The highest quarterly EBIDTA in history and outstanding revenues – KGHM summarises its results for the first three months of 2022

The highest quarterly EBIDTA in the Group’s history rose as compared to the first three months of 2021 by 20 percent and amounted to PLN 3 133 million. The Group’s revenues reached PLN 8 993 million, or 33 percent more than in 2021. KGHM presented operating and financial results for the first quarter of 2022 which demonstrate the consistency of the operations and advancement of the Strategy as well as solid stability in turbulent times

The KGHM Group at the same time also published the Integrated Report of KGHM for 2021.

Increase in copper production

Production of payable copper by the KGHM Group was higher by 4 percent (compared to the first quarter of 2021) and amounted to 193 thousand tonnes. The factors involved were higher availability of purchased metal-bearing materials and the higher availability of production lines in KGHM Polska Miedź S.A. as well as higher copper recovery and higher throughput in Sierra Gorda. Higher production was also recorded by the Robinson mine.

Quarter by quarter, the KGHM Group is amongst the leader of the world’s mining companies, with the largest percentage increase in production.

Highest quarterly EBITDA in history

The increase in adjusted EBITDA of the KGHM Group compared to the first quarter of 2021 amounted 20 percent. It is worth noting that in the case of the Sierra Gorda mine this was due among others to higher revenues from the sale of copper due to higher prices and a higher sales volume. The substantial improvement in EBIDTA affected the Group’s net profit, which was higher by 39 percent compared to the first three months of 2021.

Updated strategy

The Company maintained stable production in its domestic and international assets as well as costs. As part of the strategy, updated by a new „e”, i.e. energy, KGHM intends to continue actions aimed at increasing energy generation from its own sources (RES). Projects involving the development of nuclear power, wind energy and hydrogen technology will be critical in this process.

The copper giant signed an agreement with the American company NuScale to implement small modular reactor (SMR) technology in Poland. The first power plant is expected to be brought online by 2029. This clean energy will power the copper company’s production assets. KGHM also joined the company TotalEnergies in a tender of the Polish government to develop offshore wind projects.

We together – aid to Ukraine

KGHM since the start of the war in Ukraine has been involved in aiding refugees. The Company has ensured safe, temporary shelter for 250 families in aid centers throughout Poland. Companies in the Group have provided among others overnight stays in spa facilities, have transported those in need to designated sites and have sent donations of goods collected for the refugees. The Company has also provided hundreds of beds, matresses and other critical equipment to local governments in Lower Silesia and to NGOs.

In Lubin the Company opened an Aid Center for Ukrainians. At the Center, those in need received legal and psychological support as well as aid related to quartering. Ukraine has also received transports of medical supplies for hospitals, financed by KGHM.

Integrated report of KGHM

The copper company presented the Integrated report of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź Group for 2021. This is the ninth such report, presenting the Company’s business and operating activities.

The Integrated report provides stakeholders, and in particular investors, financial institutions and insurers, with a description of the actions undertaken by the copper giant, as well as key ratios showing how the set goals are being advanced. The Company’s strategy has embedded questions related to sustainable development and its impact on the social and natural environments.