Kghm Polska Miedz Sa Ord

Good afternoon, ladies and gentlemen. A very warm welcome at the conference dedicated to the discussion of the results of 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 Krzyzewski, Vice President of the Management for Finances, and Miroslaw 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 first half of 2026 brought very good financial results and results in terms of efficiency throughout the entire KJGM group. Revenues up by almost 40%, almost 90% increase of EBITDA compared with the first half 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 and 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. The strategy which shows the priorities of our management board and 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 effort, 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 optimisation programme, 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 KJHM and to continue to be a company that pays out dividends. 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, we signed contracts for over 200 million PLN with the National Fund for Environment Protection, and that will be spent on photovoltaic and wind farms. Abroad, on the 1st of 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 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 have a production of sulfuric acid In this situation of uncertainty regarding almost global conflicts around it became a very good product, high margin product. This acceleration also means that we will face the decision on increasing Increasing the value chain in Sardinia 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 optimisation programme. We can achieve as much as several hundred million by increased efficiencies. So we want to have high efficiency innovation, security of work, security of employee, Piotr Krzyzewski, Miroslav Laskowski 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 for an expansion, not only geographically, but also upward the value chain. That is also Cedynia smelter new products, new plan for the Legnica smelter. We also have new directions. Let me mention the commencement of works on extraction of polyhalate in Puck. We have 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. 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 group of the entire KGHM in the first half of 2026 are the result of excellent standing and implementation of development assumptions, including numerous initiatives that have been started Piotr Krzyzewski, Miroslaw Laskowski Almost doubling of EBITDA, operating EBITDA. You must have noticed that in our results tenfold increase in net profit of the group year-on-year. That is particularly important for stable financial standing. And let me stress it again, a production of paid copper by 20% year-on-year and silver production 8% up year-on-year. Increased sales volumes for all our core products. Also gold, we know 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 specialise In KGHM analytics, that's an important piece of information. Also increase in operating margin from 25 to 34% in the entire group. 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. Let's start with Madam Vice President. Okay then. Thank you. As regards production results in foreign assets, let me start with the discussion of Sierra Gorda. You can see in the graphs The results of Sierra Gorda that account for 55% share, payable copper 19.6 thousand tons for the entire six months 40,200 tons, that is minus 5% year on year. Silver production in the first six months 38% increase in production which stands at 14.9 tons gold and precious metals The results stand at 9,300 ounces and the result is thus 37% worse. However, I would like to comment on this by saying that the content of silver and precious metals in the ore Piotr Krzyzewski, Miroslaw Laskowski It is slide yet visible. Sierra Gorda is trying now, 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 oil Anna Sobieraj-Kozakiewicz This higher production is the result of higher output although the ore had lower content of the metal and lower processing levels. 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 South 42 partner, we decided to fund this investment, CAPEX. The project 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? 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 three years and then the fourth year that is in the second half 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 some five years ago and our studies as well as those of our Australian partner indicated positive NPV, hence this decision. We expect the greatest outlays in 2027-2028. Also there will be an increase of employment in 2028.

Well, this slide really shows what the construction looks like. We intend to have additional crusher and the HPG mill Bole Mill and Flotation Line. That's 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 January 1st, 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 45, 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 Katabela excavation area but Sierra Gorda continues to work on exploration drilling around the Katabela excavation area new areas were identified where there is very likely high mineralization both for copper and molybdenum and in case of Catabella 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 another location and possible pit which is Salvadora so we know for sure that this is a mineralized area and an ongoing drilling project Katabela North East, like 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 colours in the cross section, like blue and red, show high level of mineralisation and you can see that on your right there is a higher density of batch, so that shows that the pit, Karabela out pit, also has potential to have mineralisation underneath the current production area. On the left corner we see the map that shows the position of Catabella North East versus Catabella Space which is owned by BHP Spheres. 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. 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. For KGHM International, we are down 34% year-on-year. This is related to the reduced output of copper, The content of copper in the ore and less ore was processed. 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. In terms of silver production, it's not located there because that For TPM we also see the reduction for gold. This is 15.5 ounces of gold, but this is in line with the budget. 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 Liberty Pit. 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 so material that we are currently working with this is not geological material that was historically heaped 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 deviations 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 so the operating assets that failed also contributed to that negative deviation but we actually came up with the repair program and Robinson is working on sort of bridging the gap during the second half of the year. and deliver the budget. And in terms of numbers, the situation with Robinson with the positive macro environment and high prices of metals is really very good. Robinson generated the EBITDA, which is twice as high as the one we had in the budget. It's over 780 million zloty after the first six months. So the good pricing of metals have certainly contributed to this production. and Sierra Gorda and financial results also shows that the numbers outperformed our expectations in the budget. So overall cash flow from international assets after six months are at $290.3 million. Syria 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 capital group. This is nearly 2.5 billion zlaris. and I think that this is the point where I will actually have my full stop and turn the floor over. So right now it's time for the individual segments I have been always thinking about the proper adjective to describe the situation. 