Good morning, good afternoon. Welcome to our online conference. We will discuss the results of KGHM for the third quarter and for the first nine months of 2021. Apologies for the delay. Unfortunately, due to technical constraints, we had to make sure that everything runs seamlessly and we deliver the best quality transmission. That's why it took us a little bit longer. We will start with quick comments on the results. They will be commented on by Mr. Marcin Chludziński, the President of KGHM, Mr. Adam Bugajczuk, Vice President for Development, Mr. Paweł Gruza, Vice President for Foreign Assets, and Mr. Andrzej Kensbok, Vice President for Finance.
As I said, we would very much like to be here with you, face-to-face, but for concern for the health of ourselves and our people, we had to reduce the number of live meetings and choose online events instead. Nevertheless, after the presentation, during the commentary, we will also move on to a Q&A session. Feel encouraged to submit your questions to ir@kghm.com. All the questions that have been or will have been submitted will be answered on our website as soon as possible. Also, the transcript of this conference will be available as well. I hope that we will manage to answer as many questions as possible today. Now, let me give the floor to the CEO.
Hi. Hello, everyone. Welcome from Lubin on this charming autumn afternoon, or actually midday. Let's not talk about weather. Let's talk about climate, which is somehow related. Why climate? This week, we have adopted KGHM climate policy. That's a sign of the times. It's somehow related to EU regulations, but it's also a matter of market requirements. We want to be transparent. We want our production to be transparent in terms of our climate agenda, and we want to be in line with the European climate agenda.
That's why we adopted this document that defines what KGHM should do in response to climate change and what is the footprint of the company, what is the impact of KGHM on the climate, what we want to do, what initiatives we want to take to reduce that footprint and to change the impact. That's the essence of the newly adopted document. There is one quite important goal. In 2050, KGHM is to be climate neutral. There will be two intermediate goals. In 2030, we want to reduce our emissions by 30% versus 2020. We're talking about two kinds of emissions. We have Scope 2 emissions. That's emissions related to electricity production. Where CO2 emissions are related to power generation, we want to run a number of initiatives to reduce those emissions.
The other area is the so-called Scope 1, which is our production, which of course generates CO2. We want to become CO2 neutral by 2050. The agenda includes such measures as buying green energy or deployment of our own renewable energy sources. We want to be a more responsible consumer of energy. We want to use less energy, and we want to maximize the share of green energy that we use. In 2050, we also want to become independent in terms of energy supplies. When it comes to our production cycle, there are a number of initiatives such as add the mixture of hydrogen to our smelting processes. We want to use electromobility in our mining operations.
We want to use CCU and CCUS, so carbon capture and storage technologies, so the technologies that are already in place and can be deployed. There are also some technologies that are still in the development stage, and we hope they will be developed and they will become viable in a few years. This is what we want to do. These are the challenges of the European regulations and requirements of our clients. In a nutshell, talking about the here and now. Nine months into 2021, there are a number of key facts and figures. The EBITDA year-over-year is PLN 7.73 billion, which is greater than last year, which is a reflection of greater revenues.
We sell at better prices, so our revenues grew by 31%. That's over 21 billion zlotys. The higher prices, the better prices are not the only factor that has contributed to this improvement. We also have a 10% greater production of copper. We have been following our plans, our strategy. With greater production, we are immune to lower prices, but we are very happy to have the tailwind. We have greater prices. In 2019 or 2018, the prices were very low. In April 2019, it was $4,600 per ton, and we still managed. We reduced our cost, or we increased our production. These figures are the most important findings. Now, I will give the floor to Andrzej Kensbok, who will tell you more about the finance.
The production vice president is not with us today because he has some health concerns, so we won't be talking about production in detail. Thank you very much. Good day to all of you. Let me start with a quick summary of our production output for metals. The good news is that payable copper has grown by 10.1%, three quarters compared to the same period of 2020. All three segments of our operations have made a contribution. That's domestic production from 412,000 tons - 440,000 tons. KGHM International, 49,000 tons - 5,000 tons. And Sierra Gorda from 60,000 tons- 78,000 tons. I will give you the details in a second, but before I do that, let me mention silver production, which is very important to us.
Last year, the production was very high. We didn't actually assume such a great performance this year, looking at the geological parameters and the richness of the ore. The results have been very good, both in terms of mining output and the content of silver in the ore, and also in terms of the recovery performance in the smelting operations. The combined production of the whole group is 1,008 tons of silver in the first three quarters of 2021. Last year, well, when you compare this to last year figures, we can hope that we will solidify our leading position globally. We are the second-largest silver producer in the world. We are very happy about that. We want to maintain this top two position.
