POLISH FINANCIAL SUPERVISION AUTHORITY

Consolidated quarterly report QSr 1 / 2025

(in accordance with § 60 section 2 and § 62 section 1 of the Decree regarding current and periodic information)

for issuers of securities involved in production, construction, trade or services activities

For the first quarter of the financial year 2025 from 1 January 2025 to 31 March 2025 containing the condensed consolidated financial statements prepared under IAS (International Accounting Standard) 34 in PLN, and condensed financial statements prepared under IAS 34 in PLN.

publication date: 14 May 2025

KGHM Polska Miedź Spółka Akcyjna (name of the issuer)
KGHM Polska Miedź S.A.	Mining
(name of the issuer in brief) 59 – 301	(issuer branch title per the Warsaw Stock Exchange)
(postal code)	LUBIN
M. Skłodowskiej – Curie	(city)
(street)	48
(48 76) 74 78 200	(number)
(telephone)	(48 76) 74 78 500
[email protected]	(fax)
(e-mail)	www.kghm.com
692–000–00-13	(website address)
(NIP)	390021764
	(REGON)

SELECTED FINANCIAL DATA

data concerning the condensed consolidated financial statements of the KGHM Polska Miedź S.A. Group

	in PLN mn in EUR mn
	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
I. Revenues from contracts with customers	8 942	8 315	2 137	1 924
II. Profit on sales	1 128	586	270	136
III. Profit before income tax	734	703	175	163
IV. Profit for the period	330	424	79	98
V. Profit for the period attributable to shareholders of the Parent Entity	330	424	79	98
VI. Profit for the period attributable to non-controlling interest	-	-	-	-
VII. Other comprehensive income	23	( 155)	5	( 36)
VIII. Total comprehensive income	353	269	84	62
IX. Total comprehensive income attributable to shareholders of the Parent Entity	354	269	84	62
X. Total comprehensive income attributable to non-controlling interest	( 1)	-	-	-
XI. Number of shares issued (million)	200	200	200	200
XII. Earnings per ordinary share (PLN/EUR) attributable to shareholders of the Parent Entity	1.65	2.12	0.40	0.49
XIII. Net cash generated from/(used in) operating activities	1 403	86	335	20
XIV. Net cash generated from/(used in) investing activities	( 1 319)	( 1 418)	( 315)	( 328)
XV. Net cash generated from/(used in) financing activities	35	432	8	100
XVI. Total net cash flow	119	( 900)	28	( 208)

	As at 31 March 2025	As at 31 December 2024	As at 31 March 2025	As at 31 December 2024
XVII. Non-current assets	42 110	42 285	10 065	9 896
XVIII. Current assets	12 028	11 607	2 875	2 716
XIX. Total assets	54 138	53 892	12 940	12 612
XX. Non-current liabilities	11 862	11 828	2 835	2 768
XXI. Current liabilities	10 865	11 006	2 597	2 576
XXII. Equity	31 411	31 058	7 508	7 268
XXIII. Equity attributable to shareholders of the Parent Entity	31 344	30 990	7 492	7 252
XXIV. Equity attributable to non-controlling interest	67	68	16	16

data concerning the quarterly financial information of KGHM Polska Miedź S.A.

		in PLN mn		in EUR mn
	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
I. Revenues from contracts with customers	7 537	7 279	1 801	1 685
II. Profit on sales	808	501	193	116
III. Profit before income tax	393	610	94	141
IV. Profit for the period	127	387	30	90
V. Other comprehensive net income	164	( 160)	39	( 37)
VI. Total comprehensive income	291	227	70	53
VII. Number of shares issued (million)	200	200	200	200
VIII. Earnings per ordinary share (PLN/EUR)	0.64	1.94	0.15	0.45
IX. Net cash generated from/(used in) operating activities	1 217	( 195)	291	( 45)
X. Net cash generated from/(used in) investing activities	( 1 051)	( 1 240)	( 251)	( 287)
XI. Net cash generated from/(used in) financing activities	153	639	37	148
XII. Total net cash flow	319	( 796)	76	( 184)

	As at	As at	As at	As at
	31 March 2025	31 December 2024	31 March 2025	31 December 2024
XIII. Non-current assets	39 991	40 107	9 558	9 386
XIV. Current assets	10 730	10 298	2 565	2 410
XV. Total assets	50 721	50 405	12 123	11 796
XVI. Non-current liabilities	9 368	9 409	2 239	2 202
XVII. Current liabilities	9 908	9 842	2 368	2 303
XVIII. Equity	31 445	31 154	7 516	7 291

Part 1 – Condensed consolidated financial statements	3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS	3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	4
CONSOLIDATED STATEMENT OF CASH FLOWS	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	6 7
1 – General information	8
Note 1.1 Corporate information	8
Note 1.2 Structure of the KGHM Polska Miedź S.A. Group	9
Note 1.3 Exchange rates applied	11
Note 1.4 Accounting policies and the impact of new and amended standards and interpretations	11
Note 1.5 Assessment of impairment of production assets and assets in the pre-operational phase of the KGHM Polska
Miedź S.A. Group in the context of the market capitalisation of KGHM Polska Miedź S.A.	12
2 – Realisation of strategy	14
Note 2.1 Advancement of the Strategy – key achievements in individual strategic directions of development Note 2.2 Development directions of the KGHM Polska Miedź S.A. Group	14 15
3 –Information on operating segments and revenues	17
Note 3.1 Operating segments	17
Note 3.2 Financial results of reporting segments	20
Note 3.3 Revenues from contracts with customers of the Group – breakdown by products	23
Note 3.4 Revenues from contracts with customers of the Group – breakdown by type of contracts	25
Note 3.5 Revenues from contracts with customers of the Group – geographical breakdown reflecting the location of
end customers Note 3.6 Main customers	27 28
Note 3.7 Non-current assets – geographical breakdown	28
Note 3.8 Information on segments' results	29
4 – Selected additional explanatory notes	40
Note 4.1 Expenses by nature	40
Note 4.2 Other operating income and (costs)	41
Note 4.3 Finance income and (costs)	42
Note 4.4 Information on property, plant and equipment and intangible assets	42
Note 4.5 Involvement in joint ventures Note 4.6 Financial instruments	43 44
Note 4.7 Management of commodity, currency and interest rate risk and of risk of changes in prices of energy and
energy carriers in the KGHM Polska Miedź S.A. Group	49
Note 4.8 Liquidity risk and capital management in the KGHM Polska Miedź S.A. Group	55
Note 4.9 Related party transactions	58
Note 4.10 Assets and liabilities not recognised in the statement of financial position Note 4.11 Changes in working capital	59 60
Note 4.12 Assets sold and liabilities associated with them	61
5 – Additional information to the consolidated quarterly report	63
Note 5.1 Effect of changes in the organisational structure of the KGHM Polska Miedź S.A. Group	63
Note 5.2 Seasonal or cyclical activities	63
Note 5.3 Information on the issuance, redemption and repayment of debt and equity securities	63
Note 5.4 Information related to paid (declared) dividend, total and per share	63
Note 5.5 Other information to the consolidated quarterly report Note 5.6 Impact of the war in Ukraine on the operations of the Company and the Group	63 66
Note 5.7 Subsequent events	67
Part 2 - Quarterly financial information of KGHM Polska Miedź S.A.	68
SEPARATE STATEMENT OF PROFIT OR LOSS	68
SEPARATE STATEMENT OF COMPREHENSIVE INCOME	68
SEPARATE STATEMENT OF CASH FLOWS	69
SEPARATE STATEMENT OF FINANCIAL POSITION	70
SEPARATE STATEMENT OF CHANGES IN EQUITY	71
Explanatory notes	72
Note 1 Revenues from contracts with customers – geographical breakdown reflecting the location of end customers72
Note 2 Expenses by nature Note 3 Other operating income and (costs)	73 74
Note 4 Finance income and (costs)	74
Note 5 Changes in working capital	75

Part 1 – Condensed consolidated financial statements

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
Note 3.3	Revenues from contracts with customers	8 942	8 315
Note 4.1	Cost of sales	(7 334)	(7 306)
	Gross profit on sales	1 608	1 009
Note 4.1	Selling costs and administrative expenses	( 480)	( 423)
	Profit on sales	1 128	586
Note 4.5	Gain due to the reversal of allowances for impairment of loans granted to a joint venture	3	-
Note 4.5	Interest income on loans granted to a joint venture calculated using the effective interest rate method	147	144
	Profit or loss on involvement in a joint venture	150	144
Note 4.2	Other operating income, including:	241	272
	other interest calculated using the effective interest rate method	12	6
	reversal of impairment losses on financial instruments	-	1
Note 4.2	Other operating costs, including:	( 878)	( 192)
	impairment losses on financial instruments	( 2)	-
Note 4.3	Finance income	151	-
Note 4.3	Finance costs	( 58)	( 107)
	Profit before income tax	734	703
	Income tax expense	( 404)	( 279)
	PROFIT FOR THE PERIOD	330	424
	Profit for the period attributable to:
	shareholders of the Parent Entity	330	424
	non-controlling interest	-	-
	Weighted average number of ordinary shares (million)	200	200
	Basic/diluted earnings per share (in PLN)	1.65	2.12

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
Profit for the period	330	424
Measurement and settlement of hedging instruments net of the tax effect	46	( 129)
Exchange differences from the translation of statements of operations with a functional currency other than PLN	( 144)	9
Other comprehensive income which will be reclassified to profit or loss	( 98)	( 120)
Measurement of equity financial instruments at fair value through other comprehensive income, net of the tax effect	178	( 101)
Actuarial (losses)/gains net of the tax effect	( 57)	66
Other comprehensive income, which will not be reclassified to profit or loss	121	( 35)
Total other comprehensive net income	23	( 155)
TOTAL COMPREHENSIVE INCOME	353	269
Total comprehensive income attributable to:
shareholders of the Parent Entity	354	269
non-controlling interest	( 1)	-

