KGHM shares were undervalued: on Tuesday their value fell sharply due to a complex geopolitical situation.
KGHM leader, but not on the exchange
The fundamentals of the KGHM Group are very strong: it secured second place among the world's largest silver producers in the World Silver Survey 2026 ranking. It mined a staggering 1347 tons of ore in 2025. Additionally, it topped the ranking of the largest silver mines.
“This is not a one‑off success, but the result of a consistently built operational and technological advantage. KGHM has been developing a model for years that allows us to maximally exploit the potential of our resources and maintain a position in the global leading non‑ferrous metal producers, including silver,” commented the company’s president Remigiusz Paszkiewicz in the new statement.
Silver, which KGHM is responsible for, is produced at the Głogów Copper Smelter. Since 1993, the Precious Metals Department has operated there, recovering silver and gold from copper ore. It specifically deals with granules that then go to jewelry and metal plants that produce the final alloys.
Records in silver production are not the only good news about KGHM. As the government reported on Tuesday, the company’s delegation accompanied the Minister of State Assets Wojciech Balczun during his recent trip to Chile, where the CESCO Week 2026 conference was organized.
According to the government statement, KGHM’s representation “took actions in Chile to strengthen bilateral cooperation in the mining industry,” and Balczun said the goal of his negotiations with Chilean politicians was “issues concerning the future of KGHM investments.”
However, this did not convince investors, who on Tuesday sold off the company’s shares. Why? Primarily uncertainty about whether a ceasefire in the Middle East would be maintained. Throughout the day it was unclear whether the US delegation even went to Pakistan to negotiate with Iran (it turned out they did not).
All of this implied potential further turbulence in the oil markets oil, but also silver, which was losing value due to the Middle East conflict. Investors assumed this would negatively affect the Polish champion’s results and began selling its securities.
Of course, the latest drop can also be interpreted as a normal correction of recent gains. After it, we can expect another price rally.
Bad news for KGHM also came from JP Morgan’s offices: analyst Anna Antonova lowered her recommendation for the company from “overweight” to “neutral,” setting a target price of 310 PLN.
It is worth noting that in recent hours the geopolitical situation changed dramatically – in favor of the silver market and Polish shares. US President Donald Trump announced a permanent ceasefire in the Middle East. All in response to Iran’s lack of decision on participating in peace talks.
See also: KGHM Polska Miedź shares rose 76% since January. “There is still room for the price to rise,” says the expert.
Bees return with bruised horns
Investors ended Tuesday’s session at 320.55 PLN, a drop of 4.4%.
Chart. KGHM Polska Miedź
Source: Trading View
“The Tuesday session on the Warsaw market ended with solid declines in the main indices. (…) Declines in base markets were framed in the context of questions about the status of peace negotiations between Iran and the US in Pakistan. The bulls were also hit by oil price rises of over 3%, which reduced risk appetite. The derivative was a decline in metal prices, to which the GPW responded with a KGHM overvaluation of 4.41%,” summarized Adam Stańczak, analyst and commentator at DM BOŚ.
Read also: Will KGHM Polska Miedź shares surprise again? The company recently announced very important news.
See also: KGHM Polska Miedź shares shot up 110% since January. The expert talks about a “structural challenge” for the company.
