Przewiń w górę
Record operating result and solid financial results - KGHM Polska Miedź S.A. presented its report for 2020

Record operating result and solid financial results - KGHM Polska Miedź S.A. presented its report for 2020

Thursday, 25 March, 2021
KGHM Polska Miedź S.A. presented the financial results of the Company and the Capital Group for 2020. The copper giant boasts the highest level of Group operating profit since the acquisition of foreign assets. EBITDA exceeded PLN 6.6 billion, 27 per cent more than in the previous year. The Company has retained the full operational capacity of the assets.

KGHM reported very good results in Group sales. This translated into a 4% annual growth in revenues to PLN 23.6bn. The effects of last year's management actions also include job security and retention for thousands of employees, cost optimisation and a significant decrease in debt.

"Despite the volatility of the environment, which is unprecedented on this scale, the continuity of the Group's processes was not threatened at any stage. That is something I am very proud of. This required hard work and commitment from the entire crew. We have successfully implemented the company's Strategy to maintain stable production levels both domestically and internationally. Decisions to guarantee financial security and ensure appropriate working conditions were important. Everything in accordance with the idea of sustainable development," said Marcin Chludziński, President of the Management Board of KGHM Polska Miedź S.A.

Stable production in KGHM

Since the outbreak of the pandemic, there have been no production stoppages at KGHM Polska Miedź S.A., or at any of the Group's foreign mines. In the segments of KGHM INTERNATIONAL LTD. and KGHM Polska Miedź S.A. there was a slight decrease in production by 9.6 thousand tonnes and 5.2 thousand tonnes of payable copper, respectively.

The production of KGHM Polska Miedź S.A., which was lower than last year's, resulted from the lower resource and thickness of the ore being mined, as well as from a limited supply of copper scrap in the first half of 2020, and the planned maintenance shutdown at the Głogów I smelter.

KGHM INTERNATIONAL LTD. paid copper production was lower than budgeted by 4.8 thousand tonnes (-7%) due to lower production volumes at the Franke mine and the Sudbury Basin mines. On the other hand, precious metals production was 3.3 thousand tonnes (+5 per cent) higher than budgeted, reflecting increased production of these metals at Robinson Mine and the Sudbury Basin mines.

Sierra Gorda finished 2020 with payable copper production at a level 3.0 thousand tonnes (+4 per cent) higher than budgeted, due to increased ore processing volumes and higher copper yields.

Solid financial results of KGHM

In 2020, KGHM Group recorded an increase in copper production to a level of 709 thousand tonnes. This level was achieved at a C1 cost of $1.59 per pound. The driving force behind the increase was a 37 per cent higher result from the Sierra Gorda S.C.M. segment (+22.3 thousand tonnes for a share of 55 per cent), primarily as a result of increased ore processing and higher copper content. In 2020, work continued at Sierra Gorda to improve asset utilisation efficiency and increase production capacity.

In line with the commitment under the Strategy concerning cost optimisation across the Group, cost inflation has been largely balanced. The use of inventories had a significant impact on the cost of basic operating activities of the Departments of KGHM in Poland. As a result, this translated into higher sales volumes. Total costs by type for 2020 compared to 2019, were 3 per cent higher mainly due to higher consumption of third-party inputs and higher tax on the extraction of certain minerals.

In 2020, the KGHM Polska Miedź S.A. Capital Group demonstrated its full ability to meet its incurred liabilities. The cash balance in 2020 increased by PLN 1,506 million and amounted to PLN 2,522 million as at 31 December 2020.

At the end of 2020, the debt ratio, measured by the ratio of net debt to EBITDA, fell to 0.9 from 1.5 at the end of the previous year. The value of assets in the consolidated statement of financial position amounted to PLN 42,780 million, an increase of PLN 3,371 million compared to that
as at 31 December 2019.

At 31 December 2020, KGHM's equity amounted to PLN 21,081 million, and was higher by PLN 879 million than at the end of 2019. Net profit, in turn, amounting to PLN 1 797 million, was 26.5% higher than last year.

Safety in KGHM

In 2020, KGHM recorded a record low LTIRFKGHM (Lost Time Injury Frequency Rate KGHM) accident rate. It stood at 7.3, representing a decrease of 29 per cent compared to 2019 and as much as 61 per cent compared to 2010. KGHM INTERNATIONAL LTD. also recorded its best ever result in terms of occupational health and safety in 2020, despite the extremely difficult conditions imposed by the pandemic.

KGHM is not slowing down its investment pace

The copper company is continuing the Deposit Dissemination Programme, including work related to the deepening of the GG-1 Głogów Głęboki-Przemysłowy shaft. The strategic investment in construction of the Zelazny Most OUOW South Quarters is proceeding according to schedule. In the area of metallurgy, the company carries out investment projects related to the modernisation and optimisation of the Głogów I copper smelter.

Environment protection projects and reduction of the environmental impact occupy an important place in KGHM. At Legnica Copper Smelter and Głogów Copper Smelter, activities were carried out to adapt smelter installations to BAT conclusions. The new Gas Treatment Plant at Legnica Copper Smelter, the construction of which began in 2020, will ultimately reduce the residual pollution load by as much as 99 per cent.

Last year, KGHM also carried out projects related to energy, including renewable energy sources. At the end of 2020, 22.42% of KGHM's total energy consumption came from its own sources, including production from the gas and steam units.

As part of the company's Energy Development Programme, the Programme and Spatial Concept was adopted, which provides for an increase in the installed capacity of two photovoltaic power plant projects. These power plants will be built on the premises of KGHM's departments. In December 2020, KGHM ZANAM launched Poland's first photovoltaic power plant using technology 4.0.

The investment and development plans for 2021 are in line with the company's existing and consistently implemented Strategy. The projects were further detailed in KGHM's published ambitious budget. In the current year, KGHM expects to maintain stable economic and financial results and a safe level of debt.

KGHM is fighting the pandemic

KGHM continuously carries out activities related to ensuring the safety of employees. The company has introduced strict sanitary regime procedures, with the objective of gradually normalising the situation as vaccination against the virus progresses. KGHM conducts numerous education and information campaigns for employees and responds to guidelines from the Ministry of Health.

The company supports the fight against COVID-19 in collaboration with government institutions. KGHM has joined, among others, the Solidarity Senior Citizens Assistance Corps programme. The copper giant is providing organisational assistance to create additional places in temporary hospitals for patients suffering from coronavirus in Lower Silesia. Special facilities have been established in Walbrzych and Legnica. The health centre, Miedziowe Centrum Zdrowia in Lubin, also has a ward for COVID-19 patients.


KGHM Polska Miedź S.A. presented its report for 2020 .JPG 3.1 MB KGHM Polska Miedź S.A. presented its report for 2020
KGHM Polska Miedź S.A. presented its report for 2020
KGHM Polska Miedź S.A. presented its report for 2020 .JPG 5.1 MB KGHM Polska Miedź S.A. presented its report for 2020
KGHM Polska Miedź S.A. presented its report for 2020
KGHM Polska Miedź S.A. presented its report for 2020 .JPG 5.6 MB KGHM Polska Miedź S.A. presented its report for 2020
KGHM Polska Miedź S.A. presented its report for 2020

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.