Higher net profit, costs control and ambitious plans for the future – KGHM summarises 2025

In 2025 the KGHM Polska Miedź S.A. Group earned a net profit of PLN 3.7 billion, or 28% higher compared to 2024. EBITDA amounted to PLN 10.3 billion (+22% yoy), of which 48% was earned by the international assets. The Group’s revenues were stable and amounted to over PLN 36 billion. Production of payable copper amounted to 710 thousand tonnes and was in line with budget targets.

Last year the Company focused on optimising its operations and improving cost effectiveness. These actions were aimed at strengthening organisational resilience to global market challenges and preparing it to achieve ambitious investment plans, including the already-started construction of three new mine shafts in Poland. The international assets represent an important element in the structure of Group revenues, while their further development is an opportunity to diversify the stream of revenues and is a source of additional value for shareholders.

“Thanks to achievement of the budget targets, the global diversification of production capacity and the skilled exploitation of market opportunities, including the rise in silver prices, the past year was for KGHM a period of further strengthening of the Company’s position on the global raw materials market and of a substantial increase in shareholder value. Apart from the investment projects already begun, an important area of activites were the initiatives aimed at improving efficiency and greater control of costs. The Costs Optimisation Program brought measureable results and will be gradually implemented in Group companies. We plan to strengthen corporate governance in the Group and to enhance the business effectiveness of our subsidiaries,” said Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A. „The independence gained by the international companies in financing their activities and their capacity to pay back the liabilities owed to KGHM significantly strengthens our position on the global raw materials market. This is confirmed by KGHM’s advancement to the top-50 highest valued mining companies in the world,” said the President.

PRODUCTION IN LINE WITH TARGETS

In 2025, production by the KGHM Group in its core business lines was in line with the budget targets. Payable copper production by the KGHM Group amounted to 710.0 thousand tonnes. This was 3% lower year-on-year due to planned maintenance at the Głogów II Copper Smelter and Refinery and to the sale of the McCreedy West (Canada) mine in the first quarter of 2025. The Group also produced 1 347 tonnes of metallic silver, 160 thousand troy ounces of precious metals and 5.2 million pounds of molybdenum. The 53-percent increase in molybdenum production compared to 2024 was due to the higher concentration of this metal in mined deposits.

During the reported period, production of copper in concentrate in the assets in Poland amounted to 401.1 thousand tonnes. Electrolytic copper production reached 571 thousand tonnes. Payable copper production by the Sierra Gorda mine amounted to 86.8 thousand tonnes (for the 55% share of KGHM) and was 8% higher thanks among others to higher copper content in extracted ore. In the segment KGHM INTERNATIONAL LTD., production of payable copper amounted to 52.2 thousand tonnes.

STABLE FINANCIAL SITUATION AND CONTROL OF COSTS

During the reported period, Group revenues amounted to PLN 36.4 billion. The main factors responsible for the stable increase of revenues was the diversified sales structure and changes in the prices of basic products as well as the levels of premiums recorded. Another decisive factor was the contracting policy and the process of managing exchange rate risk applied in response to macroeconomic and market conditions. During the period analysed, the average USD/PLN exchange rate decreased from 3.98 to 3.76, which led to a clear decrease in the Group’s revenues.

C1 cost (the unit cash cost of producing payable copper) for the KGHM Group in 2025 amounted to 2.58 USD/lb and was lower year-on-year by 3%. During this period the international segments recorded significant decreases in this indicator (-32% KGHM INTERNATIONAL LTD., -46% Sierra Gorda). The increase in C1 for KGHM Polska Miedź S.A. by 3% was mainly due to the 27%-higher minerals extraction tax charge (the share of MET in C1 was 1.42 USD/lb) and the strengthening of the PLN versus the USD, which resulted in a higher valuation of byproducts by 36% yoy.

The high revenues and stabilised cost base enabled the KGHM Group to achieve an operating profit 22% higher than in the prior year. Adjusted EBITDA of the KGHM Group amounted to PLN 10.3 billion, with standalone adjusted EBITDA of PLN 4.9 billion (+10% yoy). Profit for the period amounted respectively to PLN 3.7 billion and PLN 1.9 billion. Despite the earned level of EBITDA, it was affected by exchange differences. The Group’s level of debt remained at a good, stable level – net debt/adjusted EBITDA amounted to 0.8.

In 2025, KGHM engaged in actions aimed at ensuring the Group of stable, flexible and long-term financing, which not only enables investing in key assets, but also ensures a continued high level of liquidity and financial stability. In the fourth quarter, the Company issued series D bonds in the amount of PLN 1.6 billion. The funds obtained were used to carry out an early redemption of series B bonds, aimed at further optimising of the financing structure. Another element ensuring financial stability and efficiency was the renewal of the long-term syndicated credit in the amount of USD 1.5 billion.

INVESTMENTS IN OPERATING CAPACITY

Capital expenditures by the KGHM Group amounted to PLN 3.9 billion and were 0.2% lower compared to 2024. Investments in the Core Production Business were the priority. Expenditures in the area of mining amounted to PLN 3.0 billion and mainly comprised:

• The Deposit Access Program (PLN 1 040 million),
• Equipping the mines (PLN 521 million),
• Replacement of the machine park (PLN 474 million),
• Dewatering the mines (PLN 248 million),
• Development of the Żelazny Most Tailings Storage Facility (PLN 231 million).

In June 2025 the decision was made to commence work on geological and hydrogeological research for the projects Retków, Gaworzyce and GG-2 „Odra”. This is the first step in building the three new shafts, which secure the stable functioning of KGHM in the long term. At the same time, KGHM is engaged in work related to outfitting the GG-1 shaft, which will ultimately serve in a material and personnel transport function. The Company excavated 42.7 km of mine works. These multi-billion investments are mainly being advanced by Polish companies, including those belonging to the KGHM Group.

During the same period, investments related to metallurgy amounted to PLN 723 million. The most important projects were the planned maintenance and replacement work at the Głogów and Legnica Smelter/Refineries. In December 2025, the Legnica Copper Smelter and Refinery entered into an agreement with KGHM Metraco S.A. on cooperation in the construction of a Scrap Turnover Facility. This investment is an element in the process of transforming the plant from a hybrid metallurgical facility into a recycling facility, specialising in recovering copper from scrap. Investment activities also comprised the Ore Concentrators. Currently, KGHM is analysing the potential of utilising artificial intelligence in the ore enrichment process.

As regards the international assets, the Company engaged in actions involving development of the Victoria mine in Canada. An element facilitating the advancement of this investment was the signing of cooperation agreements with indigeneous groups, which enabled among others the defining of terms for employment, conducting training, business cooperation, the exchange of knowledge and access to the investment terrain. These agreements also guarantee the participation of indigeneous people in activities related to environmental protection. KGHM also continued discussions with its partners regarding the possibility of increasing the operational efficiency and capacity to earn revenues of the Sierra Gorda mine.