Kghm Polska Miedz S.a. · GPW:KGH

Kghm Polska Miedz — Investor Presentation (November 2020)

77 slides from Kghm Polska Miedz's investor presentation, November 2020

  1. Slide 1: Layers of possibilities – KGHM Group Investor Presentation

    Layers of possibilities KGHM Group Investor Presentation November 2020

  2. Slide 2: 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

  3. Slide 3: Agenda

    Agenda 1. Key information about 2. Sustainable development 3. The KGHM Group the KGHM Group of the KGHM Group vs the sector 4. Production and financial 5. Advancement of 6. Additional slides, results of the KGHM Group the Group’s Strategy Q&A 3

  4. Slide 4: We care, we act, we protect: fighting the coronavirus

    We care,możliwości Pokłady we act, we protect Effectively fighting the spread of the coronavirus Initiatives and Preventative Communication procedures methods and education  COVID-19 unit at the  Thermal cameras  Numerous communication hospital MCZ  NITROSEPT disinfectant channels  Help for sen

  5. Slide 5: Key information about the KGHM Group

    Key information about the KGHM Group

  6. Slide 6: KGHM Group in brief

    KGHM Group in brief One of the world’s largest producers of copper and 702 thousand tonnes A diversified portfolio of silver with nearly 60 years of of payable copper production assets at various stages of experience in mining and by the KGHM Group in 2019, development located in mining- metallurgy

  7. Slide 7: KGHM: a top ten copper producer and a leading Polish exporter

    KGHM: a top ten copper producer and a leading Polish exporter The Group has a global reach and plays a significant role on the global copper and silver markets Sixth Cu Second Ag largest largest copper silver producer producer Other KGHM Group products:  Molybdenum  Platinum  Copper  Lead  Rhen

  8. Slide 8: KGHM among the biggest copper and silver producers

    KGHM among the biggest copper and silver producers1) Mined Copper production 2019 2) Silver production 2019 3) 1 706 1 610 1 371 1 417 1 258 996 1 170 805 994 671 702 633 702 631 557 625 520 556 499 [kt] 523 [kmt] 1) KGHM results as reported in its consolidated financial statement 2019 2) Mines and

  9. Slide 9: A proud history of mining and metallurgy

    A proud history of mining and metallurgy Discovery of the copper deposit brought about a fundamental change in the region’s economy thanks to the growth of KGHM Polska Miedź S.A. As a result of M&A activities, capped by the acquisition of Quadra FNX, KGHM became a truly global copper producer aimed

  10. Slide 10: Core production assets in Poland – stable output and earnings

    Core production assets in Poland – stable output and earnings Underground copper mines, fully integrated production Polkowice-Sieroszowice Mine Legnica Smelter and Refinery 36 years LOM LME grade A-registered cathodes  Copper production in 2019 (payable): Capacity of ~120 kt electrolytic Cu/year 1)

  11. Slide 11: Key international assets

    Key international assets Existing operations and growth potential from projects Producing assets Potential growth projects Sierra Gorda (55% stake), Chile Sierra Gorda Oxide, Chile 24 years LOM 2019 production stats: 11 years LOM  Open-pit mine  Cu production  The project aims at processing the o

  12. Slide 12: Sierra Gorda

    Sierra Gorda Sierra Gorda is an open pit copper and molybdenum mine located in Chile’s Antofagasta region in the Atacama desert. Sierra Gorda is a Joint Venture of:  KGHM Polska Miedź S.A. – 55% share  Sumitomo Metal Mining – 31.5% share  Sumitomo Corporation – 13.5% share Schedule of Sierra Gord

  13. Slide 13: Sustainable development

    Sustainable development

  14. Slide 14: Copper – a strategic material for a carbon neutral and circular economy

    Copper production: Pokłady możliwości emissions and impact on climate transformation Copper – a strategic material for a carbon neutral and circular economy in Europe 0.4% CIRCULAR ECONOMY ENERGY TRANSITION AND DIGITISATION -75% A circular metal: close to 50% of copper produced in the EU is obtained

  15. Slide 15: Sustainable development of the raw materials industry

    Sustainable Pokłady development of the raw materials industry możliwości 09 INNOVATION, INDUSTRY, INFRASTRUCTURE – a global challenge of the modern world 08 ECONOMIC GROWTH AND DECENT WORK KGHM as a signatory of Agenda 2030 operates on the basis of the 07 CLEAN AND principles of sustainable developm