CONSOLIDATED STATEMENT OF CASH FLOWS

	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
Cash flow from operating activities
Profit before income tax	734	703
Depreciation/amortisation recognised in profit or loss Interest on loans granted to a joint venture	458 ( 147)	356 ( 144)
Other interest	30	48
Impairment losses on property, plant and equipment and intangible assets	3	20
Gain due to the reversal of allowances for impairment of loans granted to	( 3)	-
a joint venture Gain on disposal of subsidiaries	( 98)	-
Exchange differences, of which:	490	( 111)
from investment activities and cash	640	( 144)
from financing activities	( 150)	33
Change in provisions for decommissioning of mines, liabilities related to future employee benefits programs and other provisions	121	110
Change in other receivables and liabilities other than working capital	138	67
Change in assets and liabilities due to derivatives	85	90
Reclassification of other comprehensive income to profit or loss due to the realisation of hedging derivatives	( 1)	( 158)
Other adjustments	( 29)	6
Exclusions of income and costs, total	1 047	284
Income tax paid	( 383)	( 106)
Changes in working capital, including:	5	( 795)
change in trade payables within the reverse factoring mechanism	470	( 439)
Net cash generated from/(used in) operating activities	1 403	86
Cash flow from investing activities
Expenditures on mining and metallurgical assets, including:	(1 265)	(1 149)
paid capitalised interest on borrowings	( 45)	( 39)
Expenditures on other property, plant and equipment and intangible assets	( 218)	( 162)
Expenditures on financial assets designated for decommissioning mines and other technological facilities	( 30)	( 28)
Advances granted on property, plant and equipment and intangible assets	( 2)	-
Proceeds from repayment of loans granted to a joint venture (principal)	152	-
Proceeds from disposal of property, plant and equipment and intangible assets	16	3
Proceeds from disposal of subsidiaries	14	-
Interest received on loans granted to a joint venture	18	-
Expenditures on financial assets	-	( 74)
Other	( 4)	( 8)
Net cash generated from/(used in) investing activities	(1 319)	(1 418)
Cash flow from financing activities
Proceeds from borrowings	229	835
Repayments of borrowings	( 132)	( 326)
Repayment of lease liabilities	( 16)	( 15)
Payment of interest, of which:	( 50)	( 65)
trade payables within the reverse factoring mechanism	( 25)	( 37)
borrowings	( 25)	( 28)
Other	4	3
Net cash generated from/(used in) financing activities	35	432
NET CASH FLOW	119	( 900)
Exchange gains/(losses)	35	( 3)
Cash and cash equivalents at beginning of the period	715	1 729
Cash and cash equivalents at end of the period, including:	869	826
restricted cash	16	23

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at 31 March 2025	As at 31 December 2024
	ASSETS
	Mining and metallurgical property, plant and equipment	24 218	24 050
	Mining and metallurgical intangible assets	2 790	2 830
	Mining and metallurgical property, plant and equipment and intangible assets	27 008	26 880
	Other property, plant and equipment	3 136	3 087
	Other intangible assets	232	213
	Other property, plant and equipment and intangible assets	3 368	3 300
Note 4.5	Involvement in joint ventures – loans granted	9 210	9 800
	Derivatives	266	286
	Other financial instruments measured at fair value	1 119	883
	Other financial instruments measured at amortised cost	562	557
Note 4.6	Financial instruments, total	1 947	1 726
	Deferred tax assets	306	302
	Other non-financial assets	271	277
	Non-current assets	42 110	42 285
	Inventories	8 321	8 063
Note 4.6	Trade receivables, including:	1 418	1 345
	trade receivables measured at fair value through profit or loss	871	707
	Tax assets	365	453
Note 4.6	Derivatives	196	219
	Other financial assets	287	317
	Other non-financial assets	572	366
Note 4.6	Cash and cash equivalents	869	715
Note 4.12	Non-current assets held for sale (disposal group)	-	129
	Current assets	12 028	11 607
	TOTAL ASSETS	54 138	53 892
	EQUITY AND LIABILITIES
	Share capital	2 000	2 000
	Other reserves from measurement of financial instruments	62	( 162)
	Accumulated other comprehensive income, other than from measurement of financial instruments	1 578	1 778
	Retained earnings	27 704	27 374
	Equity attributable to shareholders of the Parent Entity	31 344	30 990
	Equity attributable to non-controlling interest	67	68
	Equity	31 411	31 058
Note 4.6	Borrowings and leases	2 363	2 310
Note 4.6	Debt securities	2 600	2 600
Note 4.6	Derivatives	161	269
	Employee benefits liabilities	2 847	2 784
	Provisions for decommissioning costs of mines and other technological facilities	2 086	2 084
	Deferred tax liabilities	1 437	1 384
	Other liabilities	368	397
	Non-current liabilities	11 862	11 828
Note 4.6	Borrowings and leases	1 180	1 259
Note 4.6	Debt securities	49	2
Note 4.6	Derivatives	136	44
Note 4.6	Trade and other payables	4 949	5 132
	Employee benefits liabilities	2 035	2 019
	Tax liabilities	970	1 049
	Provisions for liabilities and other charges	261	280
	Other liabilities	1 285	1 061
Note 4.12	Liabilities related to disposal group	-	160
	Current liabilities	10 865	11 006
	Non-current and current liabilities	22 727	22 834
	TOTAL EQUITY AND LIABILITIES	54 138	53 892

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Equity attributable to shareholders of the Parent Entity
	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non-controlling interest	Total equity
As at 1 January 2024	2 000	277	1 482	24 806	28 565	65	28 630
Transactions with non-controlling interest	-	-	-	-	-	1	1
Profit for the period	-	-	-	424	424	-	424
Other comprehensive income	-	( 230)	75	-	( 155)	-	( 155)
Total comprehensive income	-	( 230)	75	424	269	-	269
As at 31 March 2024	2 000	47	1 557	25 230	28 834	66	28 900
As at 1 January 2025	2 000	( 162)	1 778	27 374	30 990	68	31 058
Profit for the period	-	-	-	330	330	-	330
Other comprehensive income	-	224	( 200)	-	24	( 1)	23
Total comprehensive income	-	224	( 200)	330	354	( 1)	353
As at 31 March 2025	2 000	62	1 578	27 704	31 344	67	31 411

1 – General information

Note 1.1 Corporate information

KGHM Polska Miedź S.A. ("the Parent Entity", "the Company") with its registered office in Lubin at 48 M.Skłodowskiej-Curie Street is a joint stock company registered at the Regional Court for Wrocław Fabryczna, Section IX (Economic) of the National Court Register, entry no. KRS 23302, on the territory of the Republic of Poland.

KGHM Polska Miedź S.A. has a multi-divisional organisational structure, comprised of a Head Office and 10 divisions: 3 mines (Lubin Mine Division, Polkowice-Sieroszowice Mine Division, Rudna Mine Division), 3 metallurgical plants (Głogów Smelter/Refinery, Legnica Smelter/Refinery, Cedynia Wire Rod Division), the Concentrator Division, the Tailings Division, the Mine-Smelter Emergency Rescue Division and the Data Centre Division.

The shares of KGHM Polska Miedź S.A. are listed on the Warsaw Stock Exchange.

The Parent Entity's principal activities include:

− the mining of copper and non-ferrous metals ores; and
− the production of copper, precious and non-ferrous metals.

The business activities of the Group include:

− the mining of copper and non-ferrous metals ores,
− the mined production of metals, including copper, nickel, silver, gold, platinum, palladium,
− the production of goods from copper and precious metals,
− underground construction services,
− the production of machinery and mining equipment,
− transport services,
− services in the areas of research, analysis and design,
− the production of road-building materials, and
− the recovery of associated metals from copper ore.

The KGHM Polska Miedź S.A. Group ("the Group") carries out exploration for and mining of copper, nickel and precious metals based on concessions for Polish deposits held by KGHM Polska Miedź S.A., and also based on legal titles held by companies of the KGHM INTERNATIONAL LTD. Group for the exploration for and mining of these resources in the USA, Canada, and Chile.

Note 1.2 Structure of the KGHM Polska Miedź S.A. Group

As at 31 March 2025, KGHM Polska Miedź S.A. consolidated 62 subsidiaries and used the equity method to account for the shares of two joint ventures (Sierra Gorda S.C.M. and NANO CARBON Sp. z o.o. in bankruptcy).

* An entity excluded from consolidation due to the insignificant impact on the condensed consolidated financial statements.

100%

Note 1.3 Exchange rates applied

The following exchange rates were applied in the conversion to EUR of selected financial data:

for the conversion of turnover, profit or loss and cash flow for the current period, the rate of 4.1848 EURPLN *,
for the conversion of turnover, profit or loss and cash flow for the comparable period, the rate of 4.3211 EURPLN *,
for the conversion of assets, equity and liabilities at 31 March 2025, the current average exchange rate announced by the National Bank of Poland (NBP) as at 31 March 2025, of 4.1839 EURPLN,
for the conversion of assets, equity and liabilities at 31 December 2024, the current average exchange rate announced by the NBP as at 31 December 2024, of 4.2730 EURPLN.

*the rates represent the arithmetic average of current average exchange rates announced by the NBP on the last day of each month during the period from January to March respectively of 2025 and 2024.

Note 1.4 Accounting policies and the impact of new and amended standards and interpretations

The following quarterly report includes:

1. the condensed consolidated financial statements of the KGHM Polska Miedź S.A. Group for the period from 1 January to 31 March 2025 and the comparable period from 1 January to 31 March 2024, together with selected explanatory information (Part 1),
1. the quarterly financial information of KGHM Polska Miedź S.A. for the period from 1 January to 31 March 2025 and the comparable period from 1 January to 31 March 2024 (Part 2).

Neither the condensed consolidated financial statements for the period from 1 January to 31 March 2025 and as at 31 March 2025 nor the quarterly financial information of KGHM Polska Miedź S.A. for the period from 1 January to 31 March 2025 and as at 31 March 2025 were subject to audit by a certified auditor.