When it comes to precious metals, we have a slight decline, which is most of all related to the quality of ore in the U.S. and Canada. Moly production has not changed. Molybdenum content in the ore in Chile remains stable. Now let's take a look at KGHM Poland. The other operations will be discussed by Mr. Gruza. Here we look at mining or extraction. In terms of tonnage, we have increased our output. Also, in terms of processing operations, the output has been quite stable over last year. The copper content in the ore is slightly lower.
This is related to the fact that we keep continuing our prospecting operations and the proper copper content cannot be predicted to a very fine degree of detail to three decimal places. We are pretty much satisfied with what we get. We keep finding new ore deposits, and we keep mining those areas that are most economically viable. Now, smelting operations. There are two important elements that maintain maintenance of smelting operations and refinery operations at last year's level. All the figures are presented in the presentation. Quite importantly, we have more copper production from third-party ores. This is relate...
Third-party sources, because we have improved the efficiency of scrap copper processing and this is also the direction we want to go for in the future, also in the context of our climate policy, and we want to keep improving our operations in this area. The main growth driver in silver year on year is KGHM Polska Miedź. Here, we have a growth from 975 tons up to 983 tons in the first three quarters of 2021. Now, let's take a look at Sierra Gorda, so I'll give the floor to Mr. Gruza.
Thank you, Andrzej. Ladies and gentlemen, we're happy to present these results. Thanks to a favorable macroeconomic situation, we focused on maximizing production in all our international assets. Geology has been favorable and has been a positive contributor to our results. As a result, payable copper in Sierra Gorda has grown by nearly a third. Silver has gone up. Obviously, we have been trying to optimize our processing operations and the costs that we pay in Sierra Gorda. Now let's move on to KGHM International. Here, we also have a 13% growth in payable copper production. Here, the main driver is the efficiency of our mining operations in Robinson. In Robinson's, we've also been trying to extend the lifetime of the mine, so we want to keep mining in that area for the years to come.
Production results are very good when it comes to silver. Some mines produce less, but because of their relative share, their contribution to the overall international results is negligible. Thank you very much. Let's move on to the financial results of the group. The first piece of news is the revenues. The revenues have grown by 31% year-over-year, up to PLN 21,735 million. This improvement is, first of all, related to changing metal prices. There are a number of other factors that are less favorable. That's a slight decrease in sales, first of all in KGHM International, and that's related to certain logistic problems in U.S. ports. Also in dry docks, there have been some delays and transportation resources are less available than they used to, but this, we believe, is temporary.
We also had foreign exchange differences between the Polish zloty and the dollar. It was 3.94, the average, 3.94 last year. Now it's 3.87. Of course, we keep track what's going on on the zloty and the euro and the dollar. We are looking closely at what's going on in foreign exchange. Another negative factor was the adjustment of revenues on derivatives in the first three quarters. The adjustment was in the area of PLN 1.1 billion. But there is a slight difference because of the first three quarters of the last year. The year-on-year difference is PLN 1.4 billion. The positive change, the PLN 200 million, that's greater sale of materials other than silver and copper. The quiet leader here is the sulfuric acid that we sell.
We sell more of that acid and at a higher price than last year. There's also lead, rhenium, selenium, a number of other derivative products at that sell greater volumes and or at greater prices than in the first three quarters of 2020. Now let's move on to unit cost. As you can see in the slide, the unit cost is significantly higher, but when you look at the group level, if you take into account the copper tax, then the C1 cost would actually be lower in the first nine months of 2021 than in 2020. Because what we all know the copper tax is, we know the formula and you just can't beat the formula. It is rigid. There is no workaround.
When you look at KGHM Polska Miedź, then the growth of the C1 cost net of the copper tax is in the range of $0.03 per pound. This small growth is mostly related to growing power prices, CO2 emission rights and the cost of diesel. These were the main cost drivers. In KGHM International, well, the C1 cost is comparable. We have a significant growth in Sierra Gorda. We have greater volumes and higher prices of additional metals that actually bring our C1 cost down. When it comes to our operating results, first of all, our EBIT is significantly higher, 75% greater year-on-year. Or actually nine months over nine months. Here you can...
