KGHM Polska Miedz (KGH) Q3 2024 earnings summary

Executive summary

• Group revenues for the first nine months of 2024 reached PLN 26.139 billion, up 2% year-over-year, driven by higher metals prices and increased sales, with net profit at PLN 1.314 billion, a significant increase from the prior year.

• Adjusted EBITDA rose 44% year-over-year to PLN 6.186 billion, mainly due to improved performance at KGHM International.

• Payable copper production for the Group increased 3% year-over-year, with strong output from KGHM International offsetting lower production at Sierra Gorda.

• The Group maintained a stable financial position, with net debt/adjusted EBITDA at 0.9 as of September 30, 2024.

• Strategic investments continued in mining, energy transition, and digital transformation.

Financial highlights

• Group revenues for the first nine months were PLN 26.139 billion, up 2% year-over-year, with adjusted EBITDA up 44% to PLN 6.186 billion.

• Net profit for the period was PLN 1.314 billion, up from PLN 836 million in the prior year.

• KGHM Polska Miedź S.A. reported revenues of PLN 22.261 billion and adjusted EBITDA of PLN 3.402 billion.

• Cash flow from operating activities was PLN 3.433 billion, with net cash used in investing activities of PLN 4.048 billion.

• Capital expenditures for the first nine months totaled PLN 2.5 billion, focused on mining, metallurgy, and energy projects.

Outlook and guidance

• The Group targets climate neutrality by 2050, with a 30% reduction in Scope 1 and 2 emissions by 2030 versus 2020.

• Plans to increase the share of renewable energy sources to 50% of power needs by 2030, supporting decarbonization and energy security.

• Ongoing investments in wind, solar, and energy storage projects, as well as exploration of SMR nuclear technology.

• CapEx target for 2024 is PLN 3.9 billion, with a focus on mining development and maintenance.

• Ongoing review and update of the Group's strategy is expected to conclude by year-end 2024.