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Polish copper giant KGHM to revise strategy amid weak copper price- 2016 China(Guangzhou)Non-Ferrous Metals Exhibition
3/22/2016 non-ferrous metals expo |
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Bloomberg reported that Polish copper giant KGHM Polska Miedz SA said last week that it will review its investments and shave costs in its 2020 strategy as Poland¡¯s sole copper producer sees metal prices and output decreasing amid a global economic downturn. The company may still pay a dividend.
State-controlled KGHM expects copper trading at $5,000 a ton in 2016, 9 percent below the average price seen last year and 26 percent lower than the company¡¯s forecast from a year ago. Its production of electrolytic copper will shrink 9 percent to 525,400 tons due to a planned four-month shutdown of its Glogow smelter, it said in a statement. The miner assumes its total 2016 investments will fall 3.8 percent from a year earlier.
Along with its global competitors, KGHM suffered last year from a 25 percent slump in copper prices, the biggest annual drop since 2008, reflecting a waning demand from its top consumer China.
CFO Mr Stefan Swiatkowski said in a website statement ¡°We will continue to carry out key investments, while their timing and budgets will be adjusted to market conditions and the company¡¯s financial situation. adding that KGHM position is stable and that it will focus on cost cuts.¡±
KGHM also reported a record annual loss of 5.01 billion zloty ($1.32 billion), mainly due to asset write-offs, including the biggest one of $787 million at its flagship Sierra Gorda Chilean mine, which were announced earlier this month.
- 2016 China(Guangzhou)Non-Ferrous Metals Exhibition
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