Germany, Britain and the Fifth That Stays HomeNarrow moat

KGHM Polska Miedź (KGH) — moat facet

Most of the world's copper goes to China; KGHM's goes to European industry.

KGHM's metal mostly does not travel far, which makes its customer base unlike almost any other large miner's.

Where the parent's metal ends up, H1 2026Poland — 22%Rest of Europe — 56%Americas — 9%Asia and other — 13%Of 21 927m zł by end-customer location; about 78% went to European end customers
Proximity matters more to a European cable maker than it did a decade ago, but copper sells at the London price everywhere.

By end-customer location, the parent's 21 927 million złoty of first-half revenue went 4 845 million to Poland, 2 815 million to Germany, 2 445 million to the United Kingdom, 1 554 million to Czechia, 1 497 million to Italy and 1 345 million to Switzerland, with China at 1 097 million and the United States at 1 378 million1. Around 78% of it stayed in Europe and about 22% never left Poland2.

Most copper mined in the world ends up in Chinese smelters and Chinese fabricators. KGHM sells finished metal to European industry, and that is a consequence of having its own smelters: it is not shipping concentrate to be processed elsewhere, it is shipping cathode and rod to be used.

The commercial value is proximity and security of supply, which matters more to a European cable maker in 2026 than it did a decade ago, and which underpins the strategy's language about raw materials for Poland and Europe3.

The risk is that Europe is the slowest-growing major economy, and a customer base concentrated there is levered to the region's industrial fortunes.

The measure is the European share of revenue over time. If it falls while Asian and American sales grow, the strategic-supplier framing is weakening even as the metal keeps selling.

Moat trajectory: Holding steady

The geography is broadly steady, with growth in the United Kingdom and Switzerland offsetting a slower German industrial base.

The number that tests this moat
Reported
Largest single end-customer country
Poland, 4 845m zł of 21 927m zł

By end-customer location Germany took 2 815m złoty, the United Kingdom 2 445m and China 1 097m. Proximity and security of supply matter more to a European cable maker than they did a decade ago, but copper sells at the London price everywhere, so the geography changes the logistics rather than the economics. Watch the European share against Asia and the Americas.

Source: KGHM Group condensed consolidated financial statements for H1 2026 ↗
References
  1. ReportedBy end-customer location, the parent's 21 927 million złoty of first-half revenue went 4 845 million to Poland, 2 815 million to Germany, 2 445 million to the United Kingdom, 1 554 million to Czechia, 1 497 million to Italy and 1 345...
    KGHM Polska Miedz S.A. Group condensed consolidated financial statements for the first half of 2026 (the note stating that revenues from no single contractor exceeded 10% of group sales, the geographical breakdown by end-customer location totalling 21 927m złoty with Poland at 4 845m and Germany at 2 815m, parent revenue of 14 430m from copper and 5 843m from silver, the amending act on the minerals extraction tax in force from 1 January 2026, the group structure and equity accounting of Sierra Gorda, and derivative counterparty concentration) — H1 2026 · publ. August 2026 · source ↗
  2. Moat Explorer calcAround 78% of it stayed in Europe and about 22% never left Poland.
    Moat Explorer calculation - arithmetic on figures KGHM reports: ore grade (30 387 thousand tonnes of copper over 1 858 259 thousand tonnes of ore, and 91 837 tonnes of silver over the same), the by-product credit (52 201 less 17 415 złoty a tonne), the European share of parent sales (about 17 147m of 21 927m), copper and silver as a share of parent revenue (22 378m and 6 133m of 30 964m), the minerals extraction tax against parent net profit (4 693m over 1 946m), the dividend against trailing earnings (1,50 against 43,44 a share), and own concentrate as a share of refined output (183,6 of 291,5 thousand tonnes) — FY2023-H1 2026 · publ. September 2026 · source ↗
  3. ReportedThe commercial value is proximity and security of supply, which matters more to a European cable maker in 2026 than it did a decade ago, and which underpins the strategy's language about raw materials for Poland and Europe.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, the Strategy of the KGHM Group 2055+ approved on 3 July 2026 and its targets (payable copper production above 730 thousand tonnes a year of which about 590 thousand from Polish assets including 180 thousand from scrap, adjusted EBITDA averaging 12 billion złoty at a 25,6% margin, capital expenditure above 32 billion złoty across 2026-2030, at least 220 MW of installed renewable capacity, the Sierra Gorda fourth grinding line at 725 million dollars raising output about 20% while shortening the life of mine by three years, the Deep Glogow Deposit Access Program, and shareholders including the State Treasury at 31,79%) — 2026-2030 and beyond · publ. August 2026 · source ↗
Sources
Generated September 24, 2026