Two Prices on One InvoiceThin moat

KGHM Polska Miedź (KGH) — moat facet

Silver is 27% of parent revenue and climbing - copper company describes less of this every year.

KGHM sells one product that is really two, and the second one has been doing the work.

Parent revenue by metal, H1 2026 (zl m)Copper — 66%Silver — 27%Gold — 4%Other — 3%Copper +32,3%, silver roughly doubled, on sales volumes up 2,7% and 4,2%
Silver was about 20% of parent revenue in 2025 and about 27% here. Copper company describes less of this every year.

In the first half of 2026 the parent's revenue of 21 927 million złoty split into 14 430 million of copper, 5 843 million of silver and 895 million of gold1. Copper rose 32,3% and silver roughly doubled2 — and silver did it on sales volume up 4,2%3, so essentially all of it was price.

Having two metals in one hole is a genuine diversification of a sort. Copper is an industrial metal priced off construction, grids and electrification; silver is half industrial and half monetary, and rallies for reasons — currency debasement, geopolitical anxiety — that have nothing to do with copper demand. In 2025 the pair moved together, but they need not, and a company exposed to both has a wider set of good years than one exposed to either.

The catch is that it has a wider set of bad ones too, and no control over either. KGHM does not set the London copper price or the London bullion silver price. It hedges some of both with derivatives4, which shifts timing rather than removing exposure.

The measure is silver as a share of parent revenue: about 20% in 20255 and about 27% in the first half of 20266. The higher that share climbs, the less the phrase copper company describes what an owner actually owns.

Moat trajectory: Widening

Silver went from about 20% of parent revenue in 2025 to about 27% in the first half of 2026. The diversification is real and it arrived by price rather than by decision.

The number that tests this moat
Moat Explorer calc
Silver as a share of parent revenue
about 20% in 2025, about 27% in H1 2026

Copper is priced off construction, grids and electrification; silver is half industrial and half monetary and rallies for reasons copper does not. Owning both widens the set of good years and the set of bad ones, and KGHM sets neither price. The higher this share climbs, the less the phrase copper company describes what an owner holds.

Source: KGHM Group Management Board's report for H1 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
The Credit Vanishes When Silver Does
The credit is worth about 34 800 złoty a tonne, and it goes in exactly the year copper does.
References
  1. ReportedIn the first half of 2026 the parent's revenue of 21 927 million złoty split into 14 430 million of copper, 5 843 million of silver and 895 million of gold.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, financial results (revenue of 24 711m złoty up 40,8%, profit for the period of 5 579m against 580m, adjusted EBITDA of 9 198m up 89,1%, capital expenditure of 1 663m, net debt down 13,5% to 4 691m, equity of 39 814m, available financing of 16 978m, and the 1 979m złoty increase in the minerals extraction tax on higher copper and silver prices) — H1 2026 · publ. August 2026 · source ↗
  2. ReportedCopper rose 32,3% and silver roughly doubled — and silver did it on sales volume up 4,2%, so essentially all of it was price.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, production, unit costs and employment (electrolytic copper of 291,5 thousand tonnes of which 183,6 thousand from own concentrate, metallic silver of 696,7 tonnes, the pre-precious-metals-credit unit cost of 52 201 złoty a tonne against a total unit cost of 17,415, C1 of 2,44 USD/lb, average group employment of 34 543 including 18 870 at the parent, and payable copper from the international assets of 59,5 thousand tonnes of which Sierra Gorda 40,2 and Robinson 17,7) — H1 2026 · publ. August 2026 · source ↗
  3. ReportedCopper rose 32,3% and silver roughly doubled — and silver did it on sales volume up 4,2%, so essentially all of it was price.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, production, unit costs and employment (electrolytic copper of 291,5 thousand tonnes of which 183,6 thousand from own concentrate, metallic silver of 696,7 tonnes, the pre-precious-metals-credit unit cost of 52 201 złoty a tonne against a total unit cost of 17,415, C1 of 2,44 USD/lb, average group employment of 34 543 including 18 870 at the parent, and payable copper from the international assets of 59,5 thousand tonnes of which Sierra Gorda 40,2 and Robinson 17,7) — H1 2026 · publ. August 2026 · source ↗
  4. ReportedIt hedges some of both with derivatives, which shifts timing rather than removing exposure.
    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 ↗
  5. ReportedThe measure is silver as a share of parent revenue: about 20% in 2025 and about 27% in the first half of 2026.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, financial results (revenue of 24 711m złoty up 40,8%, profit for the period of 5 579m against 580m, adjusted EBITDA of 9 198m up 89,1%, capital expenditure of 1 663m, net debt down 13,5% to 4 691m, equity of 39 814m, available financing of 16 978m, and the 1 979m złoty increase in the minerals extraction tax on higher copper and silver prices) — H1 2026 · publ. August 2026 · source ↗
  6. ReportedThe measure is silver as a share of parent revenue: about 20% in 2025 and about 27% in the first half of 2026.
    KGHM Polska Miedz S.A. Group - Management Board's report on activities in the first half of 2026, financial results (revenue of 24 711m złoty up 40,8%, profit for the period of 5 579m against 580m, adjusted EBITDA of 9 198m up 89,1%, capital expenditure of 1 663m, net debt down 13,5% to 4 691m, equity of 39 814m, available financing of 16 978m, and the 1 979m złoty increase in the minerals extraction tax on higher copper and silver prices) — H1 2026 · publ. August 2026 · source ↗
Sources
Generated September 24, 2026