POLISH FINANCIAL SUPERVISION AUTHORITY

Annual report RR 2025

(in accordance with § 61 sec. 1 point 3 of the Decree regarding current and periodic information)

for issuers of securities involved in production, construction, trade or services activities

for the financial year 2025 comprising the period from 1 January 2025 to 31 December 2025 containing the separate financial statements

according to International Accounting Standards in PLN.

Publication date: 25 March 2026

KGHM Polska Miedź Spółka Akcyjna

(name of the issuer)

KGHM Polska Miedź S.A.

(name of the issuer in brief)

59 – 301

(postal code)

M. Skłodowskiej – Curie

(street)

(+48) 76 7478 200

(telephone)

ir@kghm.com

(e-mail)

6920000013

(NIP)

G30CO71KTT9JDYJESN22

(LEI)

Mining

(issuer branch title per the Warsaw Stock Exchange)

LUBIN

(city)

(number)

(+48) 76 7478 500

(fax)

www.kghm.com

(www)

390021764

(REGON)

23302

(KRS)

PricewaterhouseCoopers Polska Spółka z ograniczoną odpowiedzialnością Audyt Sp.k.

(auditing company)

SELECTED FINANCIAL DATA

in PLN mn

in EUR mn

2025

2024

2025

2024

Revenues from contracts with customers

30 964

29 894

7 302

6 945

II.

Profit/(Loss) on sales

3 156

2 856

744

664

III.

Profit/(Loss) before income tax

3 407

3 985

803

926

IV.

Profit/(Loss) for the period

1 946

2 788

459

648

Other comprehensive income

( 1 586)

( 152)

( 374)

( 35)

VI.

Total comprehensive income

360

2 636

613

VII.

Number of shares issued

200 000 000

VIII.

Earnings per ordinary share

9.73

13.94

2.29

3.24

IX.

Net cash generated from/(used in) operating activities

2 558

2 532

603

588

Net cash generated from/(used in) investing activities

( 2 660)

( 3 652)

( 627)

( 848)

XI.

Net cash generated from/(used in) financing activities

( 49)

( 12)

XII.

Total net cash flow

( 151)

( 1 117)

( 36)

( 259)

XIII.

Non-current assets

42 166

40 107

9 976

9 386

XIV.

Current assets

11 394

10 298

2 696

2 410

XV.

Total assets

53 560

50 405

12 672

11 796

XVI.

Non-current liabilities

10 951

9 409

2 591

2 202

XVII.

Current liabilities

11 095

9 842

2 625

2 303

XVIII.

Equity

31 514

31 154

7 456

7 291

Average EUR/PLN exchange rate announced by the National Bank of Poland

2025

2024

Average exchange rate for the period*

4.2402*

4.3042**

Exchange rate at the end of the period

4.2267

4.2730

*Exchange rate is the arithmetical average of the current average exchange rates announced by the National Bank of Poland for every day, from January to December 2025.

**Exchange rate is the arithmetical average of the current average exchange rates announced by the National Bank of Poland on the last day of each month, from January to December

2024.

Polish Financial Supervision Authority

This report is a direct translation from the original Polish version.

In the event of differences resulting from the translation, reference should be made

to the official Polish version.

SEPARATE

FINANCIAL STATEMENTS

FOR 2025

Lubin, March 2026

 
 
KGHM Polska Miedź S.A. 
Separate financial statements for 2025                      Translation from the original Polish version 
3 
 
 
Table of contents 
 
SEPARATE STATEMENT OF PROFIT OR LOSS .................................................................................................................................................................. 5 
SEPARATE STATEMENT OF COMPREHENSIVE INCOME .................................................................................................................................................. 5 
SEPARATE STATEMENT OF CASH FLOWS ........................................................................................................................................................................ 6 
SEPARATE STATEMENT OF FINANCIAL POSITION ......................................................................................................................................................... 8 
SEPARATE STATEMENT OF CHANGES IN EQUITY ........................................................................................................................................................... 9 
PART 1 – General information ...................................................................................................................................................................................... 10 
Note 1.1 Corporate information ...................................................................................................................................................................................................... 10 
Note 1.2 Going concern ..................................................................................................................................................................................................................... 10 
Note 1.3 Declaration by the Management Board on the accuracy of the prepared separate financial statements ....................................................... 13 
Note 1.4 Basis of preparation and presentation .......................................................................................................................................................................... 13 
Note 1.5 Foreign currency transactions and the measurement of items denominated in foreign currencies ................................................................. 14 
Note 1.6 Impact of new and amended standards and interpretations .................................................................................................................................... 15 
Note 1.7 Published standards and interpretations, which are not yet in force and were not applied earlier by the Company ................................... 15 
PART 2 – Operating segments and information on revenues ................................................................................................................................... 20 
PART 3 – Impairment of assets .................................................................................................................................................................................... 26 
PART 4 – Explanatory notes to the statement of profit or loss ................................................................................................................................ 36 
Note 4.1 Expenses by nature ............................................................................................................................................................................................................ 36 
Note 4.2 Other operating income and costs ................................................................................................................................................................................. 37 
Note 4.3 Finance income and costs ................................................................................................................................................................................................ 38 
Note 4.4 Reversal / recognition of impairment losses on assets in the statement of profit or loss ................................................................................... 38 
PART 5 – Taxation .......................................................................................................................................................................................................... 39 
Note 5.1 Income tax in the statement of profit or loss ............................................................................................................................................................... 39 
Note 5.2 Other taxes and charges ................................................................................................................................................................................................... 43 
Note 5.3 Tax assets and liabilities .................................................................................................................................................................................................... 43 
PART 6 – Investments in subsidiaries .......................................................................................................................................................................... 45 
Note 6.1 Shares ................................................................................................................................................................................................................................... 45 
Note 6.2 Receivables due to loans granted ................................................................................................................................................................................... 46 
PART 7 – Financial instruments and financial risk management ............................................................................................................................. 50 
Note 7.1 Financial Instruments ........................................................................................................................................................................................................ 50 
Note 7.2 Derivatives ........................................................................................................................................................................................................................... 57 
Note 7.3 Other financial instruments measured at fair value .................................................................................................................................................... 61 
Note 7.4 Other long-term financial instruments measured at amortised cost....................................................................................................................... 62 
Note 7.5 Financial risk management .............................................................................................................................................................................................. 62 
PART 8 – Borrowings and the management of liquidity and capital ........................................................................................................................ 84 
Note 8.1 Capital management policy .............................................................................................................................................................................................. 84 
Note 8.2 Equity .................................................................................................................................................................................................................................... 85 
Note 8.3 Liquidity management policy ........................................................................................................................................................................................... 88 
Note 8.4 Borrowings .......................................................................................................................................................................................................................... 92 
Note 8.5 Cash and cash equivalents ............................................................................................................................................................................................... 96 
Note 8.6 Liabilities due to guarantees granted ............................................................................................................................................................................. 96 
PART 9 – Non-current assets and related liabilities................................................................................................................................................... 98 
Note 9.1 Mining and metallurgical property, plant and equipment ......................................................................................................................................... 98 
Note 9.2 Other property, plant and equipment and intangible assets .................................................................................................................................. 103 
Note 9.3 Depreciation/amortisation ............................................................................................................................................................................................. 106 
Note 9.4 Provision for decommissioning costs of mines and other technological facilities ............................................................................................... 106 
Note 9.5 Capitalised borrowing costs ........................................................................................................................................................................................... 107 
Note 9.6 Lease disclosures – the Company as a lessee ............................................................................................................................................................. 108 
Note 9.7 Greenhouse gas emissions allowances........................................................................................................................................................................ 108 
Note 9.8 Non-current assets held for sale and liabilities associated with them ................................................................................................................... 109 
PART 10 – Working capital .......................................................................................................................................................................................... 110 
Note 10.1 Inventories....................................................................................................................................................................................................................... 110 
Note 10.2 Trade receivables ........................................................................................................................................................................................................... 111 
Note 10.3 Trade and other payables ............................................................................................................................................................................................ 112 
Note 10.4 Changes in working capital .......................................................................................................................................................................................... 115 
PART 11 – Employee benefits ..................................................................................................................................................................................... 117 
Note 11.1 Employee benefits liabilities ........................................................................................................................................................................................ 118 
Note 11.2  Change in liabilities related to future employee benefits programs ................................................................................................................... 119 
PART 12 – Other notes ................................................................................................................................................................................................ 122 
Note 12.1 Related party transactions ........................................................................................................................................................................................... 122 
Note 12.2 Dividends paid ................................................................................................................................................................................................................ 123 
Note 12.3 Other assets .................................................................................................................................................................................................................... 123 
Note 12.4 Other liabilities ............................................................................................................................................................................................................... 123 
Note 12.5 Provisions for liabilities and other charges ............................................................................................................................................................... 124 
Note 12.6 Assets and liabilities not recognised in the statement of financial position ....................................................................................................... 124 
Note 12.7 Contractual commitments for the acquisition of property, plant and equipment and intangible assets ..................................................... 124 
Note 12.8 Employment structure .................................................................................................................................................................................................. 125 
Note 12.9 Remuneration of key managers .................................................................................................................................................................................. 125 
Note 12.10 Remuneration of the entity entitled to audit the financial statements and of entities related to it in PLN thousands ........................... 127 
Note 12.11 Disclosure of information on the Company’s activities regulated by the Act on Energy ................................................................................ 127 
Note 12.12 Litigation and claims ................................................................................................................................................................................................... 132 
Note 12.13 Subsequent events ...................................................................................................................................................................................................... 132 
 

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

PART 13 - Quarterly financial information of KGHM Polska Miedź S.A. ................................................................................................................. 134

SEPARATE STATEMENT OF PROFIT OR LOSS ............................................................................................................................................................................... 134

Explanatory notes to the statement of profit or loss ................................................................................................................................................................. 135

Note 13.1 Expenses by nature ....................................................................................................................................................................................................... 135

Note 13.2 Other operating income and costs ............................................................................................................................................................................. 136

Note 13.3 Finance income and costs ............................................................................................................................................................................................ 137

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

SEPARATE STATEMENT OF PROFIT OR LOSS

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Part 2

Revenues from contracts with customers

30 964

29 894

Note 4.1

Cost of sales

(26 187)

(25 503)

Gross profit

4 777

4 391

Note 4.1

Selling costs and administrative expenses

(1 621)

(1 535)

Profit on sales

3 156

2 856

Note 4.2

Other operating income, including:

1 863

3 064

interest income calculated using the effective interest

rate method

448

435

fair value gains on financial assets measured at fair

value through profit or loss

272

141

gains due to reversal of impairment losses on

financial instruments measured at amortised cost

164

Note 4.2

Other operating costs, including:

(1 799)

(1 510)

impairment losses on financial instruments

measured at amortised cost

( 94)

fair value losses on financial instruments measured

at fair value through profit or loss

( 117)

( 259)

Note 4.3

Finance income

418

134

Note 4.3

Finance costs

( 258)

( 559)

Profit before income tax

3 380

3 985

Note 5.1

Income tax expense

(1 434)

(1 197)

PROFIT FOR THE PERIOD

1 946

2 788

Weighted average number of ordinary shares

(million)

200

Basic/diluted earnings per share (in PLN)