This is an aggregate for all the segments, so KGHM Polska Miedź, KGHM International and Sierra Gorda. The main driver here is higher metal prices, and thus, higher sales prices. It's not in this slide, but let me mention one more thing. When you look quarter by quarter, you will see that our quarter-by-quarter performance has been very stable, very constant, and the contribution of each quarter to the aggregate results for the three quarters has been pretty much the same. Consistently, we have been building our results, and also the third quarter has made a very good contribution to the results after nine months. Now profit or net result. It's significantly higher, more than three times higher for the whole group compared with the three quarters of the previous year.
This is mainly linked to the change in metal prices and higher revenues. What I also mentioned during the previous revenue conference, it was related to the valuation of loans we provided to other entities, including Sierra Gorda, and also the measurement of interest accrued, as well as the contrast between the negative result last year and the positive result achieved this year. Joint ventures, PLN 1.9 billion. That is the profit on involvement in joint ventures. What is also important is higher profit from sales by more than PLN 1 billion, so PLN 1.765 billion, with higher copper prices, slightly lower silver sales, and an increase in services.
We have been watching this, especially the net profit on sales, because this is the core of our operations. There's also one thing that I'd like to mention, that is the drop in our result on derivatives. It is related to the measurement of derivatives by PLN 67 million, but also at the lower valuation by PLN 150 million. As derivatives had the impact by -PLN 81 million on the net result, change in CIT, exchange differences that I mentioned previously. The CIT's corporate income tax, so we have higher profits, so the taxes are also high. The net result, the net profit remains strong and robust.
With each quarter, we've seen a significant contribution to the overall profit. We have to mention that the increase in the costs of energy, those prices accelerated in the last quarter.
By 17% quarter-over-quarter. That is how energy prices have increased. We have been offsetting these higher energy prices by conservation energy savings, but it's not possible to offset such an increase in energy prices by reducing the consumption only. Now, let me move on to our cash flows. There are three important factors here. The first one, there is the allocation of the profit. The second is a change in the working capital, and that was related to us knowingly abandoning the use of some of the factoring contracts. It's PLN 1 billion. We see no need to use factoring in these areas, and this is how we can save on the costs, financing costs of these contracts. The contracts remain valid.
They're in full force and effect, as our credit agreements are. We can use them, but we're not using them at the moment because we don't see any reason to do so, and we can save the cost. Another area is the increase in stock by PLN 1.6 billion compared with the beginning of this year. That is related to two factors there. One, planned downtime and repairs. We're planning to have a downtime of the suspension furnace, which is really a huge project, so we need to prepare our company to have the stock at every stage of the process for the downtime of that important flash furnace.
We're also preparing for other repairs, other work we're going to do, like the anode casting carousel and other major work we're going to perform. The other area is the uncertainty surrounding the supply chain. We have seen that over the last couple of months, where we were confronted with a serious breakdown in one of our concentrate suppliers, a very important supplier. You know how unavailable vessels are for transportation. In order to ensure continuous production of copper, we are keeping our stock at a slightly higher level because we made a commitment in that respect, in the sense that we would like to test the possibility of increasing our production volume from one year to the other.
In order to do so, we need to optimize all production areas, including, you know, the smelting operations, so that we can optimize that process in terms of the selection of the material and in terms of the processes themselves. That we need to make sure that the smelter plants as well as the Cedynia plant have the resources to optimize production this year and next year. Looking at stock, we're not only thinking about a short-term one-year horizon, we're looking forward long-term, and we'd like to streamline our production and make it more efficient. The debt has not changed at the end of quarter three. The debt's not changed really. We received cash from KGHM International, as I've mentioned. We also had a...
Well, a situation which is stable really, not much changed. The only change was a slightly lower cash position. The net debt increased, but the debt in terms of banking debt, it's not changed. So we repaid these borrowings in the second quarter, and that is why we're not mentioning them. Let me give the floor to Adam Bugajczuk now.
Thank you. Ladies and gentlemen, now let me focus on advancement of development initiatives. Well, as for the projects fulfilled, well, it's not so impressive maybe, but we doing that on budget and on time. For example, the Southern Quarter was finished six months ahead of the schedule, which shows that we're coping with the present situation.
We're all aware of the broken supply chains, unavailable materials, and all these minor challenges that we're facing in some smaller projects, but we really trying to resolve the problems as they arise and fulfill our objectives on time. As for the role of Deep Głogów, GGP, the role is increasing by 30% year-to-year in all areas of our production, extraction and also the copper content of the head grade. And silver is also becoming more and more important in that area. We have also began drilling an exploratory borehole for Bytom Odrzański, our license there. At the end of the third quarter, we were drilling exploratory boreholes at Kudowa-Zgorzelec. Well, these are the results of our project side.