The consolidated quarterly report for the period from 1 January 2025 to 31 March 2025 was prepared in accordance with IAS 34 Interim Financial Reporting as approved by the European Union and for a full understanding of the financial position and operating results of KGHM Polska Miedź S.A. and the KGHM Polska Miedź S.A. Group, should be read jointly with the Annual Report RR 2024 and the Consolidated annual report SRR 2024.

This quarterly report's financial statements were prepared using the same accounting policies and valuation methods for the current and comparable periods and principles applied in annual financial statements (consolidated and separate), prepared as at 31 December 2024.

Note 1.4.1 Impact of new and amended standards and interpretations

From 1 January 2025, the amendments to IAS 21 on how to approach the issue of assessment as to whether a given currency is exchangeable and how to determine a spot exchange rate if it is not exchangeable came into force, effective on or after 1 January 2025.

Up to the date of publication of these condensed consolidated financial statements, the aforementioned amendments were adopted for use by the European Union and they do not have an impact on these condensed consolidated financial statements.

Impact of the international tax system reform: pillar 2 of the BEPS 2.0 project

Pillar 2 of the BEPS 2.0 project introduced a general framework of the global minimum tax, adopted during the forum of the Organisation for Economic Cooperation and Development (OECD, hereafter: OECD Framework). In the case of member states of the European Union, the first stage of implementation of new rules was the adoption of the Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the European Union (hereafter: the Directive). The Directive obliges the individual member states to implement rules of the Directive to their domestic legal systems, in accordance with legislative rules in force in individual states.

In the case of Poland, the regulations of the Directive were implemented to the Polish legal system by the Act of 6 November 2024 on top-up taxation of individual companies of international and Polish groups. The Polish legal regulations, which put obligations directly on liable entities, came into force on 1 January 2025 with an option for voluntary application from 1 January 2024 (in the case of the global top-up tax and the Polish top-up tax), KGHM Polska Miedź S.A. opted for voluntary application from 1 January 2024.

The Polish act is based on OECD Model Rules of 2021 and the EU Directive of 2022 and incorporates provisions of OECD Administrative Guidance on the application of regulations on the BEPS 2.0 reform, which were published in 2023. The analysis of the OECD Framework, the Directive and the act leads to the conclusion that the Company KGHM Polska Miedź S.A., as a so-called MNE (multinational enterprise), is obliged to report a specific level of the tax rate of subsidiaries at the level of individual jurisdictions.

The Group continuously monitors progress of the legislative work aimed at implementation of the rules of the reform of pillar 2 of the BEPS 2.0 project in all jurisdictions in which subsidiaries of the Group operate, and analyses their potential impact on the Parent Entity and the Group. As at the date of publication of these condensed consolidated financial statements of the Group, regulations on the global and domestic top-up tax were implemented in the following jurisdictions in which the Group operates: Canada, Luxembourg, the United Kingdom, Germany and Poland.

While the rules of the Directive should be in force from 2024, the OECD Framework includes a transitional period, which postpones the obligations in this regard by 3 subsequent years. Based on a detailed technical analysis of the assumptions stipulated in transitional rules, it is expected that the Group will be able to use them in jurisdictions, in which it is present with the exception of Luxembourg. At the same time, according to current estimates the probability to pay the top-up tax in Luxembourg is judged by the Group to be low.

In accordance with IAS 12 paragraph 88A, the Group has applied an exception that allows not to recognise deferred tax assets and liabilities related to income taxes of pillar 2 and not to disclose information about these assets and liabilities. Based on the results of the conducted analyses, these condensed consolidated financial statements do not contain any amounts arising from the reform of the international tax system – pillar 2.

The Group will be required to pay the top-up tax for the years 2025 and 2026 if the conditions of maintaining the exemption under the temporary safe harbours for these periods are not met and if in any of the jurisdictions, in which the Group is present, the effective tax rate, calculated in accordance with the BEPS (Base erosion and profit shifting) rules, is below 15%. In the years following 2026, the Group will be obliged to pay the top-up tax if in any of the jurisdictions, in which the Group is present, the effective tax rate, calculated in accordance with the BEPS rules, is below 15%. Since the Group's entities are generally located in high-tax jurisdictions, according to the Group's current knowledge and judgment, the probability of paying the top-up tax in the future is assessed as low.

Note 1.5 Assessment of impairment of production assets and assets in the pre-operational phase of the KGHM Polska Miedź S.A. Group in the context of the market capitalisation of KGHM Polska Miedź S.A.

In the first quarter of 2025, the share price of KGHM Polska Miedź S.A. remained under pressure of continued uncertainty as to the development of the global macroeconomic situation. The Company's average share price in the first quarter of 2025 increased by 13.1% compared to the share price at the end of 2024 and as at 31 March 2025 amounted to PLN 125.45 (the average share price in the first quarter of 2025 was PLN 130.08). At the same time, the WIG20 index increased by 14.9%, while WIG increased by 13.2%. As the result, the market capitalisation of the Company increased from PLN 23 000 million to PLN 25 090 million, which means that as at 31 March 2025 it remained 20.2% below the level of the Company's net assets. However, it should be noted that the average ratio between the market capitalisation and net assets in the first quarter of 2025 amounted to 83%.

The analysis of Polish assets showed that not all factors that influence the level of market capitalisation of KGHM Polska Miedź S.A. are factors related to the conducted business activities.

From the point of view of the Company's operations, the key factor influencing the level of market capitalisation is the copper price. The copper price continued to be in an upwards trend in the first quarter of 2025 and reached its maximum price in March 2025 due to the weakening of the US dollar and global trade tensions. The average price of copper in the first quarter of 2025 amounted to 9 340 USD/t which is a higher level than prices recorded in 2024 (average of 9 147 USD/t).

In the case of the Polish assets, of significance are PLN-expressed metals prices, which are also affected by the USD/PLN exchange rate. Fluctuations in the price of copper are usually to a large extent offset by changes in the USD/PLN exchange rate. The average USD/PLN exchange rate in the first quarter of 2025 amounted to PLN 3.99, which is at a higher level than the exchange rate recorded in 2024 (average of PLN 3.98).

Finally, the average price of copper in the first quarter of 2025 amounted to 37 286 PLN/t, and was 2% higher than the price noted in 2024 (average of 36 401 PLN/t).

In the current period, there were no significant changes in the level of market interest rates. There was a stabilisation from the beginning of 2025 in WIBOR 1M, WIBOR 3M and WIBOR 6M at around 5.83%. The yield of 10-year bonds stabilised at the level close to the level of the NBP's reference rate.

The Management Board of KGHM Polska Miedź S.A. assessed the assumptions adopted as at 31 December 2023 for impairment testing of Polish production assets (mining and metallurgical assets), including mainly macroeconomic assumptions, medium- and long-term production plans and the level of operating costs as well as planned capital expenditures. No indications were identified suggesting the necessity of revision of previously adopted key assumptions.

KGHM Polska Miedź S.A. maintains full operational capacity and consistently advances planned production, sales and investment budget targets. The financial results achieved by the Company exceed the budget targets, which is also a result of conducted optimisation initiatives and cost discipline applied in response to macroeconomic conditions.

The Company continued actions aimed at making the subsequent parts of the copper deposit available and at construction of the mining infrastructure. Current, long-term production plans are up to 2055 and in the current period no indications were identified that could negatively impact the future availability of deposits. KGHM Polska Miedź S.A. continues

exploration work on the basis of its concessions and concession proceedings aimed at ensuring the resource base appropriate for operating activities and prolonging mine life.

In the context of risks and hazards associated with climate, in the current period, no material impact on the activities of KGHM Polska Miedź S.A. was identified.

The Company is discussing with the Ministry of Finance and the Ministry of State Assets changes to the formula for the socalled copper tax. At the present stage of advancement of discussions, the potential scope and term of legislative changes are not possible to set, and therefore the assessment of the impact of legislative changes on the Company's cash flows.

Good production results of international assets alongside higher metal prices allowed for a significant improvement of financial results both in the KGHM INTERNATIONAL LTD. segment as well as in Sierra Gorda S.C.M. Situation in the Robinson mine is stable and production results are comparable to the ones recorded in the previous year. Production in the Sierra Gorda mine improved significantly as compared to the first quarter of 2024. Advancement of the Victoria project is on schedule and there were no changes to the project's assumptions.

As a result of the assessment made, no connection was identified between the decrease in the share price of KGHM Polska Miedź S.A. and the Group's domestic and international activities. Consequently, there were no indications identified suggesting the risk of impairment of the Polish and international production assets and the Victoria project as well as indications suggesting the possibility of reversing the impairment losses which were already made, and therefore there was no impairment testing of these assets as at 31 March 2025.

2 – Realisation of strategy

During the current reporting period, the Company continued to advance the "Strategy of the KGHM Polska Miedź S.A. Group to the year 2030 with an outlook to 2040" approved on 14 January 2022 by the Company's Supervisory Board, based on the development directions: Elasticity/flexibility, Efficiency, Ecology, E-industry and Energy.

At the same time, the Management Board of the Company carried out work to review and update the Strategy, adapting it to changing industry conditions, current challenges and the Group's operational situation.

Note 2.1 Advancement of the Strategy – key achievements in individual strategic directions of development

Efficiency	− Electrolytic copper production in the domestic assets amounted to 134 thousand tonnes, which was
	higher than the level planned for in the budget for the first quarter of 2025 by 0.7%.
	− Payable copper production in the international assets was lower compared to the adopted budget targets
	and amounted to: Sierra Gorda 20.8 thousand tonnes (55%); Robinson 13.6 thousand tonnes; Carlota 0.6
	thousand tonnes; the Sudbury Basin 0.3 thousand tonnes1
	− Production of silver in the Group amounted to 321 tonnes, keeping the Company in first place in the
	classification "top silver producing mines" (ranking of World Silver Survey 2025) and in second place in the
	global ranking "top silver mining companies".
	− Continuation of the Deposit Access Program –11.2 kilometres of tunnelling were excavated in the Rudna
	and Polkowice-Sieroszowice mines. All of the work carried out under the Mine Projects Group enables the
	successive opening of new mining areas.
	− Development of the Żelazny Most Tailings Storage Facility (TSF) continued, among others work was carried
	out on building up the crown and actions were undertaken aimed at acquiring environmental decisions
	to enable an increase in the height of the TSF to above 195 meters a.s.l.

