Polish copper producer KGHM Polska Miedź S.A. reported a 40% year-on-year revenue increase to 12.84 billion zloty in the first half of 2026, narrowly beating analyst expectations of 12.81 billion zloty. The company's earnings per share came in at 10.25, missing the 11.61 forecast by 11.7%.
EBITDA nearly doubled year-on-year, while net profit surged tenfold. Operating margin widened to 34% from 25% a year earlier, and operating cash flow exceeded 2.5 billion zloty. Global cash flow after investments reached 774 million zloty. Development capital expenditure totaled 1.439 billion zloty in the six-month period, while the company achieved 300 million zloty of its 1 billion zloty cost-saving target by 2028.
Debt levels declined across the group, with a debt-to-equity ratio of 1.17 and a current ratio of 2.26. Shares fell 3.95% to $334.25, extending a decline from the previous close of $348. The 52-week range stands at $127.25 to $396.40, with a dividend yield of 4.96% and a P/E ratio of 33.83.
Production metrics showed a 20% year-on-year increase in paid copper output and an 8% rise in silver production. At the Sierra Gorda mine in Chile, cash flow exceeded $270 million, though payable copper volumes declined 5% year-on-year to 19.6 thousand tons due to Q1 2026 torrential rains. Silver output rose 38% to 14.9 tons, while gold production fell 37% to 9.3 thousand ounces. Molybdenum output increased 6% to 11.8 million pounds.
KGHM and partner South32 committed $725 million to construct a fourth production line at Sierra Gorda, targeting a 20% increase in metal production. Full operation is expected in the second half of 2030, with KGHM assuming chairmanship of the mine's supervisory board from January 1, 2027. KGHM retains a 50% ownership stake.
The Robinson mine in the U.S. generated EBITDA of more than 780 million zloty in H1 2026, nearly double budgeted levels. Operational challenges included ore quality transitions at the Liberty pit and equipment failures, though repairs were implemented. The Głogów II smelter in Poland is accelerating a 670 million zloty refurbishment, with first concentrate loading now targeted for September 17, 2026, nine days ahead of schedule.
CEO Remigiusz Paszkiewicz highlighted the company's financial improvement, noting revenue growth, EBITDA expansion, debt reduction and strengthened cash flows. He emphasized operational efficiency and innovation as key priorities alongside maintaining strong dividend prospects.