The Southern Quarter that I've mentioned, which is like the jewel in our crown, and this is a very complex operation. Well, it's lasted more than three years and has been completed successfully. Now we have sent or deposited the first waste there, and we've really managed to complete that very successfully. As for the access program, GG1 has sunk to 1,295 meters. We have no problems there. Commence shaft sinking procedures are underway for GG2. We have also the central air cooling system on the surface. All our key projects are being delivered on time and on budget. Now the energy development program, including renewables. We are showing the work which is underway to increase our renewables potential or energy potential, including renewables.
We continue our work to increase the share of renewables, and we have been doing that very consistently. As for the share of renewables in our own energy production, that's what our CEO, Marcin, said about our climate policy. All of these are tools to implement our climate policy to bring us closer to our neutrality target, ambitious parameters, so that in 2030, half of our energy consumption is met by our own energy sources, including renewables in 2030. While Sierra Gorda will be supplied 100% from renewables. That's the situation. Ladies and gentlemen, we'll now have a Q&A session. We would like to thank you for the positive comments and feedback we've received from you on our climate policy.
Before I give the floor to Janusz Krystosiak, let me read one question about the climate policy and not the results. The question we received is about page 10 in the presentation, which says that decarbonization program for the group will be adopted. Will we hear about the details of that publicly? It will be presented, the program I mean, in 2022. Then according to our information and disclosures policy, information which is significant for investors will be made public. Well, we have also a presentation which is broad in scope. A detailed presentation, which is a discussion of our climate policy, so we can also read that. It's important not to make a mistake here. The question was about the decarbonization of the group.
In our document, we assumed how much we're emitting in our smelting and mining operations. We know what to do to achieve the right targets in 2030 and also to meet the zero emissions target, and also to take a comprehensive approach and tackle all aspects. And we would like to have a big picture of the whole group, including our companies and subsidiaries, and also to implement the right measures to achieve the zero emissions target in our subsidiaries. We know what's happening in the parent company, and 2022 will be about the subsidiaries in our group of companies. Thank you. Janusz Krystosiak, Head of Investor Relations, will head the Q&A.
Thank you.
Let me begin with a number of questions which will be about our foreign operations. These will be directed first to Paweł Gruza.
Your investment expenditure on the Victoria project have been growing noticeably in the last quarter. What is the scale of spending in 2022 and onwards?
Are we not projecting that we are in the middle of our budgeting work and some of the things have not been finished, so I don't think we can tell you everything right now.
That's clear.
Okay, thank you for that question. The CapEx on Victoria has a different nature. There are different kinds of CapEx. Some of the spending is to meet the local regulatory requirements in Canada, and the other expenditures are to ensure for our KGHM that we have the flexibility in our Victoria Project contracts. That is why we have embarked on investment projects this year.
While talking about 2022, we preparing the budget session, so it's really hard to tell at this point in time. We're looking at several options, though. Well, I mean, the options for the Victoria budget, and these decisions will be made at the board level, and that is why I'm not in a position to comment on that question in precise terms at this moment.
A question from Łukasz to Paweł Gruza. Could we ask you for an update on the information concerning the extraction tax, mining tax in Chile?
Well, there's been no significant change so far. We're waiting for the situation to develop in Chile. We have been watching these developments. As I've told you, Sierra Gorda drew some tax and legal security measures to ensure that the effect of these changes, if they happen, will be deferred in time for Sierra Gorda.
Thank you. Two more questions. Our foreign operations and the market. What are the order levels from Chinese customers, and what are the expectations for demand from China in 2022? Do they fear a slowdown in the housing market, and what about green energy and development in China, and are they foreseeing any constraints in the use of energy?
That's a good question. We're in touch with the Chinese market by being in touch with a company which imports copper anodes to China directly. We've not seen any significant slowdown in Chinese economy, judging by that trading relationship. The other area is the concentrate market, but we've not seen any problems, either. We've seen the demand for that material from the smelters, and we've not seen any significant slowdown there.
Is the increase of premium and copper related to higher demand or maybe it's to offset the energy prices which have increased? Are you talking about the premium in China?
