KGHM Remain Neutral after Strategy Update

Research evidence excerpt

KGHM Remain Neutral after Strategy Update

J P M O R G A N CEEMEA Equity Research

10 July 2026

KGHM Neutral

KGH.WA, KGH PW

Remain Neutral after Strategy Update Price (09 Jul 26):zl306.20

▼Price Target (Dec-27):zl335.00

Prior (Dec-27):zl355.00

As we discussed earlier, KGHM’s recently announced “Group Strategy 2055+”

didn’t bring any major surprises. While key group priorities remain unchanged CEEMEA Mining & Utilities

(e.g. focus on operational efficiency, cost discipline, emissions reduction, etc.), Anna Antonova, CFA AC

KGHM plans to maintain group average payable copper production at 730ktpa+ (971) 4428-1766

over 2026-30 (incl. 590ktpa+ from Polish assets). Management highlighted anna.antonova@jpmorgan.com

seeking opportunities to acquire new mining projects overseas at various stages of EMEA & CEEMEA Metals & Mining

development, focusing on copper, associated metals and critical raw materials. In Dominic O'Kane

Poland - among other things - KGHM also plans to commence a feasibility study (44-20) 7742-6729

for “Puck” project (polyhalite/mineral fertilizer), with plans to obtain an operating dominic.j.okane@jpmorgan.com

license in 2030. As we update our model to incorporate the various strategic targets, Patrick Jones

we forecast a +2% CAGR 2025-30E in total group copper eq-t production, ranking (44-20) 7742-5964

patrick.jones@jpmorgan.com

KGHM’s future growth closer to the lower end of JPM covered EMEA Base Metals J.P. Morgan Securities plc

peers range. Potential M&A activity may help add to the group’s mid-term growth,

but visibility on this front currently remains low. Meanwhile, diversification into

non-core minerals increases the uncertainty of the future returns profile as Key Changes (FYE Dec)

compared to a pure-play copper/silver mining company, in our view.