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. and again I would like to thank our employees that work in the smelters and area facilities because there is something that we can praise about. We had 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 and perhaps a few words about the production of the electrolytic copper. 7% up, but let me remind you that the last year we had a low base because of the standstill and the refurbishment of one of the holes in the Głogów tool smelters. Silver 8% up compared to the last year. It is true that we take advantage of the availability Last year we were able to grow by 40 tons of the metal mainly because of the berry content of silver in the ore by 2 ppm. And 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 the 26th of September. 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. So this is when we have the first load coming to the furnace. So this is a truly very good, I should say very decent result of the Polish assets. So 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 billion 439 million zlarys. Most of it was in the mining operations and I think that this is natural and it has been like that for years and I don't think that we can expect any change in these proportions. When you want to break it down in different categories, development, I think that the development has accelerated. We were up 14% compared to the six months of 2025 and this is the result of the new shafts becoming operational. And in terms of these categories, we can tell that There is more spending on actual refurbishment and reconstruction and major Thank you very much. Part of this investment is availability of the deposit. Overall, over 1 billion 40 million is allocated to that. And that includes everything, the pits, 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 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 Redków and then BG2 and Jaworzyce. So last year we had only GG1. Today we have four shifts that are covered by our capex. GG1 is actually coming towards the final phase. So when we zoom in right here, this is the shaft which is very much advanced. In September 2029, it 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 loading facility for fuel etc. So in three years 2500 people will be actually using this shaft to go down and work in the mine. Okay, GG2. GG2 is the shaft which was located a few years ago. Regretfully the location was not good in terms of geological and Redków. The Red Cove shaft is currently at the end of the geological survey and again we have the confirmation that it was the excellent location that would be another shaft for the transportation of people materials downwards 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 case of GG2. So these two shafts will be going hand in hand in terms of advancement of work. And Gaworzyce is the final shaft and we currently are still at the drilling process to check all the ecological properties. 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. So we have already spent over 100 million zloty on those shafts. You may think that this is all fieldwork. It doesn't happen that much there. But one drill is like between 12 and 15 million zloty.

Now we also have to take into account access carrying the load and the output back each cubic meter of air going down. Translates into tangible results. We have seven licenses here marked in grey. These are areas where we currently exploit the deposit and the remaining are exploration licenses. Radwanice, Ścinawo will be the places for which we'll apply for exploitation. Now 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. Then we are examining geologically the area near Bukowodrzanski. Redków 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. It's dismantled. We have to recover all those spots, specifically checking the weakest points. 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 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 a thousand degrees and they are supposed to resist such high temperatures for the upcoming five years. Here we can see Głogów II smelter, 670 million PLN will be the cost of the refurbishment here and also similar works are going on in Legnica. Here we are fitting machinery for a 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 Cydynia. 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's our rolling facility. This rolling plant has been operational for over 40 years, so it's time to refurbish or replace the machines. They are still performant, they are still in good condition, but we endeavour to replace them and also take this opportunity to expand our product of with moulders, shapers and other products made of copper. So we are thinking about upcast as well. Exploratory and development work focus above all on maintaining highly productive geological lines. We work in increasingly difficult conditions. We are successful in withdrawing humans from the most dangerous areas. and thermic hazards are becoming the most serious ones. Now we had a robot for cleaning the passage between the furnace and the recovery boiler in Głogów II. Now we are finalising a similar robot like this for Głogów I. Also down in the mines we need machines that 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. 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 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. We generally increase the capacity of our exploration machinery. So to close this presentation I would like to say that the first half of the year was favourable 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 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 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. 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. 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, production is crucial. But given how fragmented and divided the market is, the sales also becomes a very important aspect. Production is our Back Office so to speak 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 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 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 are The new production line will have an 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 greater profit of the company in subsequent periods. While talking about income now, we should also mention costs. That's 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. On the one hand, if we look at taxes and third party input, here the numbers are high, but if we deduct the elements, Thank you very much. The cost optimisation programme, 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 1 billion PLN savings are expected by 2028 compared to this benchmark of 2024. Now after one year of implementation of those activities showed savings of 300 million and next steps will also be reflected in KPIs Not only stand-alone 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 first half of the year that was 5.7%. We stopped the cost decrease but we still have the ambitions to improve Piotr Krzyzewski

