Kghm Polska Miedz Sa Ord

Good morning, ladies and gentlemen, to a conference devoted to talking about the results of the KGHM Group for the third quarter of the first nine months of 2025. We have President Andrzej Szydła, Nasebary Kozakiewicz, With us, Mr. Zbigniew Bria, Deputy Manager for Development, Piotr Krzyzewski, Deputy Board President for Industrial, and Mr. Laskowski, Deputy Board President for Investment and Investor Relations Director. The meeting is broadcasted online and you will be able to send your questions during the conference and afterwards. And all the answers are going to be published either during the conference or afterwards. And now, Mr. President, over to you. Welcome, ladies and gentlemen, and apologies to the investors who are watching us from the western hemisphere. Apologies for atypical time of the meeting, but due to the tight schedule, we need to move the time of the conference a bit back. Due to also the tight schedule I mentioned, I will try to make it very brief today, not to get into the competence of further speakers today. So to give you the bird's eye view of our situation. I'll start with an anecdote, but yes, this slide and the trend that we have been seeing for many months about KGHM and influences its results, I think I can jokingly say that maybe LME, copper prices on LME, should be in Polish zlotys. Because what does this slide show us? 5% copper price in terms of USD year on year. So first nine months of 2024. The exchange rate between USD and PLN is minus 4% year on year, which gives us the stable results, unchanged results. So the status quo is unchanged. So if the stock market would be in bullish lot, this chart would be much more predictable. And then average copper price for nine months were at the level of $9,556 and $36,257 in Zlotys. We see a marked increase in terms of silver price. which is a very important product of KGHM. Let me remind you, we are the second top producer of silver in the world. And here we have 23% of increase in terms of Zlotys and 29% of increase in terms of dollars. Of course, that influences our results. However, This increase of copper prices in dollars happened by the end of the reporting period. and strengthening of Zloty has been observed throughout 2024. Let me just remind you that at the end of last year, the dollar versus Zloty was four, 4.08, 4.10. Next slide, please. In reference to the previous slide, we see a minus 1% in terms of adjusted BIDDA in KGHM group. And in KGHM Polska Miecz SA, we have minus 1%. So almost the same. year on year, of course. And judging by the fact that the copper prices remained unchanged, and in the first half of the year we had a major renovation and global smelter, so I decreased production year on year compared to 2024 by 20,000 tons of electrolytic copper. The drop of revenues by 1% can be treated as only 1%. Then adjusted EBITDA of KGHM plus gametes plus 5% compared to 2024 and plus 16% in terms of adjusted EBITDA in KGHM group. Net profit, a bit of deja vu, because the first six months, throughout the first six months, we had the same results. So it's worse than the first nine months of 2024, both in terms of KGH and Polish Comitia Science Consolidated. Key production indicators, as I said, 20,000 tons of electrolytic copper less. and it is due to planned maintenance on smelter infrastructure in Głogów smelter. So in KJC and Polska Mić SA, that was 421,000 compared to 441,000. Better results in terms of Sierra Gorda, as you can see, plus 14%. which is almost 8,000 tons of copper more in Sierra Gorda, and in KJGM International, a little less than 5,000 tons less, which is minus 11%. I think Ms. President will... talk about the reasons of decreases in Robinson's mind. So again, I'm not going to precede her part of the presentation. We see a constant trend, about 66-67% of payable copper in domestic assets comes from own concentrate, KGHM. A third that would be purchased metal, either imported or scrap. This is no surprise. It's a stable level and we do hope that this stability won't move towards lower production from own concentrate towards purchased metals. And here we have the production results in terms of other assets. So Sierra Gorda and KGHM International. Silver production slightly higher. plus 1%, TPM production minus 6%, and molybdenum production markedly higher, plus 95%, better efficiency and better molybdenum concentration in Sierra Gorda. And to finish up, what I would like to emphasize, the