefly note that the dynamics was almost fully due to external factors, and as a result, our underlying net earnings increased by 40%. Net operating cash flow suffered again as a result of inventory accumulation, but that is a temporary phenomenon which will be reversed this year. CapEx continued to grow, plus 23%. As has been highlighted many times earlier, Solid 4 is ramping up our very aggressive CapEx program, and 2025 indicated the move in that direction. In terms of net cash, it increased. So our leverage levels are very comfortable. We are very well funded for our CapEx program. Turning to poor reserves and mineral resources, the year was marked by relatively stable dynamics. We did not replace all of our reserve to expect material increases as we remain very consistent and persistent in our exploration. In terms of production, annual payable gold equivalent output was 395,000 ounces. and that was mostly driven by the decrease of payable gold production at Gazelle due to delays in third-party concentrate processing. More or less, mine level output was more or less stable at 580,000 ounces of gold. And the difference between payable production and mine output was almost fully tied up in inventory at the level. Turning to inventory, specifically, we are now substantially, we have substantially bent down the path of winding down the excess payable metal inventory, mostly at Gazelle. In the middle of the last year, the inventory was 258,000 ounces. Now it's 158,000 ounces. So we still have approximately, dependent on the month of the year, 80,000 to 100,000 ounces of excess payable gold inventory tied up and concentrated. as of the end of the last year. We have continued to bring those levels down in 2026, and I would like to highlight the start of commercial cooperation with Kazikmas, where we have started to ship our concentrate for tile processing in December of last year. We expect that cooperation with KFMS will further to strategic goals of solid core. First of all, the reduction of dependence on Russian post-processing. And secondly, the sustainable and quick reduction of concentrate inventory levels. So far, the amount of concentrate processed through KFMS is significantly lower than what we do in Russia at Vox. But we are optimistic about the dynamics later this year and hopeful this step will unlock other strategic opportunities for SOLIDWORKS. So overall, not yet fully done with the reduction in working capital, but making good progress on this very important form. And I pass the presentation to Eugenia, who will take you through the detailed analysis of financial statements.

Thank you very much, Vitaly. So as Vitaly mentioned, Thanks to the favorable gold price environment, our revenue rose this year to $1.5 billion by 13%. So at Gazil, revenue increased 4% to $892 million. So higher gold prices more than compensated 34% drop in volumes. And at Varvara, revenue jumped 48% to $608 million on stable volumes and also stronger pricing. The remaining excess of gazelle concentrate inventories are expected to be released during 2026, which will drive our production guidance and sales guidance to 540,000 ounces. Next, please. So in terms of the total cash costs, they were 17% up to 1,100 per ounce, and the three main drivers behind the increase were the gazelle sales deferrals, spreading cost over a few ounces, domestic inflation above 12%, and higher mineral extraction tax linked to the gold price. The 10-day depreciation by 11% provided a partial offset of this increase. In terms of the total cash cost by mine, at Gazil, TCC rose 8%, and at Varvara, The increase was 13% to $1,556, basically to remember the same factors as I mentioned before. On the next slide, you can see the cost breakdown. So 30% is price-linked mineral extraction tax in dollars, and then 30% is the dollar and oil-linked cost, and 30% of our costs that didn't get eliminated. So that means that the gold-linked mining tax is becoming an increasing share as prices rise and the mineral extraction rate increased to 11% from 7.5% starting from the January, 2026. All in-sustaining cash costs were slightly above 1500 per ounce and the 18% increase was driven by the same factors which were driven in total cash cost, plus higher sustaining capital expenditure and SG&A expenses. At Kazil, all-in sustaining cash cost was flat at roughly 1,000 rounds, as lower sustaining capital capex offset inflation and demonstrated incredible free cash flow generation at current gold prices. At Varmara, all-in-sustaining cash costs rose 15% to slightly above $2,000 per ounce, reflecting investments in tavern storage construction as well as railroad spur at Kamar and fleet upgrades. In terms of the adjusted EBITDA, which grew 37% to $972 million, So the Kazoo contributed almost 700 million to the group EBITDA, and Barbaro contributed 332 million. The EBITDA margin expanded to 65%, up from 54%. And in the breach, you can see that higher gold prices added more than $500 million and partially upset by $231 million from lower sales volumes. and $69 million from high unit cost. So turning to the net cash position, net cash increased 24% to 464 million. We generated net operating cash flow of $600 million and deployed it towards capital expenditures, so 255 million went to CAPEX, and we spent $150 million on M&A and other investments. This included also the mandatory share buyback. So the gross debt was reduced to $267 million, and the average cost of debt was 5.7%. I would like to say that we are advancing negotiations with several international banks for up to $600 million to $700 million financing for IFPSPOK's construction. So in February, we signed an indicative term sheet with EFW, which is a German development bank. Another 300 million is expected to be provided by European Bank for Construction and Development, and another 300 million by a club of international lenders. We expect the main facility agreement to be signed at the end of the second quarter this year. And with that, Vitaly, over to you in terms of capital expenditure.