	− R&D activities were carried out, aimed at searching for innovative solutions for the Core Production
	Business of the Company. Actions continued to enable the acquisition of external financing sources for
	projects, in particular from European Union assistance funds and from domestic programs. Initiatives
	were undertaken aimed at preparing and advancing co-financed projects, and other available support
	mechanisms were utilised in the target area.
	− Work was carried out involving actions to restrict the level of the water hazard – a project called "Anti
	filtration barrier" was continued to restrict the inflow of water from the rock mass to the mine workings
	in the Polkowice-Sieroszowice mine, and to increase the possibilities of pumping out underground water.
	− In order to undertake optimisation actions to permanently raise, on a strategic scale, the economic
	efficiency of the Group's activities, work commenced on preparing a Costs Optimisation Program for the
	Group.
Elasticity	− Modernisation work was carried out at the Legnica Copper Smelter and Refinery in terms of
/flexibility	electrorefining by converting to permanent starter sheet technology.
	− Actions continued on extending the value chain of the Company, including involving the commencement
	of design work on the construction of an Upcast II production line together with a Conform installation at
	the Cedynia Wire Rod Plant, among others to acquire external financing sources for the investment.
	− The Company is systematically increasing the amount of copper scrap processed in metallurgical plants.
	During the reporting period, 46 thousand tonnes of copper scrap (dry weight) was processed.
	− Exploration projects continued with respect to exploring for and evaluating copper ore deposits in Poland
	(Retków-Ścinawa, Głogów, Synklina Grodziecka, Radwanice, Kulów-Luboszyce). Preparatory work
	commenced on re-starting geological and other work on the Bytom Odrzański concession.
	− In terms of other exploration and evaluation concessions (non-copper), work is underway to develop a
	feasibility study to manage the Mieroszyno potassium and magnesium salts deposit in the vicinity of Puck.
	− Development projects in the international assets were continued, including the sinking of an exploration
	shaft under the Advanced Exploration stage of the Victoria project in Canada, whose goal is to provide a
	detailed level of knowledge of the mineral resources. As regards the Sierra Gorda mine in Chile, work was
	carried out on preparing design documentation to build a fourth grinding line as well as an exploration

	program, among others aimed at more precise recognition of already-identified mineralised bodies, as
	well as exploration for bodies beyond the currently-worked deposit.

¹ The first quarter of 2025 comprises the period January-February, as the Sudbury Basin assets were sold on 28 February 2025.

Ecology,	− Scope 1, 2 and 3 greenhouse gas emissions by the KGHM Group in 2024 were calculated.
Safety and	− Annual reports on CO2 emissions for 2024 were verified to meet the needs of the system for the trading
Sustainable	of greenhouse gas emissions allowances.
Development	− Work continued on the Transformation Plan for KGHM Polska Miedź S.A. to mitigate the climate impact.
	− The operations of the Sierra Gorda mine continued solely on the basis of energy generated from RES.
	− Actions were continued related to managing water and reducing the salt content of water discharged to
	the Odra river. Water desalinisation tests commenced at a reverse osmosis pilot installation built at the
	Lubin Concentrator Region.
	− An ISO 22301-compliant certificate was obtained, comprising the oversight and coordination of the
	operations management process of the Core Production Business.
	− The Occupational Health and Safety Improvement Program was continued (LTIFR: 5.79, TRIR: 0.57).
	A Climbing-Related Medical Training Centre (Centrum Szkoleniowe Medyczno-Wysokościowe) was
	opened, providing advanced training for the Emergency Mine-Smelter Rescue Division.
E-industry	− Projects aimed at automation of production lines of the Company's Mining Divisions continued.
	Functional tests commenced on a prototype bolting rig with an automated bolting turret at the Rudna
	mine. Advancement of initiatives related to testing battery-powered electric mining machines.
	− The system for locating and identifying machinery and people in the underground mines was integrated
	and extended.
	− Functional testing of a specialised robot capable of high-temperature operation in the Głogów II Copper
	Smelter and Refinery continued. Analyses continue of the possibility of application of this solution in the
	other furnace, in Głogów I Copper Smelter and Refinery.
	− Projects continued in the area of digital transformation, focused on implementing new technological
	tools, IT solutions and operationalisation tasks, as well as harmonisation of cybersecurity processes.
Energy	− Projects were developed to increase electricity generation from own sources, including renewable energy
	sources (RES), such as photovoltaic (PV) farms and wind farms (WF):
	RES projects on own land:
	− Implementation stage: for the Głogów Copper Smelter and Refinery I-III Photovoltaic Power Plant
	(7.5 MW), the public procurement process is in progress for the selection of the General Contractor and
	the Oversight Inspector for each of the designed PV installations.
	− Preparatory stage: for the projects: PV "Piaskownia Obora" (50 MW), PV "Wartowice I" (88 MW),
	PV "HM Cedynia" (1.5 MW), PV "Kalinówka" (2 MW), PV "Polkowice" (3.9 MW) and PV "Tarnówek" (2.9 MW)
	grid connection consent was obtained with the originally assumed capacities. For the projects
	"PV Kalinówka" and PV "Tarnówek" a building permit was granted. With regard to the PV "Kopalnia Lubin
	Zachodni" project (5 MW) work continues on making changes to the spatial development plan for the
	Szklary Górne region. With regard to the PV "Wartowice I" project, preparations are underway to develop
	a spatial and programme concept. Advancement is being considered of the FW "Radwanice-Żukowice"
	project (20 MW) located partly on the Company's own land near the Głogów Copper Smelter and Refinery.
	A concept for power distribution to the Głogów Copper Smelter and Refinery was prepared for the wind
	project.
	− Work continued on analysis of the potential of own land for RES projects.
	Other RES projects and low-emissions generation sources:
	− Market analysis continued as regards potential acquisitions, in particular as regards wind power.
	− Work continued on assessing the possibility of utilising small modular nuclear reactor (SMR) technology,
	to meet the electrical power needs of KGHM Polska Miedź S.A.
	− Concept work continued on building a Carbon Capture and Storage (CCS technology) installation for the
	metallurgical production line at the Głogów Copper Smelter and Refinery, including development of a
	feasibility study for a demonstration installation.
	− Identification of opportunities to use electricity storage warehouses and their location.
	− In the first quarter of 2025, the own sources of the Group supplied 197.7 GWh of KGHM Polska Miedź

S.A.'s need for electrical power, representing 25.12% of total consumption by the Divisions of KGHM.

Note 2.2 Development directions of the KGHM Polska Miedź S.A. Group

Development of the resource base and ensuring profitable production is fundamental for the Group, and at the same time maximisation of the long-term value of the assets held. In the short term perspective, the current policy aimed at adapting the functioning of the organisation to the business model and the market environment, as well as at cooperation between the Group's entities, will be continued.

As part of the implementation of the Climate Policy and the energy transition, an increase is expected in the scope of investments in renewable energy sources to meet own needs along with projects related to improving energy efficiency, as well as projects aimed at protecting the environment and adapting to increasing regulatory requirements in this regard.

Key development investments comprise projects in the Core Production Business, among others:

− searching for and exploring deposits in areas under exploration concessions,
− the Deposit Access Program in the Deep Głogów region, including building shafts, a central air cooling station, the construction of access and development tunnels,
− outfitting the new mining areas along with the construction of conveyor belts,
− replacement of mining machinery (among others: replacement of machine park with machines with low-emission engines),
− construction of mine de-watering systems,
− construction of air cooling systems,
− development of the Żelazny Most Tailings Storage Facility above the crown height of 195 m a.s.l.,
− adaptation of metallurgical assets in terms of optimising their use and developing existing production infrastructure as regards the production and processing of electrolytic copper to reflect the possibility of intensifying the processing of purchased charge materials, including copper scrap, and the recovery of other elements,
− construction of installations and acquisitions in terms of renewable energy.

The Group has solid foundations for further growth and strengthening of the Company's position on the global commodity market. However, the Group's functioning is determined by its ability to adapt to changing market conditions, use of innovative technologies and effective management of geopolitical and regulatory risks. Adapting to global trends related to ESG and energy transition is also of key importance.

3 –Information on operating segments and revenues

Note 3.1 Operating segments

The operating segments identified in the KGHM Polska Miedź S.A. Group reflect the structure of the Group, the manner in which the Group and its individual entities are managed and the regular reporting to the Parent Entity's Management Board.

As a result of the aggregation of operating segments and taking into account the criteria stipulated in IFRS 8, the following reporting segments are currently identified within the KGHM Polska Miedź S.A. Group:

Reporting segment	Operating segments aggregated in a given reporting segment	Indications of similarity of economic characteristics of segments, taken into account in aggregations
KGHM Polska Miedź S.A.	KGHM Polska Miedź S.A.	Not applicable (it is a single operating and reporting segment)
KGHM INTERNATIONAL LTD.	Companies of the KGHM INTERNATIONAL LTD. Group, in which the following mines, deposits or mining areas and mining enterprises constitute operating segments: Sudbury Basin*, Robinson, Carlota, DMC, Victoria and Ajax projects.	Operating segments within the KGHM INTERNATIONAL LTD. Group are located in North and South America. The Management Board analyses the results of the following operating segments: Sudbury Basin*, Robinson, Carlota, Victoria and Ajax projects and other. In addition, the Management Board receives and analyses reports on the whole KGHM INTERNATIONAL LTD. Group. Operating segments are engaged in the exploration and mining of copper, molybdenum, silver, gold, nickel, platinum and palladium deposits. The operating segments were aggregated based on the similarity of long term margins achieved by individual segments, and the similarity of products, processes and production methods.
Sierra Gorda S.C.M.	Sierra Gorda S.C.M. (joint venture)	Not applicable (it is a single operating and reporting segment)
Other segments	This item includes other Group companies (every individual company is a separate operating segment).	Aggregation was carried out as a result of not meeting the criteria necessitating the identification of a separate additional reporting segment.

