KGHM Polska Miedź S.A.

Earnings Release • Nov 24, 2022

Lubin, 24 November 2022

Preliminary production and sales data of the KGHM Polska Miedź S.A. Group for October 2022

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 2022. Data of the KGHM Polska Miedź S.A. Group contain the results of Sierra Gorda reflecting the 55% share held by KGHM Polska Miedź S.A.

Results of the KGHM Group in October 2022 - y/y:

Production and sales of the KGHM Group	October 2022	October 2021	I - X 2022	I - X 2021
Production
Payable copper (kt)	60.7	61.7	618.2	635.7
- including KGHM Polska Miedź S.A.*	50.4	48.9	492.9	489.0
Payable silver (t)	117.8	95.7	1 139.8	1 103.3
TPM (koz t)	18.1	11.0	150.3	135.3
Molybdenum (mn lbs)	0.2	0.3	2.7	7.6
Sales
Copper (kt)	59.8	58.1	596.6	602.9
Silver (t)	99.5	106.2	1164.4	1081.1
TPM (koz t)	20.8	8.3	147.5	123.4
Molybdenum (mn lbs)	0.7	0.8	3.7	6.8

* Production of electrolytic copper

Production of the KGHM Group:

• Production of payable copper amounted to 60.7 thousand tonnes a decrease compared to October 2021 by 1.0 thousand tonnes (-2%) and was in respect of the segment KGHM INTERNATIONAL LTD., while KGHM Polska Miedź S.A. and Sierra Gorda recorded higher copper production respectively by 3% and 10%.
• Production of payable silver amounted to 117.8 tonnes, or by 22.1 tonnes (+23%) more than in the corresponding month of 2021.
• Production of TPM amounted to 18.1 thousand troy ounces and was 7.1 thousand troy ounces (+65%) higher than the level recorded in the prior year, mainly due to higher gold production by KGHM Polska Miedź S.A.
• Production of molybdenum amounted to 0.2 million pounds, or a decrease by 0.1 million pounds (-33%) compared to October 2021. The decrease in production was mainly due to the planned extraction from mining zones (Sierra Gorda) with a lower content of this metal compared to 2021 as well as to lower molybdenum recovery.

In the period January-October 2022 production of copper, silver and molybdenum by the Group was above the levels set in the budget.

Sales of the KGHM Group:

• Sales of copper amounted to 59.8 thousand tonnes and were higher by 1.7 thousand tonnes compared to sales in October 2021. Higher copper sales were recorded by KGHM INTERNATIONAL LTD. and by the Sierra Gorda mine, with lower sales by KGHM Polska Miedź S.A.
• Sales of silver amounted to 99.5 tonnes and were lower by 6.7 tonnes (-6%) than sales in October 2021. The difference is mainly due to lower sales of silver from the Polish production assets.
• Sales of TPM amounted to 20.8 thousand troy ounces and were higher by 12.5 thousand troy ounces than in the corresponding period of 2021. Higher TPM sales were recorded by each of the Group's segments.
• Sales of molybdenum amounted to 0.7 million pounds and were at a similar level to the result achieved in October 2021.

Results of KGHM Polska Miedź S.A. in October 2022 - y/y:

Production and sales of KGHM Polska Miedź S.A.	October 2022	October 2021	I - X 2022	I - X 2021
Mine production
Copper in concentrate (kt)	33.7	34.2	329.0	330.2
Silver in concentrate (t)	114.1	117.0	1 102.9	1 093.9
Metallurgical production
Electrolytic copper (kt)	50.4	48.9	492.9	489.0
- including from own concentrate	37.4	37.0	311.3	323.0
Metallic silver (t)	115.8	93.3	1 115.7	1 075.9
TPM (koz t)	11.3	4.8	73.1	66.2
Sales
Copper (kt)	45.4	48.1	475.1	465.1
Silver (t)	96.1	104.4	1133.5	1054.9
TPM (koz t)	11.2	3.4	75.2	61.9

Production of KGHM Polska Miedź S.A.:

• Production of copper in concentrate amounted to 33.7 thousand tonnes and was lower by 0.5 thousand tonnes (-1%) compared to October 2021. The decrease in production was due to the processing of ore with lower copper content. This is however the highest monthly volume of production of copper in concentrate since May 2022.
• Production of silver in concentrate amounted to 114.1 tonnes and was lower by 2.9 tonnes (-2%) compared to October 2021, due to lower silver content in mined ore. The volume of silver production achieved in October, the highest since May 2022, resulted, in accrued terms, in a higher level of production than recorded in the previous year.
• Production of electrolytic copper amounted to 50.4 thousand tonnes and was higher by 1.5 thousand tonnes (+3%) compared to October 2021. The level of cathode production in October 2022 results from the production plan for 2022.
• Production of metallic silver amounted to 115.8 tonnes and was higher by 22.5 tonnes (+24%) compared to October 2021. The increase in production of metallic silver was due to the higher availability of feed.

Sales of KGHM Polska Miedź S.A.:

• Sales of copper amounted to 45.4 thousand tonnes and were lower by 2.7 thousand tonnes (-6%) compared to sales in October 2021. This decrease was due amongst others to logistical issues involving delays in railway shipments.
• Sales of silver amounted to 96.1 tonnes and were lower by 8.3 tonnes (-8%) compared to October 2021. The difference results from the agreed schedule of sales to customers.
• Sales of TPM amounted to 11.2 thousand troy ounces and were higher by 7.8 thousand troy ounces compared to sales in October 2021. The difference results from higher production compared to the corresponding period of 2021 and from the agreed schedule of sales to customers.

