KGHM Copper Production Fell in 2025 Despite Stronger Earnings

KGHM

KGHM copper production declined in 2025 after planned maintenance at the Glogow II smelter and refinery in Poland and the first-quarter sale of the McCreedy West mine in Canada. The group’s full-year payable copper output fell 3% on the year to 710,000t.

KGHM copper production was also affected by weaker performance at its North American assets. KGHM International produced 52,200t of payable copper in 2025, down 14% from the previous year, because of the McCreedy West sale, lower recovery rates, and lower copper content in feed.

The weaker KGHM copper production result was partly offset by stronger output from the Sierra Gorda mine in Chile. Payable copper attributable to KGHM’s 55% stake in Sierra Gorda rose 8% on the year to 86,800t, supported by higher copper grades and better recovery rates.

Polish Smelter Maintenance Weighed on Copper Output

KGHM’s Polish operations remained the group’s core production base in 2025. Electrolytic copper production from Polish assets fell 3% on the year to 570,900t because of planned maintenance at Glogow II.

Fourth-quarter electrolytic copper output in Poland rose 1.6% on the year to 149,000t, showing some recovery after maintenance-related disruption. Copper in concentrate from Polish assets totalled 401,100t for the full year, broadly flat compared with 2024.

The results show that KGHM’s Polish copper chain remains operationally stable, but smelter and refinery availability can still influence annual payable production. For European copper supply, this matters because domestic smelting and refining capacity is becoming increasingly strategic as concentrate markets tighten.

Sierra Gorda and Higher Prices Supported Financial Performance

Sierra Gorda delivered a stronger result in 2025 and helped offset weakness elsewhere in the portfolio. KGHM’s attributable copper output from the Chilean mine rose because of better ore grades and recovery rates, while fourth-quarter output increased 6% on the year to 21,900t.

The mine also strengthened KGHM’s by-product profile. Sierra Gorda produced 5mn lb, or 2.27mn kg, of molybdenum in 2025, up 53% from the previous year.

Despite lower copper production, KGHM’s financial performance improved. Group net profit rose 28% on the year to 3.7bn zlotys, while EBITDA increased 22% to 10.3bn zlotys. Stronger copper prices helped support earnings, with the three-month LME copper contract averaging $9,965/t in 2025, up 7% from the previous year.

The Metalnomist Commentary

KGHM’s 2025 results show that copper producers can still improve earnings even when output falls, if prices and asset mix move in their favour. The stronger Sierra Gorda contribution also underlines the value of higher-grade, internationally diversified copper assets.

KGHM Copper Output Rises 3% in 2024 on Strong Overseas Performance

KGHM Copper

Growth Driven by Robinson Mine and Sierra Gorda

Polish mining giant KGHM increased its payable copper output by 3% in 2024, totaling 730,000 tonnes, thanks to stronger production outside Europe. The growth was primarily driven by the Robinson mine in the United States and the Sierra Gorda mine in Chile, both delivering year-on-year improvements. KGHM International, which manages these assets along with operations in Canada, posted a 52% surge in output, reaching 60,500 tonnes.

Meanwhile, Sierra Gorda, 55% owned by KGHM, recorded a 2% increase in copper production, delivering 80,500 tonnes of payable copper in 2024. This marked a strong year for KGHM’s international portfolio, even as domestic operations slightly contracted.

European Output Contracts, but Concentrate Production Improves

While overall copper output increased, European production fell by 0.5%, totaling 589,000 tonnes. KGHM’s Polish operations, which form the core of its European business, experienced minor setbacks in output volumes. However, the company achieved a 1.2% increase in copper in concentrate, totaling 400,100 tonnes, indicating steady upstream performance.

Despite this, KGHM’s molybdenum output declined by 6% year-on-year, reaching 3.4 million pounds. The drop was due to lower metal content and recovery at the Sierra Gorda mine, a key site for molybdenum production.

Strategic Focus on Global Expansion

KGHM's international growth strategy is paying dividends, especially amid fluctuating European output. By leveraging higher-yield assets in the Americas, the company has managed to maintain its upward momentum. This diversification provides a buffer against regional challenges while supporting the firm’s long-term resource strategy.

The Metalnomist Commentary

KGHM's copper growth underscores the importance of global diversification in the mining sector. As Europe grapples with production limits and resource constraints, overseas assets will remain vital for future growth and resilience.

KGHM Copper Production Falls 6% in Q1 Despite Strong Pricing Environment

KGHM

KGHM copper production declined 6% year-over-year to 169,000 tonnes in the first quarter as planned maintenance shutdowns and asset divestments offset operational improvements. The Polish copper producer faced reduced output from planned maintenance at its Glogow II smelter and the February sale of Canada's McCreedy West mine. However, KGHM copper production remained aligned with company budget targets while benefiting from stronger copper prices and diversified sales strategies across global markets.

Polish Operations Maintain Stability Amid Planned Maintenance Activities

KGHM's Polish assets delivered consistent performance with 99,400 tonnes of copper concentrate production and 134,000 tonnes of electrolytic copper output during the quarter. These production levels met company targets despite the scheduled maintenance shutdown at the Glogow II smelter facility. Meanwhile, the company's Polish operations continue serving as the backbone of overall production capacity and revenue generation.

The planned maintenance activities demonstrated KGHM's commitment to operational excellence and long-term asset sustainability. These scheduled shutdowns ensure optimal equipment performance and safety standards across the Polish mining complex. Therefore, the temporary production impact reflects strategic maintenance planning rather than operational challenges or market-driven constraints.

International Assets Show Mixed Performance Across Geographic Regions

Sierra Gorda mine in Chile delivered exceptional performance with 20,800 tonnes of copper production, representing a 22% increase from the previous year. KGHM holds a 55% ownership stake in this strategic Chilean asset, which benefited from higher ore grades and improved recovery rates. As a result, Sierra Gorda's strong performance partially offset production declines from other international operations.

