Copper miner KGHM boosts net income fourfold in 9M 2021 on strong production and higher commodity prices

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(Kitco News) - Polish mining giant KGHM, one of the world's largest producers of copper, announced today that payable copper production by the KGHM Group in the first 3 quarters of 2021 was higher by 10.1% (9M/9M) and amounted to 574 thousand tonnes.

KGHM said that its mined production in Poland in the first three quarters of 2021 amounted to 335.8 thousand tonnes of copper in ore. Ore extraction (dry weight) was also higher compared to the first 9 months of 2020.

According to the company's statement, KGHM recorded an increase in adjusted EBITDA of PLN 3 312 million compared to the first 9 months of 2020. This was mainly due to KGHM Polska Mied?? S.A. (+PLN 1 220 million) and Sierra Gorda (+PLN 1 458 million, nearly 3x higher).

Amongst the factors contributing to this result were more favourable metals prices and a lower cost of goods sold, KGHM added.

The company also reported that it has increased its net profit compared to the first 9 months of 2020 by PLN 3 590 million (4.1x) mainly due to a better net result on sales by PLN 1 765 million and a higher result on involvement in joint ventures by PLN 1 899 million.

"The continuing good conditions on the metals market led to an increase in revenues recorded by the KGHM Group compared to the corresponding prior-year period by more than PLN 5 billion. During the year copper and silver prices rose (respectively by 57% and 34%). Gold prices were also higher (by +4%)," the company said in a press-release.

KGHM's mines and processing facilities located on three continents - Europe, the North and South America. With its control of over 38 million tonnes of coper ore resources worldwide, KGHM is recognized as one of a global mining industry leaders. The company's portfolio also includes new metals like molybdenum, palladium and nickel, which helped KGHM to join the international community of multi-resource companies.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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