  16. Slide 16: Sustainable value chain

    Sustainable Pokłady value chain możliwości Responsible Supply Chain Policy of the KGHM Group Extraction Logistics Commerce Responsible Supply Chain Policy of the KGHM Group Rational deposits Reduction of emissions, Commerce management - Intelligent making logistics structures based on Fair Code of E

  17. Slide 17: Ethical Standards

    Ethical Standards Pokłady możliwości KGHM Polska Miedź S.A. We follow We avoid the principle of We take responsibility conflicts “Zero tolerance for the quality of our of interests for corruption”. products and services We care about the We care about security of information our Company’s property a

  18. Slide 18: People and the Environment as a strategic area

    People and the Environment as a strategic area in the KGHM Group Strategy for 2019 – 2023 LTIFR and TRIR ratios1) TRIR ratio in KGHM INTERNATIONAL LTD. People and the Environment LTIFR ratio in KGHM Polska Miedź S.A. 10 18.6 Decrease over 20.0 15.4 the last 10 years  Main target – growth based on t

  19. Slide 19: Emissions by the divisions of KGHM Polska Miedź: SO2 and dust

    Emissions by the divisions of KGHM Polska Miedź S.A. SO2 and dust emissions1) SO2 emissions by KGHM Polska Miedź S.A. Dust emissions by KGHM Polska Miedź S.A. [tonnes] [tonnes] 80 000 –81% Reduction of SO emissions over the last 10 years 2 12 000 –83% Reduction of dust emissions over the last 10 yea

  20. Slide 20: Emissions by the divisions of KGHM Polska Miedź: lead and copper

    Emissions by the divisions of KGHM Polska Miedź S.A. Lead and copper emissions Lead emissions by KGHM Polska Miedź S.A. Copper emissions by KGHM Polska Miedź S.A. [tonnes] [tonnes] 400 350 350 300 –78% Reduction of lead emissions –71% Reduction of copper emissions 300 250 over the last 20 years over

  21. Slide 21: Pro-ecological investments and environmental fees

    Pro-ecological investments and environmental fees KGHM Group Over spent in 2019 by KGHM [incl. the largest expenses of over PLN 44 million incurred on replacing 229 on investments to the absorption and drying towers of the protect the natural sulphuric acid plant at the Legnica Copper million PLN en

  22. Slide 22: Pro-ecological investments and environmental fees – KGHM International

    Pro-ecological investments and environmental fees KGHM INTERNATIONAL Activities carried out by the entities of the KGHM INTERNATIONAL Group in 2019 related to environmental protection PLN 28 million PLN 1 million Robinson Mine (USA) Sudbury Basin (Canada) including PLN 3 million due to environmental

  23. Slide 23: Share of RES to reduce CO2 emissions by 2030

    By 2030 the increase in share of RES will lead to a substantial reduction in CO2 emissions Share of power source in supplies 2019 2030 3 TWh 3 TWh Natural Own Natural Market Own sources Market RES gas sources gas 82% and RES 50% 49% 100% and RES 51% 18% 50% Estimated CO2 emissions from electricity c

  24. Slide 24: The KGHM Group vs the sector

    The KGHM Group vs the sector Macroeconomic environment

  25. Slide 25: Macroeconomic environment: commodities and currencies prices

    Macroeconomic environment Commodities and currencies prices The copper price rose substantially in the third quarter, Price (USD/t) Annual av. (USD/t) approaching the peaks of 2018, while silver remained 8 000 Price (PLN/t) Annual av. (PLN/t) 28 000 at a high level 7 500 26 000 7 000 24 000  The av

  26. Slide 26: Precious metals prices rose sharply on safe haven investments

    Precious metals Pokłady prices rose sharply from the move back to safe haven investments, możliwości reaching historic (gold), or multi-year (silver) highs Silver and gold rose sharply at the start of Q3, thereafter The gold to silver ratio of such importance to markets returned staying at high leve

  27. Slide 27: 2020 a rollercoaster for the copper price

    2020 a rollercoaster Pokłady możliwości for the copper price Metal inventories were also quite volatile in recent months In 2020 copper prices recorded their lowest levels in 4 years Copper inventories in official market warehouses rose in and their highest since 2018 recent weeks 7 250 1 000 China'

  28. Slide 28: Economic activity improved substantially in Q3'20

    In Q3’20 economic activity improved substantially vs the first half of 2020 Industrial PMI began to improve in June and in most countries continued to grow to the end of the third quarter 28 Source: Bloomberg, KGHM Polska Miedź

