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KGHM Group financial growth and expansion strategy

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2026-08-28 11:47 UTC → 2026-09-08 20:22 UTC · added ~~removed~~

KGHM Group reported strong financial performance for the first half of 2026, with revenues increasing 41% to 24.7 billion PLN and consolidated EBITDA rising 89% to nearly 9.2 billion PLN. Net profit reached 5.58 billion PLN, driven by high sales volumes, favorable copper and silver prices, and effective risk management. Production remained stable, with copper output up 2% and silver up 8%, while group debt decreased by 0.7 billion PLN. To support its expansion strategy, the company is accelerating exploration. In Poland, drilling operations are set to increase from four last year to approximately 10 this year, specifically targeting the Bytom Odrzański and Kulów–Luboszyce concessions. Internationally, KGHM is intensifying work at the Catabela Northeast project in Chile to better estimate resource quality. Strategic investments include the decision to build a fourth grinding line at the Sierra Gorda mine in Chile, expected to be operational by 2030. Recent developments at the Sierra Gorda joint venture include a 61% increase in copper and molybdenum reserve estimates. To further this development, KGHM is preparing to invest $725 million starting in July 2026 to increase processing capacity from 48 million to 60 million tons of ore annually. In September 2026, KGHM signed a letter of intent with BHP World Exploration Inc. to establish a framework for global copper market cooperation. This partnership focuses on technological exchange, engineering knowledge sharing, and the optimization of production processes, including automation and safety standards. The agreement builds upon existing cooperation in South America. KGHM is also pursuing mergers and acquisitions (M&A) with a focus on legal stability. The company is currently in a confidential process to acquire an asset under exclusivity and is monitoring markets for lithium and titanium. Geographic interests for potential acquisitions include South America, North America, and North Africa, alongside prioritizing deposit exploration in Ukraine. In Poland, infrastructure projects are advancing, notably the GG-1 shaft, which is transitioning to permanent equipment installation, including a 40 MW air conditioning station. Additionally, subsidiary Nitroerg is investing approximately 300 million PLN in Krupski Młyn to build a production line for pentryt and hexogen, marking a strategic move toward the defense and military markets.

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