KGHM Polska Miedz SA (KGH.WA) 2Q26 Results Management Meeting Highlights

Research evidence excerpt

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20 Aug 2026 08:40:03 ET │ 10 pages

KGHM Polska Miedz SA (KGH.WA)

2Q26 Results Management Meeting Highlights

CITI'S TAKE

Below please find the key issues that were raised during KGHM’s 2Q26

results conference.

Sierra Gorda - The project has final approval on the $725m investment for a fourth

production line, which is expected to boost the mine's metal production by 20% and

further lower costs upon its completion in 2H2030 (with the biggest outlays in 2027

and 2028, and employment increases in 2028). The project would be funded by debt

and operating cash flow.

Robinson - The mine continues to face significant operational headwinds from

difficult ore and equipment failures, which will temper group performance in the

near-term (the lower-quality ore phase is expected to last until a shift to a better

part of the deposit in 2028)

Dividend - The company remained non-committal on a specific dividend for 2026,

prioritizing investment and balance sheet strength.

Sell

Price (20 Aug 26 12:49)

Zl335.25

Target price

Zl209.00

Expected share price return

-37.7%

Expected dividend yield

0.7%

Expected total return

-36.9%

Market Cap

Zl67,050M

US$18,139M

Rafal Wiatr, CFAAC

Cost Optimization - KGHM is targeting ZL 1bn in savings by 2028, compared to

2024. According to management, the program has already achieved ZL 300m in

savings after its first year.

Inventory & Cash Flow - 2Q26 cash flow was negatively impacted by a planned

build-up of anode inventories (peaking at a value of ZL 2.5bn) ahead of the Głogów II

shutdown. Management gave firm assurance that this inventory is now being

processed and the cash will be released in 3Q-4Q26.

Wage costs - In 2Q26 wage cost (at parent company level) was driven by a bonus

paid to workers and a contribution to the price and reward fund (over ZL 300m)

required by the collective agreement. The company does not plan to continue this

contribution over the reminder of the year.

Potential M&A - The company is looking at South America, North America, and

North Africa (specifically Morocco), preferring stable jurisdictions. They are cautious

as copper projects are currently "overstated in price." One priority is exploring

…