KGHM International assets in North America experienced contrasting results, with production falling 10% to 14,400 tonnes due to strategic portfolio changes. The February sale of Canada's McCreedy West mine removed production capacity while lower recovery rates at the US Robinson mine further reduced output. However, these international operations remain important components of KGHM's geographic diversification strategy.

Revenue performance demonstrated resilience despite lower production volumes, rising 8% to 8.9 billion zlotys ($2.35 billion) through the quarter. The three-month LME copper contract averaged $9,411 per tonne, significantly higher than the $8,537 per tonne recorded in the previous year. Consequently, strong copper pricing compensated for production declines while supporting overall financial performance and investment capacity.

The Metalnomist Commentary

KGHM's Q1 results highlight the copper industry's current dynamics where strong pricing environments can offset temporary production challenges from maintenance and portfolio optimization. The company's planned 3.8 billion zloty investment program for 2025, focusing on underground development and shaft sinking, positions KGHM for long-term growth despite near-term production volatility from operational and strategic factors.

Poland’s KGHM targets higher copper output in 2026 as tax cuts lift incentives

KGHM

Poland’s KGHM targets higher copper output in 2026 after Poland lowers its copper extraction tax. Poland’s KGHM targets higher copper output in 2026 despite planned maintenance shutdowns. Therefore, KGHM is positioning to capture stronger margins during a supportive fiscal window.

KGHM plans to produce 395,900 tonnes of copper concentrate from domestic operations in 2026. The company also targets 589,000 tonnes of electrolytic copper next year. Meanwhile, those targets imply modest growth of 0.9% and 3.9% respectively.

Tax reduction supports output and spending plans

Poland will cut the copper extraction tax rate from 1 January. The finance minister said the change will reduce tax receipts by 500mn zlotys in 2026. As a result, KGHM gains more flexibility to fund operations and reinvest in core assets.

KGHM also plans 4.1bn zlotys in 2026 capital expenditure at Polish sites. That figure rises from 3.8bn zlotys this year. Therefore, the company is pairing tax relief with higher infrastructure spending.

Maintenance risk and Chile exposure shape the 2026 mix

KGHM will run maintenance shutdowns at the Glogow II facility in the second half of 2026. The company will also shut the reverberatory furnace at its Legnica site. However, planned outages can pressure output timing and increase unit costs.

Poland’s KGHM targets higher copper output in 2026 even as its Sierra Gorda joint venture outlook softens. KGHM expects 51,000 tonnes of payable copper from Sierra Gorda next year. Meanwhile, molybdenum output is expected to fall to 952 tonnes due to lower-grade ore.

The Metalnomist Commentary

This plan reads like a disciplined response to a clear fiscal signal. However, execution will hinge on outage management and concentrate flows. If copper prices stay firm, KGHM’s capex push could compound the tax benefit.

South32 Maintains 2024-25 Production Guidance, Excluding Mozal Aluminium

South32

Diversified Miner Reports Stable Output Across Key Assets

South32 has reaffirmed its 2024-25 production guidance for most of its operations, excluding Mozal Aluminium in Mozambique due to transportation disruptions from civil unrest. The Australian-based miner continues to ramp up production across its aluminium, copper, nickel, zinc, and manganese operations despite regional challenges.

Mozal Aluminium Faces Uncertainty Amid Civil Unrest

South32’s Mozal Aluminium smelter produced 90,000 tonnes of aluminium in Q4 2024, marking a 2.3% increase from the previous quarter. However, ongoing violent protests in Mozambique have led to the withdrawal of production guidance. While production and exports remain operational, raw material transportation remains disrupted.

Aluminium and Alumina Production Remains Strong

• Brazil Aluminium (40% South32 ownership): Q4 2024 output increased 13% quarter-over-quarter to 34,000 tonnes. Production guidance remains 130,000 t/yr.
• Hillside Aluminium (South Africa, 100% ownership): Production remained steady at 182,000 tonnes, with guidance unchanged at 720,000 t/yr.
• Brazil Alumina (36% South32 ownership): Q4 2024 production rose 4.2% to 348,000 tonnes, with guidance steady at 1.35 million t/yr.
• Worsley Alumina (Western Australia, 86% ownership): Production surged 18% to 1 million tonnes after maintenance, with 2024-25 guidance at 3.75 million t/yr.

Copper, Zinc, Nickel, and Manganese Performance

• Sierra Gorda Copper Mine (Chile, 45% ownership): Payable copper production rose 10% to 24,300 tonnes due to higher grades and improved molybdenum recovery. Guidance remains 84,800 t/yr.
• Cannington Zinc Mine (Australia, 100% ownership): Zinc output surged 50% to 79,200 tonnes, driven by higher plant throughput and improved silver and lead grades. Guidance holds at 265,400 t/yr.
• Cerro Matoso Nickel Mine (Colombia, 99.9% ownership): Nickel production rose 15% to 9,900 tonnes with improved plant utilization. Guidance remains 35,000 t/yr.
• Gemco Manganese Mine (Australia, 60% ownership): Production resumed after Cyclone Megan, reaching 639,000 tonnes.
• Hotazel Manganese Mine (South Africa, 54.6% ownership): Output declined 19% to 485,000 tonnes due to a temporary shutdown at Wessels mine.

Green Aluminium Incentives and Industry Outlook

The Australian government has pledged A$2 billion in production credits to support aluminium producers transitioning to renewable energy by 2036. The Green Aluminium Production Credit will be available from 2028-29 for up to 10 years, though specific details remain undisclosed.

South32’s production stability, despite regional disruptions, positions it strongly within the evolving global metals market.