Increase in value and optimisation of processes – KGHM summarises the first 9 months of 2025

In the first three quarters of 2025 the KGHM Group earned an operating profit (EBITDA) of PLN 7.2 billion, or an increase by 16% yoy. Profit for the period earned by the Group amounted to PLN 1.0 billion, with stable revenues of PLN 25.9 billion. Production of payable copper amounted to 526 thousand tonnes and was in line with budget targets. In recent months the Company focused on investment and operating decisions which are crucial for its stable functioning over the long term.

“Thanks to our initiatives aimed at optimisation and cost discipline, the operating and financial results recorded by KGHM exceeded our budget targets. This demonstrates the Company’s stable business foundations and its efficient utilisation of its potential, both in terms of its domestic as well as its international assets,” said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A. “KGHM’s priority is its investments in new shafts, which will enable the Company to utilise the production capacity of its metallurgical plants over the long term. We are also engaged in intensive actions as regards gaining access to subsequent parts of the copper orebody and building the infrastructure to consume it,” added President Szydło.

PRODUCTION IN POLAND AND THE INTERNATIONAL ASSETS

In the first 9 months of 2025 payable copper production by the KGHM Group amounted to 526.4 thousand tonnes. The production results achieved were 3% lower yoy, due to advancement of the maintenance plan at the Głogów II Copper Smelter and Refinery and to the disposal of the McCreedy West (Canada) mine in February 2025. The Group also produced 993 tonnes of metallic silver, 119 thousand troy ounces of precious metals and 4.1 million pounds of molybdenum. The 95% increase in molybdenum production compared to the corresponding period of 2024 was due to the 41% higher concentration of this metal in the ore extracted.

During the reported period, production of copper in concentrate in the assets in Poland amounted to 304.7 thousand tonnes. Electrolytic copper production reached 421 thousand tonnes. Payable copper production by the Sierra Gorda mine amounted to 64.9 thousand tonnes (for the 55% share of KGHM) and was 14% higher thanks among others to higher copper content in ore. In the segment KGHM INTERNATIONAL LTD., production of payable copper amounted to 40.6 thousand tonnes.

STABLE FINANTIAL SITUATION

In the first three quarters of 2025, Group revenues amounted to PLN 25.9 billion. The main reason for the stable level of revenues recorded by the KGHM Group was the diversified sales structure, as well as 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 nine-month periods analysed, the average USD/PLN exchange rate decreased from 3.96 to 3.80, as a result of which the Group’s revenues were lower by nearly PLN 1 billion. The weak USD offset the increase in copper prices in the third quarter of 2025 and in the entire reported 9-month period.

C1 cost (the unit cash cost of producing payable copper) for the KGHM Group amounted to 2.60 USD/lb in the first three quarters of 2025 and was lower than the amount in the corresponding period of 2024 by 6%. There were large decreases in C1 cost in the international segments. The increase in C1 in KGHM Polska Miedź S.A. by 2% was mainly due to the higher minerals extraction tax charge (the share of MET in C1 is 1.24 USD/lb) and the strengthening of the PLN versus the USD, which resulted in a higher valuation of byproducts.

The high revenues and stabilised cost base in the first three quarters of 2025 enabled the KGHM Group to achieve an operating profit 16% higher than in the prior year. Adjusted EBITDA of the KGHM Group amounted to PLN 7.2 billion, with standalone adjusted EBITDA of PLN 3.6 billion (+5% yoy). Profit for the period amounted respectively to PLN 1.0 billion and PLN 459 million. The level of this profit was significantly impacted by the effect of exchange differences despite the high level of EBITDA earned. The Group’s level of debt remained at a good, stable level – net debt/adjusted EBITDA amounted to 0.8.

INVESTMENTS IN OPERATING CAPACITY

Capital investments by the KGHM Group amounted to PLN 2.5 billion and were 2% lower compared to the corresponding period of 2024. Investments in the Core Production Business remain the priority. Expenditures in the area of mining amounted to PLN 2.0 billion, and comprised among others the Deposit Access Program (PLN 683 million), replacement of the machine park (PLN 358 million), equipping the mines (PLN 362 million), dewatering the mines (PLN 187 million), and also development of the Żelazny Most Tailings Storage Facility (PLN 134 million). During the first 9 months of 2025 the Company excavated 32 km of mine works.

In recent months the Management Board of KGHM Polska Miedź S.A. decided to commence work on geological-hydrogeological analysis for the projects Retków, Gaworzyce and GG-2 „Odra”. This is the first step in building the three new shafts, which will secure the stable functioning of the Company over the long term. At the same time, KGHM is engaged in outfitting the GG-1 shaft, which at the moment serves as a ventilation shaft, but which ultimately will provide transport for material and personnel. These multi-billion investments are mainly being carried out by Polish companies belonging to the KGHM Group.

During the same period, investments in the area of metallurgy amounted to PLN 358 million. The most important projects were the planned maintenance and replacement work at the Głogów and Legnica Smelter/Refineries. Investments were also made at the Concentrators. In 2025, KGHM plans to invest a total of PLN 3.8 billion.