Polish copper producer KGHM Polska Miedź reported a ninefold increase in first-half profit as a rally in copper prices boosted revenues and margins despite a stronger Polish złoty. The company’s net profit for the six months ended June 30 reached PLN 5.58 billion, up 860% from PLN 580 million in the same period of 2025, according to slides presented on Thursday.
Adjusted EBITDA climbed 89% to PLN 9.20 billion, while total revenues rose 41% to PLN 24.71 billion. Earnings per share, however, missed expectations, with reported EPS of 10.25 zloty compared with a forecast of 11.61 zloty, a gap of 11.7%. The company’s shares fell 3.95% to 333.65 zloty following the release.
The surge in profitability was driven by a 39% year-over-year increase in average copper prices, which averaged USD 13,083 per tonne in the first half of 2026, compared with USD 9,431 per tonne a year earlier. In złoty terms, copper prices rose 30% to PLN 47,585 per tonne. Silver prices also surged, reaching USD 78.83 per thousand ounces, more than double the year-ago level.
Revenue growth was partially offset by a 6% appreciation of the Polish złoty against the dollar, which reduced reported figures by PLN 1.02 billion. Derivative adjustments further trimmed revenues by PLN 948 million, while sales volume changes had a negligible impact.
Operating costs rose 21% to PLN 18.65 billion, including PLN 1.42 billion in depreciation and amortization. Total expenses increased 31% to PLN 22.28 billion, with purchased metal-bearing materials and a higher minerals extraction tax contributing to the rise. The company’s C1 cash costs fell 19% to USD 2.11 per pound, reflecting efficiency gains under its cost optimization program.
Production volumes remained relatively stable, with total payable copper output increasing 2% to 351,000 tonnes. KGHM Polska Miedź’s domestic operations saw copper production rise 7% to 291,500 tonnes, while silver output climbed 7.8% to 697 tonnes. Overseas operations at Sierra Gorda and KGHM International reported mixed results, with declines in some segments following asset disposals and operational challenges.
Capital expenditures totaled PLN 1.44 billion in the first half, with 87% allocated to mining activities. The company maintained its 2026 CAPEX target at PLN 4.10 billion, including funding for the Sierra Gorda expansion project, a USD 725 million initiative aimed at boosting annual payable metal output by roughly 20% upon completion in the second half of 2030.
