KGHM Polska Miedź S.A.

Earnings Release • Nov 26, 2024

Lubin, 26 November 2024

Preliminary production and sales data of the KGHM Polska Miedź S.A. Group for October 2024

The following report contains preliminary monthly data – the final quarterly and annual production and sales results will be published in the consolidated annual report for 2024. Data of the KGHM Polska Miedź S.A. Group contain the results of Sierra Gorda S.C.M. reflecting the 55% share held by KGHM Polska Miedź S.A.

Results of the KGHM Group in October 2024 - y/y:

Production and sales of the KGHM Group	October 2024	October 2023	I - X 2024	I - X 2023
Production
Payable copper (kt)	61.5	58.7	605.4	585.9
- including KGHM Polska Miedź S.A.*	48.5	49.7	489.7	493.2
Payable silver (t)	118.3	119.7	1 099.3	1 218.7
TPM (koz t)	14.2	14.9	141.0	148.4
Molybdenum (mn lbs)	0.6	0.0	2.7	3.2
Sales
Copper (kt)	63.7	59.6	608.3	590.6
Silver (t)	138.8	121.4	1 159.0	1 186.5
TPM (koz t)	13.4	8.9	142.3	157.1
Molybdenum (mn lbs)	0.5	0.4	2.9	2.7

* Production of electrolytic copper

Production of the KGHM Group:

• Production of payable copper amounted to 61.5 thousand tonnes, or by 2.8 thousand tonnes (+5%) more than the level recorded in October 2023 due to higher production by KGHM INTERNATIONAL LTD. and Sierra Gorda S.C.M.
• Production of payable silver amounted to 118.3 tonnes, or by 1.4 tonnes (-1%) less than the amount recorded in October 2023.
• Production of TPM amounted to 14.2 thousand troy ounces and was lower than the level of production recorded in October 2023 by 0.7 thousand troy ounces (-5%). Lower production was recorded by KGHM Polska Miedź S.A., with higher production by KGHM INTERNATIONAL LTD. and Sierra Gorda S.C.M.
• Production of molybdenum amounted to 0.6 million pounds this improvement was due to a higher than in the prior year volume of ore processed as well as higher content and recovery of molybdenum by Sierra Gorda S.C.M.

In the first 10 months of 2024, the production of copper, silver and TPM by the KGHM Group was higher than the planned targets for this period.

Sales of the KGHM Group:

• Sales of copper amounted to 63.7 thousand tonnes and were higher by 4.1 thousand tonnes (+7%) compared to sales in October 2023. Higher copper sales were recorded by every segment of the KGHM Group.
• Sales of silver amounted to 138.8 tonnes and were higher by 17.4 tonnes (+14%) compared to sales in October 2023. Higher silver sales were recorded by KGHM Polska Miedź S.A. and by Sierra Gorda S.C.M.
• Sales of TPM amounted to 13.4 thousand troy ounces and were higher by 4.5 thousand troy ounces. (+51%) compared to sales in October 2023. Higher TPM sales were recorded by every segment of the KGHM Group.
• Sales of molybdenum amounted to 0.5 million pounds and were higher by 0.1 million pounds (+25%) compared to sales in October 2023.

Results of KGHM Polska Miedź S.A. in October 2024 - y/y:

Production and sales of KGHM Polska Miedź S.A.	October 2024	October 2023	I - X 2024	I - X 2023
Mine production
Copper in concentrate (kt)	34.6	33.2	338.7	336.4
Silver in concentrate (t)	115.5	110.6	1 118.0	1 122.2
Metallurgical production
Electrolytic copper (kt)	48.5	49.7	489.7	493.2
- including from own concentrate	28.9	30.7	313.1	317.7
Metallic silver (t)	116.5	118.0	1 079.0	1 198.2
TPM (koz t)	6.0	9.1	70.2	92.4
Sales
Copper (kt)	51.5	48.6	498.1	493.1
Silver (t)	136.9	118.8	1 136.9	1 159.5
TPM (koz t)	6.0	2.9	76.7	98.2

Production of KGHM Polska Miedź S.A.:

• Production of copper in concentrate amounted to 34.6 thousand tonnes and was higher by 1.4 thousand tonnes (+4%) compared to October 2023. The increase in production of copper in concentrate was due to higher extraction of better quality ore.
• Production of silver in concentrate amounted to 115.5 tonnes and was higher by 4.9 tonnes (+4%) compared to October 2023. The increase in production of silver in concentrate was due to higher silver content in ore and higher extraction.
• Production of electrolytic copper amounted to 48.5 thousand tonnes and was lower by 1.2 thousand tonnes (-2%) compared to October 2023. The decrease in production of cathodes was due to the execution of targets adopted in the production plan for 2024.
• Production of metallic silver amounted to 116.5 tonnes and was lower by 1.5 tonnes (-1%) compared to October 2023. The decrease in metallic silver production was due to the lower availability of charge materials at the Precious Metals Plant of the Głogów Copper Smelter and Refinery.

Sales of KGHM Polska Miedź S.A.:

• Sales of copper amounted to 51.5 thousand tonnes and were higher by 2.9 thousand tonnes (+6%) compared to sales in October 2023. The increase in copper sales was mainly due to good conditions on the copper wire rod market.
• Sales of silver amounted to 136.9 tonnes and were higher by 18.1 tonnes (+15%) compared to sales in October 2023. The increase in sales of silver was due to conformance to the schedule of sales to customers.
• Sales of TPM amounted to 6.0 thousand troy ounces and were higher by 3.1 thousand troy ounces (+107%) compared to sales in October 2023. The increase in sales of TPM was due to conformance to the schedule of sales to customers.

