KGHM profit in Q2 lower than in I, but the results above the consensus

The corrected EBITDA of the KGHM Group in the second quarter of 2025 PLN 2,374 million against PLN 2,489 million in the first quarter – the company said in the report. The result turned out to be about 6 percent. higher than the PAP's consensus, which assumed PLN 2,235 million of corrected EBITDA.

Market expectations for the corrected EBITDA result range from PLN 2,124 million to PLN 2,319 million.

The revenues of the KGHM Group amounted to PLN 8.614 billion against PLN 8.655 billion expected by the market.

The consolidated net profit of KGHM amounted to PLN 250 million in the second quarter against PLN 330 million in the first quarter of this year.

The unit corrected EBITDA profit of KGHM Polska Miedź in the second quarter amounted to PLN 1.178 billion against PLN 1.253 billion in the first quarter of 2025. The company's revenues amounted to PLN 7,323 million.

Corrected EBITDA Sierra Gorda profit in the second quarter – in proportion to 55 percent. Shares in KGHM – amounted to PLN 630 million against PLN 672 million earlier. The company's revenues amounted to PLN 988 million.

KGHM International generated PLN 448 million in the second quarter of corrected EBITDA profit against PLN 462 million in the first quarter of 2025. The company's revenues amounted to PLN 817 million.

The group of KGHM had PLN 17.556 billion in revenues after the first half of 2025, which means an increase of 0.4 percent. rdr. The corrected EBITDA increased by 15.6 percent. yard up to PLN 4.863 billion. Net profit attributed to shareholders of the dominant unit amounted to PLN 579 million against PLN 1,073 million a year earlier.

According to the company in a press release, the main factor determining the increase in the revenues of the KGHM group in the first half of the year was a diversified sales structure, resulting in, among others Halling high volumes at a higher price than a market price, as well as a change in basic products and levels of completed bonuses. The contracting policy and the course risk management process used in response to macroeconomic and market conditions were also significant.

At the end of the first half -year, the net debt level to the corrected EBITDA was 0.79x in the KGHM group against 0.81x at the end of December 2024.

Net cash flows from operating activities in the first half of the year amounted to PLN 1,818 million against PLN 3,028 million a year earlier, and in the second quarter they reached PLN 415 million.

The state of cash and their equivalents at the end of June was PLN 430 million against PLN 2,441 million a year earlier.

The cost of C1 (unit cash production cost of paid copper) for the KGHM group amounted to 2.61 USD/pound in the first half of 2025 and was lower than 5 percent made in the corresponding last year.

The C1 cost indicator in KGHM Polska Miedź was 3.15 USD/LB in the first half of 2025, compared to USD 3.00/LB in the same period of the previous year. According to the company, the increase in the C1 cost in KGHM Polska Miedź is mainly due to the higher tax on mining (the share of mining tax in the C1 cost in the first half of 2025 is $ 1.21/pound) and strengthening of the zloty relative to the US dollar.

In KGHM International C1 amounted to 0.99 USD/pound ($ 1.87/pound a year ago), and in Sierra Gorda $ 1.12 USD/pound ($ 1.89/pound in the first half of 2024).

In the first half of 2025, the investment outlays of the KGHM group amounted to PLN 1.5 billion and were 4 percent. lower compared to the same period a year earlier. As stated, expenses in the area of mining reached the level of PLN 1.2 billion and covered, among others Program sharing of the deposit (PLN 418 million), replacement of the machine park (PLN 243 million), armament of mining regions (PLN 222 million), drainage of mines (PLN 121 million), as well as the expansion of the Żelazny Bridge (PLN 63 million). In half of the year, the company made over 21 km of mining excavations.

Investments in the metallurgy area reached PLN 190 million.

KGHM plans to allocate PLN 3.8 billion for investments in 2025 (PAP Biznes)

Pel/ Ana/