KGHM's Profit Jumps on Higher Prices, Lower Costs

By Christian Moess Laursen

KGHM's net profit surged in the second quarter as the Polish copper-and-silver miner benefited from a sharp reduction in costs and strong prices.

The miner, which is among the top silver producers worldwide, on Tuesday booked a quarterly net profit of 649 million Polish zloty ($164.7 million), up from 231 million zloty in the same period last year, largely driven by a substantial reduction in costs and strong prices for both copper and silver.

Copper prices hit an all-time high of around $11,100 a metric ton in late May, while silver prices rallied to their highest in a decade in April.

Revenue from contracts with customers rose 12% to 9.165 billion zloty.

"In the second quarter the company recorded higher results as well as improved operational efficiency, alongside a clear decrease in production costs," KGHM said.

For the half-year, KGHM reported a net profit of 1.07 billion zloty, almost triple the prior-year's interim net profit of 401 million zloty. The company said a 6% decline in expenses and C1 costs--a closely-watched cost efficiency indicator in the mining sector--drove the result.

In the coming months, KGHM plans to update the market on its strategy as it works to improve operations and boost its position on international markets, it said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

August 13, 2024 13:08 ET (17:08 GMT)

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