Investments and costs control – KGHM’s budget for 2026
Higher investment spending, stable operating results, optimisation of costs and ambitious Company production targets are the main elements in next year’s budget of KGHM Polska Miedź S.A., which was approved by the Management Board and Supervisory Board. The Company plans to actively and fully exploit the positive impact of the reduction in the minerals extraction tax, aimed at permanently enhancing the Company’s value for shareholders, employees, the communities of the Copper Basin and the Polish economy.
“The budget for 2026 reflects the ambitious plans of KGHM in key business segments. We want to fully utilise the production potential of our assets, both in Poland and abroad. Towards this end we will also intensify our investment activities, with our priority being the construction of three new mine shafts. Nonetheless, as regards the future of KGHM our plans must reach further afield, we want KGHM Polska Miedź in the coming decades to remain one of the leading pillars of the Polish economy,” said Andrzej Szydło, President of the Management Board of KGHM Polska Miedź S.A.
The adopted budget plans call for the production of copper in concentrate at the level of 395.9 thousand tonnes, and electrolytic copper at 589 thousand tonnes. These levels are higher than those which were targeted in the budget for 2025. Moreover, KGHM also plans to increase production of silver in concentrate to 1 296 tonnes. In terms of sales, KGHM’s budget for 2026 assumes there will be an increase both in payable copper production (594.7 thousand tonnes), as well as payable silver (1 293 tonnes). The adopted targets reflect among others planned maintenance shutdowns at the Głogów II smelter/refinery, and of the reverbatory furnace at the Legnica smelter/refinery, both in the second half of 2026. The expected total unit cost of copper production from own concentrate in KGHM Polska Miedź S.A. was set at 32 811 PLN/t. The Company is prepared to achieve its production targets, including in terms of financing, by optimising its structure and costs.
In the segment KGHM International, the budget calls for payable copper production of 51 thousand tonnes, and TPM at the level of 32.1 thousand troy ounces. One of the factors affecting the adopted levels of production is the commencement by the Robinson mine of extraction of ore from the Liberty pit, which has lower quality parameters compared to the area mined to date. In the case of Sierra Gorda (on a 55% basis), production is expected to be at the level of 90.8 thousand tonnes payable copper and 2.1 million pounds of molybdenum. Under the plan for 2026, Sierra Gorda will operate in areas of higher copper content but lower molybdenum grade.
In 2026, KGHM plans to increase its capital expenditures to PLN 4.1 billion. This amount will be used to build and develop infrastructure, improve efficiency and increase operational safety. The main investment projects will include the construction of new shafts, development of the Żelazny Most TSF, maintenance of the Głogów II Copper Smelter and Refinery and the introduction of permanent starter sheet technology at the Legnica Copper Smelter and Refinery. KGHM Polska Miedź S.A. will continue its exploration projects in Poland, as regards exploring for and documenting copper ore deposits.
In 2026 KGHM Polska Miedź S.A. plans equity expenditures in the amount of PLN 205 million. The plan includes increases in share capital and loans to domestic subsidiaries to carry out investments. The main investments involve water infrastructure, equipment for sinking shafts and transportation infrastructure. The budget does not include financing for KGHM International by KGHM Polska Miedź S.A.; the Victoria project is to be financed by cash flows from KGHM International as well as financing to be arranged by KGHM International.