results are really good, especially the EBITDA, And the exchange rate differences affect the net results. And we are very happy with what we've been commenting for many years, for many quarters, the cost discipline. Because the increase of costs that we had in the previous years, systematic increase due to the cost of work or cost of energy, we have managed to stabilize it. I'm pretty sure that President Krzyzewski will talk about it. There is no increase, even decrease, of C1 cost in foreign assets, international assets. Domestic assets, the increase of C1 cost is minimal. And if we look at C1 without the tax, we even are dealing with a decrease. Okay, now Professor Laskowski. Yes, let me give you a bit of details in production, in terms of production results. In all the segments or extraction production of copper in concentrate, production of electrolytic copper and metallic silver production, we are... within or even above the budget, and the Q3 of 2025 is one of the best production quarters compared to the previous year's period and compared to the previous five quarters. So, metallic silver, as you can see, plus 1.5% year on year. And Q3 as I said of 2025, 330 tons and this is one of the best results across these five quarters that we compare it with here. Electrolytic copper. In Q3, we returned to the production level of 149 tons. These are the amounts that we got in Q3, Q4 last year. The president, Szydło, talked about the maintenance in electrical refinery department in Głogów II smelter. This would contribute to the lower production results of the first two quarters of 2025. And in terms of production, in terms of ore extraction, it's similar to 2024, over 23 million tons. And Q3, that would be a level of extraction of 7.8 million tons, the highest in comparable periods, and production of copper in concentrate. It is slightly but still higher than the compared 2024 year on year. So again 304,000 tons, the highest level of production with compared periods. These are really good results. And I need to emphasize that we had unfavorable production calendar. 2024 was an off year. And February had 29 days. production day more for KGHM SA is 100 more tons of extraction, more concentrates, 1,000 copper in concentrates, 1,700 electrolytic copper, or 1,000 tons of wire copper. So this is one more day only in our production results. So... And then one more thing about Jolazny Most reservoir. We have SAFE level of filling it 6 million cubic meters of water. This is what we mean by SAFE. To compare in summer last year, when we got to KGHM, the filling of the reservoir of the main and southern part reached dozens of cubic meters. And one more important thing, in terms of Żelazny Most, we have obtained all the agreements and permits to the level of 205, so that gives us a couple or more than a dozen years of safe work in KGHM. And in terms of production results of international assets, Another very good year for that sector in terms of payable copper production. In Sierra Gorda, for 55 assets, the level of payable copper production was 64.9 thousand tons. It's an increase by 14% year on year. An increase of the production results is due to the higher grade copper ore, as well as high recovery, despite a lower volume of ore produced. Very good results in line with our budget assumptions. It's worth emphasizing that thanks to the optimization activities, we have stabilized production in Sierra Gorda, and we see more predictability of production, both in terms of copper and molybdenum. In terms of molybdenum production, here we can boast almost 100% increase of molybdenum production year on year. In Q3, that was over 2 million pounds. And so by the end of September, we have 4 million pounds in total. And then molybdenum production starting from May, end of May actually, we see a marked increase of that. And this is due to higher concentration of molybdenum in the ore, as well as higher recovery, despite the lower volume of ore processed. And what we need to emphasize here, molybdenum production in Q3 was one of the highest in the history of Sierra Gorda. in terms of silver and gold production. We see slight decreases, but this is due to lower volume of ore processed. In terms of gold, compared to the budget of this year, we see that we are still higher than our budget expectations, which, thanks to high prices of this metal and good TCRC premiums, contributes to a very good level of C1 below $1 per pound. Next slide, please.

