KGHM Polska Miedz reports solid 2Q25 EBITDA, beats expectations

Published 20/08/2025, 10:18
KGHM Polska Miedz reports solid 2Q25 EBITDA, beats expectations

Investing.com -- Polish copper producer KGHM Polska Miedz SA delivered better-than-expected second-quarter results, with adjusted EBITDA of PLN2.37 billion exceeding analyst estimates by 7%.

The strong performance was primarily driven by solid results from the company’s Sierra Gorda operations and KGHM International’s Robinson mine, while the KGHM Polska division performed in line with consensus expectations.

Despite the EBITDA beat, net profit came in at PLN249 million, falling below market expectations due to foreign exchange translation effects, higher depreciation and amortization costs, and increased income taxes.

The company reported second-quarter net debt of PLN5.3 billion, which was 4% above consensus estimates, largely attributed to PLN620 million in working capital outflows.

KGHM’s group C1 cash costs, which include the Minerals Extraction Tax, reached US$2.61 per pound, showing a slight decrease quarter-over-quarter and coming in 2% below analyst estimates.

At the divisional level, Sierra Gorda and KGHM International demonstrated significant cost improvements, with C1 costs dropping 9-10% quarter-over-quarter to US$1.07 per pound and US$0.93 per pound respectively. Both international operations now rank in the first quartile of the global cost curve.

The cost reductions at international assets helped offset stable costs at KGHM Polska, which reported C1 costs of US$3.16 per pound for the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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