  29. Slide 29: Economic growth forecasts by the IMF in October 2020

    Economic Pokłady growth forecasts by the IMF in October 2020 możliwości Canada Eurozone Poland 2019: 1.6% 2019: 1.3% 2019: 4.1% 2020F: -7.1%  +1.3 pp 2020F: -8.3%  +1.9 pp 2020F: -3.6%  +1.0 pp 2021F: 5.2%  +0.3 pp 2021F: 5.2%  -0.8 pp 2021F: 4.6%  +0.4 pp World 2019: 2.8% 2020F: -4.4%  +0.8

  30. Slide 30: Production of miners in Q3 2020 mostly lower

    The production of miners in Q3 2020, as at the start of the year, was mostly lower Copper production by miners, 9M 2020 vs 9M 2019 10% -2% -3% -3% -4% -7% -8% -8% -12% -21% 0% 0% 3% -10% -20% -30% Codelco Anglo American KGHM KGHM GK BHP Freeport KGHMKGHM PM S.A. Antofagasta Vale Glencore Teck Rio Ti

  31. Slide 31: Production and financial results of the KGHM Group – Part I: 5 years data

    Production and financial results of the KGHM Group Part I: 5 years data

  32. Slide 32: Key production data – 5 years: KGHM Polska Miedź

    Key production data – 5 years KGHM Polska Miedź S.A. Ore extraction Production of copper Production of Metallic silver production [mn t dry weight] in concentrate electrolytic copper [t] [kt] [kt] 574 566 536 426 424 419 522 502 1 400 401 1 283 31.6 32.0 31.2 30.3 29.9 399 1 191 1 218 1 189 2015 201

  33. Slide 33: Key production data – 5 years: Sierra Gorda

    Key production data – 5 years Sierra Gorda1) Payable copper production Silver production [kt] [t] 7.7 14.1 14.0 14.5 14.6 2015 2016 2017 20182 2018 59.5 51.5 53.4 53.3 TPM2) production 46.3 [koz t] 28.0 23.2 31.2 12.8 22.9 2015 2016 2017 2018 2019 Molybdenum production [mn lbs] 19.7 12.2 14.7 11.2 6

  34. Slide 34: Key production data – 5 years: KGHM International

    Key production data – 5 years KGHM INTERNATIONAL Payable copper production Silver production [kt] [t] 1.6 2.4 1.6 1.7 1.6 2015 2016 2017 2018 2019 97.6 TPM production 89.8 81.0 [koz t] 78.8 76.5 95.3 92.1 74.0 67.6 85.2 2015 2016 2017 2018 2019 Molybdenum production [mn lbs] 1.0 0.9 0.8 0.7 0.6 2015

  35. Slide 35: Sales revenue and net profit – 5 years

    Sales revenue and net profit – 5 years KGHM Group Revenues Net profit [mn PLN] [mn PLN] 22 723 20 008 20 358 20 526 19 156 1 658 1 525 1 421 * 1 202 1 225 * 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 * Net profit of 2015 and 2016 excluding impact of impairment of non-current assets, loans and

  36. Slide 36: EBITDA and EBITDA margin – 5 years

    EBITDA and EBITDA margin – 5 years KGHM Group EBITDA by segments 1) EBITDA margin 2) [mn PLN] [%] KGHM Polska Miedź S.A. KGHM INTERNATIONAL Sierra Gorda (55%) Others 5 753 4 972 5 229 26 4 710 4 666 23 23 22 21 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1) Sum of segments; adjusted EBITDA = E

  37. Slide 37: Net debt and net debt/EBITDA ratio – 5 years

    Net debt and net debt/EBITDA ratio – 5 years KGHM Group Net debt Net debt/adjusted EBITDA [mn PLN] [ratio] 7 262 7 000 6 891 6 554 6 577 1.6 1.6 1.5 1.4 1.3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 37

  38. Slide 38: Basic items of the consolidated financial statements

    Basic items of the consolidated financial statements KGHM Group KGHM Group – consolidated data 2015 2016 2017 2018 2019 Sales revenue [mn PLN] 20 008 19 156 20 358 20 526 22 723 Profit/(loss) for the period [mn PLN] -5 009 -4 449 1 525 1 658 1 421 Total assets [mn PLN] 36 764 33 442 34 122 37 237 39

