KGHM Polska Miedź S.A., one of the leading global producers of copper and silver, announced impressive financial results for the first half of 2024. Despite challenging market conditions, the company achieved significant growth in both profits and operational efficiency, while simultaneously reducing production costs. These results are a consequence of the new approach adopted by the management, which is working intensively on updating the company’s strategy.
Efficient Management and Cost Reduction
In the first half of 2024, KGHM Polska Miedź S.A. reduced its total costs by 6% compared to the same period of the previous year. These costs fell to PLN 16,394 million, representing a decrease of PLN 977 million compared to 2023. One of the key cost-efficiency indicators in the mining industry, the C1 indicator, also significantly improved, dropping to $2.76/lb from $2.95/lb in the first half of 2023. The indicator for the second quarter alone was $2.71/lb, further emphasizing the company’s operational efficiency.
Significant Increase in Net Profit and EBITDA
The financial results of KGHM for the first half of 2024 are impressive. The company’s net profit increased more than 2.7 times, reaching PLN 1,074 million, compared to PLN 401 million in the corresponding period of the previous year. The Group’s adjusted EBITDA amounted to PLN 4,208 million, which represents a year-on-year increase of 35.4%. Such a significant improvement in results is due to effective cost management and increased production efficiency.
Continuation of Key Investments
KGHM continues to implement key investments, including projects related to the equipping of mining areas, modernization of infrastructure, and development of technology. Among the most important projects are the construction of belt conveyors, modernization of air conditioning systems, restoration of mining machines, construction of mine drainage systems, and modernization of the “Legnica” electrolytic refining system. The company is also constantly working on the Deposit Access Program and exploring new deposits in exploration concession areas.
Future Plans and Development Strategy
The management of KGHM is intensively working on updating the company’s strategy, which aims to further improve operational efficiency and strengthen its position in international markets. The company’s financial situation and capital needs are also being analyzed to ensure adequate financing in the face of changing market conditions. In the coming months, KGHM plans to complete work on the strategy that will bring further improvements and strengthen the company’s position in the global market.
Source: https://managerplus.pl/kghm-na-dobrej-drodze-mniej-wydatkow-wiecej-zyskow-81069