* The sale of assets of Sudbury Basin and liabilities associated with them took place on 28 February 2025 (Note 4.12).

The following companies were not included in any of the aforementioned segments:

Future 1 Sp. z o.o., which acts as a holding company with respect to the KGHM INTERNATIONAL LTD. Group,
Future 3 Sp. z o.o., Future 4 Sp. z o.o., Future 5 Sp. z o.o., which operate in the structure related to the establishment of a Tax Group.

These companies do not conduct operating activities which could impact the results achieved by individual segments, and as a result their inclusion could distort the data presented in this part of the condensed consolidated financial statements due to significant settlements with other Group companies.

Each of the segments KGHM Polska Miedź S.A., KGHM INTERNATIONAL LTD. and Sierra Gorda S.C.M. have their own Management Boards, which report the results of their business activities to the Management Board of the Parent Entity.

The segment KGHM Polska Miedź S.A. is composed only of the Parent Entity, and the segment Sierra Gorda S.C.M. is composed only of the joint venture Sierra Gorda S.C.M. Other companies of the KGHM Polska Miedź S.A. Group are presented below by segment: KGHM INTERNATIONAL LTD. and Other segments.

THE SEGMENT KGHM INTERNATIONAL LTD.
Location	Company
The United States of America	Carlota Copper Company, Carlota Holdings Company, DMC Mining Services Corporation, FNX Mining Company USA Inc., Robinson Holdings (USA) Ltd., Robinson Nevada Mining Company, Wendover Bulk Transhipment Company
Chile	Aguas de la Sierra Limitada, Minera Carrizalillo SpA, KGHM Chile SpA, Quadra FNX Holdings Chile Limitada, DMC Mining Services Chile SpA
Canada	KGHM INTERNATIONAL LTD., 0899196 B.C. Ltd., Centenario Holdings Ltd., DMC Mining Services Ltd., FNX Mining Company Inc., FRANKE HOLDINGS LTD., KGHM AJAX MINING INC., KGHMI HOLDINGS LTD., Quadra FNX Holdings Partnership, Sugarloaf Ranches Ltd., Project Nikolas Company INC.*
Mexico	DMC Mining Services Mexico, S.A. de C.V.
Colombia	DMC Mining Services Colombia SAS
The United Kingdom	DMC Mining Services (UK) Ltd.
Luxembourg	Quadra FNX FFI S.à r.l.

OTHER SEGMENTS
Type of activity	Company
Support of the core business	BIPROMET S.A., CBJ sp. z o.o., "Energetyka" sp. z o.o., INOVA spółka z o.o., KGHM CUPRUM sp. z o.o. – CBR, KGHM ZANAM S.A., KGHM Metraco S.A., PeBeKa S.A., POL-MIEDŹ TRANS Sp. z o.o., WPEC w Legnicy S.A.
Sanatorium-healing and hotel services	Uzdrowiska Kłodzkie S.A. - Grupa PGU, Uzdrowisko Cieplice Sp. z o.o. - Grupa PGU, Uzdrowisko Połczyn Grupa PGU S.A., Uzdrowisko Świeradów - Czerniawa Sp. z o.o. – Grupa PGU
Investment funds, financing activities	Polska Grupa Uzdrowisk sp. z o.o.
Other activities	CENTROZŁOM WROCŁAW S.A., CUPRUM Development sp. z o.o., KGHM (SHANGHAI) COPPER TRADING CO., LTD., KGHM Kupfer AG i L., MERCUS Logistyka sp. z o.o., MIEDZIOWE CENTRUM ZDROWIA S.A., NITROERG S.A., NITROERG SERWIS Sp. z o.o., PHU "Lubinpex" Sp. z o.o., PMT LK Sp. z o.o., Walcownia Metali Nieżelaznych "ŁABĘDY" S.A., Zagłębie Lubin S.A., OOO ZANAM VOSTOK, Invest PV 7 Sp. z o.o., Invest PV 40 Sp. z o.o., Invest PV 58 Sp. z o.o., Invest PV 59 Sp. z o.o.

* Entity sold on 28 February 2025 (Note 4.12).

The Parent Entity and the KGHM INTERNATIONAL LTD. Group (a subgroup) have a fundamental impact on the assets and the generation of revenues in the KGHM Polska Miedź S.A. Group. The activities of KGHM Polska Miedź S.A. are concentrated on the mining industry in Poland, while those of the KGHM INTERNATIONAL LTD. Group are concentrated on the mining industry in the countries of North and South America. The profile of activities of the majority of the remaining subsidiaries of the KGHM Polska Miedź S.A. Group differs from the main profile of the Parent Entity's activities.

The Parent Entity's Management Board monitors the operating results of individual segments in order to make decisions on allocating the Group's resources and assess the financial results achieved.

Financial data prepared for management reporting purposes is based on the same accounting policies as those applied when preparing the consolidated financial statements of the Group, while the financial data of individual reporting segments constitutes the amounts presented in appropriate financial statements prior to consolidation adjustments at the level of the KGHM Polska Miedź S.A. Group, i.e.:

The segment KGHM Polska Miedź S.A. comprises data from the separate financial statements of the Parent Entity prepared in accordance with IFRSs. In the separate financial statements, investments in subsidiaries (including indirect investment in KGHM INTERNATIONAL LTD.) are measured at cost, including the impairment losses,
The segment KGHM INTERNATIONAL LTD. comprises consolidated data of the KGHM INTERNATIONAL LTD. Group prepared in accordance with IFRSs. The involvement in Sierra Gorda S.C.M. is accounted for using the equity method,
The segment Sierra Gorda S.C.M. comprises the 55% share of assets, liabilities, revenues and costs of this venture presented in the financial statements of Sierra Gorda S.C.M. prepared in accordance with IFRSs,
Other segments comprises aggregated data of individual subsidiaries after excluding transactions and balances between them.

The Management Board of the Parent Entity assesses a segment's performance based on adjusted EBITDA and the profit or loss for the period.

The Group defines adjusted EBITDA as profit/loss for the period pursuant to IFRS, excluding taxes (current and deferred income tax as well as the mining tax), finance income and costs, other operating income and costs, profit or loss on involvement in joint ventures, depreciation/amortisation recognised in expenses by nature and recognition/reversal of impairment losses on property, plant and equipment and intangible assets included in the cost of sales, selling costs and administrative expenses.

Adjusted EBITDA – as a financial indicator not defined by IFRSs – is not a standardised measure and therefore its method of calculation may vary between entities, and consequently the presentation and calculation of adjusted EBITDA applied by the Group may not be comparable to that applied by other market entities.

Revenues from transactions with external entities and inter-segment transactions are carried out at arm's length. Eliminations of mutual settlements, revenues and costs between segments were presented in the item "Consolidation adjustments".

Unallocated assets and liabilities concern companies which have not been allocated to any segment. Liabilities which have not been allocated to the segments comprise trade liabilities and deferred tax liabilities.

Note 3.2 Financial results of reporting segments

					from 1 January 2025 to 31 March 2025
						Reconciliation items to consolidated data
		KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments****	Consolidated financial statements
Note 3.3	Revenues from contracts with customers, of which:	7 537	895	1 039	3 328	(1 039)	(2 818)	8 942
	- inter-segment	170	5	-	2 648	-	(2 818)	5
	- external	7 367	890	1 039	680	(1 039)	-	8 937
	Cost of sales, selling costs and administrative expenses	(6 729)	( 617)	( 577)	(3 302)	577	2 834	(7 814)
	Segment result - profit/(loss) for the period	127	138	205	25	( 205)	40	330
	Additional information on significant revenue/cost items of the segment
	Depreciation/amortisation recognised in expenses by nature	( 445)	( 184)	( 210)	( 76)	210	9	( 696)
	(Recognition)/reversal of impairment losses on non-current assets, including:	4	-	-	-	-	( 4)	-
	reversal of allowances for impairment of loans granted	4	3	-	-	-	( 4)	3
		As at 31 March 2025
	Segment assets	50 721	15 643	13 468	7 063	(13 468)	(19 289)	54 138
	Liabilities, including:	19 276	18 871	12 795	3 955	(12 795)	(19 375)	22 727
	Segment liabilities	19 276	18 871	12 795	3 955	(12 795)	(19 600)	22 502
	Liabilities unallocated to segments	-	-	-	-	-	225	225
	Other information	from 1 January 2025 to 31 March 2025
	Cash expenditures on property, plant and equipment and intangible assets – cash flows	1 165	227	307	174	( 307)	( 83)	1 483
	Production and cost data	from 1 January 2025 to 31 March 2025
	Payable copper (kt)	134.0	14.4	20.8
	Molybdenum (million pounds)	-	-	0.5
	Silver (t)	315.6	0.1	5.0
	TPM (koz t)	21.5	13.2	7.0
	C1 cash cost of producing copper in concentrate (USD/lb)**
	Segment result - adjusted EBITDA	3.15 1 253	1.03 462	1.18 672	102	-	-	2 489
	EBITDA margin***	17%	52%	65%	3%	-	-	25%

* 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 (25%), the consolidated revenues from contracts with customers were increased by revenues from contracts with customers of the segment Sierra Gorda S.C.M. [2 489 / (8 942 + 1 039) * 100]

**** Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.

Financial results of reporting segments for the comparable period

				from 1 January 2024 to 31 March 2024
					Reconciliation items
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	to consolidated data Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments****	Consolidated financial statements
Revenues from contracts with customers, of which:	7 279	525	679	2 987	( 679)	(2 476)	8 315
- inter-segment	188	5	-	2 288	-	(2 476)	5
- external	7 091	520	679	699	( 679)	-	8 310
Cost of sales, selling costs and administrative expenses	(6 778)	( 470)	( 527)	(2 991)	527	2 510	(7 729)
Segment result - profit/(loss) for the period	387	( 89)	( 17)	( 10)	17	136	424
Additional information on significant revenue/cost items of the segment
Depreciation/amortisation recognised in expenses by nature	( 395)	( 192)	( 180)	( 80)	180	74	( 593)
Impairment losses on non-current assets	-	-	-	-	-	( 20)	( 20)
	As at 31 December 2024
Segment assets	50 405	16 422	14 245	6 889	(14 245)	(19 824)	53 892
Liabilities, including:	19 251	19 990	13 742	3 848	(13 742)	(20 255)	22 834
Segment liabilities	19 251	19 990	13 742	3 848	(13 742)	(20 478)	22 611
Liabilities unallocated to segments	-	-	-	-	-	223	223
Other information		from 1 January 2024 to 31 March 2024
Cash expenditures on property, plant and equipment and intangible assets – cash flows	1 019	329	319	166	( 319)	( 203)	1 311
Production and cost data	from 1 January 2024 to 31 March 2024
Payable copper (kt)	146.2	16.0	17
Molybdenum (million pounds)	-	-	0.5
Silver (t)	309.8	0.4	5.8
TPM (koz t)	20.1	14.2	6.5
C1 cash cost of producing copper in concentrate (USD/lb)**
	3.01	2.17	1.90
Segment result - adjusted EBITDA	896	247	332	76	-	-	1 551
EBITDA margin***	12%	47%	49%	3%	-	-	17%

* 55% of the Group's share in Sierra Gorda S.C.M.'s financial and production data.