  39. Slide 39: Production and financial results of the KGHM Group – Part II: 9M 2020

    Production and financial results of the KGHM Group Part II: 9M 2020

  40. Slide 40: Summation of the first 9 months of 2020 in the KGHM Group

    Summation of the first 9 months of 2020 in the KGHM Group Main macroeconomic factors and aspects of the Group in the age of the COVID-19 pandemic compared to the first 9 months of 2019 Macroeconomic environment1) Production and C1 cost Financial results -3% -1.7% -2% Copper price Copper production C

  41. Slide 41: Metals production

    Metals production KGHM Group  Slightly lower production of electrolytic Payable copper production Silver production [kt] [t] copper by KGHM Polska Miedź S.A. due to a -3% 9M/9M restricted supply of copper scrap in the first 1 031 997 half of 2020 and due to the maintenance -1.7% 9M/9M shutdown at t

  42. Slide 42: Production results: KGHM Polska Miedź

    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] –1.8% 9M/9M –2.7% 9M/9M -3.7% 9M/9M -4.2% 9M/9M 22.8 22.4 428 412 305 297 1 018 975 48.7 47.9 From 115 125 purchased

  43. Slide 43: Change in inventories

    Change in inventories KGHM Polska Miedź S.A. Inventories of copper in concentrate at the smelters amount of Cu [t] +140% Q3/Q2 36 323  An increase in concentrate inventories at the copper smelters 14 886 15 153 due to the maintenance shutdown at the Głogów I smelter  In subsequent quarters these c

  44. Slide 44: Production results: Sierra Gorda

    Production results Sierra Gorda1) Payable copper production Silver production +83% 9M/9M [kt] [t] +35% 9M/9M 20.0  Higher extraction by the 59.9 7.6 10.9 3.5 Sierra Gorda mine lead 44.4 to higher production of Q3 2019 Q3 2020 9M 2019 9M 2020 copper, silver and gold 20.7 15.1 in the first 9M of 2020

  45. Slide 45: Production results: KGHM International

    Production results KGHM INTERNATIONAL Payable copper production Silver production -29% 9M/9M [kt] [t]  Lower silver production -14% 9M/9M 1.7 in the Sudbury Basin due 1.2 -12% 9M/9M 0.6 to lower extraction and excl. Morrison mine 0.4 lower silver content in 57.5 ore excl. Morrison mine 49.2 Q3 2019

  46. Slide 46: Sales revenue: KGHM Group

    Sales revenue KGHM Group Revenues from contracts with Revenues from contracts with -2% 9M/9M customers customers [mn PLN] [mn PLN] 16 869 +397 16 580 +107 16 869 16 580 -254 -539 1 508 1 194 2 311 2 026 Revenues in first Change in sales Change in prices Change in Other Revenues in first 9M of 2019 v

  47. Slide 47: Sales revenue: KGHM Polska Miedź

    Sales revenue KGHM Polska Miedź S.A. Higher revenues from sales by PLN 310 mn (+2%) in the first 9M of 2020 compared to the first 9M of 2019, due to: Sales revenue [mn PLN]  a higher adjustment to revenues from hedging by PLN 160 million +2% 9M/9M  a more favourable USD/PLN exchange rate (+3%) and

  48. Slide 48: The financial situation of the KGHM Group remains stable and safe

    The financial situation of the KGHM Group remains stable and safe 2020 Budget Total unit production cost of electrolytic copper from own concentrate KGHM Polska Miedź S.A.1) 19.3 [k PLN/t] 17.2 Investments Capital expenditures 1 663 2 250 KGHM Polska Miedź S.A.2) [mn PLN] 3) Other expenditures, incl

  49. Slide 49: C1 unit cost

    C1 unit cost1) KGHM Group C1 – KGHM Polska Miedź S.A.  The decrease in C1 cost versus the C1 – Group [USD/lb] first 9M of 2019 was due to the [USD/lb] incl.the -7% 9M/9M minerals savings program, the weakening of 1.71 1.60 extraction tax 0.49 0.43 the PLN vs the USD and to a lower -6% 9M/9M mineral

  50. Slide 50: Expenses by nature

    Expenses by nature KGHM Polska Miedź S.A. Expenses by nature [mn PLN] Expenses by nature decreased by -0.3% 9M/9M PLN 35 million y/y 11 125 11 090 Minerals extraction tax recognised in expenses 1 192 1 120 by nature Minerals 3 941 extraction Purchased metal- 3 692 3 771 tax recognised in 2 888 2 874