9.73

13.94

SEPARATE STATEMENT OF COMPREHENSIVE INCOME

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Note 8.2.2

Profit for the period

1 946

2 788

Note 8.2.2

Effective portion of the change in the fair value of

hedging instruments and the cost of hedging, net of

the tax effect

(2 302)

( 446)

Other comprehensive income which will be

reclassified to profit or loss

(2 302)

( 446)

Note 8.2.2

Measurement of equity financial instruments at fair

value through other comprehensive income, net of the

tax effect

720

Note 8.2.2

Actuarial (losses)/gains net of the tax effect

( 4)

285

Other comprehensive income, which will not be

reclassified to profit or loss

716

294

Total other comprehensive net income

(1 586)

( 152)

TOTAL COMPREHENSIVE INCOME

360

2 636

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

SEPARATE STATEMENT OF CASH FLOWS

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Cash flow from operating activities

Profit before income tax

3 380

3 985

Note 9.3

Depreciation/amortisation recognised in profit or loss

1 670

1 542

Interest on investment activities

( 388)

( 324)

Other interest

106

246

Dividends income

( 10)

Losses on modification of financial assets

169

Note 6.2

Fair value (gains) on financial assets measured at fair value

through profit or loss (loans)

( 180)

( 18)

Note 4.4

Note 6.2

Losses/(gains) due to change in the value of financial assets

measured at amortised cost (loans)

( 162)

Note 4.4

Losses due to change in the value of property, plant and

equipment and intangible assets

Note 4.4

Note 3.1

(Gains) due to change in the value of investments in

subsidiaries

(384)

(1 169)

Exchange differences, of which:

414

( 166)

from investment activities and cash

731

( 255)

from financing activities

( 317)

Change in provisions for decommissioning of mines, liabilities

related to future employee benefits program and other

provisions

273

339

Change in other receivables and liabilities other than working

capital

438

( 123)

Change in assets and liabilities due to derivatives

151

180

Note 7.2

Reclassification of other comprehensive income to profit or loss

due to the realisation of hedging derivatives

( 30)

( 628)

Other adjustments

Exclusions of income and costs, total

1 974

175

Income tax, of which:

( 843)

( 406)

payments of income tax

( 843)

(1 018)

refunds of income tax

612

Note 10.4

Changes in working capital, including:

(1 953)

(1 222)

change in trade payables within the reverse factoring

mechanism

( 593)

(1 007)

Net cash generated from/(used in) operating activities

2 558

2 532

Cash flow from investing activities

Note 9.1.2

Expenditures on mining and metallurgical assets, including:

(3 872)

(3 597)

paid capitalised interest on borrowings

( 311)

( 247)

proceeds on settlement of an instrument hedging interest rate

of bonds

Expenditures on other property, plant and equipment and

intangible assets

( 38)

Expenditures on the acquisition of shares in subsidiaries

( 271)

( 218)

Expenditures on financial assets designated for decommissioning

of mines

( 45)

( 44)

Advances granted for the purchase of property, plant and

equipment and intangible assets

( 25)

( 24)

Note 7.5.2.5

Proceeds from repayment of loans granted (principal)

1 431

412

Interest received on loans granted

144

Expenditures due to loans granted

( 248)

Other

Net cash generated from/(used in) investing activities

(2 660)

(3 652)

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Cash flow from financing activities

Note 8.4.2

Proceeds from issuance of debt financial instruments

1 599

1 000

Note 8.4.2

Proceeds from borrowings

901

1 884

Proceeds from cash pooling

210

Proceeds from derivatives related to sources of external financing

100

Note 8.4.2

Redemption of debt financial instruments

(1 599)

( 400)

Note 8.4.2

Repayment of received borrowings

( 849)

(2 051)

Repayment of lease liabilities

( 66)

( 69)

Interest paid, of which:

( 155)

( 259)

Note 8.4.2

trade payables within the reverse factoring mechanism

( 101)

( 163)

borrowings

( 54)

( 96)

Expenditures due to dividends paid to shareholders of the Company

( 300)

Expenditures due to derivatives related to sources of external

financing

( 30)

( 76)

Net cash generated from/(used) in financing activities

( 49)

NET CASH FLOW

( 151)

(1 117)

Exchange differences on cash and cash equivalents

Cash and cash equivalents at beginning of the period

367

1 481

Note 8.5

Cash and cash equivalents at end of the period, including:

216

367

restricted cash

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

SEPARATE STATEMENT OF FINANCIAL POSITION

As at

31 December

2025

As at

31 December

2024

ASSETS

Mining and metallurgical property, plant and equipment

23 084

21 007

Mining and metallurgical intangible assets

1 258

1 284

Note 9.1

Mining and metallurgical property, plant and equipment and intangible assets

24 342

22 291

Other property, plant and equipment

115

119

Other intangible assets

Note 9.2

Other property, plant and equipment and intangible assets

174

168

Note 6.1

Investments in subsidiaries – shares

6 801

6 146

Note 6.2

Loans granted, of which:

8 290

9 727

measured at fair value through profit or loss

3 225

3 668

measured at amortised cost

5 065

6 059

Note 7.2

Derivatives

168

286

Note 7.3

Other financial instruments measured at fair value through other comprehensive

income

1 703

814

Note 7.4

Other financial instruments measured at amortised cost

608

578

Financial instruments, total

10 769

11 405

Note 12.3

Other non-financial assets

Non-current assets

42 166

40 107

Note 10.1

Inventories

8 312

7 037

Note 10.2

Trade receivables, including:

1 239

885

Trade receivables measured at fair value through profit or loss

980

506

Note 5.3

Tax assets

588

396

Note 7.2

Derivatives

128

219

Note 7.1

Cash pooling receivables

523

683

Note 12.3

Other financial assets, including:

286

540

Loans granted

246

Note 12.3

Other non-financial assets

102

171

Note 8.5

Cash and cash equivalents

216

367

Current assets

11 394

10 298

TOTAL ASSETS

53 560

50 405

EQUITY AND LIABILITIES

Note 8.2.1

Share capital

2 000

Note 8.2.2

Other reserves from measurement of financial instruments

(1 699)

(117)

Note 8.2.2

Accumulated other comprehensive income

(640)

(636)

Note 8.2.2

Retained earnings

31 853

29 907

Equity

31 514

31 154

Note 8.4.1

Borrowings and leases

2 174

2 055

Note 8.4.1

Liabilities due to issuance of debt financial instruments

2 600

Note 7.2

Derivatives

1 626

269

Note 11.1

Employee benefits liabilities

2 571

2 467

Note 9.4

Provisions for decommissioning costs of mines and other technological facilities

1 380

1 263

Deferred tax liabilities

326

460

Note 12.4

Other liabilities

274

295

Non-current liabilities

10 951

9 409

Note 8.4.1

Borrowings and leases

733

1 133

Note 8.4.1

Liabilities due to issuance of debt financial instruments

Note 8.4.1

Cash pooling liabilities

611

561

Note 7.2

Derivatives

1 440

Note 10.3

Trade and other payables

4 263

4 825

Note 11.1

Employee benefits liabilities

1 699

1 569

Note 5.3

Tax liabilities

1 468

786

Note 12.5

Provisions for liabilities and other charges

227

Note 12.4

Other liabilities

799

695

Current liabilities

11 095

9 842

Non-current and current liabilities

22 046

19 251

TOTAL EQUITY AND LIABILITIES

53 560

50 405

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

SEPARATE STATEMENT OF CHANGES IN EQUITY

Share capital

Other reserves from

measurement of

financial instruments

Accumulated other

comprehensive income

Retained earnings

Total equity

As at 1 January 2024

2 000

320

( 921)

27 419

28 818

Transactions with owners – dividend approved and

paid

( 300)

Profit for the period

2 788

Note 8.2.2

Other comprehensive income

( 437)

285

( 152)

Total comprehensive income

( 437)

285

2 788

2 636

As at 31 December 2024

2 000

( 117)

( 636)

29 907

31 154

Profit for the period

1 946

Note 8.2.2

Other comprehensive income

(1 582)

( 4)

(1 586)

Total comprehensive income

(1 582)

( 4)

1 946

360

As at 31 December 2025

2 000

(1 699)

( 640)

31 853

31 514

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

PART 1 – General information

Note 1.1 Corporate information

KGHM Polska Miedź S.A. (“the Company”) with its registered office in Lubin at 48 M. Skłodowskiej-Curie Street is a joint stock

company registered at the Regional Court for Wrocław Fabryczna, Section IX (Economic) of the National Court Register, entry no.

KRS 23302, on the territory of the Republic of Poland.

KGHM Polska Miedź S.A. has a multi-divisional organisational structure, comprised of a Head Office and 10 Divisions:

3 mines (Lubin Mine Division, Polkowice-Sieroszowice Mine Division, Rudna Mine Division), 3 metallurgical plants (Głogów

Smelter/Refinery, Legnica Smelter/Refinery, Cedynia Wire Rod Division), the Concentrator Division, the Tailings Division, the Mine-

Smelter Emergency Rescue Division and the Data Center Division.

The shares of KGHM Polska Miedź S.A. are listed on the Warsaw Stock Exchange.

The Company’s principal activities include:

– the mining of copper and non-ferrous metals ores; and

– the production of copper, precious and non-ferrous metals.

KGHM Polska Miedź S.A. carries out copper ore mining activities based on concessions given for specific mine deposits, and also

based on mining usufruct agreements and mine operating plans.

KGHM Polska Miedź S.A. is a parent entity of the KGHM Polska Miedź S.A. Group (“Group”).

Note 1.2 Going concern

The separate financial statements were prepared under the assumption of continuing as a going concern by KGHM Polska Miedź

S.A. during a period of at least 12 months from the end of the reporting period in a significantly unaltered form and business

scope, and there are no reasons to suspect any intentional or forced discontinuation or significant limitation of the Company’s

current activities. Therefore, as at the date of signing of the financial statements the Management Board is not aware of the

occurrence of any facts or circumstances that may cast doubt about the going concern in the foreseeable future.

During the assessment of the capacity to continue operations, forecasts of financial liquidity, debt level, key debt ratios and

profitability were taken into account.

The Company identifies and actively manages the liquidity risk understood as the possibility of losing the capacity or limitation of

the ability to cover its current expenses, ensuring the appropriate level of cash and availability of a wide portfolio of flexible

sources of financing in order to ensure capacity to timely meeting the current and future financial obligations. In order to minimise

the risk of occurrence of a liquidity gap, the Company takes actions aimed at ensuring safety and financial stability by diversifying

the sources of financing and ensuring their long-term maturities. The Company is fully capable of meeting its payment obligations

on time. The selected questions on liquidity management, with particular emphasis on ratios, debt level and available sources of

financing, are described in Part 8 Borrowings and the management of liquidity and capital. Moreover, during the assessment of

capacity to continue operations, of significance is the analysis of profitability by monitoring the EBITDA Margin ratio, which is one

of the measures of assessing the activities of the Company (Part 2 Information on segments and revenues).

To assess the capacity to continue operations by the Company, the Management Board analysed the current risks, assessed the

impact of armed conflicts throughout the world, including the war in Ukraine (Note 1.2.2) and the risks associated with the climate

change on activities of the Company (Note 1.2.3).

