Achievement of production plans and higher revenues - the KGHM Polska Miedź S.A. Group summarises the first quarter of 2025

In the first quarter of 2025 payable copper production by the KGHM Group amounted to 169 thousand tonnes and was in line with budget targets. During this same period, the Group’s revenues increased by more than PLN 600 million and reached PLN 8.9 billion. The copper company also recorded a substantial rise in EBITDA at both the standalone level and consolidated level. Quarterly net profit for the Group amounted to PLN 330 million.

„Production in the first quarter of 2025 was in line with our targets, which reflected among others the maintenance shutdown at the Głogów Copper Smelter and Refinery, while the good sales results led to a substantial increase in revenues and EBITDA,” said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A. “The trade policy of KGHM is carried out under the principles of broad diversification, in terms of products, geography and as a portfolio. Thanks to such an approach we are able to effectively manage the structure of sales,” he added.

FINANCIAL STABILITY

The Group’s revenues increased by PLN 627 million (+8% Q1/Q1) and amounted to PLN 8.9 billion. An increase was recorded by all of the key business segments. The main factor responsible for this improvement in revenues at the KGHM Group level was a change in structure and an increase in sales volume, as well as a change in prices of basic products and the level of realised premiums. The contracting policy and the process of managing currency risk also had a substantial impact.

C1 cost (the unit cash cost of producing payable copper) for the KGHM Group in the first quarter of 2025 amounted to 2.62 USD/lb and was lower than the level recorded in the corresponding period of 2024 by 7%. Excluding the impact of the minerals extraction tax, a substantial drop in C1 cost of the Group was recorded in all of the operating segments.

Consolidated EBITDA amounted to PLN 2.49 billion (+60% Q1/Q1), and at the standalone level PLN 1.25 billion (+40% Q1/Q1). Profit for the period amounted respectively to PLN 330 million and PLN 127 million. Profit was significantly impacted by the USD/PLN exchange rate despite higher EBITDA.

The KGHM Group maintains a high level of financial liquidity and a stable level of debt. At the end of the first quarter the net debt to adjusted EBITDA ratio amounted to 0.7, which demonstrates the effective control of debt and management of the balance sheet and risk, supported by positive cash flow and positive exchange differences in terms of net debt. At the end of the reporting period the value of the Group’s assets reached PLN 54.1 billion with equity of PLN 31.4 billion.

PRODUCTION IN POLAND AND IN THE INTERNATIONAL ASSETS

In the first three months of 2025, payable copper production by the KGHM Group was in line with budget targets for this period and amounted to 169 thousand tonnes. The results achieved were 6% lower Q1/Q1 and were related to the planned maintenance at the Głogów II Copper Smelter and Refinery as well as the sale of the McCreedy West mine (Canada) in February 2025.

In the reported period, production of copper in concentrate in the domestic assets amounted to 99.4 thousand tonnes. Electrolytic copper production was in line with targets set for cathode production volumes, and reached 134 thousand tonnes. During this same period, production of metallic silver amounted to 315.6 tonnes and was higher by 1.9% versus the corresponding prior period.

Payable copper production by the Sierra Gorda mine amounted to 20.8 thousand tonnes (on a 55% basis for KGHM) and was higher by 22% compared to the first quarter of 2024 due to higher copper content in ore as well as higher metal recovery. Meanwhile in the segment KGHM INTERNATIONAL LTD., payable copper production reached 14.4 thousand tonnes and was lower by 10% Q1/Q1. This was a result of lower processing of ore and lower copper recovery by the Robinson mine as well as the sale of mining assets in the Sudbury basin in February 2025.

INVESTMENTS IN THE CORE PRODUCTION BUSINESS

In the first quarter of 2025 capital expenditures (CAPEX) by the KGHM Group amounted to PLN 692 million and were 6% higher versus the corresponding prior period. Similarly as in prior quarters, the priority was investment in the core production business. Expenditures on mining amounted to PLN 576 million, and comprised among others replacement of the machine park (PLN 98 million), outfitting of the mines (PLN 93 million), mine dewatering (71 million PLN) and development of the Żelazny Most TSF (PLN 30 million). In terms of the Deposit Access Program (PLN 208 million) KGHM is advancing four main projects in its concessioned areas: the GG-1 shaft, the GG-2 shaft, the Retków shaft and the Gaworzyce shaft. The Company also built more than 11 km of new mine tunnels.

During this same period, investments in metallurgy amounted to PLN 87 million. The most important projects comprised planned maintenance and replacement work at the Głogów Copper Smelter and Refinery and the Legnica Copper Smelter and Refinery. Investment activities also comprised the Concentrators. In 2025, KGHM plans to spend more than PLN 3.8 billion on investments.

WORLD LEADER

KGHM is one of the largest producers of copper in Europe and is amongst the elite top 10 largest producers of copper in the world. According to the World Silver Survey 2025 ranking, the Company holds second place in the global ranking of largest silver producers. KGHM’s metallurgical plants hold the prestigious Copper Mark certification, which confirms that its metallurgical copper production is efficient and compliant with the highest standards for metallurgical copper production.