Payable copper production KGHM Polska Miedź [kt]
Greater output from own and purchased copper-bearing materials as a result of an improved core production line availability.
Performance summary
Table of contents
33,847
PLN million
Consolidated revenue
4,118
PLN million
Investments in the Group1
5.05
LTIFR [Polish assets2]
+
14
%
Increase in revenue to PLN 33,847 million
-
14
%
EBITDA at PLN 8,865 million
+
12
%
C1 cost
1 Expenses on mining and metallurgical assets, capital investments pertaining to Polish and foreign assets
2 LTIFR (Lost Time Injury Frequency Rate) – rate of accidents at work in KGHM Polska Miedź S.A. standardized to 1 million hours worked
Production data
Payable copper production [kt]
Payable copper production Sierra Gorda [kt]
Mining of ore with a lower copper content and smaller yield.
Payable copper production KGHM INTERNATIONAL LTD. [kt]
Lower output at the Robinson mine and divestment of the Franke mine in H1 2022.
Silver production [t]
Lower output of silver by KGHM Polska Miedź S.A.
TPM production [koz t]
Lower output at the Robinson mine and divestment of the Franke mine in H1 2022.
Molybdenum production [mn lbs]
Lower output of molybdenum by Sierra Gorda (mining of ore with a lower molybdenum content and smaller yield) and the Robinson mine (mining of ore with a lower molybdenum content)
Group’s production and sales performance in 2022 compared to the assumed annual targets
Financial results
The decrease in EBITDA in the foreign segments is a result of a lower Cu content in the ore, and thus diminished copper sales, coupled with relevant market factors (lower selling prices).
The increase in the Group’s revenue was driven by a higher exchange rate and a lower negative adjustment on hedging transactions.
The deterioration in operating profit and profit from involvement in a joint venture resulted in net income being realised at a lower level than that posted in 2021.
Lower Group profit by PLN 1 381 million (-22%) mainly due to a lower result on involvement in joint ventures and the result on basic operating activities.
Cash flows
C1 – KGHM Group [USD/lb]
The 5% increase in C1 cost at KGHM Polska Miedź S.A. compared to 2021 resulted predominantly from higher costs of materials, fuel, energy and labour, coupled with a lower valuation of by-products.
The 7% increase in C1 cost at KGHM INTERNATIONAL LTD., despite a more favourable valuation of precious metals, was largely caused by a decrease in copper sales volumes by the Robinson Mine.
The 92% increase in C1 cost at Sierra Gorda was driven by lower copper sales volumes, increased fuel, energy and material prices and a decrease in molybdenum output and sales (lower deductions due to revenue from associated metals).
Key performance indicators:
Key financial and operational indicators
* Includes Sierra Gorda S.C.M. pro rata to the interest held (55%)
** Attributable to shareholders of the Parent Entity
*** Adjusted EBITDA for the year, excluding EBITDA of the joint venture Sierra Gorda S.C.M.
**** Includes Sierra Gorda S.C.M. pro rata to the interest held (55%)
***** As above
******As above
Key non-financial indicators
| 2022 | 2021 | |
|---|---|---|
| Area: society | ||
| Maintaining position in WIG-ESG (previously the RESPECT Index) | YES | YES |
| Maintaining its position in the FTSE4Good Index Series | YES | YES |
| 0% investment activity without a social dialogue policy | YES | YES |
| Conclusion and maintaining of long-term contracts; achievement of a proper sales structure ensuring long-term relations with customers | YES | YES |
| Sponsorship and charitable activities in building corporate social responsibility [sponsorship expenses for the purposes of the Company’s promotion and regional support, i.e. sports/culture/science] | PLN 51.6 million | PLN 36.1 million |
| Resource efficiency | ||
| Ore extraction (wet weight) per mine employee [tonne] | 2,565 | 2,540 |
| Production of electrolytic Cu per Company/metallurgical employee [tonne] | 31/162 | 31/160 |
| Cu smelting yield [%] | 98.08 | 98.33 |
| Zero harm | ||
| LTIRFKGHM (Lost Time Injury Frequency Rate KGHM) | 5.1 | 5.6 |