KGHM Net Profit Rises Despite Weaker Revenue as Operating Costs Fall

By Christian Moess Laursen

Polish miner KGHM said its net profit jumped in the first quarter, helped by lower operating costs and despite a decline in revenue.

The world's second-largest silver miner said late Wednesday that its first-quarter net profit more than doubled to 424 million Polish zloty ($108.3 million) from PLN164 million.

Revenue from customer contracts fell 13% to PLN8.315 billion, partly offset by a 13% fall in the cost of sales.

A weaker foreign-exchange rate dragged on revenue, while increases in precious-metals prices in the second half of March didn't lead to a stronger reaction by investors in the quarter, the company said.

Adjusted earnings before interest, taxes, depreciation and amortization fell 14% to PLN1.55 billion.

The miner's copper output rose 2% to 179,200 metric tons, offset by a 17% decrease in silver production to 316,000 tons on a planned maintenance shutdown at its plant in Glogow, Poland.

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

(END) Dow Jones Newswires

May 16, 2024 02:07 ET (06:07 GMT)

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