*** Adjusted EBITDA to revenues from contracts with customers. For the purposes of calculating the Group's EBITDA margin (17%), the consolidated revenues from contracts with customers were increased by revenues from contracts with customers of the segment Sierra Gorda S.C.M. [1 551 / (8 315 + 679) * 100]

**** Adjustments arise from consolidation eliminations and financial data of companies unallocated to any segment.

Reconciliation of adjusted EBITDA from 1 January 2025 to 31 March 2025 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 for the period 127 138 25 40 330 205 [-] Profit or loss on involvement in joint ventures - 150 - - 150 - [-] Current and deferred income tax, mining tax* ( 266) ( 111) ( 9) ( 18) ( 404) ( 81) [-] Depreciation/amortisation recognised in expenses by nature ( 445) ( 184) ( 76) ⁹ ( 696) ( 210) [-] Finance income and (costs) 80 ( 253) ( 15) 281 93 ( 170) [-] Other operating income and (costs) ( 495) 74 23 ( 239) ( 637) ( 6) [-] (Recognition)/reversal of impairment losses on non-current assets recognised in cost of sales, selling costs and administrative expenses - - - - - - Segment result - adjusted EBITDA 1 253 462 102 7 1 824 672 2 489

* 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.

Reconciliation of adjusted EBITDA	from 1 January 2024 to 31 March 2024
	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	387	( 89)	( 10)	136	424	( 17)
[-] Profit or loss on involvement in joint ventures	-	144	-	-	144	-
[-] Current and deferred income tax, mining tax***	( 223)	( 19)	( 6)	( 31)	( 279)	-
[-] Depreciation/amortisation recognised in expenses by nature	( 395)	( 192)	( 80)	74	( 593)	( 180)
[-] Finance income and (costs)	( 122)	( 263)	( 12)	290	( 107)	( 188)
[-] Other operating income and (costs)	231	( 6)	12	( 157)	80	19
[-] (Recognition)/reversal of impairment losses on non-current assets recognised in cost of sales, selling costs and administrative expenses	-	-	-	-	-	-
Segment result - adjusted EBITDA	896	247	76	( 40)	1 179	332	1 551

* 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.

Note 3.3 Revenues from contracts with customers of the Group – breakdown by products

	from 1 January 2025 to 31 March 2025
					Reconciliation items to consolidated data
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments	Consolidated data
Products
Copper	5 567	543	859	2	( 859)	( 10)	6 102
Silver	1 340	6	20	-	( 20)	-	1 346
Gold	287	150	87	-	( 87)	-	437
Services	59	185	-	612	-	( 450)	406
Energy	42	-	-	169	-	( 110)	101
Salt	8	-	-	-	-	2**	10
Blasting materials and explosives	-	-	-	85	-	( 39)	46
Mining machinery, transport vehicles and other types of machinery and equipment	-	-	-	65	-	( 50)	15
Fuel additives	-	-	-	33	-	-	33
Lead	68	-	-	-	-	-	68
Products from other non-ferrous metals	-	-	-	28	-	-	28
Other products	72	11	73	238	( 73)	( 167)	154
Merchandise and materials
Steel	-	-	-	92	-	( 13)	79
Petroleum and its derivatives	-	-	-	103	-	( 91)	12
Salt	-	-	-	10	-	( 10)**	-
Other merchandise and materials	94	-	-	1 891	-	(1 880)	105
TOTAL	7 537	895	1 039	3 328	(1 039)	(2 818)	8 942

* 55% of the Group's share in revenues of Sierra Gorda S.C.M.

** Including: PLN 10 million – reclassification from revenues from the sale of merchandise and materials to revenues from the sale of products.

					Reconciliation items to consolidated data
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments	Consolidated data
Products
Copper	5 714	278	533	2	( 533)	( 7)	5 987
Silver	1 018	1	16	-	( 16)	-	1 019
Gold	208	45	54	-	( 54)	-	253
Services	53	176	-	577	-	( 419)	387
Energy	49	-	-	180	-	( 115)	114
Salt	19	-	-	-	-	( 1)**	18
Blasting materials and explosives	-	-	-	69	-	( 35)	34
Mining machinery, transport vehicles and other types of machinery and equipment	-	-	-	76	-	( 69)	7
Fuel additives	-	-	-	34	-	-	34
Lead	53	-	-	-	-	-	53
Products from other non-ferrous metals	-	-	-	30	-	( 1)	29
Other products	53	25	76	203	( 76)	( 128)	153
Merchandise and materials
Steel	-	-	-	110	-	( 17)	93
Petroleum and its derivatives	-	-	-	107	-	( 91)	16
Salt	-	-	-	18	-	( 18)**	-
Other merchandise and materials	112	-	-	1 581	-	(1 575)	118
TOTAL	7 279	525	679	2 987	( 679)	(2 476)	8 315

from 1 January 2024 to 31 March 2024

* 55% of the Group's share in revenues of Sierra Gorda S.C.M.

** Including: PLN 18 million – reclassification from revenues from the sale of merchandise and materials to revenues from the sale of products.

Note 3.4 Revenues from contracts with customers of the Group – breakdown by type of contracts

	from 1 January 2025 to 31 March 2025
					Reconciliation items to consolidated data
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments	Consolidated data
Total revenues from contracts with customers	7 537	895	1 039	3 328	(1 039)	(2 818)	8 942
Revenues from sales contracts, for which the price is set after the date of recognition of the sales (M+ principle), of which:	4 622	710	1 084	1 562	(1 084)	(1 548)	5 346
settled	4 261	16	37	1 562	( 37)	(1 546)	4 293
unsettled	361	694	1 047	-	(1 047)	( 2)	1 053
Revenues from realisation of long-term contracts for mine construction	-	180	-	31	-	( 30)	181
Revenues from other sales contracts	2 915	5	( 45)	1 735	45	(1 240)	3 415
Total revenues from contracts with customers, of which:	7 537	895	1 039	3 328	(1 039)	(2 818)	8 942
in factoring	2 039	-	-	53	-	( 53)	2 039
not in factoring	5 498	895	1 039	3 275	(1 039)	(2 765)	6 903

	from 1 January 2025 to 31 March 2025	from 1 January 2024 to 31 March 2024
Total revenues from contracts with customers, of which:	8 942	8 315
transferred at a certain moment	8 400	7 769
transferred over time	542	546

* 55% of the Group's share in revenues of Sierra Gorda S.C.M.

	from 1 January 2024 to 31 March 2024
					Reconciliation items to consolidated data
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments	Consolidated data
Total revenues from contracts with customers	7 279	525	679	2 987	( 679)	(2 476)	8 315
Revenues from sales contracts, for which the price is set after the date of recognition of the sales (M+ principle), of which:	4 889	349	662	33	( 662)	( 53)	5 218
settled	4 578	24	30	1	( 30)	( 26)	4 577
unsettled	311	325	632	32	( 632)	( 27)	641
Revenues from realisation of long-term contracts for mine construction	-	171	-	54	-	( 52)	173
Revenues from other sales contracts	2 390	5	17	2 900	( 17)	(2 371)	2 924
Total revenues from contracts with customers, of which:	7 279	525	679	2 987	( 679)	(2 476)	8 315
in factoring	2 376	-	-	278	-	( 270)	2 384
not in factoring	4 903	525	679	2 709	( 679)	(2 206)	5 931

* 55% of the Group's share in revenues of Sierra Gorda S.C.M.