  51. Slide 51: Operating results

    Operating results KGHM Group Change in adjusted EBITDA1) Adjusted EBITDA [mn PLN] [mn PLN] +7% 9M/9M +184 +257 4 418 4 418 4 112 4 112 -15 192 -120 207 779 522 395 515 2 868 3 052 9M 2019 KGHM KGHM Sierra Other 9M 2020 Polska Miedź S.A. INTERNATIONAL Gorda 9M 2019 9M 2020  Record quarterly adjusted

  52. Slide 52: Financial results

    Financial results KGHM Group 1172 Profit for the period -30% 9M/9M [mn PLN] consolidated net profit for the first 9 months of 2020 Group profit for the period lower by PLN 494 million (-30%) mainly due to: [PLN mn]  a lower result on operating activities  a lower result on exchange differences  a

  53. Slide 53: EBITDA and profit for the period

    EBITDA and profit for the period KGHM Polska Miedź S.A. Adjusted EBITDA Profit for the period Higher EBITDA with [mn PLN] [mn PLN] lower net standalone +6% 9M/9M -30% 9M/9M profit 2 868 3 052  EBITDA higher by 6% vs the 1 663 corresponding period of 1 156 2019  Lower net profit of PLN 494 mn (-30%

  54. Slide 54: Cash flow

    Cash flow KGHM Group [mn PLN] + 519 +1 300 - 444 +1 879 -2 487 1 119 1 016 - 207 - 248 - 149 - 60 Cash as at Profit/loss before Exclusion of Income tax paid Change in working Acquisition of Acquisition of Proceeds Interest paid Other Cash as at 31 Dec 2019 income tax income and costs capital propert

  55. Slide 55: Net debt of the KGHM Group

    Net debt of the KGHM Group As at the end of Q3 2020 Net debt / adjusted EBITDA Main factors affecting interest-bearing debt in the first 9 months of 2020 1.8 (Increases in debt) 1.5 1.4  Cash expenditures on property, plant and equipment (PLN 2 487 mn)  The minerals extraction tax (PLN 1 120 mn) 3

  56. Slide 56: Advancement of the KGHM Group's strategy

    Advancement of the KGHM Group’s strategy

  57. Slide 57: 4 strategic directions for KGHM's development

    4 strategic Pokłady directions for KGHM’s development możliwości The review of the Strategy of KGHM Polska Miedź S.A. for 2019-2023 # 4E ELASTICITY, EFFICIENCY FLEXIBILITY ECOLOGY, SAFETY AND SUSTAINABLE E-INDUSTRY DEVELOPMENT 57

  58. Slide 58: Strategic priorities

    Strategicmożliwości Pokłady priorities #1 Higher #2 Energy #3 International assets 2.0 #4 Long-term production independence financial strategy #5 Ecosystem #6 Technologies #7 New quality innovation of the future Safety and for KGHM development 58

  59. Slide 59: Strategy in practice: key operating initiatives (1)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (1) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Maintenance of cost-effective domestic and foreign production Level of production in Poland of Average yearly Yearly average of daily ore mined Cu in ore with an annual C1

  60. Slide 60: Strategy in practice: key operating initiatives (2)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (2) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Increase the efficiency of the KGHM Group through innovation Increase expenditures on Ensure that all of the innovation Level of funds for R&D and innovation and R&D work p

  61. Slide 61: Strategy in practice: key operating initiatives (3)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (3) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Implementation of systemic solutions aimed at increasing Ensure financial stability of Increase in the efficiency of Minimum level of achievement the KGHM Group’s the Polis

  62. Slide 62: Consistent advancement of the strategy

    Consistent advancement of the strategy Key areas – 4E  Rational management of the Company’s resources Adaptation of the operating  Optimisation of metallurgical production Elasticity/ model for the KGHM Group  Exploration projects in Poland Flexibility to market conditions  Optimisation of the i

  63. Slide 63: A consistent and responsible investment program

    A consistent and responsible investment program Capital expenditures by KGHM Polska Miedź S.A. for the first 9 months of 2020 CAPEX execution in 9M 2020 by area by category Mining (66%) Replacement (33%) Metallurgy (30%) Maintaining mine production (34%) Other activities (1%) Mine development (33%)

  64. Slide 64: Selected development projects

    Selected development projects CAPEX execution for the first 9 months of 2020 PLN 328 mn PLN 8.6 mn PLN 14.2 mn Deposit Access Program KGHM 4.0 Program Exploration projects  30.1 km of tunneling were excavated  CRM system implemented – system handed over for – in the following concessions:  The GG