When it comes to the production results of KGHM International, The production of payable copper after nine months is 40.6 thousand of tons of payable copper, so the decrease of 11% compared to the reference period and this is the result of the lower content of copper, lower volume. and yield of metal but here we need to highlight that we are referencing to the previous year where the results were record high and this year the production of ore goes into Liberty which has lower parameters of ore however we can see that we are within the budget when it comes to the production of coppers of 75% of the production When it comes to the production of the gold in Robinson, we are above the assumptions for that given year. And I was referencing to Robinson mine. Ladies and gentlemen, we can see that the production results of international assets are very good, which transfers to the good financial condition of international units. So at the end of September, we had $240 million, from which $210 million was paid by Sierra Gorda and $30 million KGHM International. And those are payments from guarantees, loans, and provision of other services. So I can say that this is a very good year for international assets. Thank you very much. So professor right now, when it comes to the advancement of development initiatives, we have similar parameters compared to the previous year. for the given period so when it comes to the development plan it was 62% right now we have 63% so we can compare those values at the end of the year in accordance with the conversations that we had with the departments we can say that we've completed our tasks when it comes to investments, and the execution would be at a similar level, so 96%, which is a very good result. Let me remind you, the investment plan, so 3 billions, 800 of PLN, also the reserve that we will not be touching, will not be moving the assets. When it comes to the distribution divisions, As mentioned during the previous conferences, mining industry when it comes to the development spendings is $2.492 billion, from which $2.406 billion is for financing, leasing $86 million. So let me tell you, three-fourths of 80% is the spendings for mining. When it comes to Division IV tasks of recreation, development, it's 35% in total. it's not what we would like to see but this is something that we can do because the recreation and maintenance are very important components that provide us with the chance to survive and we cannot those cannot suffer because of our investment plans so we need to divide those assets so that every party is happy with the values they receive so let's go to the next slide right now Okay, this slide, this circular slide that we can, this pie chart, so we can go to the segments, so 2 billion. of the execution 492 million 2 billion 90 million is mining so of course outfitting of the mines because we are mentioning that this is a type of activity that every day we are extracting every part of the deposit let's say so a part we should also prepare for the excavation for every other day. So that's why maintenance of the mining region, so construction of conveyor belts and stuff like that is important. Also, for the construction of the transformer station, those are all basic tasks. There are plenty of basic tasks that make our work in the mining industry profitable, so we need to have active mining departments. Another very important item in here is replacement of machine park. and we undertaking plenty of actions in here in accordance with the regulations that are in force to rationalize the purchase of machines and this year right now for three quarters we have 201 machines and the goal is 256 machines and this is the approximate number because every year depending on the needs it's always the approximate so five plus minus five to ten machines and so that's why we shouldn't be mentioning any delays because this is a result of the previous year so 256 machines this is something that we want to purchase until the end of the year. The next item, mine dewatering, so we know the problem, so the water in Polkowice, Firozowice, so, for example, the anti-filtration barrier needs to be prepared under the shaft SW4. So 187 million. The development of the Żelazny Most tailing storage facility and we are referencing to that because it was all related to Q3 to get all the acceptances, permits. for the exploitations for the construction the environmental authorizations and licenses as well so we can proceed with the construction of the storage so we need to be consistent and go step by step but this is also complemented by the investment in the construction of the so-called barriers surrounding the reservoir so in order to decrease the pressure and this is the so-called So those are some wells, special wells, relief wells. in order to relieve the area. Also, the next part, so the replacement of mines and tailings divisions, so different types of modernizations of conveyors, shafts, ACs, ventilations. In the hydro facility, hydrotechnical facility, so for example pipes, the network of parts, because as you can probably recall one of the reasons of gathering substantial amount of water when we arrived to KGHM was exactly that, so the infrastructure of pipelines was not good so we are removing this downside and right now we can maintain the safe level of water of Želazny Most and we can proceed So exploration, this is not significant, so 86 million and the next year due to the interest of Bytom Odrzański we will be drilling new holes in order to get some more exploration within that region and this is in perspective. Maintenance of shafts, those are mostly, so 56 million and this is mostly for the SW4 shaft complex. So step by step we need to remove the salt and move the infrastructure and the biggest part, so deposit access program so 34 percent for all investment mining investments and on the first slide we have 35 percent we have development so this is in fact this position this item plus exploration of course so it's still mining and mostly prepared for north for shafts because a shaft without the possibility of connecting to the mining system becomes a well, and we are not constructing wells. So that's why we are very much interested in the intensification of work for Redków, Gile II and Gaworzyce. And for the plant areas, the gallery areas that we have, For Q1 we have 32.4, so within the plan and the execution is not endangered in here and we are right now going back to the situation from a year ago. So the excavations were underwater and right now they are well prepared and accessible. So we are sort of like trying to get the time back. but the excavations are not everything and for example we need conveyor belts for those we need to prepare roads those need to be limited because of course we need to prepare the proper conveyor belt systems for that and it's all when it comes to the basic infos and this is also a slide that shows the scope of our works for the upcoming years and in green we have the upcoming shafts that we will be constructing in the future and please pay attention that in June 2023 we have the the deconstruction of the shaft we have been noticing the increase and it all transfers into the ton of excavation of yield So right now we have a stabilization of guo guf, so those amounts are not so relevant anymore. But when it comes to the construction of the following shafts, so GG1, and on the surface and the equipment of the facility, we have the reinforcement prepared for the shaft and anti-weight. for one of the machines, so machine one, and we are also preparing for the construction of the target cage. We are also increasing from 33 to 34 when it comes to AC. of megawatts, but it will be given for the exploitation in September 29. And two, so Pebeka, two units from our group, so the general contractor for the surface works, so the liquidation of the temporary facilities, and Bipromet, so a company that plays a role of the so-called engineer of the contract will be overseeing the progress of work when it comes to gg2 apart from the planning work for the municipality because we need to get the permits because as you know in some other words the gg2 will be in different place as compared to what was planned before and the works are going in accordance with the schedule when it comes to the uh transformator station so the first hall is uh is done already, so there will be no dislocation and the shaft will be there. When it comes to Gaworzyce shaft, we have everything prepared. We are preparing for the geological drills right now, so it's all when it comes to the shaft. Let's proceed to the next slide when it comes to the execution in metallurgy. So it's 358 million zloty and the main investments and the point of interest of ours at the end of the year. there will be a renovation Cedrnia mine conducted but in general we are preparing for Głogów II that will be taking place next year so the first contracts, purchases as well and those are the main points of interest when it comes to metallurgy when it comes to ZWRs it's modernization of mills, crushers, ball mills and press filters And we are counting on ending the Legnica smelter as well. So the new technology without the, no caps, no cap. And until the end of the next year, this installation will be accessible and available. So that's all when it comes to the investments. The basic info. Thank you very much.