So when we look at the cost of electricity for the first six 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 57 million. 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. 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 1.2 billion is the cost of gas, electricity for the first six months, so going up by 32 million zloty is really negligible, given what has been actually happening in the market during the past periods. Now, resilience is also about cash flow, a strong operating cash flow over 2.5 billion zloty, and globally, after our investments, All the cash flows is 774 million zloty. But I think that inventory should be also mentioned that sort of a peak in our inventory when we were collecting annals for current processing to actually generate cash flow that is more in line with the standard operations without any republishment and retrofitting projects. So if you look from December through January, For inventory it's 2.5 million zlaris and 63% is changing price and 37% is a volume. But let me add to that, that we were able to collect over 60,000 or nearly 60,000 annals. Yeah, but when you look from quarter to quarter, we were up only by 485 million, including 135 for volume and over 350 for the price. But what We are seeing now and you will be actually watching it over the course to come the value of our inventory would 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 a market environment. I think that we've been all watching that and this is never Black and white picture. On demand side we have a 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. 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. All the cathodes are actually now located at Carex. Now, you were asking What has been happening recently, like we had cash settlement on the market the usual third Wednesday of the month, so capitals were shifting towards COMEX and the spreads that you've been able to see on the market was definitely non-standard and therefore Through the physical market we've been seeing some volumes being pushed so after that peak we were always hedging and we will be able to show your transactions during the next after the next quarter so we took advantage of the of the peak but the market is under pressure as we can tell and but the trend that we are able to identify whether for copper or silver we believe that it's stable and there is a 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. 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. So 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 VP Bryja said, the shaft is not built overnight. It takes years to complete such a project. and 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 that this is a long-term CAPEX commitment but at the same time we want to make sure that we generate value for shareholders. As the MEP said, the fourth line, you know, with brownfield we are able to generate an 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 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, 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 altogether it will be around 1 billion dollars 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. Catabella North East, 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. So it could be another Sierra Gorda. So 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 capital group. So 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&As. 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. 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, Robert Mike. 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're going to actually 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 annals 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. So, OK, what kind of dividend can be expected for 2026? Are we shooting at five PLN or rather at one? Well, I think that we will communicate that on the occasion of the general shareholders meeting next year. But let me emphasize that we 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 that we are in the position to continue our investments and growth and further development but at the same time we want to have a financial I understand that the main culprit was the growing Payroll costs 2.1 billion zloty, right? So cash flow of the group was not able to cover these costs in Poland. And that was because of the one of bonus that was paid out to the workers. And we may expect that the total cost which is currently at 55,000 Zl per ton may go down in Q3. Am I right? Well, according to our regulations, when we generate the profit, we have to actually make a contribution to the prize and reward fund. This is like a... 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. So 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, IMG 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 This is a question from my area in terms of I cannot exclude any geographical regions, but we are looking closely at the South America, North America, North Africa, but we look only at the stable jurisdiction in terms of the legal safety, like the 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 Ukraine. Actually, we've 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, the first row. Darek Nawrot. When can we expect improvement of output of copper in Robinson? 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. The mine is working on meeting the budget targets. 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. 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 in 2028 that is the shift to the open pit mine in Etterand 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 and the deposit which contains greater share of lower quality material. So is that the only problem? Yeah, only this one, the type of soil. 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 the copper price? 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 and it has become the object of political games. 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, it's not something for me to comment on. This storage facility has a much broader importance than just a storage place for cathodes. The CEO also said that when we were at the 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? And 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. We monitor the market on a daily basis, but we also have certain intervals at which we complete such transactions. We target it at the level which we consider appropriate for concluding certain transactions. For Silva, 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 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? Jakub Szkolek-Erste. I have 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? 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 statements made at a press conference of another institution. Let me ask a technical question then. The VP mentioned Change of Guard and Sierra Gorda Supervisory Board. I understand Sierra Gorda will not change. It will continue at 50%. No, no, 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. 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 aren't any, 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 little refreshments. Thank you.