Good results of KGHM in the first half open the way to acceleration in realization of the business strategy

Wednesday, 19 August, 2026

In the first half of 2026 the KGHM Polska Miedź S.A. Group earned a net profit of nearly PLN 5.6 billion, maintaining a high level of revenues from contracts with customers, and a nearly 90% increase in EBITDA. Production of payable copper by the Group amounted to 351 thousand tonnes and was 2% higher year to year. At the end of June 2026, net debt to adjusted EBITDA amounted to 0.4, confirming the effective control of debt and management of the balance sheet and risk. In the first six months of 2026, Group debt decreased by PLN 0.7 billion. The good results support achievement of the ambitious Strategy 2055+ adopted several weeks ago – as demonstrated by the multiplicity of development projects at various stages of design and execution – from building new shafts, exploration work and modernisation of the metallurgical plants as well as ambitious plans connected with RES, to investments in the international assets and potential M&A.

“The results achieved in the first half of 2026 confirm the very good condition of the entire KGHM Group and the effectiveness of the development actions carried out. We are effectively taking advantage of the favourable situation on the copper market to further strengthen the potential of KGHM, both in Poland and on foreign markets. Our goal is to develop KGHM as a modern, cost-effective and diversified multi-resource group, prepared to exploit global opportunities associated with the global energy transformation and with the development of new technologies. This is why we are accelerating advancement of the precepts adopted in the July strategy, both in actions involving development of the resource base, increasing efficiency or further expansion abroad, as well as via acquisitions. In Poland we are concentrating on investments in existing shafts, prolonging the value chain in metallurgical production and long-term future projects such as searching for new deposits and commencing preparations to advance the polyhalite mine in the Pomorze region,” says Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A.

KEY FINANCIAL AND PRODUCTION DATA OF THE GROUP

Profit for the period: PLN 5.6 billion (x9.6 H1/H1)

Adjusted EBITDA: PLN 9.2 billion (+89% H1/H1)

Revenues: PLN 24.7 billion (+41% H1/H1)

C1 cost: 2.11 USD/lb (-19% H1/H1)

Payable copper production: 351 thousand tonnes (+2% H1/H1)

Silver production: 712 tonnes (+8% H1/H1)

TPM production: 73 thousand troy ounces (-13% H1/H1)

Molybdenum production: 1.8 mn lbs (+6% H1/H1)

A FAVOURABLE MARKET FOR POLISH COPPER

Revenues earned by the Group rose by more than PLN 7.1 billion (+41% H1/H1) and reached PLN 24.7 billion. Improvement was recorded in all the key business segments. KGHM Polska Miedź achieved record revenues of more than PLN 21.9 billion, or 48% higher than in the corresponding prior-year period. An important factor, apart from the high sales volumes, responsible for the increase in revenues at the KGHM Group level, was the change in prices of basic products and the level of premiums achieved. Positive impact on the level of recorded revenues also came from the contracting policy and the process of managing FX risk and the risk of changes in commodities prices. C1 cost (the unit cost of payable copper production) for the KGHM Group in the first half of 2026 amounted to 2.11 USD/lb and was lower by 19% than the amount recorded in the corresponding prior-year period. The Group recorded a substantial decrease in C1 cost in Poland and in Chile, mainly thanks to the high valuation of byproducts, i.e. silver and precious metals.

The high revenues and stable cost base enabled the achievement of consolidated EBITDA of nearly PLN 9.2 billion, or an 89% increase year-to-year. At the standalone level, the operating result was nearly 3 times better than in the first half of 2025 and amounted to PLN 6.56 billion. This was the result of improvement in the results of the mines and smelters thanks to higher silver and copper prices in the reported period. Profit for the first half-year on a consolidated basis amounted to PLN 5.58 billion, with standalone profit of PLN 5.49 billion. At the same time, the KGHM Group maintains high financial liquidity and a stable level of debt.

Despite the favourable situation on the non-ferrous metals market, in the first half of 2026 KGHM continued to advance the Costs Optimisation Plan. Its overriding goal is to ensure long-term financial stability and the Company’s competitiveness by improving the efficiency of business processes and restricting operating costs. The plan includes the areas of procurement, technology, recovery of waste and actions aimed at improving labour efficiency and profitability within the Group. The impact of these actions on EBITDA to the end of the first half of 2026 is nearly PLN 300 million.

STABLE PRODUCTION

In the first half of 2026, production of payable copper by the KGHM Group amounted to 351 thousand tonnes and was 2% higher than in the corresponding prior-year period. The Group also produced 712 tonnes of silver, or 8% more than in the prior year. The results achieved were due among others to maintaining the high capacity of the Core Production Business and stable work by the mining and metallurgical divisions. Production by the domestic assets in Poland amounted to 292 thousand tonnes of copper and 697 tonnes of silver.

An important part in the Group’s production results was also played by the international assets. Production of payable copper by the Sierra Gorda mine amounted to 40.2 thousand tonnes (for the 55% share held by KGHM), while production by the segment KGHM INTERNATIONAL LTD. reached 19.3 thousand tonnes. Compared to the corresponding prior-year period, Sierra Gorda also recorded a high level of production of associated metals, including silver and molybdenum. In the first half of 2026, the Group produced 73 thousand troy ounces of precious metals and 1.8 million pounds of molybdenum.