I will digress for a moment here. Such detailed presentation by President Brea results from two things. First, his passion, and secondly, the importance KJHM puts on investment and development and providing long-term efficiency of our facilities. Thank you very much, President. We can see your enthusiasm and heart, but time is running out, so let's move on. Thank you. So let's move on to financial results. Yeah, it's good to be last because I can start from a summary. So I will borrow some of the words that my predecessors used. So to summarize, the Q3... but also all three quarters of this year. We've observed and have been observing good production levels with good cost discipline. At the same time, we're using our opportunities. In consequence, we have good financial results and creation of additional value for shareholders and stockholders. This is what we focused on, and you can see that after these nine months. Before we move on to the presentation, three key aspects I would like to emphasize. If I started from finances, I would say the first important element here, President Schubert mentioned that, is the exchange rate. We discuss a lot about tariffs. They are important. However, through the prism of our results, we are able to manage our trade activities so that tariffs do not affect us so much. But the exchange rate affects us just like all the other European economy and all the other industries in Europe. And this is a great challenge in terms of competitiveness from the European industry. In Poland, it's particularly important because Zloty is also very strong right now. So as the President said, on one hand, the copper price is raised by 5%, and our currency also raised by 5%. So at the end of the day, all the national assets, the price of copper in dollars, then recalculated into Zloty has the same value, even though it increased in general. In terms of trade, again, the last quarter was very dynamic. On one hand, the spread between LME and CME grew by 3,000 almost, and then we had the 2nd of August. when we finished the claim based on paragraph 232 in the States, and the decision was made of not imposing tariffs on semi-finished products, but raw materials were taxed. So again, it did not affect us so much. We were able to re-channel our goods, the flow of our goods. So thank you very much for the commercial team and our clients, our logistic team. So there was a lot of time pressure there, but as you can see, the results are impressive. And energy aspects. Again, very volatile. First transactions, first PPAs in the history of the company. We purchased 110 megawatt hours, two big wind farms that will provide energy for us next year. To give you the bigger picture, this is 5% of the purchased energy a year. And if we look at it from the perspective of the infrastructure, it's like Legnica will be covered by 72% by wind energy. And from the perspective of ESG, it's like in scope two, we reduce scope two by 5% next year. Energy transition is important, but I also have to emphasize the fact that this is a very efficient financial instrument, and it will contribute very well to lower costs of purchasing energy in the next year and years to come. Moving on to the presentation now. In terms of group revenues, it's 1% lower, but as President Laskowski mentioned, it has its reasons. And President Sudwo... the maintenance on electro-raffination and was responsible for that. I will show you what it means. We produce less, but we manage to earn more. And this is something we focused a lot. It's not about production volume, but we want to produce as efficiently as possible in terms of finance. Operating costs also lower by 1%. What was mentioned during our first quarter conference, we focus on cost discipline, cost optimization program is working very well. And then if we take into, exclude depreciation, then it's minus 2%. So this is something we will be doing in the coming periods, as you will see. So the adjusted EBITDA, as you can see, is plus 16% year on year. But again, keep in mind the fact that in 2024 for nine months, compared to nine months 2023, EBITDA, adjusted EBITDA was plus 43%. So very, very high dynamics of growth. So we're raising the bar in terms of the contributions. As you can see, over 1 billion lot is higher EBITDA, out of which Sierra Gorda, 7 million, then KGHM, KGHM International, also strong contributors as well. The President also mentioned Sierra Gorda here. What we do in our domestic assets, we also do in international assets. So we focus on one hand, fulfill our cost discipline. And in Sierra Gorda, it's a low-grade mine. This is the most important aspect. lever is very important here, and we've made a lot of changes here, both personal and managerial, minus one level, relations with our partners, self-articulate is also doing very well, so the team of the president also contributes many areas to Sierra Gorta, and the cooperation between the assets is also very good, and we see very positive results of that here. Here, looking at group sales revenue, the first is, yes, the renovation in electro-raffination. You can see the sales, changes in sales volumes is copper, and due to the maintenance in electro-raffination. by 16% own contribution, own concentrate, and 4% only in foreign inputs. So it shows how well we are able to adjust. A great thank you for the smelter departments. So we're looking at production through the perspective of finances, and the results are really, really well. The other positions should be connected. So position two, three, and