As at the date of adoption for issue of these financial statements, no indications of circumstances were identified pointing out

the threat to the continuance of the Company’s operations in the foreseeable future, that is in the period of no less than 1 year

from the end of the reporting period.

Note 1.2.1 Monitored areas – macroeconomic conditions

The following macroeconomic factors have the most significant impact on the activities and financial results of the Company:

copper and silver prices, prices of fuel, electricity and energy carriers as well as market interest rates, USD/PLN exchange rate

and the level of Polish inflation.

Market-quoted prices of copper, silver and gold as well as the USD/PLN exchange rate shape the amount of revenues from sales

and constitute a part of a market risk which is managed by the Company by, among others, derivatives transactions hedging the

prices as well as the exchange rate. At the same time, these parameters have a significant impact on some of the Company’s

costs, while the prices of fuels, energy carriers and electricity have a direct and equally significant impact on the level of costs.

With regard to energy resources, the Company applies hedging actions through, among others, concluding bilateral agreements,

forward purchases and the use of derivatives, which are part of a comprehensive market risk management system. Furthermore,

the level of market interest rates was reflected in the level of discount rates used by the Company in the balance sheet

measurement of assets and liabilities recognised in the statement of financial position.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

All of the aforementioned risk factors have an impact on the measurement of recoverable amount of the Company’s assets,

where not only the current volatility of commodities and exchange rates shaping the amount of revenues and a significant part

of costs is of significance, but above all the volatility of forecasts on shaping these factors in subsequent periods, since they have

an impact on production and investment plans. Moreover, due to the long-term nature of mining and metallurgical assets, the

applied discount rate, which remains under the influence of market interest rates, is of particular importance.

The impact of macroeconomic factors on individual areas of operations as well as assets and liabilities of the Company was

presented in the following notes:

Impact observation areas

Note

Operating segments and information on revenues – onerous contracts and variable overheads

Impairment of assets

Receivables due to loans granted

6.2

Financial instruments – fair value

7.1

Market risk – price of commodities, exchange rate, interest rates, prices of energy and energy

carriers

7.5.1

Liquidity risk

8.1

Provision for decommissioning costs of mines and other technological facilities

9.4

Future employee benefits liabilities

Note 1.2.2 Monitored areas – impact of the war in Ukraine, effects of customs policy and global trade war, conflict in

the Middle East

Impact of the war in Ukraine

In the reporting period, the Company did not record any negative impact due to the war in Ukraine, and the potential impact in

subsequent periods is assessed as low.

The most significant risk factors related to the war in Ukraine and which could have an impact on the Company’s activities are

changes in the supply chains, the availability of materials, components, fuels and energy on international markets, the volatility

of prices of copper and silver on commodity markets, the volatility of the USD/PLN exchange rate, fluctuations in prices of energy

carriers and electricity, and the general uncertainty on financial markets.

From the Company's point of view, the war in Ukraine has an impact on market risk related to fluctuations in metals prices and

stock market indices in the reporting period. For more information, see Note 3.1 Impairment losses on assets.

To assess the impact of the above-mentioned risk categories on the Company’s operations, a detailed analysis of information on

production, sales, supply chain, personnel management and finance is carried out on an ongoing basis.

Since the beginning of the war in Ukraine, KGHM Polska Miedź S.A. has not experienced a significantly negative impact of volatility

of supply chains on its business activities. Taking into account the continuity of energy supplies (natural gas, coal, coke), KGHM

Polska Miedź S.A. currently has full capacity to maintain the continuity of operation of the core production line and all production

processes.

Nevertheless, it cannot be ruled out that the continuation of this armed conflict as well as the system of economic sanctions may

have a significantly negative impact in subsequent periods on suppliers and customers of the Company and lead to unfavourable

deviations in the continuity of materials and services supply chains.

However, the geopolitical situation associated with the aggression of Russia on Ukraine and the implemented system of sanctions

currently does not limit the operations of KGHM Polska Miedź S.A., while the risk of interruptions to the operational continuity of

the Company in this regard is considered to be low.

The ongoing war in Ukraine and limited availability of Russian cathodes on European markets had been discounted by the market,

and did not constitute an additional factor affecting the sales results of basic copper products in 2025. At the same time, the

situation associated with the war in Ukraine is not a significant factor in shaping the demand for copper semi-finished products

(ETP wire rod and OFE wire). In this product market, the good economic situation is mainly driven by significant investments

related to the energy transformation in Europe.

In terms of the availability of capital and the level of debt, the Company holds no bank loans drawn from institutions threatened

with sanctions.

Effects of customs policy and global trade war (USA, China, European Union)

In the reporting period, the Company did not record a negative impact on its business activities due to customs policy and the

global trade war involving the USA, China and the European Union, and the potential impact on the Company in subsequent

periods is judged to be low. The US market does not play a significant role in the geographical structure of sales of products

manufactured by KGHM Polska Miedź S.A. outside of the USA’s borders and therefore the direct impact of announced tariffs will

be limited.

Trade of copper and copper-made products is excluded from the general trade agreement and is regulated by other provisions

under the detailed procedure “Section 232”, wherein tariffs are varied for copper at different processing stages. Trade barriers

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

announced by the USA on copper and copper-made products will have the greatest impact on the American market. In October

2025, China announced the implementation of more restrictive regulations on the export of rare earth metals and products

containing them. China controls most of the processing capacity for these metals, and according to European Commission data,

a significant portion of import of rare earth metals required by European industry comes from China. These changes may result

in delays or difficulties in obtaining export licenses, particularly in relation to the energy transition. Renewable energy

components may therefore become more expensive and less available, which may cause delays in investments in wind farms

(especially offshore wind farms). It should be noted that in response to Chinese trade restrictions, there is a noticeable change

in the approach of European countries to trade with China in terms of, among others, components for the energy transition. In

December 2025, Italy was the first EU country to hold an auction for the supply of solar panels, which banned the participation

of Chinese modules, cells and inverters. In 2026, it is possible that other countries will introduce similar restrictions, aimed at

giving priority to components manufactured in the European Union. With regard to the Polish economy, difficulties in obtaining

Chinese-made parts necessary to increase the capacity of RES installations may potentially result in a slowdown in the energy

transition, hindering the reduction of CO₂ emissions and limiting the growth rate of the share of RES in the Polish energy mix.

Mining and production operations in Poland are and will continue to be of key importance for KGHM. However the potential

escalation of trade barriers in various regions of the world could negatively impact the dynamics of global economic growth and,

consequently, the demand for raw materials. Therefore, economic and political processes affecting international trade are

continuously monitored and analysed by the Company.

Conflict in the Middle East

In the reporting period, the Company did not record any negative impact from factors related to the conflict in the Middle East.

Due to the escalation of geopolitical tensions in the Middle East, including the commencement of military operations by the

United States and Israel against Iran, the most significant categories of conflict-related risks affecting the operations of the

Company are the following:

• potential impact on the global economies,

• volatility of oil and natural gas prices,

• volatility of exchange rates (mainly USD/PLN),

• volatility of gold and silver prices,

• supply chain disruptions and availability of fuels and energy on international markets.

Due to the high uncertainty related to development of the political situation in the Middle East, neither its scale nor the potential

impact on KGHM Polska Miedź S.A. as at the publication date can be estimated for subsequent periods.

Note 1.2.3 Monitored areas – risks and hazards associated with the climate

KGHM Polska Miedź S.A. is a conscious and responsible participant in the energy transition, and considers adaptation to climate

changes and the management of climate risk to be of key importance.

As part of the risk management process, KGHM Polska Miedź S.A. takes climate changes into account by conducting a scenario

analysis based on six baseline scenarios considered in three time perspectives: short - up to 1 year, medium - from 1 to 5 years

and long - over 5 years, with several assumptions:

• in the case of scenarios for transition risk, in terms of the implementation of the adopted climate policy and the resulting

changes in parameters important from KGHM's perspective – e.g. prices of emission allowances, energy consumption,

changes in demand for copper,

• in the case of scenarios for physical risk scenarios, the starting point for the analysis is the levels of greenhouse gas

concentrations in the atmosphere and the resulting changes in the Earth's temperature and the following consequences.

The climate risk related to the transition, to which the Company is exposed, arises from the need to adapt the economy to gradual

climate change. This risk category comprises questions related to legal requirements, technological progress towards a low-

carbon economy and changes in demand and supply for certain products and services, whose production is associated with the

climate risk as well as the growing expectations of stakeholders regarding the Company as to the reduction of its impact on the

climate.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

The Company is exposed to physical climate risk, arising from specific events, in particular related to violent and chronic weather

phenomena resulting from changes in the climate, such as, for example: rainless days (droughts), strong/violent winds, increases

in average daily temperature as well as permanent changes in weather patterns, which could impact the operations of KGHM

Polska Miedź S.A. by, among others, disruptions in the supply chain, the continuity of the core production business and an

increase in operating costs directly related to the business activities, as well as through more difficult working conditions.

The Company continuously evaluates the risk associated with the climate and its impact on the operations under the process of

Corporate Risk Management of the KGHM Polska Miedź S.A. Group, which was described in the Management Board’s report on

the activities of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź S.A. Group in 2025, section 1.5.

A detailed description of identified, key climate risks associated with the negative impact of climate changes on the activities of

KGHM Polska Miedź S.A., including description of actions undertaken by the Company to mitigate their impact, is presented in

the Management Board’s report on the activities of KGHM Polska Miedź S.A. and the KGHM Polska Miedź S.A. Group in 2025,

section 1.5.

Impact of climate risk on the financial statements

Under the analyses conducted to assess the impact of climate risk on items presented in the Company’s financial statements (in

particular in the case of variable costs of CO

emission allowances, the increase in electricity purchase costs, costs associated

with research and additional expenditures on development of internal energy sources, included in the Energy Development

Program under the Decarbonisation Program), the following areas were subjected to detailed assessment:

• adopted economic useful lives of fixed assets and their residual values,

• existence of indications of the possibility of impairment of property, plant and equipment and intangible assets and

assumptions adopted for impairment testing of these assets,

• assumptions adopted for the measurement of loans granted,

• revaluation of the provision for future decommissioning costs of mines and other technological facilities,

• revaluation of provisions for additional costs of sales, selling costs and administrative expenses,

• liabilities and liabilities due to guarantees associated with potential fines and environmental penalties.

As a result of the aforementioned work, as at 31 December 2025 no material impact of climate risk on the aforementioned areas

was identified.

Details on the analysis of the impact of climate risk on the verification of the economic useful lives of fixed assets are presented

in note 9.1, and on the revaluation of the provision for decommissioning costs of mines in note 9.4.

Note 1.3 Declaration by the Management Board on the accuracy of the prepared separate financial statements

The Management Board of KGHM Polska Miedź S.A. declares that according to its best judgement, the annual Separate financial

statements for 2025 and the comparable data have been prepared in accordance with accounting principles currently in force,

and give a true, fair and clear view of the financial position of KGHM Polska Miedź S.A. and the profit for the period of the

Company.

The Management Board’s report on the activities of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź S.A. Group in 2025

presents a true picture of the development and achievements, as well as the condition, of KGHM Polska Miedź S.A. and the KGHM

Polska Miedź S.A. Group, including a description of the basic exposures and risks.

