KGHM Polska Miedź S.A.

Earnings Release • Sep 23, 2024

Lubin, 23 September 2024

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

The following report contains preliminary monthly data – the final quarterly production and sales results will be published in the consolidated report for the third quarter of 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 August 2024 - y/y:

Production and sales of the KGHM Group	August 2024	August 2023	I - VIII 2024	I - VIII 2023
Production
Payable copper (kt)	63.4	58.9	482.5	467.8
- including KGHM Polska Miedź S.A.*	50.3	49.7	392.6	395.3
Payable silver (t)	75.1	130.8	868.1	972.5
TPM (koz t)	9.8	13.6	110.5	118.4
Molybdenum (mn lbs)	0.4	0.3	1.7	2.8
Sales
Copper (kt)	59.4	55.1	478.9	470.1
Silver (t)	85.1	129.6	904.7	961.1
TPM (koz t)	18.9	14.0	115.6	130.5
Molybdenum (mn lbs)	0.2	0.3	2.1	1.9

* Production of electrolytic copper

Production of the KGHM Group:

• Production of payable copper amounted to 63.4 thousand tonnes, or by 4.5 thousand tonnes (+8%) more than the level recorded in August 2023 due to higher production by KGHM INTERNATIONAL LTD.
• Production of payable silver amounted to 75.1 tonnes, or by 55.7 tonnes (-43%) less than in August 2023 due to a maintenance shutdown at the Precious Metals Plant of KGHM Polska Miedź S.A.
• Production of TPM amounted to 9.8 thousand troy ounces and was lower than the level of production recorded in August 2023 by 3.8 thousand troy ounces (-28%). The decrease in production was mainly in respect of gold production by KGHM Polska Miedź S.A., but was also due to the maintenance shutdown at the Precious Metals Plant.
• Production of molybdenum amounted to 0.4 million pounds, or by 0.1 million pounds (+33%) more as compared to August 2023, due to the processing of a larger amount of ore, with higher molybdenum content, by Sierra Gorda S.C.M. in August 2024.

In the first 8 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 59.4 thousand tonnes and were higher by 4.3 thousand tonnes (+8%) compared to sales in August 2023. Higher copper sales were recorded by KGHM INTERNATIONAL LTD., with lower sales by Sierra Gorda S.C.M.
• Sales of silver amounted to 85.1 tonnes and were lower by 44.5 tonnes (-34%) compared to sales in August 2023. Lower silver sales were recorded by each of the segments of the KGHM Group.
• Sales of TPM amounted to 18.9 thousand troy ounces and were higher by 4.9 thousand troy ounces (+35%) compared to sales in August 2023. Higher sales of gold were recorded by KGHM Polska Miedź S.A. and KGHM INTERNATIONAL LTD., with lower sales by Sierra Gorda S.C.M.
• Sales of molybdenum amounted to 0.2 million pounds and were lower by 0.1 million pounds (-33%) compared to sales in August 2023.

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

Production and sales of KGHM Polska Miedź S.A.	August 2024	August 2023	I - VIII 2024	I - VIII 2023
Mine production
Copper in concentrate (kt)	32.8	34.2	273.2	270.1
Silver in concentrate (t)	107.8	114.7	901.6	902.2
Metallurgical production
Electrolytic copper (kt)	50.3	49.7	392.6	395.3
- including from own concentrate	30.6	31.6	256.4	258.5
Metallic silver (t)	73.1	128.8	851.6	956.0
TPM (koz t)	2.6	9.0	56.2	74.3
Sales
Copper (kt)	44.0	43.7	393.7	392.5
Silver (t)	82.7	126.2	886.8	939.2
TPM (koz t)	9.5	8.5	64.4	82.9

Production of KGHM Polska Miedź S.A.:

• Production of copper in concentrate amounted to 32.8 thousand tonnes and was lower by 1.4 thousand tonnes (-4%) compared to August 2023. The decrease in production of copper in concentrate was due to lower extraction of ore.
• Production of silver in concentrate amounted to 107.8 tonnes and was lower by 6.9 tonnes (-6%) compared to August 2023. The decrease in production of silver in concentrate was due to lower silver content in ore and lower extraction.
• Production of electrolytic copper amounted to 50.3 thousand tonnes and was higher by 0.6 thousand tonnes (+1%) compared to August 2023. The increase in production of cathodes was due to the execution of targets adopted in the production plan for 2024.
• Production of metallic silver amounted to 73.1 tonnes and was lower by 55.7 tonnes (-43%) compared to August 2023. The decrease in metallic silver production was due to the execution of a planned maintenance shutdown at the Precious Metals Plant.

Sales of KGHM Polska Miedź S.A.:

• Sales of copper amounted to 44.0 thousand tonnes and were higher by 0.3 thousand tonnes (+1%) compared to sales in August 2023.
• Sales of silver amounted to 82.7 tonnes and were lower by 43.5 tonnes (-34%) compared to sales in August 2023. The decrease in sales was due to lower production of silver in August 2024 and to conformance to the schedule of sales to customers.
• Sales of TPM amounted to 9.5 thousand troy ounces and were higher by 1.0 thousand troy ounces (+12%) compared to sales in August 2023. The increase in sales was due to conformance to the schedule of sales to customers.

