In the first half of 2020, production of copper by the Group was slightly below plan, while planned sales of this metal were slightly above the target.
In the case of the other main metals, both production and sales were recorded in line with the budget.
In terms of the corresponding period of 2019, production and sales of all items were at a similar or higher level with the exception of molybdenum.
The coronavirus pandemic has not had a significant impact on the production results of the Group – in the first half of the year there were no recorded instances of restrictions to production directly connected with the epidemic.
The companies of the KGHM Group are continuing to take preventative actions aimed at reducing the risk of infection by the virus amongst employees and subcontractors.
Production of the KGHM Group:
Production of payable copper amounted to 60.1 thousand tonnes, or an increase versus the corresponding month of 2019 by 1.4 thousand tonnes (+2%). Improvement was recorded in Sierra Gorda (+2.6 thousand tonnes) and KGHM INTERNATIONAL LTD. (+0.3 thousand tonnes), alongside a decrease in KGHM Polska Miedź S.A. (-1.5 thousand tonnes) due to a limited supply of copper scrap and the build-up of anode inventories prior to the maintenance shutdown at the Głogów I Copper Smelter and Refinery planned in the third quarter of 2020.
Production of silver amounted to 119.8 tonnes – the decrease by 5.8 tonnes (-5%) was a consequence of the lower production of cathodes by KGHM Polska Miedź S.A.
Production of TPM amounted to 15.3 thousand troy ounces, or 4.1 thousand troy ounces (-21%) less than the amount recorded a year earlier due to the lower content of gold in the charge material processed by KGHM Polska Miedź S.A. and in the ore processed by the Robinson mine (KGHM INTERNATIONAL LTD.).
Production of molybdenum amounted to 1.2 million pounds, or the same level as in June 2019.
Sales of the KGHM Group:
Sales of payable copper amounted to 67.4 thousand tonnes and were higher by 3.4 thousand tonnes (+5%) compared to sales of copper in June 2019. The reason for this increase was higher sales of copper by KGHM Polska Miedź S.A. and by the Sierra Gorda mine. In KGHM INTERNATIONAL LTD., sales of copper were lower by approx. 2.2 thousand tonnes.
Sales of silver amounted to 123.9 tonnes and were lower by 16.5 tonnes (-12%) compared to sales in June. This result was mainly due to lower sales of silver from the production assets in Poland.
Sales of TPM amounted to 21.0 thousand troy ounces and were lower by 1.2 thousand troy ounces (-5%) compared to the corresponding period of 2019. TPM sales by KGHM INTERNATIONAL LTD. were lower than in the prior year. Better sales results were recorded however by Sierra Gorda and KGHM Polska Miedź S.A.
Sales of molybdenum amounted to 0.6 million pounds and were lower by 0.3 million pounds (-33%) compared to June 2019. The Sierra Gorda mine recorded lower sales.