Integrated Report
2022
GRI
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  • 2.2 Financial results of reporting segments

2.2 Financial results of reporting segments

in PLN millions, unless otherwise stated

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Financial results of reporting segments
from 1 January 2022 to 31 December 2022
KGHM Polska Miedź S.A. KGHM INTERNATIONAL LTD. Sierra Gorda S.C.M. Other
segments 		Reconciliation items to consolidated data Consolidated
financial
statements
Elimination of data of the segment
Sierra Gorda S.C.M		 Consolidation
adjustments****
Note 2.3 Revenues from contracts with customers, of which: 28 429 3 217 3 974 12 889 (3 974) (10 688) 33 847
inter-segment  565 – – 10 123 – (10 688) –
external 27 864 3 217 3 974 2 766 (3 974) – 33 847
Segment result – profit/(loss) for the period 3 533  900  239 (51) (239)  392 4 774
Additional information on significant revenues/costs items of the segment
Depreciation/amortisation recognised in profit or loss (1 434) (568) (937) (273)  937  36 (2 239)
(Recognition)/reversal of  impairment losses on non-current assets, including: 207 781 – – – (259)  729
reversal of allowances for impairment of loans granted 213  873 – – – (213)  873
As at 31 December 2022
Assets, including: 47 995 15 228 13 563 6 071 (13 563) (15 850) 53 444
Segment assets 47 995 15 228 13 563 6 071 (13 563) (15 854) 53 440
   Assets unallocated to segments – – – – –  4  4
Liabilities, including: 18 320 19 276 13 992 3 446 (13 992) (19 744) 21 298
Segment liabilities 18 320 19 276 13 992 3 446 (13 992) (19 804) 21 238
Liabilities unallocated to segments – – – – –  60  60
Other information from 1 January 2022 to 31 December 2022
Cash expenditures on property, plant and equipment and intangible assets – cash flows 2 731  913 1 031 380 (1 031)  94 4 118
Production and cost data from 1 January 2022 to 31 December 2022
Payable copper (kt)  586,0  56,2  90,8
Molybdenum (million pounds) –  0,1  2,9
Silver (t) 1 298,4  2,0  26,7
TPM (koz t)  87,3  55,9  34,3
C1 cash cost of producing copper in concentrate
(USD/lb  PLN/lb)**		 2,38
10,62		 2,14
9,57		 1,50
6,69
Segment result – Adjusted EBITDA 5 400 1 001 2 190  274 – – 8 865
EBITDA margin*** 19% 31% 55% 2% – – 23%
* 55% of the Group’s share in Sierra Gorda S.C.M.’s financial and production data.
** Unit cash cost of payable copper production, reflecting ore mining and processing costs, transport costs, the minerals extraction tax, administrative expenses during the mining phase and smelter treatment and refining charges (TC/RC) less by-product value. C1 cost is in regard to payable copper in own concentrate in the case of the segment KGHM Polska Miedź S.A. and payable copper in end products of individual mines of the segment KGHM International Ltd. and the segment Sierra Gorda S.C.M. C1 cost in PLN/lb was calculated using the average exchange rate by the NBP (arithmetical average of daily quotations per the NBP’s tables).
*** Adjusted EBITDA to revenues from contracts with customers. For the purposes of calculating the Group’s EBITDA margin (23%), the consolidated revenues from contracts with customers were increased by revenues from contracts with customers of the segment Sierra Gorda S.C.M. [8 865 / (33 847 + 3 974) * 100]
**** Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.
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Financial results of reporting segments for the comparable period
from 1 January 2021 to 31 December 2021
KGHM Polska Miedź S.A.  KGHM INTERNATIONAL LTD. Sierra Gorda
S.C.M.*		 Other
segments		 Reconciliation items to consolidated data Consolidated
financial
statements
Elimination of data of the segment
Sierra Gorda S.C.M		 Consolidation
adjustments****
Note 2.3 Revenues from contracts with customers, of which: 24 618 3 125 4 585 10 329 (4 585) (8 269) 29 803
inter-segment  408 – – 7 861 – (8 269) –
external 24 210 3 125 4 585 2 468 (4 585) – 29 803
Segment result – profit/(loss) for the period 5 169 2 632 3 178 (140) (3 178) (1 506) 6 155
Additional information on significant revenues/costs items of the segment
Depreciation/amortisation recognised in profit or loss (1 363) (516) (777) (258)  777  14 (2 123)
(Recognition)/reversal of  impairment losses on non-current assets, including: 1 742 2 200 2 639 (216) (2 639) (1 680) 2 046
(recognition)/reversal of impairment losses on investments in subsidiaries 1 010 – – (86) – (924) –
(recognition)/reversal of allowances for impairment of loans granted 752 2 380 – – – (752) 2 380
As at 31 December 2021
Assets, including: 43 458 13 646 12 232 6 066 (12 232) (15 143) 48 027
Segment assets 43 458 13 646 12 232 6 066 (12 232) (15 172) 47 998
Assets unallocated to segments – – – – –  29  29
Liabilities, including: 17 618 18 185 12 844 3 339 (12 844) (18 253) 20 889
Segment liabilities 17 618 18 185 12 844 3 339 (12 844) (18 299) 20 843