four. If we combine them, we have 800 million plus. So this is how efficiency and management looks like, risk management looks like. This is plus 800 million. To remind you, last year we have generated 670 million plus. This year it's over 100 million. And again, our strategies work in a way that they can allow us to participate in exchange rate increase. So this contributed positively to the results. Here we have the expenses by nature. Again, we're getting very close to the inflation levels, 4%, both in terms of capital group and similarly on domestic assets. Again, plus 4%. The biggest value positions here are, well, tax, unfortunately, plus 10%. In terms of value, I would say labor costs, 300 million in the capital group. In Poland, 200 million. Also here we have the reserve for the pension expenses. And let's take a look at the use of materials here. It's still going down and a great work, a great achievement of the capital group here. Energy and energy factors here, the quantity decided here, the price is lower, but we used more energy, less gas. This was also a result of some of the maintenance activities on steam and gas blocks. So I would say the budget gas plus energy keeps being optimized and that contributes to very good results. And that gives us the image we see, so C1 unit cost. In the capital group we have minus 6%, but if we exclude the tax, the decrease is minus 13%, which is a very good result. And that here is a result of both production efficiency and cost regime. taking a look at some particular clusters of assets. In Poland, plus 2%, but again, if we exclude the tax from that, that would be minus 4%. So from that perspective, again, great cost discipline, and all the factors that we could influence determine the fact that C1 got down. And then C1 is recalculated and dependent on the USD rate. So if we exclude that as well, then that would place us on the level of minus 9%, almost. So this is the real value if we eliminate both the tax and the exchange rate from our analysis. Then taking a look at KGHM International, As the President mentioned already, good levels of production, both on Robinson Mine and TCRC, is supporting us here. Logistics costs got down mostly. All that contributed to the fact that C1 in KGHM International got down by almost 40%. And Sierra Corda marked a decrease of almost 50%. And here TPMs are very important. And the fact that we already mentioned TCRC, molybdenum, all the opportunities on the market we have used. And that is showed in C1. And then the financial results. The first column. Let me just mention that it's without, Sierra Gorda excluded. So KGHM International and domestic assets, positive contribution. And what was mentioned by President Laskowski, I would like to thank the mining departments that contributes very, very well in both assets. And as the President said, the last quarter in Poland in terms of ore extraction is very good in Poland. And we see that this tendency is being continued also now. So these perspectives are really good. Second parameter that contribute positively would be our loans and loans also sent to Sierra Gorda. And the biggest negative element, exchange rate differences. To give you the picture, these are the exchange rate differences resulting from our loans granted to Sierra Corda. And because of that, the change of exchange rate, the result is around one billion zlotys. And part of our debts, part of all the bank liabilities we have is also denominated in dollars that contributed positively, gave us 200 million Zlotys on plus, but then we are still minus 800 million Zlotys on minus. That influenced detrimentally the financial result of the group. Last thing, cash flow. Also very important, if not the most important. Because cash is what matters in the end. Looking at operational cash flow, comparing it with investing activities, we are very close to financing our investing activities with operating activities. And here I would like to point one thing to your attention. EBITDA contributes very positively. But then stock, something that will be connected with the maintenance in Guob smelter. We have some last corrections on our budget for the next year. We don't want it to influence our cathode production. So we are calculating right now how many anodes we need to create to make it in time without this smelter to provide... stability of the company. So by the end of September, in semi-finished products, you probably observed that it's over 1 billion 400 million slotted semi-finished product, mainly anodes that we are producing right now for stock. We have it very well calculated, and it pays off, I have to assure you. It will cost us some of the current assets, but still, by the end of the day, it will positively contribute to our results. I think on the annual conference we will show you that and this element is going to be growing, is going to be increasing. One more thing that I would like to mention in the last days to conclude the cash flow. We will be emitting our bonds in December. This is a planned transaction that contributes to the strategy that writes in the strategy of stable financing. One of the important elements, apart from bank financing, would be bond financing. We have the whole program scheduled. written down. We already emitted bonds once. Right now we will refinance that emission and that issuance. We want to prolong the refinancing terms and we want to use the positive market situation. So this is something that you will be shown by the end of the year for sure. Thank you very much.

