Good operational results and new investments: the KGHM Polska Miedź S.A. Group summarises the first half of 2025

In the first half of 2025 the KGHM Group recorded an operating profit (EBITDA) of PLN 4.9 billion on revenues of PLN 17.5 billion. This means an increase respectively by 16% and 0.4% compared to the amounts recorded in the corresponding prior-year period. Net profit of the Group for the first half of 2025 amounted to PLN 580 million. In the first half of 2025 the production of payable copper amounted to 343.8 thousand tonnes. The Company announced the start of geological-hydrogeological reconnaissance work for three new mine shafts. The estimated cost of the entire investment is a minimum PLN 9 billion.

“The past several months have been a watershed period for the future and long-term development of KGHM. We began geological-hydrogeological reconnaissance work for the new shafts Retków, Gaworzyce and GG-2 „Odra”. These investments enable us to achieve our mine concessions management plan for the deposits and ensures the Company’s safe and stable functioning for the coming decades,” said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A. “We are closely monitoring the work on changes to the so-called copper tax. This is particularly important at a moment when, despite good copper prices on international markets and the achievement of production plans, the Group’s results remain under the very strong pressure of the USD exchange rate,” President Szydło added.

STABLE FINANCES

In the first half of 2025 the Group recorded revenues of PLN 17.5 billion, or slightly higher than in the corresponding prior-year period. The main factor responsible for this increase in revenues by the KGHM Group was the diversified sales structure, leading among others to the sale of large volumes at a USD price higher than on the market, as well as the change in prices of basic products and the levels of achieved premiums. The contracting policy and the process of managing FX risk, applied in response to macroeconomic and market conditions, also had a significant impact.

C1 cost (the unit cash cost of payable copper production) for the KGHM Group in the first half of 2025 amounted to 2.61 USD/lb and was lower than the amount in the corresponding prior-year period by 5%. Substantial decreases in this indicator were recorded in the international segments. The increase in C1 cost in KGHM Polska Miedź S.A. is mainly due to the higher minerals extraction tax charge (the share of the MET in C1 cost in the first half of 2025 was 1.21 USD/lb) and to the strengthening of the PLN versus the USD.

The high revenues and stabilised cost base in the first half of 2025 enabled the KGHM Group to achieve an operating result 16% higher than in the prior year. Adjusted EBITDA of the KGHM Group amounted to PLN 4.9 billion, with a standalone result of PLN 2.4 billion.

Profit for the period amounted to respectively PLN 580 million and PLN 113 million. These results were substantially impacted by exchange differences, despite the high earned EBITDA.

PRODUCTION IN POLAND AND IN THE INTERNATIONAL ASSETS

In the first six months of 2025 the KGHM Group produced 343.8 thousand tonnes of payable copper. These production results were 4% lower versus the corresponding period of 2024 and resulted from the planned maintenance shutdown at the Głogów II Copper Smelter and Refinery as well as the sale of the McCreedy West mine (Canada) in February 2025. The Group also produced 657 tonnes of silver, 84 thousand troy ounces of precious metals and 1.7 million pounds of molybdenum.

During the reported period the production of copper in concentrate in the domestic assets amounted to 201 thousand tonnes. Electrolytic copper production in turn amounted to 272.4 thousand tonnes. During this same period the Polish metallurgical plants of KGHM produced 646 tonnes of metallic silver. Payable copper production by the Sierra Gorda mine amounted to 42.4 thousand tonnes (on a 55% basis for KGHM). Meanwhile in the segment KGHM INTERNATIONAL LTD. payable copper production amounted to 29.2 thousand tonnes.

NEW KGHM MINE SHAFTS TO BE BUILT

In June 2025 the Management Board of KGHM Polska Miedź S.A. decided to commence geological-hydrogeological reconnaissance work on the projects GG-2 „Odra”, Retków and Gaworzyce. This stage will enable the precise identification of the target locations for the shafts, selection of the best shaft sinking technology, as well as determination of how deep the rockmass needs to be frozen. The estimated cost of the entire investment is a minimum PLN 9 billion.

The new Retków and GG-2 „Odra” shafts will ultimately serve in a material and personnel transport function, while the Gaworzyce shaft will provide ventilation. The Company is also engaged in work involving the outfitting of the GG-1 shaft, which is currently a ventilation shaft, but which will ultimately also serve in a material and personnel transport function.

Drilling at the site of the future Retków shaft will commence at the latest in September 2025. Meanwhile, geological-hydrogeological reconnaissance work on the Gaworzyce shaft is planned for the end of 2025, and for the GG-2 shaft at the start of 2026. The timeline for additional drilling depends to a large extent on the intermediate results of the geological reconnaissance. The completion of all drilling is planned in 2028. The main contractors for this work are the Group companies PeBeKa S.A. and Cuprum sp. z o.o. Centrum Badawczo-Rozwojowe.

CONTINUOUS DEVELOPMENT OF THE CORE PRODUCTION BUSINESS

In the first half of 2025 investment expenditures (CAPEX) by the KGHM Group amounted to PLN 1.5 billion and were 4% lower compared to the corresponding prior-year period. Investments in the core production business remain the priority. Mining-related expenditures reached PLN 1.2 billion, and comprised among others the Deposit Access Program (PLN 418 million), replacement of the machine park (PLN 243 million), the outfitting of mine regions (PLN 222 million) and mine dewatering (PLN 121 million), as well as development of the Żelazny Most TSF (PLN 63 million). In the first half of 2025 the Company built more than 21 kilometers of mine workings.

During this same period metallurgy-related expenditures amounted to PLN 190 million. The most important projects were the planned maintenance and replacement work at the Głogów Copper Smelter and Refinery and the Legnica Copper Smelter and Refinery. Investments were also carried out at the Concentrators. In 2025 KGHM plans to spend over PLN 3.8 billion on investments.