The separate financial statements were adopted for publication and signed by the Management Board of the Company

on 24 March 2026.

Note 1.4 Basis of preparation and presentation

These separate financial statements have been prepared in accordance with International Financial Reporting Standards as

adopted by the European Union, on the basis of historical cost, except for financial instruments classified as measured at fair

value. These financial statements are the separate financial statements of KGHM Polska Miedź S.A. pursuant to IAS 27.

In order to fully understand the financial position and results of the Company’s activities as the Parent Entity of the Group, these

separate financial statements should be read jointly with the annual consolidated financial statements of the KGHM Polska Miedź

S.A. Group for the year ended on 31 December 2025. These financial statements are available at the Company’s website

www.kghm.com from the dates indicated in the regulatory filing on publication dates for the Company’s annual report and the

Group’s consolidated annual report for 2025.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

The accounting policies described in this note and in individual notes were applied by the Company in a continuous manner for

all presented periods.

Note 12.11 of these separate financial statements contains information on the Company’s activities regulated by the Act on

Energy, pursuant to article 44 section 2 of the Act dated 10 April 1997.

As compared to the reporting period ended on 31 December 2024, there were no significant changes to the measurement

methods. Changes in estimates as at 31 December 2025 as compared to the aforementioned period arise from changes in

assumptions as a result of changes in business circumstances and/or other variables.

For a greater understanding of the data recognised in these financial statements, individual detailed notes contain important

information on the accounting policies and important estimates, assumptions and judgments, pursuant to the information

presented in the table below.

Note

Title

Amount recognised in

the financial statements

Accounting

policy

Important

estimates,

assumptions and

judgements

2025

2024

Revenues from contracts with customers

30 964

29 894

3.1, 4.4

Impairment losses on non-current assets

(271)

(159)

5.1

Income tax in the statement of profit or

loss

(1 434)

(1 197)

5.1.1

Deferred income tax

133

(132)

5.3

Tax assets

588

396

5.3

Tax liabilities

1 468

(786)

6.1

Investments in subsidiaries

6 801

6 146

6.2

Loans granted*

8 375

9 973

7.2

Derivatives

(2 770)

192

7.3

Other financial instruments measured at

fair value

1 703

814

7.4

Other long-term financial instruments

measured at amortised cost

608

578

8.2

Equity

(31 514)

(31 154)

8.4

Borrowings

(6 122)

(6 351)

8.5

Cash and cash equivalents

216

367

8.6

Labilities due to guarantees granted

(3 467)

(2 015)

9.1

Mining and metallurgical property, plant

and equipment and intangible assets

24 342

22 291

9.2

Other property, plant and equipment and

intangible assets

174

168

9.4

Provision for decommissioning costs of

mines and other facilities**

(1 385)

(1 301)

9.6

Lease disclosures – the Company as a

lessee

482

479

10.1

Inventories

8 312

7 037

10.2

Trade receivables

1 239

885

10.3

Trade and other payables

(4 456)

(5 020)

10.4

Changes in working capital

(1 953)

(1 222)

11.1

Employee benefits liabilities

(4 270)

(4 036)

12.3

Other assets

468

808

12.4

Other liabilities

(1 073)

(990)

* Amounts include data on long-term and short-term loans. In the statement of financial position short-term loans are recognised in the item

“other financial assets”.

** Amounts include data on non-current and current provisions for decommissioning costs of mines and other technological facilities. In the

statement of financial position, current provisions for decommissioning costs of mines and other technological facilities are recognised in the item

“provisions for liabilities and other charges”.

Note 1.5 Foreign currency transactions and the measurement of items denominated in foreign currencies

The financial statements are presented in Polish zloty (PLN), which is both the functional and presentation currency of the

Company.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

At the moment of initial recognition, foreign currency transactions are translated into the functional currency:

• at the actual exchange rate applied, i.e. at the buy or sell exchange rate applied by the bank in which the transaction occurs,

in the case of the sale or purchase of currencies and the payment of receivables or liabilities on a bank account in a currency

other than the operation currency,

• at the average exchange rate set for a given currency, prevailing on the date of the transaction for other transactions. The

exchange rate prevailing on the date of the transaction is the average NBP rate announced on the last working day

preceding the transaction date.

At the end of each reporting period, foreign currency monetary items are translated at the closing rate prevailing on that date.

Foreign exchange gains or losses on the settlement of foreign currency transactions, and on the measurement of foreign

currency monetary assets and liabilities (other than derivatives), are recognised in profit or loss.

Foreign exchange gains or losses on the measurement of foreign currency derivatives are recognised in profit or loss as a fair

value measurement, provided they do not represent a change in the fair value of the effective cash flow hedge. In such a case,

they are recognised in other comprehensive income in accordance with hedge accounting policies.

Foreign exchange gains or losses on non-monetary items, such as equity instruments classified as financial assets measured at

fair value through other comprehensive income, are recognised in other comprehensive income.

Foreign exchange gains or losses on monetary items measured at fair value through profit or loss (e.g. loans granted measured

at fair value) are recognised as a part of the fair value measurement.

Note 1.6 Impact of new and amended standards and interpretations

Amendments to standards applied for the first time in the separate financial statements for 2025:

• Amendments to IAS 21 on how to approach the issue of assessment as to whether a given currency is exchangeable and

how to determine a spot exchange rate if it is not exchangeable, effective on or after 1 January 2025.

Up to the date of publication of these separate financial statements, the aforementioned amendment was adopted for use by

the European Union and it does not have an impact on these separate financial statements.

Note 1.7 Published standards and interpretations, which are not yet in force and were not applied earlier by the

Company

Published standards and interpretations which are not yet in force, adopted for use by the European Union:

• Amendments to IFRS 9 and IFRS 7 – Amendments to the classification and measurement of financial instruments,

effective on 1 January 2026. As a result of conducting a post-implementation review of the application of IFRS 9 Financial

Instruments by the International Accounting Standards Board (hereafter: the Board), the Board published amendments to

IFRS 9 and IFRS 7 on:

- classification of financial instruments (mainly loans granted) associated with ESG features, i.e. in respect of which the

interest is dependent on climate, environmental or social factors. The objective of the amendment is the elimination of

discrepancies in the approach of entities to the measurement of these instruments, that is, whether to measure them at

amortised cost or at fair value (SPPI test). The amendment to IFRS 9 will not have an impact on the separate financial

statements of the Company, since the Company does not have any such instruments.

- principles of derecognition of liabilities, when they are settled in cash using an electronic payment system. In 2021, the

IFRS Interpretations Committee confirmed that in principle, an entity should derecognise financial liabilities and financial

assets as at the date of their settlement. This approach and current principles on derecognition of financial assets and

liabilities described in IFRS 9 remain in force. However, due to problems with adjustment to this requirement in terms of

derecognition of financial liabilities regulated by electronic payment systems, the Board decided to permit an entity to

apply a voluntary exception regarding the cancellation of financial liabilities, which enables the possibility to deem a

financial liability to be discharged earlier, that is before the settlement date if the entity has initiated a payment instruction

and the following conditions have been met:

o the entity has no practical ability to withdraw, stop or cancel the payment instruction,

o the entity has no practical ability to access the cash to be used for settlement as a result of the payment instruction,

and

o the settlement risk associated with the electronic payment system is insignificant (this refers to the risk that a

transaction will not be successfully settled).

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

If this voluntary exception is applied, the adopted solutions should be applied consequently to all settlements made using

the same electronic payment system. The exception introduced by the Board does not apply to the settlement of liabilities

using electronic payment systems. Therefore, liabilities should be removed from the statement of financial position only

when the cash is received in the entity's bank account.

The aforementioned change will not have an impact on the separate financial statements of the Company, because the

Company derecognises a financial liability which is settled in cash using an electronic payment system as at the date of

settlement.

- introduction to IFRS 7 paragraph 11A of changes in information disclosure requirements on equity instruments designated

at fair value through other comprehensive income, by limiting the disclosure of fair value of each such investment at the

end of the reporting period and disclosing its total value while simultaneously introducing a requirement to disclose the

change in fair value during the reporting period. The Company holds such instruments and will appropriately adjust the

scope of disclosure to the amended requirements.

• Annual improvements to IFRS Accounting Standards – volume 11, effective on 1 January 2026. As part of the minor

amendments, mainly of a clarificatory nature, changes were introduced to:

- IFRS 1 First-time adoption of International Financial Reporting Standards, on retrospective designation of currently applied

hedge accounting. This change will not have an impact on the Company.

- IFRS 7 Financial Instruments: Disclosures, in paragraph B38 on gain or loss on derecognition, an erroneous reference was

corrected and three amendments were introduced to IFRS 7 Implementation Guidance, i.e. in the introduction it was

explained that the implementation guidance does not illustrate all the aspects of the application of IFRS 7; in the case of

disclosure regarding credit risk, the editing of paragraph IG20B was corrected with no impact on the current wording and

under the amendment to paragraph IG14 it was indicated that if, at the moment of initial recognition of an acquired asset

for which an active market does not exist, there is a difference between its fair value calculated using the measurement

techniques and the transaction price, this difference should be settled in subsequent periods in accordance with IFRS 9

guidelines and the appropriate accounting policy, which should be subsequently disclosed in the financial statements.

The amendments to IFRS 7 will not have a significant impact on the separate financial statements of the Company.

- IFRS 9 Financial Instruments, introducing the following amendments: in the case of derecognition of lease liabilities, in

paragraph 2.1b(ii) a reference was added to paragraph 3.3.3 IFRS 9 and paragraph 5.1.3 on measurement, at the initial

recognition, of trade receivables that do not contain a significant financing component, and the wording that they should

be recognised at transaction price as defined in IFRS 15 was replaced by wording that they should be recognised at the

amount determined by applying IFRS 15. The amendments to IFRS 9 will not have a significant impact on the separate

financial statements of the Company.

- IFRS 10 Consolidated financial statements, in paragraph B74, correcting wording that in certain situations could hinder the

correct application of paragraph B73 on the basis of which, an entity being an investor shall consider the nature of its

relationship with other parties and whether those other parties are acting on the investor’s behalf, i.e. they are “de facto

agents”. The amendments to IFRS 10 will not have an impact on the separate financial statements of the Company.

- IAS 7 Statement of cash flows, in paragraph 37, on accounting for an investment in a subsidiary, an associate or a joint

venture, the word “method” after “cost” was deleted, since the phrase “at cost method” is no longer used in IFRS

accounting standards, and instead the word “method” was added after the word “equity”, and therefore there are now

two phrases used: “the equity method” and “at cost”. The amendment to IAS 7 will not have an impact on the separate

financial statements of the Company.

• Amendments to IFRS 9 and IFRS 7 – Contracts referencing nature-dependent electricity, effective on 1 January 2026.

The amendments concern contracts, which expose the entity (purchaser of electricity) to variability in the underlying

amount of electricity because the electricity is generated from a source dependent on uncontrollable natural conditions

(such as wind and sun). The introduced changes concern:

- explanation of the application of requirements concerning the purchase of electricity “for own use”, on the basis of which

it is possible to exempt contracts for the purchase of renewable electricity from the scope of IFRS 9,

- permission to apply hedge accounting if contracts referencing nature-dependent electricity are used as hedging

instruments,

- an addition to IFRS 7 of new requirements on disclosure of information to enable investors to understand the impact of

these contracts on the financial results and cash flows of an entity.