Results of KGHM INTERNATIONAL LTD. in October 2024 - y/y:

Production and sales of KGHM INTERNATIONAL LTD.	October 2024	October 2023	I - X 2024	I - X 2023
Production
Payable copper (kt)	6.3	3.2	51.7	27.3
TPM (koz t)	5.3	3.1	44.7	29.2
Sales
Copper (kt)	5.2	4.5	46.4	31.5
TPM (koz t)	4.3	3.3	39.5	31.8
Silver (t)	0.0	0.9	2.7	8.8

Production of KGHM INTERNATIONAL LTD.:

• Production of payable copper amounted to 6.3 thousand tonnes and was higher by 3.1 thousand tonnes (+97%) compared to October 2023, due to higher production by the Robinson mine (+3.4 thousand tonnes – higher recovery and higher copper content in ore, due to operating in the target, rich ore zone in 2024). Lower production was recorded by:
  • − the Carlota mine (-0.2 thousand tonnes) according to plan, work continued on stripping (removal of barren rock) needed to commence the extraction of ore from the Cactus pit, which resulted in lower volumes of ore deposited on the heap and lower copper content in PLS than in October 2023,
  • − the Sudbury Basin (-0.1 thousand tonnes) lower copper content in ore and lower extraction volume, resulting from the planned mining sequence in another, poorer than in October 2023 part of the McCreedy mine deposit.
• Production of TPM amounted to 5.3 thousand troy ounces and was higher by 2.2 thousand troy ounces (+71%) compared to October 2023, thanks to higher gold production by the Robinson mine (+2.6 thousand troy ounces - higher recovery and a higher gold content in ore). Lower TPM production was recorded by the Sudbury Basin (-0.4 thousand troy ounces - lower extraction volume, lower palladium and platinum content in ore).

Sales of KGHM INTERNATIONAL LTD.:

• Sales of copper amounted to 5.2 thousand tonnes and were higher by 0.7 thousand tonnes (+16%) compared to sales in October 2023. The main factor responsible for the increase in copper sales was the higher by around 1.4 thousand tonnes dry weight sales of copper concentrate by the Robinson mine and the higher copper content in this concentrate. At the same time, lower sales were recorded by the Carlota mine and by the Sudbury Basin.
• Sales of TPM amounted to 4.3 thousand troy ounces and were higher by 1.0 thousand troy ounces (+30%) compared to sales in October 2023. The main factor responsible for the increase in TPM sales was the higher sales of copper concentrate by the Robinson mine and the higher gold content in this concentrate.
• In October 2024 there were no sales of silver. This was mainly due to lower silver content in copper concentrate from the Robinson mine.

Results of Sierra Gorda S.C.M. in October 2024 - y/y:

Production and sales of Sierra Gorda S.C.M. (on a 55% basis)	October 2024	October 2023	I - X 2024	I - X 2023
Production
Payable copper (kt)	6.8	5.8	63.9	65.4
Molybdenum (mn lbs)	0.6	0.0	2.6	3.1
Payable silver (t)	1.8	1.5	19.4	18.1
TPM (koz t)	2.9	2.6	26.0	26.8
Sales
Copper (kt)	7.1	6.5	63.8	66.0
Molybdenum (mn lbs)	0.5	0.4	2.7	2.7
Silver (t)	1.9	1.7	19.4	18.2
TPM (koz t)	3.1	2.7	26.1	27.0

Production of Sierra Gorda S.C.M. (55%):

• Production of payable copper amounted to 6.8 thousand tonnes and was higher by 1.0 thousand tonnes (+17%) compared to October 2023. The increase in copper production in October 2024 was due to higher copper content in extracted ore and to higher processing, despite lower recovery of this metal. The decrease in copper production in the period January-October 2024 compared to the corresponding period of 2023 was due to lower copper content in extracted ore and lower recovery, which was partially offset by the higher volume of ore processed.
• Production of molybdenum amounted to 0.6 million pounds and was higher by 0.6 million pounds compared to October 2023. The increase in molybdenum production in October 2024 was due to higher molybdenum content in extracted ore, higher recovery and a higher volume of ore processed. The decrease in production in the period January-October 2024 compared to the corresponding period of 2023 was due to lower recovery despite a similar level of molybdenum content in extracted ore and a higher volume of ore processed.

Sales of Sierra Gorda S.C.M. (55%):

• Sales of copper amounted to 7.1 thousand tonnes and were higher by 0.6 thousand tonnes (+9%) compared to sales recorded in October 2023. The increase in copper sales was due to higher production in October 2024 compared to October 2023, a higher volume of sales of copper concentrate (by approx. 6 thousand tonnes dry weight) and to conformance to the schedule of sales to customers.
• Sales of molybdenum amounted to 0.5 million pounds and were higher by 0.1 million pounds (+25%) compared to sales recorded in October 2023. The level of molybdenum sales reflects the schedule of processing molybdenum concentrate and the return of molybdenum oxides designated for sale as well as the planned and achieved level of molybdenum production by Sierra Gorda S.C.M.
• Sales of silver amounted to 1.9 tonnes and were higher by 0.2 tonnes (+12%) compared to sales recorded in October 2023. This increase was due to a higher volume of sales of copper concentrate in October 2024 and higher silver content in this concentrate.
• Sales of TPM amounted to 3.1 thousand troy ounces and were higher by 0.4 thousand troy ounces (+15%) compared to sales recorded in October 2023. This increase was due to a higher volume of copper concentrate sold in October 2024 and the higher gold content in this concentrate.