Note 3.5 Revenues from contracts with customers of the Group – geographical breakdown reflecting the location of end customers

	from 1 January 2025 to 31 March 2025						from 1 January 2024 to 31 March 2024
		Reconciliation items to consolidated data
	KGHM Polska Miedź S.A.	KGHM INTERNATIONAL LTD.	Sierra Gorda S.C.M.*	Other segments	Elimination of data of the segment Sierra Gorda S.C.M	Consolidation adjustments	Consolidated data	KGHM Polska Miedź S.A. Group
Poland	1 800	-	4	3 237	( 4)	(2 818)	2 219	2 318
Austria	85	-	-	5	-	-	90	90
Belgium	36	-	-	3	-	-	39	9
Bulgaria	26	-	-	6	-	-	32	40
Czechia	545	-	-	3	-	-	548	565
Denmark	14	-	-	-	-	-	14	-
Estonia	7	-	-	1	-	-	8	-
Finland	22	-	-	1	-	-	23	9
France	188	-	-	3	-	-	191	105
Greece	-	-	-	3	-	-	3	13
Spain	2	-	-	1	-	-	3	9
The Netherlands	5	-	11	-	( 11)	-	5	1
Germany	1 208	-	-	23	-	-	1 231	1 246
Romania	30	-	-	1	-	-	31	29
Slovakia	47	-	-	4	-	-	51	51
Slovenia	24	-	-	1	-	-	25	27
Sweden	242	-	-	10	-	-	252	217
Hungary	405	-	-	2	-	-	407	392
The United Kingdom	326	-	-	1	-	-	327	298
Italy	489	-	-	4	-	-	493	569
Australia	-	-	-	-	-	-	-	60
Bosnia and Herzegovina	5	-	-	-	-	-	5	-
Chile	4	83	174	-	( 174)	-	87	78
China	493	425	637	-	( 637)	-	918	1 132
India	2	-	9	-	( 9)	-	2	-
Japan	-	-	163	-	( 163)	-	-	1
Canada	13	200	-	-	-	-	213	150
South Korea	-	-	16	-	( 16)	-	-	27
Norway	-	-	-	7	-	-	7	-
The United States of America	897	187	-	3	-	-	1 087	313
Switzerland	244	-	-	-	-	-	244	334
Türkiye	176	-	-	1	-	-	177	92
Ukraine	-	-	-	3	-	-	3	-
Taiwan	-	-	-	1	-	-	1	-
Morocco	6	-	-	-	-	-	6	-
Algeria	29	-	-	-	-	-	29	-
Brazil	-	-	25	-	( 25)	-	-	-
Thailand	128	-	-	-	-	-	128	-
Saudi Arabia	38	-	-	-	-	-	38	114
Other countries	1	-	-	4	-	-	5	26
TOTAL	7 537	895	1 039	3 328	(1 039)	(2 818)	8 942	8 315

* 55% share of the Group in the revenues of Sierra Gorda S.C.M.

Note 3.6 Main customers

In the period from 1 January 2025 to 31 March 2025 and in the comparable period the revenues from contracts with customers from no single contractor exceeded 10% of the revenues from contracts with customers of the KGHM Polska Miedź S.A. Group.

In the comparable period, the revenues from no single contractor exceeded 10% of the revenues from contracts with customers of the Group.

Note 3.7 Non-current assets – geographical breakdown

	As at 31 March 2025	As at 31 December 2024
Poland	25 795	25 542
Canada	2 208	2 207
The United States of America	2 323	2 385
Chile	290	291
TOTAL*	30 616	30 425

*Non-current assets, excluding: derivatives, other financial instruments, other non-financial assets and deferred tax assets (IFRS 8.33b) in the total amount of PLN 11 494 million as at 31 March 2025 (PLN 11 860 million as at 31 December 2024).

Note 3.8 Information on segments' results

3.8.1 The segment KGHM Polska Miedź S.A.

Production results

	Unit	st quarter of 1	st quarter of 1	Change (%)
		2025	2024
Ore extraction (dry weight)	mn t	7.7	7.9	(2.5)
Copper content in ore	%	1.48	1.48	-
Copper production in concentrate	kt	99.4	102.5	(3.0)
Silver production in concentrate	t	328.6	343.2	(4.3)
Production of electrolytic copper	kt	134.0	146.2	(8.3)
- including from own concentrate	kt	90.3	95.1	(5.0)
Production of metallic silver	t	315.6	309.8	+1.9
Production of gold	koz t	21.5	20.1	+7.0

In the first 3 months of 2025, there was a decrease in ore extraction as compared to the corresponding period of prior year by 200 thousand tonnes (dry weight), which was related to the production calendar being shorter by 2 working days (6 January and 29 February) in the first quarter of 2025. The increased production in days free from work did not fully offset production deficiency, since efficiency in days free from work did not exceed 80% of the efficiency in working days. Copper content in ore was at a similar level to the one recorded in prior year.

Copper production in concentrate amounted to 99.4 thousand tonnes and was lower by 3.1 thousand tonnes (-3%) as compared to the first 3 months of 2024 due to lower processing of ore from the mines.

As compared to the corresponding period of 2024, there was a decrease in electrolytic copper production by 12.2 thousand tonnes due to the realisation of planned maintenance of rails and current disconnectors at the Głogów II Copper Smelter and Refinery.

In the case of operations of Concentrators and smelters, which operate continuously, the decrease in production was also due to shorter calendar in February 2025 (28 days) as compared to February 2024 (29 days).

Metallic silver production amounted to 315.6 tonnes and was higher by 5.8 tonnes (+2%) as compared to the first quarter of 2024. The increase in metallic silver production was due to higher availability of feed material at the Precious Metals Plant of the Głogów Copper Smelter and Refinery.

Metallic gold production amounted to 21.5 thousand troy ounces and was higher by 1.4 thousand troy ounces (+7%) as compared to the first quarter of 2024. The increase in metallic gold production was due to the higher availability of goldbearing materials.

Sales

	Unit	1st quarter of	1st quarter of	Change (%)
		2025	2024
Revenues from contracts with customers, including:	PLN mn	7 537	7 279	+3.5
- copper	PLN mn	5 567	5 714	(2.6)
- silver	PLN mn	1 340	1 018	+31.6
Volume of copper sales	kt	143.3	158.8	(9.8)
Volume of silver sales	t	332.8	336.2	(1.0)

The increase in revenues from contracts with customers by PLN 258 million as compared to the corresponding period of 2024 was, above all, caused by:

− an increase in revenues by PLN 949 million due to: higher silver prices (+8.55 USD/oz t, +37%), gold (+789 USD/oz t, +38%) and copper (+902 USD/t, +11%),
− a decrease in revenues by PLN 552 million due to deviations in the volume of sales of main products: copper (15.5 thousand tonnes, -10%), silver (-3 tonnes, -1%) and gold (0.2 thousand troy ounces, +1%),
− a change by -PLN 144 million in an adjustment to revenues due to hedging transactions, from +PLN 160 million in the first quarter of 2024 to +PLN 16 million in the first quarter of 2025.

Costs

	Unit	1st quarter of	1st quarter of	Change (%)
		2025	2024
Cost of sales, selling costs and administrative expenses	PLN mn	6 729	6 778	(0.7)
Expenses by nature	PLN mn	7 020	6 453	+8.8
Pre-precious metals credit unit cost of electrolytic copper production from own concentrate1	PLN/t	44 965	42 748	+5.2
Total unit cost of electrolytic copper production from own concentrate	PLN/t	29 514	31 937	(7.6)
C1 unit cost 2	USD/lb	3.15	3.01	+4.7

1) Unit cost prior to decrease by the value of anode slimes containing, among others, silver and gold

2) Cash cost of concentrate production reflecting the minerals extraction tax, plus administrative expenses and smelter treatment and refining charges (TC/RC), less depreciation/amortisation cost and the value of by-product premiums, calculated for sold payable copper in concentrate

The Parent Entity's cost of sales, selling costs and administrative expenses (total cost of products, merchandise and materials sold, selling costs and administrative expenses) for the first quarter of 2025 amounted to PLN 6 729 million and were lower by 1% as compared to the corresponding period of 2024, mainly due to higher value of inventories alongside higher expenses by nature.

In the first quarter of 2025, total expenses by nature as compared to the corresponding period of 2024 were higher by PLN 567 million, alongside a mineral extraction tax higher by PLN 255 million and the cost of consumption of purchased metal-bearing materials higher by PLN 110 million due to 11% higher purchase price alongside a lower volume by 2.4 thousand tonnes of copper (-4%).

The increase in expenses by nature, excluding purchased metal-bearing materials and the minerals extraction tax, amounted to PLN 202 million (+5%) and mainly resulted from increases in the following costs:

− labour by PLN 156 million due to higher employee wages and lower decrease in liabilities for future employee benefits measured in correspondence with costs – difference as compared to the corresponding period of the prior year in the amount of PLN 62 million,
− depreciation/amortisation by PLN 50 million due to new investments advanced by the Company,
− external services by PLN 29 million due to higher payments for services rendered,
− energy carriers by PLN 23 million due to higher energy prices alongside lower volume of consumption,
− other technological materials and fuels by PLN 25 million, mainly due to higher purchase prices for technological gas alongside a similar consumption volume.

At the same time, the Company recorded a decrease in the item "other taxes and charges" by PLN 76 million due to the change in the manner of recognising CO2 emission allowances received free of charge. Currently, the Company recognises on a monthly basis 1/12 of the planned CO² emission allowances and calculates them cumulatively per the market price of CO² emission allowances from the last day of the current month.

C1 cost for the first quarter of 2025 amounted to 3.15 USD/lb and was higher than the C1 cost in the corresponding period of 2024 by 5%. The increase in this cost was mainly due to higher tax burden by the minerals extraction tax and lower production of copper in own concentrate alongside a greater relief by by-products due to higher prices of silver and gold.

The pre-precious metals credit unit cost of electrolytic copper production from own concentrate (unit cost prior to decrease by the value of anode slimes containing, among others, silver and gold) amounted to 44 965 PLN/t (in the corresponding period of 2024: 42 748 PLN/t) and was higher by 5%, mainly due to the higher mineral extraction tax and a decrease in production from own concentrate by 5%.

The total unit cost of electrolytic copper production from own concentrate amounted to 29 514 PLN/t and was lower than in the corresponding period of 2024 by 8% alongside higher value of anode slimes due to higher prices of silver and gold.

Financial results

The Company recorded a profit for the first quarter of 2025 of PLN 127 million, or PLN 260 million lower than in the corresponding prior-year period.