  65. Slide 65: Energy Development Program, including RES

    Energy Development Program, including RES Activities in 9M 2020 Development of renewable Energy sources Optimisation and development of conventional sources  A contractor was selected for the project „Design for a PV power plant together with obtaining a construction permit” for the Obora Sandpit a

  66. Slide 66: The first photovoltaic power plants projects

    Pokłady The first możliwości photovoltaic power plants projects PVPP Piaskownia Obora Installed power 8 MW Projected avoided emissions Estimated production 8.5 GWh over 25 years:  CO2 more than 80 kt  SOx more than 70 tonnes  NOx more than 70 tonnes  CO more than 30 tonnes  PM more than 4 tonne

  67. Slide 67: Supporting slides

    * ‘= ae OR a Le ‘ep Te yt oS ae - ae Nat a ; Ls % ‘56 ene * r ae any Ser te gs i ok GHM ¢ Polska HLeD es F Son ge Se DRS ge . ar 52 sapperting slides

  68. Slide 68: Reasons to invest in KGHM

    Reasons to invest in KGHM A leading player on the copper A reliable producer, and silver market in terms of mine A diversified portfolio of assets at a trusted business partner output and size of documented various stages of development to and a company committed to resources, in mining-friendly gua

  69. Slide 69: Transparent Group structure

    Transparent Group structure General Shareholders Meeting Supervisory Board Management Board KGHM Polska Miedź S.A. (Lubin, Poland) (Listed on Warsaw Stock Exchange since 1997) KGHM International Ltd. Production Development Group of subsidiaries (Vancouver, Canada) Development divisions projects Oper

  70. Slide 70: Committed to solid corporate governance

    Committed to solid corporate governance Independent directors on the board KGHM’s Corporate Governance is guided by international standards and follows best practices:  All members of KGHM’s Supervisory Board are appointed by 2 Independent Directors the General Shareholders Meeting Other Directors

  71. Slide 71: Shareholder structure of KGHM Polska Miedź S.A.

    Shareholder structure of KGHM Polska Miedź S.A. Ownership structure Geographical ownership structure [% of shares] No. of Percentage Share in Shareholder shares/ of share total number votes capital of votes Rest of the Americas Polish State Treasury 63,589,900 31.79% 31.79% 0.4% Nationale-Nederlande

  72. Slide 72: Share price performance

    Share price performance Basic quotes Strong correlation with copper and silver KGHM [change in %] Cu 210% Ag 200% WSE debut 10th July 1997 190% 180% 75 GPW ticker KGH 170% 160% 50 150% Bloomberg/Reuters ticker KGH PW / KGH.WA 140% 130% 25 Share price [PLN] 136.25 120% 110% 0 100% Capitalization [bn

  73. Slide 73: Market risk management: copper hedged position

    Market risk management Hedged position on the copper market (as at 30 September 2020) Copper Hedged position – as at 30 June 2020 At the end of Q3 2020 KGHM Polska Miedź S.A. [tonnes] Hedged position implemented in Q3 2020 Open position as at 30 June 2020 and restructured in Q3 2020 recorded a resul

  74. Slide 74: Market risk management: silver, currency and interest rate

    Market risk management Hedged positions on the silver, currency and interest rate markets (as at 30 September 2020) Silver Hedged position – as at 30 June 2020 In Q3 2020 part of a hedged position on the [ounces] Hedged position implemented in Q3 2020 currency market was restructured:  Seagull stru

  75. Slide 75: Role of Deep Głogów (GGP) in maintaining output in Poland

    Role of Deep Głogów (GGP) in maintaining output in Poland Deposit access program in KGHM’s concessioned areas Share of production from GGP in total production Existing concessions in Poland and potential areas Ore extraction dry weight from GGP [kt] +11% Q3/Q2 -4% 9M/9M 2 306 2 211 714 801 Mining ar

  76. Slide 76: CO2 emissions by KGHM Polska Miedź S.A.

    CO2 emissions by KGHM Polska Miedź S.A. ETS1) direct emissions + nonETS [kt CO2] 2 000 Scope 1 emissions [kt CO2e] 1 800 1 600 1 692 1 678 1 539 1 532 1 521 1 519 1 508 1 400 1 492 1 489 1 482 1 481 1 476 1 470 1 466 1 407 1 200 1 000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 20

  77. Slide 77: Thank you

    Follow us on Thank you social media: Investor Relations Departament kghm.com/en/investors ir@kghm.com and esg@kghm.com +48 76 74 78 280

KGHM Polska Miedź — Investor Presentation (November 2020) on 6ix