KGHM after the first 3 quarters of 2022 – stable copper production and higher Group revenues
Production of payable copper comparable to the previous year’s level, higher silver production, higher KGHM Group revenues and strong Group operating results against a volatile macro environment and inflationary cost pressures – the copper giant presents its financial results for the first three quarters of 2022.
Production results
Higher production was recorded by KGHM Polska Miedź S.A., mainly due to the higher availability of purchased metal-bearing material and of elements of the production line. Silver production by KGHM Polska Miedź S.A. rose by 1% to 1 022 tonnes compared to the first 9 months of 2021. Payable copper production by the KGHM Group in the first three quarters of 2022 was slightly lower compared to the corresponding prior-year period and amounted to 557 thousand tonnes.
Financial and operating results
The KGHM Group increased profit for the period by PLN 505 million (+11%) versus the first 9 months of 2021, mainly due to a higher result on exchange differences, alongside a lower result on the involvement in joint ventures and higher CIT.
The continuing good conditions on the metals market led in turn to higher revenues earned by the KGHM Group (+18%) compared to the corresponding prior-year period, to PLN 25 696 million.
Investments and stable development
KGHM maintained stable copper production from its Polish assets (mined production 334.4 kt; metallurgical production 442.5 kt). The Company is continuing its key projects, such as the Deposit Access Program (sinking of the GG-1 shaft was completed). The maintenance shutdown at the Głogów Copper Smelter and Refinery did not affect the Company’s operations. Work continued on advancing development of the Tailings Segregation and Compacting Station at the Żelazny Most Tailings Storage Facility.
KGHM is engaged in numerous R&D initiatives to increase the efficiency of the core production business of KGHM. The copper company is advancing the Strategic Program called Hybrid Legnica Smelter and Refinery as well as exploration projects in Poland, as well as development actions in the international assets.
The copper giant continues its involvement in developing nuclear, solar and wind power. KGHM is consistently advancing projects aimed at reducing CO2 emissions. Starting from 2023, 100% of the electricity purchased and consumed by the Sierra Gorda mine will come from renewable energy sources – a solar farm located in the Atacama desert.