Przewiń w górę
KGHM after the first 3 quarters of 2021: Growing production, excellent financial results, an ambitious climate policy

KGHM after the first 3 quarters of 2021: Growing production, excellent financial results, an ambitious climate policy

Wednesday, 17 November, 2021
Higher EBITDA and a higher net profit by the Company, higher revenues and higher extraction of copper ore – KGHM presents its financial results for the third quarter of 2021. The Company also published its Climate Policy, which calls for a reduction in greenhouse gas emissions and climate neutrality by 2050.


Production results

Payable copper production by the KGHM Group in the first 3 quarters of 2021 was higher by 10.1% (9M/9M) and amounted to 574 thousand tonnes.

Mined production in Poland in the first three quarters of 2021 amounted to 335.8 thousand tonnes of copper in ore. Ore extraction (dry weight) was also higher compared to the first 9 months of 2020. In comparision to the corresponding prior-year period, electrolytic copper production was also higher by 28.2 thousand tonnes.


Financial and operating results

The KGHM Group recorded an increase in adjusted EBITDA of PLN 3 312 million compared to the first 9 months of 2020. This was mainly due to KGHM Polska Miedź S.A. (+PLN 1 220 million) and Sierra Gorda (+PLN 1 458 million, nearly 3x higher). Amongst the factors contributing to this result were more favourable metals prices and a lower cost of goods sold.

The KGHM Group increased its net profit compared to the first 9 months of 2020 by PLN 3 590 million (4.1x) mainly due to a better net result on sales by PLN 1 765 million and a higher result on involvement in joint ventures by PLN 1 899 million, with higher CIT by PLN 636 million.

The continuing good conditions on the metals market led to an increase in revenues recorded by the KGHM Group compared to the corresponding prior-year period by more than PLN 5 billion. During the year copper and silver prices rose (respectively by 57% and 34%). Gold prices were also higher (by +4%).


Climate Policy

The main assumptions of this document prepared by the Management Board of KGHM involve a reduction in greenhouse gas emissions and the achievement of climate neutrality by 2050. The Climate Policy will be followed by a Decarbonisation Program, which will encompass the entire KGHM Polska Miedź S.A. Group.

The primary goal of the Climate Policy of KGHM is to achieve climate neutrality by 2050 with respect to Scope 1 emissions (direct emissions primarily related to the Company’s production activities) and Scope 2 emissions (indirect emissions associated with the use of electricity and heat acquired from the market), with their maximum possible reduction.

The primary methods of reducing the Company’s carbon footprint will include using hydrogen technologies, the development of electromobility, the implementation of advanced technologies on the production line, the gradual replacement of conventional electricity and heat generation energy sources with our own, zero-emission ones, the continuous improvement of energy efficiency by the production divisions and improvement of production processes, as well as the use of CCS/CCU technologies to manage the remaining CO₂ emissions from metallurgical processes.

The intermediate target is to reduce total Scope 1 and Scope 2 emissions by 30% by 2030, compared to the emission levels of 2020. Reduction goals for the entire KGHM Group will be published no later than in the first half of 2023.

In turn, total capital expenditures on the realisation of activities aimed at reducing the emission of greenhouse gases will be outlined in the Decarbonisation Program of the KGHM Group.

KGHM Polska Miedź S.A. emits approximately 3.3 million tonnes of CO₂ equivalent annually, approximately 40% of which consists of Scope 1 emissions and 60% of which are Scope 2 emissions according to the GHG Protocol.


Advancement of the Company’s strategy

KGHM is consistently advancing the Company’s strategy, whose goals include increasing energy generation from internal sources, including renewable sources. The Company is planning additional wind farms with total installed capacity of approx. 50 MW.

This year KGHM joined an agreement aimed at developing offshore wind farms. The Company is also one of the signatories of a letter of intent regarding the establishment of a „Lower Silesia Hydrogen Valley”. Apart from these actions, the Company signed an agreement with NuScale involving preparations for the construction of nuclear energy sources.

All of the actions taken by the Management Board of KGHM are leading not only to a good financial condition, but also to how the Company is perceived and judged by external institutions. During the year KGHM was awarded multiple times by market experts, sector organisations and the media.


Health and safety first and foremost

KGHM is a Leader of Workplace Safety. We are the sole representative of underground mining and metals processing amongst the 27 leading companies in Poland, in terms of OHS standards – so-called Golden Leaders. In 2020 the number of workplace accidents throughout the Company’s Polish assets decreased by nearly 29 percent. This is the first time in history that such a low number of accidents has been recorded in KGHM Polska Miedź S.A. Over the last 10 years the number of accidents has declined in the Company by more than 60 percent.

Concern for the safety of its people led to KGHM making the decision to cancel this year’s Barbórka celebrations except for the organisation of divisional awards ceremonies whilst maintaining a strict sanitary regime. Due to the renewed rise in coronavirus cases in Poland, the copper giant has suspended domestic and international travel. Within the Company, wherever possible, home office work has been re-introduced.

In order to make browsing this website more comfortable for our users, mainly to adapt the website's layout to their preferences, browser type and preferred language, we reserve the right to collect additional data (sent by the browser as standard) and use the so-called cookie files. We can use such data to analyse content attractiveness and for other statistical purposes.