Good financial condition and stable copper production - KGHM summarises its results for the first quarter of 2023

In the first quarter of 2023, KGHM recorded a 7 percent increase in Group revenues, to PLN 9 585 million, and a strong Group operating result of PLN 1 882 million. The copper giant maintains stable copper production from its assets in Poland. KGHM hereby presents its operating and financial results for the first quarter of 2023.

“KGHM has a solid position in the world’s markets and continues its develop directions, we are especially pleased with our copper and silver production in Poland. The difficult macroeconomic conditions only serve to accelerate projects to improve the efficiency of extraction and to ensure the Company’s energy and financial security. We are focused on gaining access to further deposits in Poland, we completed the sinking of the GG-1 shaft and are advancing preparations to build the GG-2 shaft. We have interesting investment plans, including projects related to environmental and green energy questions,” said Tomasz Zdzikot, President of the Management Board of KGHM Polska Miedź S.A.

Stable copper production

Copper extraction and production by the domestic assets in Poland exceeded the budget targets. Compared to the corresponding period of 2022, ore extraction in the first quarter of 2023 was higher by 2.6%. The result of this higher extraction as well as processing was an increase in production of copper in concentrate compared to Q1 2022 by 0.5%. Silver production in Poland on an annual basis increased by 10.3%.

KGHM maintained its first-place position in the World Silver Survey 2023 ranking „largest silver mines in the world”. In the category „largest silver producers” – the copper giant ranked second.

Financial results

In the first quarter of 2023 the copper giant recorded an increase in Group revenues to PLN 9 585 million and a strong consolidated operating result of PLN 1 882 million.

The KGHM Group maintains a safe level of debt: net debt/EBITDA at the end of Q1 2023 amounted to 0.9.

Environmental footprint of KGHM’s products

KGHM ordered an analysis to be made of the environmental and carbon footprints of its products: cathodes, wire rod and Cu-OFE rod – the Mineral and Energy Economy Research Institute of the Polish Academy of Sciences (PAN) performed an analysis in compliance with ISO standards, and prepared environmental declarations. The copper products of KGHM have a footprint which is lower than the global average of such indicators.

The analyses conducted confirm that the metallurgical plants of KGHM (the Legnica Copper Smelter and Refinery, the Głogów Copper Smelter and Refinery and the Cedynia Wire Rod Plant) produce metal responsibly and in compliance with the highest standards. The metallurgical plants have implemented an Environmental Management System compliant with ISO 14001. Moreover, the divisions in Legnica and Głogów hold the internationally-recognised Copper Mark certificate. KGHM expects that its Cedynia Wire Rod Plant will also soon join this group.

In 2022 KGHM Polska Miedź S.A. produced 284.8 thousand tonnes of wire rod and OFE rod, or nearly 11% of European production. This result makes the Company one of Europe’s leading producers of these copper half-finished products.

Investments and development

KGHM is successfully continuing its Deposit Access Program. Following completion of the sinking of the GG-1 shaft, an agreement was signed with the contractor for the GG-2 shaft. Work continues on development of theŻelazny Most Tailings Storage Facility, including construction of the Tailings Segregation and Compacting Station.

R&D initiatives pursued by the Company include increasing the efficiency of the core production business.

A leader of the energy transformation

In response to the global challenge associated with sustainable development, KGHM adopted an ambitious Climate Policy, in which it declared the intention of achieving climate neutrality by the year 2050. Over the next seven years the Company will strive to reach the goal of having 50 percent of its power needs come from its own sources, including RES. Currently, the operation of the CCGT natural gas-steam blocks of KGHM Polska Miedź S.A. can cover up to 20 percent of its needs for electrical power.

KGHM, by diversifying its power sources throughout the Group, also intends to rely on energy from the sun, wind and hydrogen. The Company is building solar power plants and is continuing projects involving offshore wind power and hydrogen sources. In addition, KGHM is engaged in developing nuclear power in Poland.

Employee volunteers

In the first three months of 2023 KGHM’s volunteers engaged in numerous campaigns. Thanks to their joint efforts, these volunteers are developing their own skills, such as leadership know-how, working in groups and communication skills as well as analytical capabilities and problem-solving.

The Company organises charitable campaigns, training and health-related programs with the support of local communities in the Copper Basin as well as non-governmental organisations. KGHM’s initiatives have been recognised in national rankings on corporate social endeavours.

KGHM is proud among others of its role in the program to combat depression, the promotion of mental health, workshops for students and the Wonderful Parents campaign, in which employees who have become new parents receive special packages with presents. An important program is the Mie(dź) Rodzinę (Have a Family) campaign. The copper company, in cooperation with local community governments in the Copper Basin, promote foster parenting.