The new strategy of the group KGHM Polska Miedź for the years 2026-2030 calls for investments exceeding 32 billion PLN.
Billions of PLN for development, and this is just the beginning
President Remigiusz Paszkiewicz cuts through skeptics’ speculation: the scale of spending could turn out to be much higher if the Chilean mine Sierra Gorda speeds up or if new assets abroad are acquired.
For market players the math is simple. On average this means about 6.5 billion PLN in annual outlays. Nearly 40% of this pool will go to ambitious development projects, and about 2% will fund the research and development (R&D) segment, where engineers will create future technologies. It is an offensive never seen on the GPW before.
The biggest shock to investors, however, comes from the geographic scope of the strategy. The board officially confirmed that it is considering further mining projects outside the Old Continent. The giant’s sights are set on Morocco, Argentina, Canada and USA. The company does not intend to limit itself to organic growth and openly talks about possible acquisitions.
The board’s ambition is to build a diversified portfolio that, in addition to traditional copper and silver, will include critical precious metals. This is an absolute game changer in the age of the global technology race. At the same time KGHM intends to squeeze maximum value from its current jewels in the crown, developing the Chile mine Sierra Gorda and the Canadian Victoria project.
See also: KGHM Polska Miedź shares surprise! The company’s breakthrough agreement with the GPW has come to light
Poland remains the foundation
Although foreign plans sound spectacular, KGHM does not forget where its roots come from. The decisive majority of the planned budget (about 80% of the outlays) will be allocated in the country. The money will fund the development of domestic mines, the modernization of smelters and the upgrade of the Main Technological Line.
President Paszkiewicz during the official presentation clearly outlined the group’s goals:
Strategy 2055+ assumes maintaining a high position for the KGHM Capital Group among leaders in the production of copper and silver. Our ambition is to strengthen this position in the long term.”
- he noted.
The transformation of the copper giant will not be solely about increasing production tonnage. Vice President for Development Zbigniew Bryja announced a technological revolution, covering investments in new concession areas and modern mining infrastructure.
The key to success will be the wide implementation of AI algorithms and innovative digital solutions that will effectively extend the value chain and efficiently search for new metal deposits.
It is worth noting that the new strategic plan goes far beyond copper smelting. According to the announcement, the group intends to develop a unique polihalite mining project in Pomerania, increase the share of critical metals in its global portfolio and heavily invest in its own energy sources.
By 2030 KGHM plans to increase its green electricity sources by at least 50% and consistently cut CO2 emissions. All this to perfectly prepare the capital group for achieving full climate neutrality in 2050.
Investors are rather cool to the giant’s noisy announcements, as on the market close on July 6 KGHM shares fell by 1.93% to 328.55 PLN.
Chart. KGHM Polska Miedź share price
Source: TradingView.
See also: KGHM Polska Miedź shares surprise! The company’s breakthrough agreement with the GPW has come to light
Source: Superbiz.