AMBITIOUS INVESTMENT PROGRAM IN POLAND

KGHM is currently advancing a variety of key investments, including the Deep Głogów project, involving the building of infrastructure to access the deposit, tunnels and an air cooling station, as well as the construction of the Retków and Gaworzyce shafts. The Company is also engaged in geological work as part of the exploration concessions held, and is carrying out investments in the area of metallurgy. Simultaneously, KGHM is developing its own sources of renewable energy and is analyzing the possibility of implementing CO₂ capture technology in metallurgical processes.

In the first half of 2026, capital expenditures (CAPEX) by KGHM Polska Miedź amounted to PLN 1.44 billion and were 9% higher compared to the corresponding prior-year period. An investment priority are the projects being advanced in the Core Production Business. Expenditures on mining amounted to PLN 1.25 billion, and on metallurgy, PLN 174 million. The Company increased expenditures on development to PLN 497 million (+14% H1/H1) and on replacement to PLN million (+27% H1/H1). Expenditures on maintenance fell by 18% to PLN 340 million. In 2026, KGHM plans to spend PLN 4.1 billion on investments.

In July 2026, KGHM Polska Miedź S.A. and the Pomorskie Voivodeship signed a letter of intent regarding the „PUCK” project, i.e. the building of a polyhalite mine. This is to be the first investment of this type in Poland and one of the most promising ventures for the domestic fertilizers market. This project is based on the explored „Mieroszyno” deposit, whose geological resources are estimated at over 303 million tonnes. The preparation of this process will take years, while full realization may last more than a decade. Polyhalite, used to produce fertilizers, is important for modern agriculture, food security and Poland’s raw materials independence.

GLOBAL DEVELOPMENT DIRECTIONS

In accordance with the Strategy 2055+, KGHM is searching for possibilities to develop the resource base outside of Poland, both through the development of the assets held, as well as the analysis of new investment projects and potential acquisitions. These actions were amongst the Company’s priorities in the first half of 2026.

In March 2026 the Company signed a memorandum with the Office National des Hydrocarbures et des Mines and Management Group on cooperation and analysis of potential investments in the raw materials sector in Marocco. This understanding opens the way to analysis of potential exploration projects in the region, which combine rich mineral resources with rising economic stability and a friendly investment environment. Meanwhile, in May KGHM Chile SpA, a subsidiary of KGHM Polska Miedź S.A., signed a Farm‑Out agreement with Minera Freeport‑McMoRan South America Limitada. This agreement opens a new stage of cooperation between these companies, aimed at the development of potential copper exploration projects in northern Chile. The agreement sets forth the principles for carrying out preliminary exploration work and assessment of the geological potential of this area.

June 2026 saw additional initiatives regarding the possibility of further development of the international assets. Sierra Gorda S.C.M., a KGHM Group company, and the Spence mine, which belongs to the global mining group BHP, signed an agreement on cooperation, aimed at identifying and assessing the possibility of technical and operational cooperation. This partnership is aimed at increasing efficiency, competitiveness and development of innovative solutions for modern copper mining. During the same time, in the USA a subsidiary of KGHM Polska Miedź – Robinson Holdings – signed an agreement with an entity specializing in exploring for new deposits. This cooperation comprises exploratory analysis of four exploration projects in the state of Nevada. Apart from this, on the American market KGHM is monitoring the North American market in terms of interesting acquisition targets.

At the same time the Group is continuing development of the existing international assets. In July 2026 Sierra Gorda S.C.M. announced an investment which will increase production of payable metal by approx. 20% thanks to an increase in the plant’s processing capacity. The project is consistent with the Strategy 2055+ on increasing the resource base, increasing operational efficiency and building the long-term value of the Group’s assets. The development of Sierra Gorda remains one of the key elements strengthening the international presence of KGHM and increasing the Group’s production potential over the next several decades. Capital expenditures on the project, starting from 1 July 2026 to the commissioning of the installation, are estimated at around USD 725 million in real terms on a 100% basis. The development will be financed from operating cash flow and the available debt instruments of Sierra Gorda. According to the feasibility study, the project should generate an attractive rate of return, utilising existing water and energy infrastructure and the long-term development potential of the mine.

DIRECTION 2055+ - NEW STRATEGY OF KGHM POLSKA MIEDŹ

In July 2026 the KGHM Group announced the Strategy 2055+, setting out the direction for the Company’s development over the coming decades. The document assumes carrying out the largest investment program in the Group’s history, comprising development of the resource base, modernisation of production infrastructure and projects supporting energy security and operational efficiency. A key element of the Strategy is ensuring the long-term production capacity of KGHM’s assets while at the same time increasing the Group’s competitiveness and resilience to volatile market conditions.

Strategy 2055+ also reflects the ambitious strengthening of KGHM’s position amongst the world’s largest copper and silver producers. It assumes development of activities based on modern technology, an increase in the efficiency of utilising resources and building competitive advantage in response to the global increase in demand for raw materials required for the energy transformation, electromobility, digitization and development of modern industry. One of the adopted development directions is the systematic development of the international assets based both on investment projects as well as potential acquisitions in promising markets.

KGHM’s priority is to build a strong operational framework, one which guarantees continuity of production and stability of supplies. For this reason an integral part of the Strategy 2055+ is the multi-year investment plan amounting to over PLN 32 billion in the years 2026–2030. Around 80% of this amount will be spent on projects in Poland, comprising development of the Core Production Business, the building and development of mining infrastructure, modernisation of the metallurgical plants and investments in energy and innovation. The remainder comprises the development of key international assets, including projects in Chile, the USA and Canada.