The amendments to IFRS 9 and IFRS 7 will not have an impact on the separate financial statements of the Company, since

PPA – type agreements (Power Purchase Agreement) on the purchase of renewable energy of the Company do not provide

for the resale of the energy purchased from these energy sources and the Company does not anticipate the impossibility

of using the entire energy purchased from these energy sources for its own needs.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

• The new standard IFRS 18 Presentation and disclosure in financial statements, effective on or after 1 January 2027.

IFRS 18 will replace IAS 1 Presentation of financial statements. The aim of the new standard is to improve the usefulness of

the information presented in financial statements by providing investors with more transparent and comparable

information on entities’ financial results. IFRS 18 retains a significant amount of requirements transferred from IAS 1 and

simultaneously introduces significant changes to the structure of the statement of profit or loss, disclosure of information

on management-defined performance measures and rearrangement of selected nomenclature, by defining the so-called

primary statements, in which the entity presents financial data and accompanying notes disclosing supplementary

information to primary statements.

In the case of the statement of profit or loss, entities will be obliged to classify their income and expenses recognised in this

statement to one of the following five categories: operating, investing, financing, income taxes and discontinued operations.

While IFRS 18 indicates which revenues and costs should be presented in the categories of investing, financing, income

taxes and discontinued operations, the operating category is a residual category, in which, first of all, income and expenses

arising from an entity’s main business activities and the income and expenses which could not be presented within other

categories. Moreover, this standard introduces three obligatory subtotals in the statement of profit or loss: operating profit

or loss, profit or loss before financing and income taxes and profit or loss.

The next significant area of changes to IFRS 18 concerns management-defined performance measures. Currently, many

entities use individualised performance measures defined by the management, which are not required by the IFRS

accounting standards. IFRS 18 requires the disclosure of information on performance measures in a separate note and

introduces new regulations on management-defined performance measures, and defines them as appropriately

aggregated items of income and expenses, which meet all of the following criteria:

o they are used in public communications outside the financial statements, such as comments of the management

board, press releases and investor presentations,

o they are used to communicate to investors the management’s view of an aspect of the financial performance of the

entity as a whole,

o they are not listed in IFRS 18 (e.g. as subtotals) or specifically required by other IFRSs.

The introduction of IFRS 18 will have an impact on the Company’s separate financial statements, in particular on the

structure of the statement of profit or loss, i.e. on the breakdown of income and expenses into categories and on the

presentation of certain subtotals (i.e. a new subtotal will appear: “operating profit or loss”). In the case of the introduced

categories, some items which are currently presented in other operating costs/income will be transferred to the investing

category, which currently does not exist in the statement of profit or loss. These will be mainly income and costs generated

by items such as loans granted and deposited cash. The category of financing, in turn, will distinguish between financial

revenues and costs divided into those arising from transactions constituting solely the acquisition of financing and those

arising from transactions that do not constitute solely the acquisition of financing, including, for example, interest costs on

specific benefit programs.

Moreover, in the Company’s preliminary opinion, the performance measure currently disclosed by the Company and not

defined by IFRSs, meaning adjusted EBITDA, will meet the criteria of a management-defined performance measure

pursuant to IFRS 18.

As a result of the publication of IFRS 18, other standards will also change significantly, among others: IAS 7, IAS 8.

Pursuant to the amended IAS 7, in the statement of cash flows in which operating cash flows are prepared using the indirect

method, the starting point for determining operating cash flows will be operating profit or loss instead of the current profit

before income tax. It will have an impact on the categories of items recognised in cash flow from operating activities which

adjust the output item. The amended IAS 7 will also remove the presentation alternatives for interest and dividend cash

flows, which under the amended IAS 7 may be presented only in investing or financing categories, respectively. Moreover,

IAS 7 indicates that interest paid that has been capitalised at the initial value of fixed assets will be presented by entities in

cash flows from financing activities. Currently, the Company presents this interest under cash flows from investing activities.

The scope of IAS 8 will be broadened by elements transferred from IAS 1 on the general features of financial statements

(that is: fair presentation, going concern, accrual basis of accounting (paragraphs 17-28 of IAS 1), and disclosure of

accounting principles (policies), and subjective judgments and sources of estimation uncertainty (paragraphs 117, 117A-

117E, 122-133 of IAS 1). As a result of broadening the scope of IAS 8, its name was changed to Basis of Preparation of Financial

Statements. The amendment to IAS 8 will not have an impact on the separate financial statements of the Company.

In the Company’s opinion, the application of IFRS 18 will have a significant impact on the Company’s financial statements,

in particular on the structure of the statement of profit or loss and on the statement of cash flows presented in the separate

financial statements of the Company.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Published standards and interpretations which are not yet in force, awaiting the adoption for use by the European

Union:

• IFRS 14 Regulatory deferral accounts, effective on or after 1 January 2016. The European Commission has decided not to

launch the endorsement process of this interim standard and to wait for the final standard.

• Amendments to IFRS 10 and IAS 28 on the sale or contribution of assets between an Investor and its associate or joint

venture. The date of entry into force was postponed indefinitely by IASB.

• The new standard IFRS 19 Subsidiaries without public accountability: disclosures and amendments to IFRS 19,

effective on or after 1 January 2027. IFRS 19 introduces requirements regarding the limited disclosure of information in

financial statements prepared pursuant to IFRSs, and is dedicated to related parties which do not have public accountability

and whose parent entity (intermediate or ultimate) publish consolidated financial statements pursuant to IFRSs (these are

the so-called qualifying subsidiaries). In 2025, amendments were made to IFRS 19 to reduce disclosure requirements in

relation to standards and amendments issued between February 2021 and May 2024. IFRS 19 does not concern the

Company KGHM Polska Miedź S.A., which is a public entity and therefore IFRS 19 will not have an impact on the separate

financial statements of the Company.

• Amendments to IAS 21 on translating financial statements for the purposes of presentation in the currency of a

hyperinflationary economy, effective on or after 1 January 2027.

The Company intends to apply the published standards and interpretations which are not yet in force and were not applied

earlier by the Company, at their entry into force. In terms of the impact of amendments to standards that were not described in

detail in the information provided above, in the Company’s opinion, amendments to the standards will be applicable to its

activities as regards future economic operations, transactions or other events in respect of which the amendments to the

standards are applicable.

Impact of the international tax system reform: pillar 2 of the BEPS 2.0 project

The act of 6 November 2024 on top-up taxation of individual companies of international and Polish groups (hereafter: the Act)

implemented rules of the Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation

for multinational enterprise groups and large-scale domestic groups in the Union to the Polish legal system. Adoption of the Act is the

realisation of guidelines of the so-called pillar 2 of the BEPS 2.0 project, which introduces a general framework for a global

minimum tax approved under the work of the OECD forum.

The Polish legal acts entered into force on 1 January 2025 with the possibility of their voluntary application from 1 January 2024

(in the case of the global top-up tax and the Polish top-up tax), but KGHM Polska Miedź S.A. did not exercise the voluntary

application option as of 1 January 2024.

The current wording of the Act is based on OECD Model Rules of 2021 and the EU Directive of 2022 and incorporates provisions

of OECD Administrative Guidance on the application of regulations on the BEPS 2.0 reform, which were published in 2023.

Pursuant to the Act, the Company KGHM Polska Miedź S.A. meets the criteria of a so-called MNE (multinational enterprise) and

therefore is obliged to report a specific level of the tax rate of its subsidiaries at the level of individual jurisdictions.

The Company, as the Parent Entity, continuously monitors progress of the legislative work aimed at implementation of the rules

of the reform of pillar 2 of the BEPS 2.0 project in all jurisdictions in which subsidiaries of the KGHM Polska Miedź S.A. Group

operate, and analyses their potential impact on the Company and the Group. As at the date of publication of these separate

financial statements of the Company, regulations on the global and domestic top-up tax were implemented in the following

jurisdictions in which the Group operates: Canada, Luxembourg, the United Kingdom, Germany and Poland.

While the rules of the Directive should have been in force from 2024, the OECD Framework (including OECD guidelines published

in January 2026) include a transitional period, which postpones the obligations in this regard by 4 subsequent years. Based on a

detailed technical analysis of the assumptions stipulated in transitional rules, it is assessed that the Group will be able to use

them in the majority of jurisdictions in which it operates. Moreover, according to the current estimates, the probability of paying

the top-up tax in any of the jurisdictions is judged by the Group to be low.

In accordance with the requirements of IAS 12 paragraph 88A, the Company does not recognise deferred tax assets and liabilities

related to income taxes of pillar 2 and does not disclose information about these assets and liabilities. Based on the results of

the conducted analyses, these separate financial statements do not contain any amounts arising from the reform of the

international tax system – pillar 2.

For 2025, the Company did not incur any liability due to the top-up tax and therefore the Company is not obliged to pay it.

However, the Company will be required to pay the top-up tax for the years 2026 and 2027 if the conditions of maintaining the

exemption under the temporary safe harbours for this period are not met and if at the level of any of the jurisdictions in which

the subsidiaries of the Group are currently present their effective tax rate (calculated in accordance with the BEPS (Base erosion

and profit shifting) rules) is below 15%.

PART 1 – General information

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

In the years following 2027, the Company will be obliged to pay the top-up tax if in any of the jurisdictions in which the Group is

present, the effective tax rate (calculated in accordance with the BEPS rules) is below 15%. Since the Group's entities are generally

located in high-tax jurisdictions, according to the Group's current assessment, including the Parent Entity’s, the probability of

paying the top-up tax in the future is judged as low.

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

PART 2 – Operating segments and information on revenues

Operating segments

Based on an analysis of the Company’s organisational structure, its system of internal reporting and the management model, it

was determined that the Company’s activity constitutes a single operating and reporting segment, which may be defined as

“Production of copper, precious metals and other metallurgical products”.

The core business of the Company is the production of copper and silver. Production is a fully integrated process, in which the

end-product of one stage is the half-finished product used in the next stage. Copper ore extracted in the mines is transported to

concentrators where the enrichment process is carried out. As a result of this process, copper concentrate is produced, which is

then supplied to the metallurgical plants where it is smelted and fire refined into anode copper. Then, during the process of

electrolytic refining, the anode copper is converted into copper cathodes, which are a commercial product, or a material to

produce wire rod.

Anode slimes, which arise from the process of copper electrorefining, is a raw material used to produce silver and gold. Lead-

bearing dust which is generated from the smelting processes is used to produce lead. Nickel sulphate and copper sulphate are

recovered from the processing of used electrolyte. Gases generated from the smelting furnaces are used to produce sulphuric

acid. Economic use is also made of smelter slags, which are sold as road-building materials.

Settlements made between successive stages of the technological process are based on measurement of production at cost, and

as a result the internal organisational units (i.e. mines, concentrators, metallurgical plants) in the production cycle do not generate

profit on sales.

The financial data prepared for management accounting purposes is based on the same accounting policies which are used to

prepare the financial statements. The Management Board of the Company, which is responsible for allocating resources and for

the financial results of the Company, regularly reviews financial reports in the process of making major operational decisions.

