Kghm Polska Miedz S.a. · GPW:KGH
Kghm Polska Miedz — H1 2025 Earnings Presentation
49 slides from Kghm Polska Miedz's earnings presentation, Aug 20, 2025
Slide 1: Results of the KGHM Group for the First Half of 2025
RESULTS OF THE KGHM GROUP FOR THE FIRST HALF OF 2025 Lubin, 20 August 2025
Slide 2: Agenda
Agenda 1. Key issues and execution of main targets 2. Macroeconomic environment 3. Production results of the KGHM Group by segment 4. Advancement of development initiatives 5. Financial results of the KGHM Group 6. Sustainable development – commitments and initiatives of KGHM Polska Miedź S.A.
Slide 3: Key Issues and Execution of Main Targets
KEY ISSUES AND EXECUTION OF MAIN TARGETS
Slide 4: Basic results indicators in the KGHM Group and in KGHM Polska Miedź S.A.
Basic results indicators in the KGHM Group and in KGHM Polska Miedź S.A. KGHM Group +0.4% H1/H1 +16% H1/H1 -46% H1/H1 Revenues Adjusted EBITDA Profit for the period [PLN mn] [PLN mn] [PLN mn] 17 480 17 556 4 863 4 208 1 074 580 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 KGHM Polska Miedź S.A. -
Slide 5: Key production indicators
Key production indicators H1 2025 -4% H1/H1 344 Payable copper production [kt] by the KGHM Group lower by 4% (H1/H1) ▪ KGHM Polska Miedź S.A. – a decrease due to Payable copper production Payable copper production +19% H1/H1 execution of planned maintenance on smelter KGHM Polska Miedź S.A. [kt] Sie
Slide 6: Metals production
Metals production KGHM Group Payable copper production -4% H1/H1 Silver production -3% H1/H1 [kt] [t] 678 657 358 344 29 29 36 42 H1 2024 H1 2025 From purchased TPM production1) metal- 99 90 bearing [koz t] -/- H1/H1 materials 84 84 293 272 From own 193 183 concentrate H1 2024 H1 2025 H1 2024 H1 202
Slide 7: KGHM Group production and sales in H1 2025
KGHM Group production and sales in H1 2025 Execution of annual targets 2025 Budget Production Copper in concentrate [kt] 201.0 392.3 KGHM Polska Miedź S.A. Silver in concentrate [t] 660 1 278 Electrolytic copper, total [kt] 272.4 567.1 Electrolytic copper from own concentrate [kt] 182.5 375.4 Metall
Slide 8: Advancement of key strategic performance indicators in H1 25
Advancement of key strategic performance indicators in H1 2025 Domestic copper production Recycling of scrap Own capacity of power-generating assets 272 kt 86 kt (dry weight) 174MW of total contrated capacity, i.e. 440MW ~560 kt ~600 kt ~124 kt of copper min. 50% of contracted capacity of electrolyt
Slide 9: Macroeconomic Environment
POLSKA MIEDZ MACROECONOMIC ENVIRONMENT
Slide 10: Macroeconomic environment: commodities and currencies prices
Macroeconomic environment Commodities and currencies prices [USD/t] [PLN/t] In the first half of 2025 the copper market exhibited a high level of volatility due to uncertainty as to the economic policy of the new administration of the president of the USA. At the end of June the copper price surpass
Slide 11: Precious metals prices in H1 2025
Precious metals prices in H1 2025 The global wave of uncertainty on financial markets raised the price of precious metals to hitherto unseen heights In H1 2025 the price of gold rose to its highest level in history, while Precious metals prices rose more rapidly in the first half of silver reached i
Slide 12: The copper market remains under the strong influence of the trade war
The copper market remains under the strong influence of the trade war and uncertainty related to tariffs on the import of copper Copper prices were also impacted by the exceptional volatility as regards incoming economic data In the first half of 2025 the price of copper on the US exchange was up …
Slide 13: Mixed sentiment amongst industrial managers in H1 2025
The first half of 2025 saw mixed sentiment amongst industrial managers. There was little improvement in the Eurozone, while indicators in the USA were lower. Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 USA (ISM) 48.9 4
Slide 14: IMF World Economic Outlook – July 2025
IMF World Economic Outlook – July 2025 Forecasts (F) real GDP growth – International Monetary Fund - World Economic Outlook Update July 2025 in comparison to April 2025; 15 for Chile April 2025 in comparison to October 2024.