PLN million	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Revenues from contracts with customers, including:	7 537	7 279	+3.5
- adjustment of revenues due to hedging transactions	16	160	(90.0)
Cost of sales, selling costs and administrative expenses	(6 729)	(6 778)	(0.7)
Profit/(loss) on sales	808	501	+61.3
Other operating income and (costs)	(495)	231	×
Finance income and (costs)	80	(122)	×
Profit/(loss) before income tax	393	610	(35.6)
Income tax expense	(266)	(223)	+19.3
Profit/(loss) for the period	127	387	(67.2)
Adjusted EBITDA1	1 253	896	+39.8

1) Adjusted EBITDA = profit on sales + depreciation/amortisation (recognised in expenses by nature) + impairment loss (-reversal of impairment losses) on non-current assets, recognised in cost of sales, selling costs and administrative expenses

The main factors affecting the change in profit or loss

Item	Impact on change in profit or loss	Description
Adjusted EBITDA	(PLN million) +357	The increase in operating result was due to:
		− an increase in revenues from contracts with customers by PLN 258 million, as described in subsection Sales, − a decrease in cost of sales, selling costs and administrative expenses (excluding depreciation/amortisation) by PLN 99 million, as described in subsection Costs,
Exchange differences	(295)	A decrease in the result on exchange differences was affected by:
		− result on exchange differences recognised in other operating income and costs lower by PLN 481 million (mainly due to loans), − result on exchange differences from the measurement and realisation of borrowings recognised in finance income and costs higher by PLN 186 million (mainly exchange differences on borrowings).
Fair value gains/losses on financial assets measured at fair value through profit or loss	(183)	Mainly relates to a higher decrease in the value of loans measured at fair value through profit or loss, most of all due to the strengthening of PLN versus USD from 4.1010 on 31 December 2024 to 3.8643 at the end of the reporting period.
Impact of derivatives and hedging transactions	(87)	A decrease in result on measurement and realisation of derivatives in other operating activities from -PLN 16 million to -PLN 103 million.
Income tax expense	(43)	Higher income tax, including PLN 64 million in the scope of the current income tax due to the settlement of the Tax Group alongside a decrease in deferred income tax by PLN 38 million.

Change in profit/(loss) for the period (in PLN million)

Capital expenditures

In the first quarter of 2025, expenditures on property, plant and equipment and intangible assets amounted to PLN 692 million.

Structure of expenditures on property, plant and equipment and intangible assets (in PLN million)

	st quarter of 1	st quarter of 1
	2025	2024	Change (%)
Mining	576	536	+7.5
Metallurgy	87	87	-
Other activities	3	5	(40.0)
Development work - uncompleted	0	0	×
Leases per IFRS 16	26	24	+8.3
Total	692	652	+6.1
including borrowing costs	65	59	+10.2

Investment activities comprised projects related to the replacement, maintenance, development and adaptation in the areas of mining, metallurgy and other activities.

Projects related to replacement aimed at maintaining production equipment in an undeteriorated condition, represent 31% of total expenditures incurred.

Structure of expenditures on replacement

Projects related to maintenance aimed at maintaining mine production at the level set in the approved Production Plan (development of infrastructure to match mine advancement) represent 31% of total expenditures incurred.

Structure of expenditures on maintenance

Development projects aimed at increasing or maintaining the current level of revenues from sales, implementation of technical and technological activities optimising use of existing infrastructure, decreasing operating costs, represent 37% of total expenditures incurred.

Structure of expenditures on development

Adaptation projects aimed at adaptation of the company's operations to legal requirements, applicable standards or other regulations, in particular in the area of occupational health and safety, property protection, cybersecurity, ethical and anticorruption standards, environmental protection, quality standards and management systems represent 1% of total expenditures incurred.

Structure of adaptation expenditures

Detailed information on the advancement of key projects may be found in Part 2, Note 2 of the consolidated financial statements on the realisation of the Strategy in the first quarter of 2025.

3.8.2 The segment KGHM INTERNATIONAL LTD.

Production results

	Unit	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Payable copper, including:	kt	14.4	16.0	(10.0)
- Robinson mine (USA)	kt	13.6	14.3	(4.9)
Payable nickel	kt	0.1	0.1	-
Precious metals (TPM), including:	koz t	13.2	14.2	(7.0)
- Robinson mine (USA)	koz t	10.8	10.2	+5.9
- Sudbury (Canada)	koz t	2.3	4.0	(42.5)

As compared to the first quarter of 2024, payable copper production is lower by 1.6 thousand tonnes (-10%), of which 0.8 thousand tonnes is a result of lower ore processing and lower copper recovery by the Robinson mine, and the other 0.8 thousand tonnes is the result of a decrease in production by the Carlota mine and a sale of the Sudbury assets (February 2025).

As regards precious metals, there was an increase in gold production by Robinson and a decrease in TPM production by Sudbury due to the sale of assets.

Sales

	Unit	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Revenues from contracts with customers 1 , including:	USD mn	225	132	+70.5
- copper	USD mn	137	70	+95.7
- nickel	USD mn	1	2	(50.0)
- TPM – precious metals	USD mn	40	14	x 2.9
Copper sales volume	kt	14.2	8.7	+63.2
Nickel sales volume	kt	0.1	0.1	-
TPM sales volume	koz t	14.2	8.9	+59.6
Revenues from contracts with customers	PLN mn	895	525	+70.5

1) Reflects processing premium

In the first quarter of 2025, copper production amounted to 14.4 thousand tonnes and sales amounted to 14.2 thousand tonnes, while in the first quarter of 2024 sales amounted only to a half of the produced payable copper. A similar situation occurred as regards the precious metals.

The increase in sales concerned the Robinson mine (in other mines of KGHM INTERNATIONAL LTD., there was a decrease in copper sales volume).

The increase in copper and TPM sales and the increase in prices of these metals was the main factor contributing to the increase in revenues by over 70% (+USD 93 million) as compared to the first quarter of 2024.

Costs

The costs of sales, selling costs and administrative expenses in the first quarter of 2025 amounted to USD 155 million (PLN 617 million), 31% higher than the amount recorded in the corresponding quarter of 2024.

	Unit	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Costs of sales, selling costs and administrative expenses	USD mn	155	118	+31.4
Costs of sales, selling costs and administrative expenses	PLN mn	617	470	+31.3
C1 payable copper production cost 1	USD/lb	1.03	2.17	(52.5)

1) C1 unit production cost of copper - cash cost of payable copper production, reflecting costs of ore extraction and processing, the minerals extraction tax, transport costs, administrative expenses during the mining phase and smelter treatment and refining charges (TC/RC) less by-product value

The main factor responsible for the increase in costs of sales, selling costs and administrative expenses by USD 37 million was the increase in sales and associated settlement of costs in inventories in a smaller amount than in the first quarter of 2024.

		st quarter of 1 2025	st quarter of 1 2024	Change USD mn
Expenses by nature	USD mn	207	204	+3
Change in inventories of finished goods and work in progress	USD mn	(22)	(50)	+28
Stripping costs	USD mn	(30)	(36)	+6
Cost of sales, selling costs and administrative expenses	USD mn	155	118	+37

C1 unit production cost of copper amounted to 1.03 USD/lb of copper, which represents a significant (-52%) decrease as compared to the first quarter of 2024, mainly due to the increase in copper sales by Robinson and the increase in revenues from sales of associated metals.

Financial results

In the first quarter of 2025, KGHM INTERNATIONAL LTD. achieved an adjusted EBITDA at the level of USD 116 million, which represents an increase by 87% as compared to the corresponding quarter of 2024.

USD mn	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Revenues from contracts with customers	225	132	+70.5
Cost of sales, selling costs and administrative expenses 1	(155)	(118)	+31.6
Profit/(loss) on sales	70	14	x 5.0
PROFIT/(LOSS) FOR THE PERIOD	35	(22)	x
Depreciation/amortisation	(46)	(48)	(4.2)
Adjusted EBITDA	116	62	+87.1

1) Cost of products, merchandise and materials sold, selling costs and administrative expenses

PLN mn	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Revenues from contracts with customers	895	525	+70.5
Cost of sales, selling costs and administrative expenses1	(617)	(470)	+31.2
Profit/(loss) on sales	278	55	x 5.1
PROFIT/(LOSS) FOR THE PERIOD	138	(89)	X
Depreciation/amortisation	(184)	(192)	(4.2)
Adjusted EBITDA	462	247	+87.0

1) Cost of products, merchandise and materials sold, selling costs and administrative expenses

Main factors behind the increase in profit or loss for the period:

Item	Description
Increase in adjusted EBITDA +USD 54 million	An increase in revenues from contracts with customers by USD 93 million, of which +USD 75 million as a result of an increase in sales volumes of metals, +USD 17 million due to price changes and +USD 1 million due to other factors.
	An increase in costs charged to EBITDA by USD 39 million, mainly due to a change in inventories of finished goods and work in progress.
Impact of other operating activities and financing activities +USD 24 million	+USD 5 million – exchange differences – foreign exchange gains (USD 1 million) as compared to losses (-USD 4 million) in the first quarter of 2024.
	+USD 4 million – interest – interest income/costs in the amount of -USD 24 million in the first quarter of 2025 as compared to -USD 28 million in the corresponding period of 2024
	+USD 15 million – other income/costs, including mainly gain from the sale of shares in subsidiaries (Sudbury assets)
Lower depreciation/ amortisation costs +USD 2 million
Income tax expense (-USD 23 million)	Increase in income tax due to the improved operating results.

Change in profit or loss for the period of KGHM INTERNATIONAL LTD. (in USD million)

Loss for the first quarter of 2024 Increase in adjusted EBITDAOther operating activities and financing activities Depreciation/amortisation Income tax expense Profit for the first quarter of 2025

Cash expenditures

Cash expenditures by the segment KGHM INTERNATIONAL LTD. amounted to USD 57 million and were lower by USD 25 million (-30%) as compared to the corresponding period of 2024. In the first quarter of 2025, the Robinson mine realised a smaller scope of stripping (a decrease in expenditures on stripping) and lower expenditures on replacement (in the first quarter of 2024, significant expenditures were incurred to purchase mining machinery).

USD mn	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Victoria project	20	20	-
Stripping and other	37	62	(40.3)
Total	57	82	(30.5)

PLN mn	st quarter of 1 2025	st quarter of 1 2024	Change (%)
Victoria project	79	80	(0.6)
Stripping and other	147	249	(41.0)
Total	227	329	(31.0)

3.8.3 The segment Sierra Gorda S.C.M.

The segment Sierra Gorda S.C.M. is a joint venture, whose owners are the KGHM Polska Miedź S.A. Group (55%) and the Australian mining group South32 (45%).

The following production and financial data are for the full ownership of the joint venture (100%) and proportionally to the interest in the company Sierra Gorda S.C.M. (55%), pursuant to the principle of data presentation in the note of the consolidated financial statements on operating segments.