The organisational structure of KGHM Polska Miedź S.A. has the Head Office and 10 Divisions, including: mines, concentrators and

metallurgical plants. The Head Office carries out sales of the Company’s basic products, i.e. electrolytic copper cathodes, wire rod

and silver, and support functions, particularly including the management of financial assets, centralised finance and accounting

services, marketing, legal and other services.

The Management Board of the Company assesses a segment’s performance based on Adjusted EBITDA and the profit or loss for

the period. The manner of calculating Adjusted EBITDA is presented in the table “Reconciliation of Adjusted EBITDA”.

PART 2 – Operating segments and information on revenues

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Segment assets and liabilities

As at

31 December 2025

As at

31 December 2024

Assets

53 560

50 405

Liabilities

22 046

19 251

Production of main products

from 1 January 2025 to

31 December 2025

from 1 January 2024

to 31 December 2024

Electrolytic copper (kt), of which:

570.9

588.7

electrolytic copper from own concentrates (kt)

375.4

383.7

Silver (t)

1 323

1 316

C1 unit cash cost of production of payable copper in own concentrate

(USD/lb)*

3.16

3.07

C1 unit cash cost of production of payable copper in own concentrate

(PLN/lb)*

11.86

12.21

*C1 cost reflects ore mining and processing costs, transport costs, the minerals extraction tax, administrative expenses during the mining phase

and smelter treatment and refining charges (TC/RC) less by-product value. C1 cost was calculated using the average exchange rate by the NBP,

which is set as arithmetical average of daily quotations per the NBP’s tables.

Segment financial results

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Total revenues from contracts with customers, including:

30 964

29 894

Revenues from sales, for which the sales price is set after the date of

recognition of the sales (M+ principle), of which:

19 617

18 813

settled

18 861

18 209

unsettled

756

604

Cost of sales, selling costs and administrative expenses*

(27 808)

(27 038)

Depreciation/amortisation recognised in expenses by nature

(1 753)

(1 607)

Adjusted EBITDA

4 909

4 463

EBITDA Margin**

16%

15%

Profit for the period, including:

1 946

2 788

(recognition)/reversal of impairment losses on non-current assets

490

1 075

* Cost of products, merchandise and materials sold plus selling costs and administrative expenses.

** Adjusted EBITDA divided by revenues from contracts with customers

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Total revenues from contracts with customers, of which:

30 964

29 894

in factoring

7 816

8 871

not in factoring

23 148

21 023

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Revenues from contracts with customers, of which:

30 964

29 894

transferred at a certain moment

30 360

29 238

transferred over time

604

656

PART 2 – Operating segments and information on revenues

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Reconciliation of “Adjusted EBITDA” (which is not defined in IFRSs) with “Profit/(loss) for the period” (which is defined in IFRSs) and

“Profit on sales” is presented in the following tables:

Reconciliation of Adjusted EBITDA

from 1 January 2025 to

31 December 2025

from 1 January 2024 to

31 December 2024

Profit for the period

1 946

2 788

[–] Current and deferred income tax

(1 434)

(1 197)

[–] Depreciation/amortisation recognised in expenses by nature

(1 753)

(1 607)

[–] Finance income and (costs)

160

( 425)

[–] Other operating income and (costs)

1 554

[=] Adjusted EBITDA*

4 909

4 463

* The Company defines adjusted EBITDA as profit/loss for the period pursuant to IFRS, excluding income tax (current and deferred), finance income

and costs, other operating income and costs, depreciation/amortisation and recognition/reversal of impairment losses on property, plant and

equipment included in the cost of sales, selling costs and administrative expenses.

Accounting policies

Revenues arising from ordinary operating activities of the Company, i.e. revenues from sales of products, merchandise and

materials, are recognised in the statement of profit or loss as revenues from contracts with customers.

The Company generates its revenues mainly from the sale of: copper, silver and gold. Other, smaller streams of revenues arise

from the sale of services (including distribution of electricity, other utilities and IT services) and other products, merchandise and

materials (including refined lead, sulphuric acid, heat and electricity as well as other production waste).

Performance obligations and the moment when the performance obligation is satisfied

The Company recognises revenue from contracts with customers when the Company satisfies a performance obligation by

transferring a promised good or providing a service to a customer, which is when the customer obtains control of that asset.

Since in every case, following the shipment of the promised good and transferring control over it, the Company has an

unconditional right to consideration from the customer, and the only condition of receiving it is time lapse, the Company

recognises the consideration from contracts with customers as receivables and therefore the Company does not recognise

contractual assets.

The Company recognises as a performance obligation every contractual promise to transfer to a customer a good or provide a

service that is distinct, or a series of distinct goods or services that are substantially the same and that have the same pattern of

transfer to the customer. For each performance obligation, the Company determines (based on contractual terms), whether the

obligation will be satisfied over time or at a specified moment. In particular, in contracts for the sale of copper, silver and gold,

every measurement unit of a transferred good (e.g. 1 tonne of copper or 1 kg of silver) is a separate performance obligation.

Therefore, for every sale or transfer of goods, constituting a multiplication of a measurement unit of a transferred product, which

is realised at the same time, the Company satisfies its performance obligation and at the same, specified moment recognises

revenues. The method of determining the moment when the performance obligation is satisfied at a specific point in time is

described below in Important estimates, assumptions and judgments.

Apart from contracts for supplying goods with transport services, there are no other contracts including more than one

performance obligation. The attribution of transaction prices to individual performance obligations are made on the basis of unit

sale prices.

In trade contracts in which the performance obligation is satisfied at a specified time, the Company uses various payment

conditions, including prepayments of up to several days before delivery and deferred payments of up to 120 days, although the

deferred payments do not concern sale transactions of silver and gold. Payment dates depend on the evaluation of the recipient’s

credit risk and the possibility of securing receivables. The consideration becomes due depending on contractual conditions, prior

to the realisation of the delivery (prepayment) or after the Company satisfies its performance obligation. If the Company receives

payment from the customer before it satisfies its performance obligation, it recognises it as contractual payables. However, in

the case of deferred payments terms, the Company recognises due consideration from the customer as a receivable only after

the transfer of promised products to the customer and the issuance of the invoice.

Revenues from sales of other services, such as distribution of utilities, rentals, leases, sharing IT systems and other are recognised

over time by the Company as it meets its obligations, as the customers simultaneously receive and gain economic benefits arising

from the Company’s performance and the Company has an unconditional right to consideration.

PART 2 – Operating segments and information on revenues

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Determining of the transaction price

Revenues from contracts with customers are recognised in the amount of the transaction price, consisting of the amount of the

consideration which – in accordance with the Company’s expectations – it will receive in return for the transfer of promised goods

or services to the customer, excluding any amounts collected on behalf of third parties.

The transaction price also reflects the effects of the time value of money if a contract with a customer contains a significant

financing element, which is determined based on the contractual payment terms, regardless of whether the promise of financing

is explicitly stated in the contract. The Company did not identify significant financing components in sales transactions to

customers realised in the current and comparable periods.

In the case of copper and silver products sales transactions for which the price is set after the date of recognition of a given sale,

at the moment of initial recognition of a transaction an adjustment of revenues from sales is made, arising from the difference

between the forward price of a metal expressed in USD from the date of recognition of a sale in the period corresponding to the

period of settlement of the transaction, and the price from provisional invoice. This adjustment brings the amount of the

transaction to the expected amount as a transaction price at the moment of initial recognition. This only concerns cases where

the change in transaction price arises from a change in the metal’s price. For these types of variable revenues, the limitation of

IFRS 15 on recognising variable consideration only to the amount in respect of which it is highly probable that a reversal will not

be recognised, is not applicable.

Changes to the accounted amount after the moment of recognition do not impact the revenues from sales but are fair value

gains/losses on measurement of receivables pursuant to the accounting policies presented in Note 10.2. Sales revenue is

adjusted for the gain or loss on the settlement of future cash flow hedging derivatives, in accordance with the general principle

that the portion of gain or loss on a derivative hedging instrument that is determined to be an effective hedge is recognised in

the same position of profit or loss in which the gain or loss on the hedged item is recognised at the moment when the hedged

item affects profit or loss.

Important estimates, assumptions and judgments

The Company recognises revenues from the sale of products, merchandise and materials in profit or loss once, when the

performance obligation is satisfied, in particular in accordance with the applied INCOTERMS principles. In the majority of

contracts, control is transferred to the customer after delivery of the goods, which is also understood as delivery of the goods to

the carrier or to a designated place (DAP, FCA and EX WORKS bases). In other contracts, control is transferred to the customer at

the moment it is handed over to the carrier and loaded aboard a ship (CFR, CIF, CPT and CIP bases). In these contracts, the

Company is also obliged to organise a shipping service. In these cases, the obligation to sell goods and the obligation to provide

a shipping service are treated as separate services promised in the contract. With respect to transport services, the Company

acts as a principal, as it has control over the service before its completion.

Revenues from sales of other services, such as distribution of utilities, rentals, leases, sharing IT systems and other are recognised

over time by the Company as it meets its obligations, as the customers simultaneously receive and gain economic benefits arising

from the Company’s performance and the Company has an unconditional right to consideration.

Onerous contracts and variable consideration

Taking into account the greater volatility of the macroeconomic environment, which has a significant impact on the Company’s

financial results, and requirements of IAS 37 as regards identification of onerous contracts, the Company periodically analyses

concluded contracts in terms of the potential occurrence of a situation under which the contractual sales price does not exceed

the estimated, unavoidable costs of realisation of such contracts.

For the sales contracts of main products (copper, silver, gold) the Company has limited options of transferring the potential increase

in production costs to the sales price of its final products, since the level of revenues from sales of these products mainly depends

on stock exchange quotations and currency exchange rates.

Some of the Company’s products are by-products of the copper production process (among others: sulphuric acid, copper sulphate,

nickel sulphate and lead), which, after further processing, may be sold to external clients. When making a decision to process and

sell them, the Company is not only guided by the potential future economic benefits of such contracts, but also pays attention to

other costs avoided in this way, which would have to be incurred in order to dispose of them. Despite the fact that the currently

observed and expected sales prices of some of these products (lead, sulphate) do not allow for achieving positive margins on these

products, the result on this activity is more favourable compared to the available alternative solutions (e.g. their disposal).

Therefore, the Company does not recognise certain contracts as onerous contracts, because in a broader perspective, it generates

profit for the overall copper production process, in which utilisation of by-products is its integral part.

On the basis of conducted analyses, the Company did not identify the occurrence of onerous contracts under IAS 37 as at

31 December 2025.

PART 2 – Operating segments and information on revenues

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

As at 1 January 2025, the balance of trade payables due to contracts with customers amounted to PLN 8 million and was fully

recognised in revenues for 2025. As at 31 December 2025, the Company did not have trade payables due to contracts with

customers.

Balances of trade payables as at 1 January and 31 December 2025 as well as at 1 January and 31 December 2024 were immaterial.

Therefore, the recognised adjustment to revenues in 2025 and 2024 due to the final determination of the sale price was

insignificant.