Results of KGHM INTERNATIONAL LTD. in October 2022 - y/y:

Production and sales of KGHM INTERNATIONAL LTD.	October 2022	October 2021	I - X 2022	I - X 2021
Production
Payable copper (kt)	2.6	5.8	49.9	61.2
TPM (koz t)	3.7	4.1	48.9	44.1
Sales
Copper (thousand tonnes)	5.0	3.6	44.6	54.7
TPM (thousand troy ounces)	5.8	2.7	44.1	39.4
Silver (tonnes)	1.0	-0.2	7.5	1.6

Production of KGHM INTERNATIONAL LTD.:

• Production of payable copper amounted to 2.6 thousand tonnes and was lower by 3.2 thousand tonnes (-55%) compared to October 2021; the decrease was in respect of all of KGHM INTERNATIONAL LTD.'s mines. The following factors had a substantial impact on the decrease in production y/y in October 2022: lower production by the Robinson mine (-1.97 thousand tonnes: lower recovery and lower copper content in ore) as well as the exclusion of production by the Franke mine (a year-on-year difference of -1.04 thousand tonnes) due to the sale of this mine in the first half of 2022.
• Production of TPM amounted to 3.7 thousand troy ounces and was lower by 0.4 thousand troy ounces (-10%) compared to October 2021 due to lower gold production by the Robinson mine (-1.34 thousand troy ounces – lower gold content in ore and lower recovery), which was not offset by higher TPM production by the Sudbury Basin (+0.92 thousand troy ounces – higher platinum and palladium content in ore and higher extraction).

Sales of KGHM INTERNATIONAL LTD.:

• Sales of copper amounted to 5.0 thousand tonnes and were higher by 1.4 thousand tonnes (+39%) compared to sales in October 2021. The main reason for the increase was a higher amount of copper concentrate sold by the Robinson mine (in October 2022 there were two shipments by sea and three shipments by rail, while in October 2021 there was one shipment by sea). Lower copper sales were recorded by the Carlota mine (cathodes) and by the Sudbury Basin.
• Sales of TPM amounted to 5.8 thousand troy ounces and were higher by 3.1 thousand troy ounces (+115%) compared to the corresponding period of 2021. This result was mainly due to the higher volume of sales of copper concentrate from the Robinson mine in October 2022.
• In comparing the level of silver sales, three basic factors should be noted: the volume of copper concentrate sales and the much-higher content of this metal in 2022 shipments as well as the adjustment in October 2021 of the provisional amount of silver in concentrate from the Robinson mine compared to previous shipments. Higher silver sales were recorded by the Sudbury Basin.

Results of Sierra Gorda S.C.M. in October 2022 - y/y:

Production and sales of Sierra Gorda (on a 55% basis)	October 2022	October 2021	I - X 2022	I - X 2021
Production
Payable copper (kt)	7.7	7.0	75.4	85.5
Molybdenum (mn lbs)	0.2	0.3	2.6	7.4
Payable silver (t)	1.9	2.3	22.6	25.7
TPM (koz t)	3.1	2.1	28.3	25.0
Sales
Copper (kt)	9.4	6.4	76.9	83.1
Molybdenum (mn lbs)	0.7	0.8	3.6	6.7
Silver (t)	2.4	2.0	23.4	24.6
TPM (koz t)	3.8	2.2	28.2	24.7

Production of Sierra Gorda (55%):

• Production of payable copper amounted to 7.7 thousand tonnes and was higher by 0.7 thousand tonnes (+10%) compared to October 2021. The increase in payable copper production in October 2022 compared to October 2021 was due to a higher volume of ore processed, higher metal content in extracted ore and higher recovery. The decrease in payable copper production in the period January-October 2022 compared to the corresponding period of 2021 was due to lower copper content in extracted ore and lower metal recovery, despite the higher volume of ore processed.
• Production of molybdenum amounted to 0.2 million pounds and was lower by 0.1 million pounds (-33%) compared to October 2021. The decrease in molybdenum production in October 2022 compared to the corresponding period of 2021 was due to lower metal content in mined ore and lower recovery, despite the higher volume of ore processed. The decrease in molybdenum production in the period January-October 2022 compared to the corresponding period of 2021 was due to lower metal content in mined ore and lower metal recovery, despite the higher volume of ore processed.

Sales of Sierra Gorda (55%):

• Sales of copper amounted to 9.4 thousand tonnes and were higher by 3.0 thousand tonnes (+47%) compared to sales recorded in October 2021. The higher sales were due to a higher volume of copper concentrate sold in October 2022 (by approx. 26 thousand tonnes dry weight) resulting from the agreed schedule of deliveries.
• Sales of molybdenum amounted to 0.7 million pounds, a result similar to that recorded in the corresponding period of 2021. The level of sales of molybdenum 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 the Sierra Gorda mine.
• Sales of silver amounted to 2.4 tonnes and were higher by 0.4 tonnes (+20%) compared to sales recorded in October 2021. The main reason for this result was the higher sales of copper concentrate.
• Sales of TPM amounted to 3.8 thousand troy ounces and were higher by 1.6 thousand troy ounces (+73%) compared to sales in October 2021. As in the case of silver, the level of TPM sales is directly related to the volume of copper concentrate sold.