I would like to thank the management board for the presentation of results. Now feel free to ask the questions and due to time limitations, please focus on the questions for this presentation today. Do we have any questions from the room? No questions from the room, I think. I have a question from the Internet, from the web. Jakub Szkopek, RST. It's pretty long when it comes to two years ago when the management board was taking job at KGTM. They were basing their actions on the assumed copper prices. Right now the copper prices are $11. increase the prices of gold and silver increase tax on excavation when the management board will test again and reverse the and write-offs and to reverse the write-offs yes so to answer those questions when I remember from 8,250 right now we are close to 11 we need to add one more parameter back then the exchange rate was 4.10 right now it's 360 it's very important element when it comes to the increase because it's not high when it comes to Polish Zloty, but some other aspects as well, because as I understand, the matter of the change when it comes to the taxation, the tax for the balance state, we'll be talking to the auditor, the supervisor, and this is an aspect that is being analyzed by us, whether there is a reason for that, so we need to have a broader look, not only through the prism of the copper price itself. Thank you very much. And to continue with the questions via emails, I think it's for Ms. President and for Mr. President Piotr Krzyzewski. So two questions from Morgan Stanley. Number one, when can we expect the update on the Sierra Gorda development? What areas are the feasibility studies conducted for? So ladies and gentlemen, we are trying to have a very detailed approach when it comes to investments for Sierra Gorda. at the current stage we are in the preparation of the feasibility study for which the end date is at the end of this year or the beginning of the next year and only then we'll have the full package of information that will be the basis for our decision and we will be able to talk about the further investment decisions. Right now the gathering information stage is in progress. Question number two from Yanis. What part of the turnover capital, working capital can be reversed in Q4 so as mentioned the key element will be the matter of the construction of the optimal state of semi-finished products and what will be the burden of the turnover capital and we are working on some other elements as well to free up the capital as well and this is something that you can observe too so it's very difficult for me to provide the details when it comes to the numbers But just to add on what Ms. President was saying, our strategy from the very beginning was for our assets to be developed. And we are focusing on what you can see right now. And we have agreed with our partners that first the assets need to be produced effectively. The goals, the results need to be reached. And then we can talk about the investments, the first one. executed reached and needs to be continuously reached but right now we can talk about the investments and I think that this aspect is very complex because from the perspective of the fourth line for green line This aspect is much more compact complex. So we are making the drills in the concession area so the mineralization is in the neighborhood and The layout the exact layout of Sierra Gorda this is something that we are having discussions over and we are considering all the assets that are developing in terms of operations and we are looking at the investments from the financial efficiency. So I'll just add on this. From the very beginning, so for a longer period of time right now, we have been saying that, first and foremost, that international assets should be organized and optimized, and this is something that is being done. And secondly, not so long ago, we had a problem of the due date of loans, so DECEN. And this problem was resolved too. The third thing this year, Ms. President was referring to the payment of loans. And it's good that it's happening. So this will also be contributing for us to protect us from the proper levels of the pay of the loans when it comes to the exchange rates. And the last thing, the most important one, the capex that are pretty relevant when it comes to the offsides and the forced mine. And to be truth with you, the burden of the investments when it comes to the group, we all know it and we have been signalizing it as management boards. The biggest challenge when it comes to the investments is at KGHM. And of course, the project that can be attractive, so increasing the Sierra Gorda production capacity when it comes to the fourth line, provided that it's going to be effective, efficient. can go hand in hand with what we are planning when it comes to the finances for KGHM. So, for example, if we consider this to be very efficient with relatively short return rate, we need to remember that fourth line is working in a negative manner for the so-called loans. And if we are turning this capital well, it's working well. So when it comes to the answer, we need to search for the proper balance for the investments. First, we need to proceed with the ones that are the most important. So, for