KGHM July copper output 59,900 tonnes, -2.4% y/y

KGHM July copper output 59,900 tonnes, -2.4% y/y

KGHM Polska Miedz SA, a major mining and smelting company, reported its financial results for the second quarter of 2025, highlighting a slight revenue increase but a significant drop in net profit. The company's stock saw a minor decrease of 0.38% following the announcement, reflecting investor caution amid mixed financial signals.

Key Takeaways:
- Group revenues rose by 0.4% year-on-year.
- EBITDA increased by 16% compared to last year.
- Net profit fell sharply by 46%.

Copper production exceeded budget, while silver production declined. Copper prices stood at $9,431 per ton in the first half of 2025, and silver prices were $32 per ounce, up from $26 last year.

KGHM's performance in Q2 2025 was marked by a modest increase in group revenues, reaching PLN 14.86 billion, despite facing challenges from fluctuating copper prices and exchange rates. The company managed to boost its EBITDA by 16%, indicating improved operational efficiency. However, net profit suffered a 46% decline, highlighting the impact of external market conditions and increased costs.

The company maintains a strong financial position with a healthy current ratio of 3.0 and an Altman Z-Score of 8.27, indicating robust financial stability. InvestingPro rates KGHM’s overall financial health as "GOOD" based on comprehensive analysis of multiple financial indicators.

Looking forward, KGHM remains focused on optimizing its international assets and controlling costs. The company plans to continue investing in shaft development projects and technological improvements, with an optimistic outlook for improved production in the second half of 2025.

July Copper Output:
KGHM's copper output for July 2025 was 59,900 tonnes, a decline of 2.4% year-on-year. This decrease in copper production was likely influenced by the company's efforts to optimize its international assets and control costs, as well as the impact of fluctuating copper prices.

Outlook:
Analysts project EPS of $0.31 for FY2025, and the next earnings report is due on October 13. Investors can access detailed analysis and forecasts through KGHM’s comprehensive Pro Research Report, available exclusively on InvestingPro.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-kghm-q2-2025-shows-revenue-growth-amid-profit-dip-93CH-4201980