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Polish miner KGHM reports record quarterly results in a decade

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(Kitco News) - Polish mining company KGHM, one of the world’s largest producers of copper, reported today that in Q1 2021, the company achieved the best operating and financial results in nearly a decade.

The company said that it had increased copper production by 6.6% in Q1 2021 versus Q1 2020, with production in the first quarter of 186 thousand tonnes. The increase in copper output was due to the greater availability of feed material and improved availability of production lines, as well as higher recoveries and better ore quality.

The company added it has achieved its highest quarterly consolidated EBITDA margin to date, at 34 percent. The company’s consolidated adjusted EBITDA for the first quarter amounted to PLN 2,608 million (~$692 million), or an increase of 2.3x compared to Q1 2020.

This substantial improvement in EBITDA enabled the KGHM Group to record a profit for the period which was PLN 675 million (~$179 million) or +98% higher than that achieved in Q1 2020 and closed the quarter in the amount of PLN 1,365 million (~$362 million). Such a level of quarterly net profit is the highest since the acquisition of the international assets, KGHM noted.

KGHM has located its facilities on three continents – Europe, the North and South America. With its control of over 38 million tonnes of coper ore resources worldwide, KGHM is recognised as one of a global mining industry leaders. The company’s portfolio also includes new metals like molybdenum, palladium and nickel, which helped KGHM to join the international community of multi-resource companies.

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