Yes, I think so. I think there are a number of reasons for this. Generally, there is a need to supply high quality concentrate for smelters, and that is what is driving the premium and the prices up. I don't know which premium the question is about.
Okay, I see. We will ask about that and provide the answer to that question on our website when we clarify with the asker.
A question from Łukasz Rudnik, Puls Biznesu newspaper. The question is about the period for the decision of the preemptive right to buy a block in shares in Sierra Gorda.
Well, the period for the board, well, the board has time until end of November to announce that decision. I would not expect any comment from the board at this moment. All the information will be provided on the decision of the board in accordance with all the information procedures.
Yes, we've not come to the decision yet. The energy prices from gas and the grid for your own power unit.
Are they hedged for next year, and what is the scale of the costs with the same production volume for KGHM Poland?
Most of our demand for gas and electricity has been fixed for next year. I wouldn't actually say hedged. We don't use hedging or derivative instruments on energy. We simply use forward prices. That's in the bag, so to speak. Obviously we never buy 100% in advance. We leave some space for spot deals because of our balancing needs and because of bargains on spot deals. What was the second part of the question?
What will be the scale of the cost with the production scale is the same?
Electricity production from our own gas resources, well, then here the gas price is lower than when we buy energy from the grid. That's why we maximize our own energy production assets. We also keep running a projection of energy prices, both from third-party providers and from our own assets. Here there are no clear answers because gas prices may change as they did last month. When they do, electricity production from coal was lower than from gas, despite the CO2 emission costs. The situation is volatile, it changes rapidly, but we keep analyzing this and we decide as and when necessary.
Okay, thank you very much. We spoke about hedging. Could I ask you to comment on another question? That's the question about what is the volume of copper production that are secured with contracts for 2022 and 2023, and what is the average price?
Well, we do hedging transactions in accordance with our hedging policy. This is work in progress. We keep signing hedging transactions. In the third quarter, most of those transactions were adjustment transactions. We took advantage of high prices, so increased the bottom line of transactions to secure higher prices. For silver, we opened the top line waiting for possible increases on silver prices, which have been expected for a few years and have materialized to some extent. The next year is still being analyzed. We've made some range transactions. The average level of hedging of our volume is in the area of 35%. But don't take my word for it, maybe we'll provide a written answer.
Okay, thank you very much.
Now, question from Paweł Puchalski from Santander: When can we expect a refresh of KGHM's strategy?
We've actually done that at the economic forum in Karpacz. We presented new business initiatives, or energy policy initiatives, those that were either impossible in 2018 or were not identified in 2018. The strategy update is an ongoing process. Whenever any new circumstances arise, we do that. We also have a certain perspective that we follow, and an extension of the strategic perspective is also possible. Some processes, some projects take 10 years or more, and they are. That's a living thing, and the process is always ongoing.
Thank you very much.
A question from Puls Biznesu in the context of Belarus. If Belarus decides to suspend gas supplies, will this affect KGHM? Do you have any other goods that you import from Belarus?
Well, this is a difficult situation from the perspective of state security, but it doesn't affect us. The gas that we use comes from deposits that are present locally. Our gas supplies are different than the country average, so to speak. Of course, the volume of those deliveries is very high, but there are no key volumes that would be imported from Belarus, whether it's gas or anything else.
Thank you very much.
Okay, let me go back to Mr. Gruza. A question from Santander. How would you explain the excellent results of KGHM International in the third quarter?
Well, let me say this again. In the beginning of the COVID crisis, we managed to renegotiate a number of cost contracts. We optimized many investments, and this reduced our cost. On the other hand, we maintained, or sometimes we even improved our production. When you combine these two factors with one more factor, and that is the macroeconomic climate and metal prices. When you do the math, you will get the results that you can see on KGHM International and Sierra Gorda. Until this favorable macroeconomic situation continues, we will be enjoying the benefits of it. 2021 has been very favorable in terms of geology, both for International and for Sierra Gorda.
Next year, there will be more challenges related to stripping in Robinson. We will have to remove a lot of overburden to get access to new ore deposits. It seems that our operations have been optimized in terms of our deposit management policy.
Thank you very much.
Apologies, I'm trying to eliminate duplicate questions. Here comes another, Łukasz Rudnik from Trigon.
What wage increases and bonus increases can be expected next year? What are the demands of trade unions as of now?
Well, nothing extraordinary has been happening in this regard, anything in addition to our collective bargaining. We adjust wages to the average industrial wages coefficient. We don't know the coefficient for the next year because it's published after the end of the year, so we don't actually try to project it. Year after year, we increase the wages by what is required in collective bargaining, and we will be able to calculate that increase when it's published by the Central Statistical Office.