Slide 15: Production Results of the KGHM Group by Segment
PRODUCTION RESULTS OF THE KGHM GROUP BY SEGMENT
Slide 16: Production results
Production results KGHM Polska Miedź S.A. Ore Extraction Production of copper Electrolytic copper Metallic silver [mn t dry weight] in concentrate [kt] production [kt] production [t] -2.1% H1/H1 -2.2% H1/H1 -6.9% H1/H1 -2.9% H1/H1 15.6 15.3 293 272 666 646 205.5 201.0 90 99 From 50,7 50.3 purchased
Slide 17: Production results: Sierra Gorda S.C.M.
Production results Sierra Gorda S.C.M.1) Payable copper Silver production -9% H1/H1 production +19% H1/H1 [t] [kt] 11.9 10.8 6.1 5.8 42.4 Q2 2024 Q2 2025 H1 2024 H1 2025 35.7 TPM production2) +7% H1/H1 [koz t] 21.6 18.7 13.7 14.7 7.2 7.7 Q2 2024 Q2 2025 H1 2024 H1 2025 Q2 2024 Q2 2025 H1 2024 H1 202
Slide 18: Production results: KGHM International Ltd.
Production results KGHM INTERNATIONAL LTD. Payable copper production Silver production [kt] -80% H1/H1 [t] -1% H1/H1 0.70 ▪ Silver: lower silver production by the Sudbury Basin mainly 0.28 due to lack of production 0.14 0.01 from March 2025 as a result of the disposal of the Q2 2024 Q2 2025 H1 2024
Slide 19: Cash flows in the Group
Cash flows in the Group Payments to KGHM Polska Miedź S.A. Payments by the international assets to KGHM Polska Miedź S.A. in H1 2025: USD 130.9 million* Q2 2025 H1 2025 Sierra Gorda KGHM INTERNATIONAL LTD. Sierra Gorda KGHM INTERNATIONAL LTD. Total payment: Total payment: Total payment: Total paymen
Slide 20: Advancement of Development Initiatives
ADVANCEMENT OF DEVELOPMENT INITIATIVES
Slide 21: A rationale and responsible investment program
A rationale and responsible investment program Capital expenditures by KGHM Polska Miedź S.A. in H1 2025 CAPEX execution in H1 2025, incl. borrowings By category By area Replacement Mining Maintenance Metallurgy Development (incl. R&D) Other activities Leasing Adaptation projects IFRS 16 Development
Slide 22: CAPEX execution in key investments
CAPEX execution in key investments Outfitting of the mines ▪ Conveyor belts – work continued on construction and extension of conveyor belts (14 conveyor belts under construction; completed – 2.2 km) ▪ Outfitting and infrastructure of regions/sections – work continued (the largest expenditures were
Slide 23: Role of shafts in maintaining output in Poland
Role of shafts in maintaining output in Poland Deposit access program in KGHM’s concessioned areas Share of production from GGP in total production Bytom in Poland Odrzański Ore extraction dry weight from GGP [kt] +8% H1/H1 -6% Q2/Q1 3 111 3 362 1 730 1 633 22.5% 21.4% 19.9% 22.0% Q1 2025 Q2 2025 H1
Slide 24: CAPEX execution in key investments
CAPEX execution in key investments 1) excluding Leasing per IFRS 16, plus borrowing costs and R&D Investments related to IAS - metallurgical plants and concentrators ▪ Significant maintenance at the Głogów and Legnica metallurgical plants – incl. maintenance on electrolizers, convertors, Investments
Slide 25: Financial Results of the Group
FINANCIAL RESULTS OF THE GROUP
Slide 26: Financial indicators of the KGHM Group
Financial indicators of the KGHM Group H1 2025 Group revenues Operating costs KGHM Group adjusted EBITDA1) [PLN mn] [PLN mn] [PLN mn] +0.4% H1/H1 +1% H1/H1 +16% H1/H1 17 480 17 556 4 863 15 370 15 455 220 Depreciation/ 1 240 1 403 4 208 amortisation 260 1 302 807 910 669 14 130 14 052 2 472 2 431 H1
Slide 27: Group sales revenue
Group sales revenue H1 2025 Revenues from contracts with customers Revenues from contracts with customers [PLN mn] [PLN mn] 17 480 17 556 1 043 984 1 361 1 712 17 480 +1 172 17 556 -365 -452 -224 -55 15 076 14 860 Revenues for Change in sales Change in prices Change in Adjustments of Other Revenues