Liabilities unallocated to segments – – – – –  46  46
Other information from 1 January 2021 to 31 December 2021
Cash expenditures on property, plant and equipment and intangible assets – cash flows 2 407 1 014  605  490 (605) (21) 3 890
Production and cost data from 1 January 2021 to 31 December 2021
Payable copper (kt)  577,6  71,7 104,4
Molybdenum (million pounds) –  0,2 8,2
Silver (t) 1 332,2  2,0  31,9
TPM (koz t) 81,3 51,3  30,9
(C1) cash cost of producing payable copper (USD/lb  PLN/lb)** 2,26
8,73		 2,01
7,78		 0,78
3,01
Segment result – adjusted EBITDA 5 474 1 340 3 167  346 – – 10 327
EBITDA margin*** 22% 43% 69% 3% – – 30%
* 55% of the Group’s share in Sierra Gorda S.C.M.’s financial and production data.
** Unit cash cost of payable copper production, reflecting ore mining and processing costs, transport costs, the minerals extraction tax, administrative expenses during the mining phase and smelter treatment and refining charges (TC/RC) less by-product value. C1 cost is in regard to payable copper in own concentrate in the case of the segment KGHM Polska Miedź S.A. and payable copper in end products of individual mines of the segment KGHM International Ltd. and the segment Sierra Gorda S.C.M. C1 cost in PLN/lb was calculated using the average exchange rate by the NBP (arithmetical average of daily quotations per the NBP’s tables).
*** Adjusted EBITDA to revenues from contracts with customers. For the purposes of calculating the Group’s EBITDA margin (30%) the consolidated revenues from contracts with customers were increased by revenues from contracts with customers of the segment Sierra Gorda S.C.M. [10 327 / (29 803 + 4 585) * 100]
**** Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.
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Reconciliation of adjusted EBITDA from 1 January 2022 to 31 December 2022
KGHM Polska Miedź S.A. KGHM INTERNATIONAL LTD. Other
segments		 Consolidation
adjustments*		 Consolidated
financial
statements		 Sierra Gorda S.C.M. ** Adjusted
EBITDA
(segments, total)
1 2 3 4 5
(1+2+3+4)		 6 7
(5+6-4)
Profit/(Loss) for the period 3 533  900 (51)   392 4 774  239 
[-] Profit or loss on involvement in joint ventures – 1 455 – – 1 455 –
[-] Current and deferred income tax, mining tax*** (1 463) (122) (36) (94) (1 715) (177)
[-] Depreciation/amortisation recognised in profit or loss (1 434) (568) (273)  36 (2 239) (937)
[-] Finance income and (costs) (269) (1 033) (45) 1 075 (272) (823)
[-] Other operating income and (costs) 1 299  203  28 (568)  962 (14)
[-](Recognition)/reversal of impairment losses on non-current assets recognised in cost of sales, selling costs and administrative expenses – (36)  1 (45) (80) –
Segment result – adjusted EBITDA 5 400 1 001  274  (11) 6 664 2 190 8 865
* Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.
** 55% share of the Group in the financial data of Sierra Gorda S.C.M.
*** Mining tax concerns only the segment Sierra Gorda S.C.M.
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Reconciliation of adjusted EBITDA from 1 January 2021 to 31 December 2021
KGHM Polska Miedź S.A.  KGHM INTERNATIONAL LTD. Other
segments		 Consolidation
adjustments*		 Consolidated
financial
statements		 Sierra Gorda S.C.M. ** Adjusted
EBITDA
(segments, total)
1 2 3 4 5
(1+2+3+4)		 6 7
(5+6-4)
Profit/(Loss) for the period 5 169 2 632 (140) (1 506) 6 155 3 178 
[-] Profit or loss on involvement in joint ventures – 2 874 – – 2 874 –
[-] Current and deferred income tax, mining tax*** (1 547)  1 (63) (60) (1 669) (1 059)
[-] Depreciation/amortisation recognised in profit or loss (1 363) (516) (258)  14 (2 123) (777)
[-] Finance income and (costs) (476) (974) (19)  998 (471) (787)
[-] Other operating income and (costs) 3 088  69 (19) (2 427)  711 ( 5)
[-] (Recognition)/reversal of impairment losses on non-current assets recognised in cost of sales, selling costs and administrative expenses (7) (162) (127) (3) (299) 2 639
Segment result – adjusted EBITDA 5 474 1 340  346  (28)  7 132 3 167 10 327

 

* Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.
** 55% share of the Group in the financial data of Sierra Gorda S.C.M.
*** Mining tax concerns only the segment Sierra Gorda S.C.M.

A detailed description of the results of individual segments is presented in the following sections of the Management Board’s report on the activities of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź S.A. Group in 2022:

  • the segment KGHM Polska Miedź S.A. – in section 8,
  • the segment KGHM INTERNATIONAL LTD. – in section 9,
  • the segment Sierra Gorda S.C.M. – in section 10.
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2.1 Operating segments
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2.3 Revenues from contracts with customers of the Group – breakdown by products
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