What will be the CapEx related to the climate policy other than the SMR project? Another budget question, isn't it?
Some of those CapExes are already included in our budget because these are the things that have been going on regardless of our climate policy. For instance, in 2018, we assumed that 50% of our energy sources will be renewable. There are some projects that need to be counted or calculated. Some of them are experimental, such as carbon capture and storage. Only after we investigate these technologies in detail, we'll be able to calculate the related cost. We know some of the cost, and they are included in our annual CapEx budgets. Other costs, especially those that we're looking at in the context of 2050, still need to go through the R&D phase. We need to select the practical solution, and only then we can calculate the related cost.
Thank you very much.
Jakub Skopek, Erste Group asks a question to Mr. Adam Bugajczuk. Could you give us some details about the suspension furnace renovation in Głogów One and Głogów Two? What is the period? What is the expected downtime of the furnace?
That's about Głogów Two smelting plant and we have been discussing how to optimize the downtime. It will be 70-something days. We don't know how much exactly. Okay.
Another question from Jakub Skopek. Have you seen any problems in terms of supplies of rare metals in the context of limited supplies from China?
Well, as I mentioned when I spoke about our investments, we do have some minor problems, but we've been in the marketplace for 60 years and we have a very good understanding of the marketplace and we are pretty much immune to those minor problems and everything has been going on as planned.
Thank you.
A few more questions from Interia, Monika Borkowska. Actually, two of them have been answered, and they were about the transformation costs and the expected copper price levels. We don't do expectations or projections. We also don't make any projections with regards to the supply and demand situation. So I think we can skip that. Monika Borkowska also asks the following question: What is the 2022 perspective when you look at growing energy prices? Maybe let's merge this question with another one. What other important challenges, other than energy prices, KGHM will have to face?
The 2022 perspective in the context of growing energy prices and what other major challenges will have to be faced by the company. We've been discussing energy at length. We know that gas prices and diesel prices are going up. We know what the reason for higher prices is, that's geopolitical situation and regulatory framework. That's essentially beyond our control. What we control is adherence to our long-term energy transformation strategy and also our climate policy. What we do, we do that year after year, month after month, and we want to stick to that. We want to increase our energy production, our energy generation assets.
We want to optimize the price of energy we purchase from third-party suppliers. We also reduce energy consumption whenever possible. 2022, it's actually hard to say what it's going to look like. The world is changing at a very rapid pace, and that pace is only increasing. If you want to be a responsible manager, you can't actually make predictions for the next year. Maybe the prices will go up, maybe they will go down. That's anybody's guess. We can respond to any changes. We can increase production. We can keep our cost under control, and that's how we deliver the financial result, which as you can see, it's still pretty much okay, despite the growing energy prices. The other question was? The other part of the question?
I guess you actually answered it. That was perspectives and challenges. Okay, thank you very much.
There's a question from Robert Maj, Ipopema Securities, but actually we answered that question because it's a question about the cost of energy transformation in the context of SMRs.
That's Robert's question, so let me answer it actually. We will keep reporting the next steps. The agreement with NuScale on SMRs. Actually it's a letter of intent, has been signed and it defines a timeline in our obligations. We will report this as and when required. Cost aspects have been mentioned when we spoke about energy transformation.
Now let me quickly skim through the questions. Do we have any other questions?
It seems that we do not.
Actually there are more questions, but they are about the things we spoke about.
That's it from me. Thank you very much.
Thank you. Feel free to keep submitting your questions to ir@kghm.com. All the questions and all the answers will be submitted at our website as soon as possible. Now, let me give the floor to Mr. Chludziński for a quick summary.
I believe that today's presentation has shown you the direction in which we have been going in terms of our financial performance and the challenges. We have the answers to these challenges and we know how to cope with them. It's not possible to eliminate some of them in months time or over a year. Some of them require to act consistently over 10 years. This is the project of small nuclear reactors. All these challenges we are aware of have been strategically and noticed 2050 zero emissions in climate policy. We assume that we can achieve that by 2050, and we see the possibilities for continued operations and that's very important. Let me thank the board for the presentation, and thank you for your attention.
We will meet next time when we will be presenting the results for 2021. Okay, thank you very much. Thanks for your attention, and we will meet next quarter or next time for the presentation of the results. Thank you.