Slide 28: Expenses by nature
Expenses by nature KGHM Group Expenses by nature [PLN mn] 17 019 +4% H1/H1 16 394 8 750 8 666 2 082 8 408 8 353 Minerals extraction tax 1 955 8 098 Minerals extraction tax 3 952 Purchased metal- 3 861 bearing materials 10 578 10 985 +4% H1/H1 Purchased metal- bearing materials Other 614 Expenses by
Slide 29: C1 unit cost
C1 unit cost 1) KGHM Group C1 – KGHM Group C1 – KGHM Polska Miedź S.A. KGHM Polska Miedź – an increase in C1 by 5% [USD/lb] [USD/lb] +5% H1/H1 -5% H1/H1 mainly due to a higher minerals extraction tax charge by 11% and strengthening of the PLN vs 3.00 3.15 incl. the minerals extraction tax the USD, w
Slide 30: Financial results: consolidated net profit in H1 2025
Financial results 580 KGHM Group Consolidated net profit in H1 2025 Profit for the period [PLN mn] A decrease in Group profit by PLN 494 milion, mainly due to exchange differences despite higher EBITDA and a higher result on involvement in joint ventures [PLN mn] + 554 + 160 1 074 + 140 +7 580 -1 35
Slide 31: Cash flow
Cash flow KGHM Group [PLN mn] +1 818 715 + 64 + 13 430 -2 034 - 83 - 63 Cash as at Net cash generated Net cash used in Interest paid Leasing payments Exchange differences on cash Other Cash as at 1 January 2025 from operating investing activities and cash equivalents 30 June 2025 activities 32
Slide 32: Net debt of the KGHM Group
Net debt of the KGHM Group As at the end of Q2 2025 Net debt / adjusted EBITDA Main factors affecting net debt in 2025 0.7 0.9 0.8 0.7 0.8 30-06-2024 30-09-2024 31-12-2024 31-03-2025 30-06-2025 Increases in debt ▪ Cash expenditures on property, plant and equipment KGHM Group net debt (PLN 2 453 mn)
Slide 33: Operating results
Operating results KGHM Group Change in adjusted EBITDA1) +16% H1/H1 Adjusted EBITDA [PLN mn] [PLN mn] +495 4 863 4 863 4 208 +241 220 -40 4 208 -41 260 1 302 807 669 910 H1 2024 KGHM Polska KGHM Sierra Other segments H1 2025 Miedź S.A. INTERNATIONAL Gorda LTD. 2 472 2 431 An increase in adjusted EBI
Slide 34: Sales revenue and EBITDA in Q2 2025
Sales revenue and EBITDA in Q2 2025 KGHM Group and reporting segments Revenues from contracts with Adjusted EBITDA customers [PLN mn] [PLN mn] 9 165 532 8 614 2 657 474 836 817 2 374 184 Lower adjusted EBITDA compared to Q2 475 118 2024 by PLN 283 million mainly in respect of 422 630 KGHM Polska Mie
Slide 35: The financial situation of the KGHM Group remains stable and safe
The financial situation of the KGHM Group remains stable and safe 2025 Budget Total unit production cost of electrolytic copper from own concentrate of 30.5 35.4 KGHM Polska Miedź S.A.1) [k PLN/t] 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Investments Capital expenditures 1 325 3 800 KGHM Pols
Slide 36: Sales revenue
Sales revenue KGHM Polska Miedź S.A. Revenues from contracts with Lower revenues from contracts with customers by PLN 216 million (-1%) in the customers first half of 2025 compared to 2024, mainly due to a lower volume of copper sales [PLN mn] -1% H1/H1 and a less favourable USD/PLN exchange rate de
Slide 37: Expenses by nature
Expenses by nature KGHM Polska Miedź S.A. The increase in costs by nature compared to the corresponding Expenses by nature [PLN mn] prior-year period was mainly related to the increase in labour costs, the minerals extraction tax charge and the cost consumption 13 810 +4% H1/H1 of purchased metal-be
Slide 38: EBITDA and profit for the period
