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- Revenue: PLN26.139 billion, a 2% increase year-on-year.
- Adjusted EBITDA: PLN6.186 billion, a 44% increase year-on-year.
- Net Profit: PLN1.3 billion for the group and PLN1.2 billion for KGHM Polska Miedz SA.
- Copper Production: 534,000 tonnes, a 3% increase year-on-year.
- Silver Production: Decreased by 10.8% for KGHM Polska Miedz SA.
- CapEx Execution: PLN2.5 billion, with a target of PLN3.9 billion for 2024.
- Net Debt to Adjusted EBITDA Ratio: 0.9, considered a safe level.
- C1 Unit Cost: $2.75 for the group, a 6% decrease year-on-year.
- Mineral Extraction Tax: Increased to 35% of the C1 unit cost for KGHM Polska Miedz SA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KGHM Polska Miedz SA reported a 3% increase in copper production, reaching 534,000 tonnes in the first nine months of 2024.
- Revenues increased by 2% during the same period, amounting to PLN26 billion for the group.
- The Robinson mine showed a significant increase in copper production, with a 24,000-tonne rise year on year.
- The company maintained a safe liquidity indicator with a net debt to adjusted EBITDA ratio of 0.9, well below the safe level of 2.
- KGHM Polska Miedz SA achieved a 44% increase in adjusted EBITDA, reaching PLN6.186 million, driven by higher volumes and favorable metal prices.
- The production of metallic silver decreased by 10.8% due to factors such as ore deposit quality and smelter renovations.
- Sierra Gorda experienced a 5% decrease in payable copper production due to lower metal content and recovery rates.
- Molybdenum production in Sierra Gorda dropped by 34% compared to the previous year.
- The C1 unit cost for KGHM Polska Miedz SA increased by 2%, partly due to a higher mineral extraction tax.
- The unfavorable exchange rate between the Polish zloty and the US dollar negatively impacted revenues by PLN1.5 billion.
A: Iga Dorota Lis, Vice President of the Management Board for International Assets, stated that there is potential for optimization, particularly in Sierra Gorda. While Robinson's results are satisfactory, further optimization in ore enrichment and cost reduction is possible, with a focus on Sierra Gorda.
Q: Will the CapEx for international assets in 2025 be as high as in 2024?
A: Iga Dorota Lis mentioned that it is difficult to evaluate the 2025 CapEx at this time as the budget is still being prepared. More information will be available once the block model is received.
Q: Can you provide an update on the Victoria project?
A: Iga Dorota Lis confirmed that the Victoria project is under analysis, with current work at a depth of 600 meters. Further details will be shared at the next conference after internal discussions.
Q: How do you assess the macroeconomic situation in Q4, particularly regarding the American dollar?
A: Iga Dorota Lis and Zbigniew Bryja stated that KGHM does not forecast financial results or currency impacts. The company focuses on adapting to current market indicators to optimize production and sales.
Q: How does KGHM secure against currency fluctuations between the Polish zloty and the American dollar?
A: Iga Dorota Lis explained that while KGHM has measures in place to secure against currency fluctuations, the company does not disclose specific policies or detailed data for strategic reasons.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.