In This Article:
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Revenue Growth: Domestic revenues increased by 3%.
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Adjusted EBITDA: PLN4.4 billion, a 25% increase year-on-year; Group adjusted EBITDA at PLN8.457 billion, a 58% increase.
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Net Income: PLN2.8 billion for the individual result; PLN2.87 billion for the KGHM Group.
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Copper Production: Paid copper production increased by 52% at Robinson mine; 35% of electrolytic copper input from third-party sources.
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Silver Production: Over 1,000 tonnes in 2024, a 6% decrease from the previous year.
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CapEx: PLN3.935 billion, with PLN3.441 billion allocated to mining.
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Cost Management: Achieved a negative cost increase of 2% excluding write-offs.
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Debt Issuance: Issued seven-year bonds worth PLN1 billion with a 125 bps premium.
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Cash Flow: Operational income almost covered investment costs; PLN1 billion available from factoring.
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C1 Cost: Decreased by 7% year-on-year to 2.67%.
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KGHM Polska Miedz SA reported a 25% increase in adjusted EBITDA for 2024, reaching PLN4.4 billion.
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The company achieved a 58% increase in adjusted EBITDA for the group, totaling PLN8.457 billion.
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Copper and silver prices increased by 8% and 21% respectively in dollar terms, positively impacting revenues.
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The company successfully managed to reduce costs, achieving a negative cost increase of 2% year-on-year.
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KGHM Polska Miedz SA maintained a strong financial position, with stable liquidity and a favorable debt-to-EBITDA ratio.
Negative Points
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The company faced significant challenges with water-related threats, particularly concerning the Odra River and golden algae.
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There were issues with past acquisitions of photovoltaic farms, which were not carried out optimally, affecting diversification of energy sources.
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Staff turnover was high, leading to significant costs for severance payments and non-competition agreements.
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The Robinson mine experienced serious operational issues in 2023, impacting production and planning.
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The Victoria project in Canada faced budget overruns and planning challenges, raising concerns about its profitability.
Q & A Highlights
Q: Are the current deposits in Poland sufficient to maintain KGHM Polska's business over the next 15 years, or will expansion beyond the Odra River be necessary? A: Andrzej Szydlo, CEO, explained that while the current deposits will suffice for the near future, KGHM will eventually need to expand beyond the Odra River. This expansion will require significant investment, and the company is considering its long-term strategy, which includes potential changes to its dividend policy to support future growth.