Effective production and investments – KGHM has announced its results for 2023
Despite a difficult macroeconomic environment, volatile commodities prices and high cost pressures, in 2023 projects were advanced by KGHM whose goal is to strengthen the Group’s productvity and efficiency. The copper company can boast of solid operating results and a good financial condition – PLN 33.5 billion in consolidated revenues and nearly PLN 5.4 billion in EBITDA Group KGHM.
„Last year the Company pursued its production plans with control of costs, advanced investments and maintained a safe and adequate level of financing for its activities. KGHM will continue exploratory work under its concessions and engage in other concession-related activities aimed at ensuring an appropriate resource base for its operations and prolonging the lives of its mines, as well as extending the value chain,” said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A.
EFFICIENT PRODUCTION
The KGHM Group executed and even exceeded its production targets for 2023 in all of the main product lines, i.e.:
- Copper in concentrate: 395.4 thousand tonnes compared to 390 thousand tonnes planned;
- Silver in concentrate: 1 319.9 tonnes compared to 1 261 tonnes planned;
- Electrolytic copper: 592.4 thousand tonnes compared to 582 thousand tonnes planned, including from own concentrate (385.5 thousand tonnes vs 385 thousand tonnes planned);
- Metallic silver: 1 403.3 tonnes compared to 1 301 tonnes planned.
Consolidated revenues of the KGHM Group for 2023 amounted to PLN 33.5 billion, adjusted EBITDA nearly PLN 5.4 billion, while equity of the Group reached PLN 26.8 billion.
MORE INVESTMENTS
The past year was marked by the advancement of mining projects and continuation of the Deposit Access Program. In June 2023 the GG-1 shaft was connected to the workings of the Rudna mine. The shaft in Kwielice is the deepest mine object in Poland (1 348 meters). We also commenced preparatory work to build another important facility in the Deep Głogów region – the GG-2 shaft.
Apart from the completion of work on sinking the GG-1 shaft, a Central Air Conditioning System and a Surface-based Air Conditioning Station were brought into operation at the Rudna mine.
In 2023 the copper company continued to develop the Żelazny Most Tailings Storage Facility. The three stages of construction of the Southern Quarter were completed, and the Tailings Compacting Station was built. At the Legnica Copper Smelter and Refinery the Hybrid Smelter program continues, being KGHM’s response to the global needs associated with copper recycling.
KGHM successfully completed the Program to adapt the technological installations to the requirements of BAT Conclusions. Thanks to these investments in the infrastructure of the metallurgical plants in Legnica and Głogów, the installations have been adapted to BAT conclusions in terms of environmental protection and restricting emissions of arsenic. Our production was once again certified as responsible by receipt of a Copper Mark certificate, which in 2023 was granted to the Cedynia Wire Rod Plant. The metallurgical facilities in Głogów and Legnica had previously received this prestigious certificate.
It is worth mentioning that an analysis of the environmental and carbon footprint of our cathodes, wire rod and Cu-OFE rod – carried out by the Mineral and Energy Economy Research Institute of the Polish Academy of Sciences – demonstrated that the copper products of KGHM have a lower footprint than the global average.
FINANCIAL STABILITY
KGHM ended the year 2023 in a good financial condition: PLN 33.5 billion in consolidated revenues and a strong Group operating result of nearly PLN 5.4 billion. Cash and cash equivalents at year’s end amounted to PLN 1.7 billion, meaning an increase by PLN 0.5 billion.
The copper company has a safe level of debt, with net debt/EBITDA at the end of 2023 amounting to 1.1. KGHM is controlling its costs and is fully capable of meeting its obligations in terms of borrowings. The cash resources and borrowings held guarantee continued liquidity and enable the achievement of its investment targets.
TRANSFORMATION AND SUSTAINABLE DEVELOPMENT
KGHM is a reliable producer, a trusted business partner and a company pursuing a policy of sustainable development. In 2023 we enhanced actions related with rational and responsible production. The Company is advancing the Climate Policy along with projects involving the energy transformation. Since January of last year, 100 percent of the electricity consumed by the Sierra Gorda mine has come from renewable energy sources.
By 2030, the increase in the share of RES in KGHM’s energy mix will lead to a substantial drop in CO2 emissions. Towards this end the copper company is engaged in solar power plant projects at the Głogów Copper Smelter and Refinery, the Cedynia Wire Rod Plant, the Tailings Storage Facility and at the Obora Sandpit.
SAFETY IN THE WORKPLACE AND THE SURROUNDINGS
In conducting its business, KGHM pays particular attention to the safety not only of employees, but also of our local communities. For many years the Company has operated under the „Zero harm” principle. The Divisions of KGHM employ early warning systems and innovative solutions, which improve efficiency and workplace safety.
In terms of our volunteer programs, in the past year more than 300 assistance and charitable actions were carried out. A KGHM Academy was commenced, under whose banner are now carried out all of the preventive programs, workshops and pro-social actions. In 2023 more than eight thousand participants took advantage of them.
TO ALWAYS HAVE COPPER
Copper, silver and other metals with the KGHM brand have for years been synonymous with the highest quality, and have been appreciated and recognised around the world. Know-how and cooperation are amongst the business pillars of the Company, one which for years has maintained its position as a leader in the production of copper and silver.
Based on the adopted Strategy, in 2023 the Company strove to maintain a stable level of production from its Polish and international assets and a level of costs which guarantees financial security, while ensuring safe working conditions and minimising the Company’s impact on the environment and its surroundings. For KGHM, 2024 will be marked by improved production efficiency and investing, which will enable maximal utilisation of the potential of the subsidiaries and operating outlook of the Group.