If the Company has remaining performance obligations as at the end of the reporting period that are unsatisfied, it is necessary to

disclose the transaction price allocated to these obligations (IFRS 15.120). The Company uses a practical approach and does not

disclose performance obligations that are part of contracts with initial period of one year or less. Moreover, the Company has

several long-term contracts, the price of which is based mainly on variable consideration that the Company does not include in

estimating the transaction price.

Revenues from contracts with customers – breakdown by products

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Copper

22 378

22 789

Silver

6 133

4 917

Gold

1 144

853

Lead

258

285

Services

238

228

Merchandise

263

279

Energy

110

148

Waste and production materials

116

Sulphuric acid

128

Copper sulphate

Other

146

143

TOTAL, including:

30 964

29 894

impact of hedging transactions

on revenues from contracts with customers

107

608

PART 2 – Operating segments and information on revenues

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Sales revenue – geographical breakdown reflecting the location of end customers

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Europe

Poland

7 473

7 453

Germany

4 830

4 716

The United Kingdom

2 728

1 814

Czechia

2 177

2 296

Italy

1 905

2 400

Switzerland

1 588

1 095

Hungary

1 391

1 457

France

764

713

Sweden

757

672

Austria

327

307

Slovakia

169

184

Bulgaria

136

171

Belgium

125

Romania

110

112

Other

322

417

North and South Americas

The United States of America

1 960

1 409

Canada

217

Other

Australia

314

445

Asia

China

1 961

2 683

Türkiye

636

562

Thailand

303

300

India

301

South Korea

122

Other

131

235

Africa

Algeria

185

Other

TOTAL

30 964

29 894

Main customers

In the period from 1 January to 31 December 2025 and in the comparable period, revenues from no single customer exceeded 10%

of the sales revenue of the Company.

Non–current assets – geographical breakdown

The property, plant and equipment of KGHM Polska Miedź S.A. are located in Poland.

Cash expenditures on property, plant and equipment and intangible assets

from 1 January 2025

to 31 December 2025

from 1 January 2024

to 31 December 2024

Cash expenditures on mining and metallurgical assets

(3 872)

(3 597)

Cash expenditures on other property, plant and equipment and

intangible assets

( 38)

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

PART 3 – Impairment of assets

Note 3.1 Impairment losses on assets as at 31 December 2025

Assessment of the risk of impairment of assets of KGHM Polska Miedź S.A. in the context of the market capitalisation

of KGHM Polska Miedź S.A.

The Management Board of KGHM Polska Miedź S.A. assessed the existence of indications of the possibility of impairment of

assets, pursuant to the requirements of International Accounting Standard 36 – Impairment of assets. The analysis was carried

out taking into account both external factors resulting from the economic and market environments, as well as internal factors

relating to the unique nature of the entity's operations, the efficiency of the use of assets and changes in their expected utility.

In 2025, the share price of KGHM Polska Miedź S.A. was characterised by high dynamics, supported, among others, by rising

prices of metals, especially copper and silver. The average price of the Company's shares in 2025 increased by 29.2% compared

to the share price at the end of 2024 and as at 31 December 2025 amounted to PLN 280.80 (the average share price in 2025 was

PLN 148.57). In the same period, the average WIG20 index increased by 26.8%, and the average WIG index increased by 28.2%.

As a result, the Company's market capitalisation increased from PLN 23 000 million to PLN 56 160 million, which means that as

at 31 December 2025 it remained at the level of 181% of the value of the Company's net assets. However, it should be noted

that the average ratio of market capitalisation to book value of net assets throughout 2025 was 93%.

From the point of view of the Company's operations, the key factor influencing the level of market capitalisation is the price of

copper. In 2025, the copper price maintained its upward trend, peaking in December 2025 due to the weakening of the US dollar,

global trade tensions and supply shortages in the copper market. The average copper price in 2025 was 9 945 USD/t, which is

higher than the prices recorded in 2024 (average of 9 147 USD/t).

In the case of the Polish assets, the price of metals in PLN is of significant importance, which is also affected by the USD/PLN

exchange rate. Fluctuations in copper prices are usually largely compensated by changes in the USD/PLN exchange rate. The

average exchange rate of the US dollar against the PLN in 2025 was PLN 3.76, which is lower than the exchange rate observed

in 2024 (average of PLN 3.98). Finally, the average copper price in PLN in 2025 was 37 303 PLN/t, which was higher by 2.5%

compared to the prices recorded in 2024 (average of 36 403 PLN/t).

More significant fluctuations could be observed on the precious metals market. The price of gold, supported by stable central

bank purchases, a weak US dollar, and a climate of macroeconomic and geopolitical uncertainty, rose almost continuously

throughout the year, reaching USD 4 308 per ounce at the end of December 2025 (compared to USD 2 611 per ounce at the end

of 2024). Along with gold, the price of silver also rose from USD 29 per ounce at the end of 2024 to USD 72 per ounce at the end

of December 2025.

After the balance sheet date, prices of metals continued their dynamic upward trend, reaching maximums on 29 January 2026

at 13 844 USD/t for copper, USD 5 502 per ounce of gold and USD 118 per ounce of silver alongside further weakening of the

US dollar. This trend was broken in the following days when there were sharp declines in metals prices, which shows significant

uncertainty about the development of prices in the future.

Favourable macroeconomic data in 2025 contributed to a decrease in market interest rates, to around 4.04 for WIBOR 1M, 3.99

for WIBOR 3M and 3.87 for WIBOR 6M at the end of December 2025, which has a positive impact on the profitability of the

business. The yield on 10-year bonds was 1.15 percentage points higher than the NBP reference rate.

KGHM Polska Miedź S.A. maintains full operational capacity and consistently advances planned production, sales and investment

budget targets. The financial results achieved by the Company exceed the budget targets, which is also a result of conducted

optimisation initiatives and cost discipline applied in response to macroeconomic conditions.

The Company continued actions aimed at making the subsequent parts of the copper deposit available and at construction of

the mining infrastructure. Current, long-term production plans are up to 2055 and in the current period no indications were

identified that could negatively impact the future availability of deposits. KGHM Polska Miedź S.A. continues exploration work

on the basis of its concessions and concession proceedings aimed at ensuring the resource base appropriate for operating

activities and prolonging mine life.

In the context of risks and hazards associated with climate, in the current period, no material impact on the activities of KGHM

Polska Miedź S.A. was identified. Detailed information is presented in Note 1.2.3 Monitored areas – risks and hazards associated

with the climate.

On 1 January 2026, the Act of 21 November 2025 amending the Act on the minerals extraction tax and certain other acts,

introducing a temporary reduction of the coefficient in the tax calculation formula for copper and silver (2026-2028) and a

mechanism for deducting part of capital expenditures from tax (from 2029), entered into force.

In accordance with the aforementioned Act, the burden of reducing the amount of the copper tax will rest, to a large extent, on

the investment relief mechanism. For this reason, it will de facto serve as a source of financing capital expenditures and will not

have to directly translate into a significant change in free cash flows.

PART 3 – Impairment of assets

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

The Company will be able to deduct a maximum of 40% of the value of eligible expenditures (no more than 30% of the input

tax), which will require the involvement of significant capital in order to fully use the reduction on the minerals extraction tax.

Moreover, in the case of KGHM Polska Miedź S.A., a significant group of investments eligible for tax deduction are development

investments, which by definition are not included in the impairment test in the model of value in use. As a result, the

amendments to the Act on the minerals extraction tax do not constitute an indication to change the recoverable amount of the

Company's assets.

The Management Board of KGHM Polska Miedź S.A. assessed the assumptions adopted as at 31 December 2023 for impairment

testing of the Polish production assets (mining and metallurgical assets), including mainly macroeconomic assumptions,

medium- and long-term production plans and the level of operating costs as well as planned capital expenditures. No indications

were identified suggesting the necessity of revision of previously-adopted key assumptions.

Taking into account the significant uncertainty and dynamic changes in the environment, which make it difficult to draw

conclusions about long-term trends, in the opinion of KGHM Polska Miedź S.A., there were no indications of the risk of

impairment of the Polish production assets, nor of indications of the possibility of reversing the impairment losses already made.

As a result, no impairment tests were carried out for these assets as at 31 December 2025.

Due to the continuing uncertainty and significant volatility of key macroeconomic parameters, in particular metal prices and

exchange rates, KGHM Polska Miedź S.A. will continue to monitor global economic conditions on an ongoing basis in terms of

stabilisation or non-stabilisation of the indicated trends. If the persistence of the observed changes is confirmed, the Company

will assess their impact on the recoverable amount of the assets, pursuant to the principles described in IAS 36.

Impairment testing of shares in FUTURE 1 Sp. z o.o.

KGHM Polska Miedź S.A. is involved in Future 1 Sp. z o.o. in the form of:

• loans granted in the amount of PLN 3 720 million, and

• shares measured at cost less impairment losses, which as at 31 December 2025 before the recognition of results of

impairment testing amounted to PLN 4 175 million (comprised of PLN 4 770 million – value at cost, PLN 599 million –

the amount of the impairment loss, and PLN 4 million – the amount of discount on receivables due to returnable

payments to capital).

Information on loans granted are presented in Note 6.2.

As at 31 December 2025, due to the occurrence of indications of changes in the recoverable amount of shares in the company

Future 1 Sp. z o.o., a test for impairment of these shares was conducted. Future 1 Sp. z o.o. is a holding company, through which

KGHM Polska Miedź S.A. holds shares in KGHM INTERNATIONAL LTD. (whose main assets are the Victoria project in the pre-

operational phase, the Robinson mine and the Carlota mine) and in the joint venture Sierra Gorda S.C.M., and provides financing

to the KGHM INTERNATIONAL LTD. Group and Sierra Gorda S.C.M.

The key indications to perform impairment testing were:

• a change in the recoverable amount of individual assets of KGHM INTERNATIONAL LTD. – an indication in the form of

significantly higher price assumptions indicating that the recoverable amount may be higher than the carrying

amount,

• the restructuring of loan streams modifying cash flows allocated to Future 1 Sp. z o.o. – an indication that the

recoverable amount may be higher than the carrying amount,

In order to estimate the recoverable amount, in the conducted test the fair value of the CGU was calculated using an income-

based approach, i.e. the method of discounted cash flows. The same method was used in previous years. Cash flows were

discounted using the weighted average cost of capital at the level of 10.98%.

The fair value measurement was classified to level 3 of the fair value hierarchy.

Basic macroeconomic assumptions adopted for cash flow estimation – metal prices

The Company adopted price paths on the basis of internal macroeconomic assumptions developed based on available long-term

forecasts from financial and analytical institutions. A detailed forecast was prepared for the period 2026-2030, while for the

period 2031-2035 a technical adjustment of prices was applied between the last year of the detailed forecast and 2036, for which

a long-term metal price forecast was assumed at the following level:

• for copper – 9 250 USD/t (4.20 USD/lb),

• for nickel – 18 739 USD/t (8.50 USD/lb),

• for gold – 2 500 USD/oz.

PART 3 – Impairment of assets

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

In the detailed forecast period for the period 2026-2030 the following levels of metal prices were assumed:

• for copper – from 10 000 USD/t to 10 472 USD/t,

• for nickel – from 15 984 USD/t to 18 188 USD/t,

• for gold – from 2 800 USD/oz to 3 800 USD/oz.