EBITDA and profit for the period KGHM Polska Miedź S.A. Adjusted EBITDA Profit for the period EBITDA and profit for the period [PLN mn] -2% H1/H1 [PLN mn] -92% H1/H1 Lower EBITDA by PLN 41 million: Revenues lower by PLN 216 million (mainly due to a less favourable exchange rate and 2 472 2 431 1
Slide 39: Profit for the period
Profit for the period KGHM Polska Miedź S.A. Profit for the period [PLN mn] 1 331 - 41 - 608 + 166 113 - 627 - 108 Profit for Change in Exchange Fair value Income tax Other Profit for H1 2024 EBITDA differences gains/losses on H1 2025 financial assets measured at fair value through profit or loss 40
Slide 40: Market risk management
Market risk management Hedged position on the copper, silver and currency markets (as of 30 June 2025) Copper [kt] Hedged Pozycja position – open zabezpieczająca as at 31na - otwarta December 2024 31.12.2024 At the end of the first half of 2025, the Parent Entity Pozycja Hedgedzabezpieczająca wdrożo
Slide 41: Other segments, including domestic companies
Other segments, including domestic companies Basic measures of results – prior to consolidation adjustments Revenues Adjusted EBITDA Profit for the period [PLN mn] [PLN mn] [PLN mn] +3% H1/H1 -15% H1/H1 - 26% H1/H1 6 403 6 570 260 74 1 394 1 293 220 55 5 009 5 277 H1 2024 H1 2025 H1 2024 H1 2025 Rev
Slide 42: Sustainable Development – Commitments and Initiatives of KGHM Polska Miedź S.A.
SUSTAINABLE DEVELOPMENT – COMMITMENTS AND INITIATIVES OF KGHM POLSKA MIEDŹ S.A.
Slide 43: Actions by KGHM's employee volunteers in H1 2025
Actions by KGHM’s employee volunteers in H1 2025 nearly 3000 hours dedicated to advancing volunteer projects 719 employee volunteers took part in actions 104 volunteer actions Thematic actions 20 actions in the area of 4 actions in the area of 13 actions in the area of science and education ecology
Slide 44: By 2030 the rise in the share of RES will lead to a significant drop in CO2 emissions
By 2030 the rise in the share of RES will lead to a significant drop in CO2 emissions Internal sources of electrical power in KGHM Polska Miedź S.A. 2020 – base year (105 MW): Goal 2030: min. 220 MW of internal power generating capacity Own sources Own sources Contracted power Contracted power 0 50
Slide 45: Energy strategy of KGHM Polska Miedź S.A.
Energy strategy of KGHM Polska Miedź S.A. Selected important Events in H1 2025 Ensuring energy security in KGHM M&A Development of wind energy ▪ The Natural Gas-Steam (CCGT) blocks of the Head Office supply ▪ Technical and economic analyses of developer offers as regards the ▪ Under consideration is
Slide 46: Employee safety as a strategic priority for the KGHM Group
Employee safety as a strategic priority for the KGHM Group ▪ ISO 45001:2018 Accident rate measures1) The Company maintains and is enhancing the Occupational Health and Safety Change2) LTIFR 2024/2020 Management System, certified by an independent external body. -9.2% in KGHM Polska Miedź S.A. ▪ Lead
Slide 47: Cautionary Statement
Cautionary Statement This presentation was prepared by KGHM Polska Miedź S.A. (KGHM). The presentation is strictly of an informational nature and should not be construed as containing investment advice. The users of this presentation are solely responsible for their own analysis and assessment of th
Slide 48: Intellectual Property Rights
Intellectual Property Rights All rights reserved. All content on this presentation of the KGHM are protected by copyright and other protective laws. The presentation and the trademarks, service marks and logos on the presentation are owned by or licensed to KGHM, and are subject to copyright, tradem
Slide 49: Results of the KGHM Group for the First Half of 2025
RESULTS OF THE KGHM GROUP FOR THE FIRST HALF OF 2025 Lubin, 20 August 2025