example, the ones that we need to execute, then we need to proceed with the ones that are the most profitable ones. so just to add on that answer at the last sentence from me we would like to focus on the production to be at a foreseeable level and this is something that we are putting a lot of effort into right now when we're talking about the millennia capex 700 million dollars for the fourth line of millennia so this is something that we need to keep in mind and what was stated before the international assets are contributing positively to EBITDA so right now 46% of corrected EBITDA but at this capex we need to be sure that the return rate will be proper so just at the very end to remember For Sierra Gorda, the decisions are made with our partners, so we have 50% of shares, but this is not a monopoly for the decision, so we need to agree upon those and we are coreferencing and searching for proper solutions. I would like to add one more sentence when it comes to financing, because, ladies and gentlemen, this is something that we have been communicating and saying to you. We are trying to separate the international assets from the banking perspective. So, for example, $500 million for Sierra Golda, there's a bigger option in here to get more financing. KI is getting more financing for different assets as well with our support from the substantial part. So I would like to say that we are not defining the risk of cannibalization of CAPEX because I think there is no risk as such, but when it comes to the loans and changing the philosophy not to generate additional loans. Yes, this is something that we have been focusing on from the very beginning and we have been, so we will be providing the financing from the operational standpoint but for respective assets. Thank you very much. If I can just ask President Krzyzewski, you said that we produce less but earn more. So at KGHM, Q4 usually was the biggest sales. So what is the prediction for the future, that in Q4 we produce more and we sold more and earned more? Is that possible for the future, for Q4? A very good question. but I have to answer when it comes from the sort of like the back office perspective. And I think that this is actually publicly available when it comes to the European market. So the benchmark, so Eurobiz for cutouts is 40% higher compared to this year. So I will not comment on that. But for sure, we will be optimizing that in the long perspective the company earns as much as possible on its products of course depending on the availability of the items on the market and this is something we also need to remember about the geopolitical world so we are responsible for the 50% of the copper in Europe so This technological tract is dependent on us in Europe, depending on the partners, depending on the availability of the product and raw materials too. Thank you very much. One more question from MBank from Mr. President Brea. when it comes, what will be the profile of the expenses for new three shafts in time so the capex will be divided in even amounts, are there any more intensive, intense periods when it comes to the construction of the shaft the most expensive part is the deepening part and then equipment of the shaft when it comes to GG D1 and Red Cove is is of different purposes and this is transferring to the providing proper equipment for the shafts because we need to remember that any additional equipment is sort of like limiting the amount of air within the shaft when it comes to the first hole drilled in the Red Cove we are just waiting for two more the construction of the freezing unit so 44 holes need to be drilled the whole installation when it comes to the deepening of the hole we are assuming at 2028, 2029 when it comes to the shaft it will be deepened and evened out in accordance with our schedule around 2036 and this is the most important part for Redkuf but all the remaining shafts within the periods of two or three years will be going after that shaft So that will be the concentration of the period from 2034 to 2040. So those will be the expenses in different parts of time for three shafts. So Redcov will be finished in 2040, the next one in 2042, and the next one in 2044. So if we are talking about the deepening as being the most expensive part, and then providing the proper infrastructure for the shaft is the 30s, But it's very difficult to indicate a specific year, because we haven't started the deepening period yet. So it's a matter of a year or two years. So thank you very much. Thank you very much. So do we have any questions from the room? If not, then it's... The last question, a bit technical, analytical from me. I will try to answer that and maybe Mr. President will. So Adam Milewicz from PKOBP. Why in Q3 of this year, why is it the income tax, CIT, corporate income tax is so high? So last year we've been also observing the return of CIT from the previous years, and this is sort of like distorting the analytics parts of this tax. And this one that we have right now is a standard level, so please consider that in terms of the previous periods as well. All right, thank you very much for attending this conference, and feel invited to the next one that will be happening next year. Thank you very much.