Record revenues and greater investment potential – KGHM summarises the first quarter of 2026

In the first quarter of 2026 the KGHM Polska Miedź S.A. Group earned a profit for the period of more than PLN 3.5 billion, with record revenues from contracts with customers and doubled EBITDA. The Group recorded substantial improvement in the results of the mines and metallurgical plants in Poland, while maintaining the high contribution of the international assets. Production of payable copper in the Group amounted to 176 thousand tonnes and was 4% higher on a yearly basis. C1 cost amounted to 1.69 USD/lb and was 35% lower compared to the corresponding prior-year period.

“The results of the past quarter attest to the very good condition of KGHM and its capacity to actively manage business processes in uncertain market conditions. Thanks to the effective diversification of sales, securing the costs of energy factors and growing operational efficiency, we are able to take advantage of the opportunities that arise and to build value for our shareholders. This is especially important in the context of our ambitious development plans. We are applying the profits earned to strategic investments which will strengthen the position of KGHM in the coming decades,” said Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A.

SUBSTANTIALLY IMPROVED RESULTS

Group revenues rose by nearly PLN 2.9 billion (+33% Q1/Q1) and reached the level of PLN 11.9 billion. An improvement was recorded in all key business segments. KGHM Polska Miedź earned record revenues of nearly PLN 10.5 billion, or 39% higher than in the corresponding prior-year period. The decisive factor responsible for this increase in revenues at the KGHM Group level was the change in the prices of basic products and the levels of premiums achieved. A crucial, positive role was also played by the contracting policy and the process of managing exchange rate risk. These factors enabled the Company to limit the negative impact of the depreciation of the average USD exchange rate on revenues.

C1 cost (the unit cash cost of producing payable copper) for the KGHM Group in the first quarter of 2026 amounted to 1.69 USD/lb and was lower than the amount recorded in the corresponding prior-year period by 35%. The Group recorded a sharp fall in C1 cost in all operating segments, mainly thanks to the high valuation of byproducts, i.e. silver and precious metals. C1 cost, excluding the minerals extraction tax, would have been at a negative level.

The high revenues and stabilised cost base enabled the KGHM Group to achieve an operating profit (EBITDA) of PLN 5.46 billion, more than double that achieved in the prior year. At the standalone level the Company recorded a result more than triple that recorded in the first quarter of 2025 of PLN 4.24 billion. This was due to an improvement in the results of the mines and metallurgical plants and the valuation of inventories due to the substantially-higher prices of silver and copper in the reported period. Consolidated quarterly profit amounted to PLN 3.53 billion, and at the standalone level PLN 2.97 billion. At the same time, the KGHM Group maintains a high level of financial liquidity and stability of the debt level. At the end of the first quarter net debt to adjusted EBITDA amounted to 0.6, demonstrating effective control of debt, management of the balance sheet and of risk, supported by positive cash flow. In the first quarter of 2026 the Group’s international companies paid a total of USD 175 million to KGHM Polska Miedź due to the repayment of loans, guarantees and other services.

PRODUCTION IN LINE WITH TARGETS

In the first three months of 2026 payable copper production by the KGHM Group was in line with the budget targets and amounted to 176 thousand tonnes. The production results achieved were 4% higher year-to-year. The Group also produced 329 tonnes of metallic silver, 37 thousand troy ounces of precious metals and 0.9 million pounds of molybdenum.

During the reported period, production of copper in concentrate in the assets in Poland amounted to 102.6 thousand tonnes, due among others to an increase in the production results of the mines. Electrolytic copper production reached 145.3 thousand tonnes. Payable copper production by the Sierra Gorda mine amounted to 20.6 thousand tonnes (for the 55% share of KGHM), with 10.0 thousand tonnes contributed by the segment KGHM INTERNATIONAL LTD. The Sierra Gorda mine recorded a 54% increase in silver production and 80% higher molybdenum output versus the corresponding prior-year period.

A RESPONSIBLE INVESTMENT PROGRAM

KGHM’s priority is to build a strong operating structure, one which guarantees continuity of production and stability of supplies. Tight cooperation with Polish companies ensures predictable deliveries, the efficient realisation of investments and the development of modern technological know available locally. In accordance with the principles of Local Content, the main contractors for KGHM’s key investments, including the construction of three new mine shafts, are domestic enterprises. Likewise in the area of mine technology and outfitting, KGHM mainly utilizes the achievements of Polish producers. The effects of this approach go beyond the copper sector, strengthening the long-term competitiveness of our economy. In advancing its ambitious investment plan, KGHM will consistently cooperate with domestic companies, combining operational needs with responsibility for the constant development of Poland.

In the first quarter of 2026, capital expenditures by KGHM amounted to PLN 657 million and were 9% higher compared to the corresponding prior-year period. Similarly as in previous quarters, investments in the Core Production Business were the priority. Expenditures in the area of mining amounted to PLN 602 million, and in metallurgy PLN 49 million. The Company increased expenditures on development to PLN 260 million (+24% Q1/Q1) and on replacement to PLN 236 million (+16% Q1/Q1). Expenditures on maintaining production decreased by 14% to PLN 160 million. In 2026 KGHM plans to dedicate more than PLN 4.1 billion on investments.

KGHM POLSKA MIEDŹ – GLOBAL STRENGTH

KGHM is currently the largest producer of mined copper in Europe and is one of the elite top 10 copper producers in the world. According to the World Silver Survey 2026 ranking, the Company is also the second-largest global silver producer. KGHM is an integrated producer of copper from its own mineral resources, mines, ore processing facilities and metallurgical plants, producing copper both in the form of cathodes as well as copper wire rod.

Searching for ways to further develop KGHM on foreign markets is a crucial element in strengthening the position of KGHM in the international arena. In March 2026, the Company signed a memorandum with the Office National des Hydrocarbures et des Mines i Management Group involving cooperation with and analysis of potential investments in the raw materials sector in Marroco. This agreement opens the way to analysing potential mining projects in the region, which combines rich mineral resources with rising economic stability and and a friendly investment environment.