KGHM Polska Miedz (KGH) investor relations material

Executive summary

• Revenues increased 0.4% year-over-year to PLN 17,556 million, with adjusted EBITDA up 16% to PLN 4,208 million, but net profit fell 46% to PLN 580 million, mainly due to adverse exchange differences.

• International operations, especially Sierra Gorda, saw a 19% increase in copper production and up to 89% higher molybdenum output, while KGHM International Ltd. production declined due to asset disposals.

• Silver production decreased 3% year-over-year, with a sharp drop linked to the Sudbury Basin asset sale.

• Key strategic achievements included progress in mining infrastructure, environmental initiatives, and energy transition projects.

• Significant events included asset impairment reviews, management changes, and a major copper wire rod contract.

Financial highlights

• Group revenues reached PLN 17,556 million, with adjusted EBITDA up 16% to PLN 4,208 million, but net profit dropped 46% to PLN 580 million due to exchange rate impacts.

• KGHM Polska Miedź S.A. revenues fell 1% to PLN 14,860 million, with adjusted EBITDA down 2% and net profit plunging 92% to PLN 113 million.

• Operating costs increased 1% year-over-year to PLN 15,455 million, with ongoing cost optimization programs.

• Net cash from operating activities was PLN 1,818 million, with cash and cash equivalents at period end of PLN 430 million.

• Adjusted EBITDA margin improved to 27.7% from 24.1% year-over-year.

Outlook and guidance

• Second half of the year expected to align with budget, with improvements anticipated after completion of maintenance and investment projects.

• No official prognosis published, but management expects continued stable production and further optimization of international assets.

• Key risks for the next quarter include geopolitical tensions, trade wars, commodity price volatility, and exchange rate fluctuations.

• The group continues to monitor global economic conditions and adapt its strategy to market and regulatory changes.