Polish state-run copper producer KGHM on Thursday reported an 80% year-on-year rise in third-quarter net profit, driven by the strong performance of its Chilean Sierra Gorda mine and higher precious metal prices.
KGHM is one of the world’s largest copper and silver producers. Its earnings are highly sensitive to global commodity prices, making it a barometer for global industrial demand.
The Sierra Gorda mine in Chile, a joint venture with Australian miner South32, has become one of the main engines of KGHM’s profit growth.
The mine’s adjusted core profit for the first nine months surged 60% year-on-year to $970 million, fuelled by higher production volumes of copper and molybdenum, and higher metal prices, the company said.
Looking ahead, KGHM’s cost base is expected to fall after the Polish government announced in May that it would cut the country’s copper mining tax, which is paid solely by the company, from 2026, in a move expected to boost the miner’s future profitability.
The company posted third quarter net profit of 433 million zlotys ($119.07 million), missing a 663 million zlotys forecast seen in a Reuters poll. Its revenue was at 8.32 billion zlotys, compared to a forecast of 8.46 billion zlotys.
($1 = 3.6365 zlotys)
(By Alicja Surdy; Editing by Matt Scuffham)