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

Production and sales of KGHM INTERNATIONAL LTD.	August 2024	August 2023	I - VIII 2024	I - VIII 2023
Production
Payable copper (kt)	5.4	2.6	40.5	20.7
TPM (koz t)	4.4	1.9	35.2	22.8
Sales
Copper (kt)	8.2	2.7	37.3	24.4
TPM (koz t)	6.4	2.0	32.3	25.9
Silver (t)	0.4	0.9	2.6	7.2

Production of KGHM INTERNATIONAL LTD.:

• Production of payable copper amounted to 5.4 thousand tonnes and was higher by 2.8 thousand tonnes (+108%) compared to August 2023, due to higher production by the Robinson mine (+3.2 thousand tonnes – higher recovery, higher copper content in ore and higher volume of ore processed, due to operating in the target, rich ore zone in 2024).

Lower production was recorded by:

• − the Sudbury Basin (-0.2 thousand tonnes) lower copper content in ore and lower extraction volume, resulting from the planned mining sequence in another, poorer than in August 2023 part of the McCreedy mine deposit,
• − 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 August 2023.
• Production of TPM amounted to 4.4 thousand troy ounces and was higher by 2.5 thousand troy ounces (+132%) compared to August 2023, thanks to higher gold production by the Robinson mine (+2.7 thousand troy ounces - higher recovery and higher volume of ore processed). Lower TPM production was recorded by the Sudbury Basin (-0.2 thousand troy ounces - lower extraction volume, which was not offset by higher TPM content in ore).

Sales of KGHM INTERNATIONAL LTD.:

• Sales of copper amounted to 8.2 thousand tonnes and were higher by 5.5 thousand tonnes (+204%) compared to sales in August 2023. The main factor behind the increase in sales of copper was the higher by around 22 thousand tonnes sales of copper concentrate by the Robinson mine (resulting from higher production in August 2024 compared to August 2023), and simultaneously substantially higher copper content in concentrate in August 2024. At the same time there was a decrease in sales from the Sudbury Basin and from the Carlota mine.
• Sales of TPM amounted to 6.4 thousand troy ounces and were higher by 4.4 thousand troy ounces (+220%) compared to sales in August 2023. The main factors behind the increase in sales of TPM were: higher sales of copper concentrate by the Robinson mine in August 2024 and higher gold content in this concentrate. Sales of gold, platinum and palladium in August 2024 from the Sudbury Basin were however lower than in August 2023.
• Sales of silver amounted to 0.4 tonnes and were lower by 0.5 tonnes (-56%) compared to sales in August 2023. The main reason for the decrease in silver sales was the lower silver content in copper concentrate from the Robinson mine in August 2024. Lower silver sales were also recorded by the Sudbury Basin.

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

Production and sales of Sierra Gorda S.C.M. (on a 55% basis)	August 2024	August 2023	I - VIII 2024	I - VIII 2023
Production
Payable copper (kt)	7.7	6.6	49.4	51.9
Molybdenum (mn lbs)	0.4	0.3	1.6	2.7
Payable silver (t)	2.0	1.7	15.6	14.5
TPM (koz t)	2.8	2.7	19.2	21.3
Sales
Copper (kt)	7.2	8.7	47.9	53.1
Molybdenum (mn lbs)	0.2	0.3	1.9	1.8
Silver (t)	2.0	2.6	15.3	14.7
TPM (koz t)	2.9	3.5	18.9	21.8

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

• Production of payable copper amounted to 7.7 thousand tonnes and was higher by 1.1 thousand tonnes (+17%) compared to August 2023. The increase in copper production in August 2024 was due to higher copper content in extracted ore, higher recovery, and also a higher volume of ore processed. The decrease in copper production in the period January-August 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 0.4 million pounds and was higher by 0.1 million pounds (+33%) compared to August 2023. The increase in molybdenum production in August 2024 was due to higher molybdenum content in extracted ore and a higher volume of ore processed, despite lower recovery. The decrease in molybdenum production in the period January-August 2024 compared to the corresponding period of 2023 was due to lower molybdenum content in extracted ore and lower recovery, which was partially offset by the higher volume of ore processed.

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

• Sales of copper amounted to 7.2 thousand tonnes and were lower by 1.5 thousand tonnes (-17%) compared to sales recorded in August 2023. The decrease in copper sales was due to conformance to the schedule of sales to customers.
• Sales of molybdenum amounted to 0.2 million pounds and were lower by 0.1 million pounds (-33%) compared to sales recorded in August 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 2.0 tonnes and were lower by 0.6 tonnes (-23%) compared to sales recorded in August 2023. This decrease was due to a lower volume of sales of copper concentrate in August 2024 and to the lower silver content in this concentrate.
• Sales of TPM amounted to 2.9 thousand troy ounces and were lower by 0.6 thousand troy ounces (-17%) compared to sales recorded in August 2023. This decrease was due to a lower volume of sales of copper concentrate in August 2024 and to the lower TPM content in this concentrate.