Assumption

Sierra Gorda

Victoria

Robinson

Carlota

Mine life / forecast period

Level of copper production during mine life (kt)

3 513

266

443

Level of nickel production during mine life (kt)

218

Level of gold production during mine life (koz t)

1 015

219

409

Average operating margin during mine life

47%

64%

51%

11%

Capital expenditures to be incurred during mine life (USD

million)

6 342

1 627

1 080

Including capitalised stripping costs (USD million)

4 012

658

Results of the test performed as at 31 December 2025 are presented in the following table:

Test elements

PLN million

Discounted future net cash flows of the KGHM INTERNATIONAL LTD. Group

(decreased by repayment of all of liabilities, including the repayment of loans towards

KGHM Polska Miedź S.A.)

5 046

Recoverable amount of other assets

221

Recoverable amount of investment in KGHM INTERNATIONAL LTD.

(Enterprise value) after the repayment of liabilities towards KGHM Polska Miedź

S.A. due to loans granted

5 267

Carrying amount of shares in Future 1 Sp. z o.o. (before the test for impairment)

4 175

Carrying amount of shares in Future 1 Sp. z o.o. (after the test for impairment)

4 774

Reversal of impairment loss on shares in Future 1

599

As a result of the test, the previously recognised impairment losses in the amount of PLN 599 million were fully reversed and a

gain on the reversal of the impairment loss was recognised in the statement of financial position in other operating activities

(Note 4.2).

Sensitivity analysis of the recoverable amount of shares of FUTURE 1 Sp. z o.o. (enterprise value)

Recoverable amount at a given discount rate

lower by 1 pp.

per test

higher by 1 pp.

Discount rate 10.98% (test)

5 765

5 267

4 824

Recoverable amount at a given copper price

lower by 0.1 USD/lb

per test

higher by 0.1 USD/lb

Copper price paths

4 963

5 267

5 557

Recoverable amount at a given nickel price

lower by 0.1 USD/lb

per test

higher by 0.1 USD/lb

Nickel price paths

5 244

5 267

5 290

With regard to the sensitivity analysis of the recoverable amount of the shares in Future 1 Sp. z o.o., it was determined that

potentially possible changes to the key assumptions adopted for the tests as at 31 December 2025 (in the table above) would not

have an impact on the result of the test (the amount of the reversal of the impairment loss), as the Enterprise value of KGHM

INTERNATIONAL LTD.'s investment (enterprise value) adjusted for liabilities towards KGHM Polska Miedź S.A. due to the loans

granted significantly exceeds the value of the shares in Future 1 Sp. z o.o. after the maximum reversal of the impairment loss

made in previous years.

Impairment testing of shares of PMT Linie Kolejowe Sp. z o.o.

As at 31 December 2025, due to the occurrence of indications of a possible change in the recoverable amount, impairment

testing was performed of the capital involvement in the shares of the company PMT Linie Kolejowe Sp. z o.o. The key indication

to perform the impairment test was the significant decrease in the Company's forecasted future economic results.

The carrying amount of shares of PMT Linie Kolejowe Sp. z o.o. as at 31 December 2025 amounted to PLN 247 million.

In order to estimate the recoverable amount, in the conducted test the value in use of shares was measured using the income-

based approach, i.e. the method of discounted cash flows.

PART 3 – Impairment of assets

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

Basic assumptions adopted for impairment testing as at 31 December 2025

Assumption

Level adopted in the test

Detailed forecast period

January 2026 – December 2030

Operating margin

2% in the forecast period,

2.8% in the residual value

Capital expenditures in the forecast period

PLN 57 million

Discount rate

4.61% (real, after taxation)

Growth rate following the forecast period

As a result of the impairment testing of the shares of PMT Linie Kolejowe Sp. z o.o., the recoverable amount of the tested shares

was determined to be lower than their carrying amount, which provided a basis for the recognition of an impairment loss in the

amount of PLN 147 million.

The recoverable amount of shares of PMT Linie Kolejowe Sp. z o.o. indicated a significant sensitivity to the adopted levels of

discount rates and operating margin. The impact of changes to these parameters on the valuation of shares is presented in the

following table.

Sensitivity analysis of the recoverable amount of shares of PMT Linie Kolejowe Sp. z o.o.

Recoverable amount at a given discount rate

lower by 1 pp.

per test

higher by 1 pp.

Discount rate 4.61% (test)

112

100

Recoverable amount at a given operating margin

lower by 1 pp.

per test

higher by 1 pp.

Operating margin 2%,

2.8% in residual value (test)

100

115

Impairment testing of shares of Companies INVEST PV 7 sp. z o.o., INVEST PV 40 sp. z o.o., INVEST PV 58 sp. z o.o.

and INVEST PV 59 sp. z o.o.

In connection with the recapitalisation of INVEST PV 7 sp. z o.o., INVEST PV 40 sp. z o.o., INVEST PV 58 sp. z o.o. and INVEST PV

59 sp. z o.o. (whose business activity is the production of electricity using photovoltaic technology), in the amount of PLN 188

million, and thus a significant increase in the value of the shares of INVEST PV 7 sp. z o.o., INVEST PV 40 sp. z o.o., INVEST PV 58

sp. z o.o. and INVEST PV 59 sp. z o.o. as at 30 June 2025, impairment testing was made of capital involvement in the shares of

these companies.

The carrying amount of the shares in individual companies as at 30 June 2025 was:

− INVEST PV 7 sp. z o.o. – PLN 16 million,

− INVEST PV 40 sp. z o.o. – PLN 32 million,

− INVEST PV 58 sp. z o.o. – PLN 61 million,

− INVEST PV 59 sp. z o.o. – PLN 79 million.

In order to estimate the recoverable amount in the conducted tests, the value of shares was calculated using an income-based

approach, i.e. the method of discounted cash flows.

Basic assumptions adopted for impairment testing

Assumption

INVEST PV 7

sp. z o.o.

INVEST PV 40

sp. z o.o.

INVEST PV 58

sp. z o.o.

INVEST PV 59

sp. z o.o.

Detailed forecast period

July 2025 - December 2053, i.e. until the end of life of projects

Prices of electricity

Price paths were adopted on the basis of averages of available long-term forecasts from analytical

institutions concerning photovoltaics. An average price of electricity in the detailed forecast period

amounts to 352 PLN/MWh.

Electricity production level in

the detailed forecast period

140 361 MWh

264 945 MWh

353 477 MWh

493 166 MWh

Average EBITDA margin in

the detailed forecast period

47%

69%

70%

Average nominal discount

rate in the detailed forecast

period *

7.11%

*the presented data are after taxation despite the model of value in use. The application of data before taxation does not have a significant

impact on the recoverable amount.

PART 3 – Impairment of assets

in PLN millions, unless otherwise stated

KGHM Polska Miedź S.A.

Separate financial statements for 2025 Translation from the original Polish version

As a result of the performed impairment testing of companies INVEST PV 7 sp. z o.o., INVEST PV 40 sp. z o.o., INVEST PV 58 sp. z

o.o. and INVEST PV 59 sp. z o.o., the recoverable amount of the shares was not obtained at the levels of their carrying amounts,

which was the basis of recognising impairment losses in the amounts indicated in the table below.

CGU

Carrying amount of shares

Recoverable amount of shares

Impairment loss

INVEST PV 7 sp. z o.o.

INVEST PV 40 sp. z o.o.

INVEST PV 58 sp. z o.o.

INVEST PV 59 sp. z o.o.

In order to monitor the risk of impairment of shares in the subsequent reporting periods and to monitor the possibility of reversal

of the impairment loss, it was determined that the recoverable amount would be equal to the carrying amount of shares if the

discount rate or the average price of energy was as presented below:

Discount rate

Average price of energy

INVEST PV 7 sp. z o.o.

2.40%

+33%

INVEST PV 40 sp. z o.o.

5.48%

+13%

INVEST PV 58 sp. z o.o.

2.10%

+55%

INVEST PV 59 sp. z o.o.

2.58%

+48%

Note 3.2 Impairment losses on assets as at 31 December 2024

Assessment of the risk of impairment of assets of KGHM Polska Miedź S.A. in the context of the market capitalisation

of KGHM Polska Miedź S.A.

In 2024, the share price of KGHM Polska Miedź S.A. remained under pressure of continued uncertainty as to the development

of the global macroeconomic situation. As a result, the share price of the Company fell in 2024 by 6.3% as compared to the share

price at the end of 2023, and as at 30 December 2024 it amounted to PLN 115 (the average share price in 2024 amounted to

PLN 133.58). At the same time the WIG 20 index fell by 6.4%, while the WIG index increased by 1.4%. As a result, the market

capitalisation of the Company fell from PLN 24 540 million to PLN 23 000 million, which means that as at 31 December 2024 it

remained 23.3% below the level of the Company’s net assets. However, it should be noted that the average ratio between the

market capitalisation and net assets throughout 2024 amounted to 91%.

As at 20 March 2025, the Company’s share price amounted to PLN 138.20, which is an increase by 20.2% as compared to the

price as at 30 December 2024 (the average share price in the period from the end of the financial year to 20 March 2025 amounts

to PLN 129.48).

An analysis in the area of Polish assets indicated that not all the factors which affect the level of market capitalisation of KGHM

Polska Miedź S.A. are the factors related to the business activities.

From the point of view of the Company’s operations, the key factor influencing the level of market capitalisation is the copper

price. It continued to be in a sideways trend from the beginning of 2024 to the turn of the first and second quarter and did not

deviate significantly from the level of 8 500 USD/t. In April, the weakening of USD and accumulation of information on limitation

of expected supply and increase of metal deficit on the copper market sparked a new hope among investors as to the increase

in copper price, and in May its price rose to the average level of 10 129 USD/t. In the following months of 2024, the investors’

optimism did not last when confronted with arguments coming from the fundamentals of the copper market. Finally, the average

price of copper in 2024 amounted to 9 147 USD/t, which is a level higher than prices noted in 2023 (average of 8 478 USD/t).

It should be pointed out that in the case of the Polish assets, of significance are PLN-expressed metals prices, which are also

affected by the USD/PLN exchange rate. Fluctuations in the price of copper are usually to a large extent offset by changes in the

USD/PLN exchange rate. The average USD/PLN exchange rate in 2024 amounted to PLN 3.98, which is at a lower level than the

exchange rate noted in 2023 (average of PLN 4.20).

Finally, the average copper price in 2024 in PLN amounted to 36 403 PLN/t, which was 2% higher than the prices observed in

2023 (an average of 35 632 PLN/t).

In the current period, there were no significant changes in the level of market interest rates. From the beginning of 2024 we may

observe a stabilisation in WIBOR 1M, WIBOR 3M and WIBOR 6M at around 5.85%. The yield of 10-year bonds stabilised around

the level of the NBP’s reference rate.

The Management Board of KGHM Polska Miedź S.A. assessed the adequacy of assumptions adopted as at 31 December 2023

for impairment testing of Polish production assets (mining and metallurgical assets), including mainly macroeconomic

assumptions, medium- and long-term production plans and the level of operating costs as well as planned capital expenditures.

No indications were identified suggesting the necessity of revision of previously adopted key assumptions.