KGHM Polska Miedz (KGH) Q1 2025 earnings summary

Executive summary

• Group revenues rose 8% year-over-year to PLN 8,942 million in Q1 2025, driven by higher commodity prices and strong international segment performance despite lower production volumes.

• Adjusted EBITDA increased 60% year-over-year to PLN 2,489 million, reflecting improved results in international operations and joint ventures.

• Net profit declined 22% year-over-year to PLN 330 million, mainly due to negative exchange differences, higher operating costs, and lower domestic copper production.

• Payable copper production fell 6% year-over-year, with declines in both Polish and international operations, partially offset by higher output at Sierra Gorda.

• Sale of Sudbury Basin assets in Canada completed, generating a PLN 98 million gain.

Financial highlights

• Group revenues: PLN 8,942 million (+8% year-over-year); KGHM Polska Miedź S.A.: PLN 7,537 million (+4%).

• Adjusted EBITDA: PLN 2,489 million (+60%); KGHM Polska Miedź S.A.: PLN 1,253 million (+40%).

• Net profit: PLN 330 million (-22%); KGHM Polska Miedź S.A.: PLN 127 million (-67%).

• Operating cash flow: PLN 1,403 million; net cash flow: PLN 119 million.

• Net debt/adjusted EBITDA improved to 0.7x at quarter-end.

Outlook and guidance

• The company maintains a stable financial position and expects continued volatility in metals prices, energy costs, and FX rates.

• 2025 CAPEX planned at PLN 3,800 million, with 31% executed in Q1.

• Strategic goals include maintaining top-three global silver producer status and increasing the share of renewables in energy consumption.

• No significant negative impact from the war in Ukraine observed; supply chains and production remain stable.

• Ongoing strategic review and update to adapt to market and regulatory changes.