Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

UPDATE 1-Poland's KGHM targets lower output after record 2015 loss

Published 2016-03-17, 01:51 p/m
© Reuters. UPDATE 1-Poland's KGHM targets lower output after record 2015 loss
KGH
-
HG
-
8053
-
5713
-

(Adds more detail, background)
WARSAW, March 17 (Reuters) - Europe's second biggest copper
producer, Poland's state-run KGHM KGH.WA , signalled on
Thursday plans to cut its copper output this year after
writedowns pushed its 2015 net loss higher than expected.
The miner posted a record loss of 5.01 billion zlotys ($1.3
billion) at the group level and 2.8 billion loss for the parent
company, from which KGHM pays dividends. Analysts had expected
losses of 4.81 billion and 2.29 billion respectively.
Earlier this year, the company reported writedowns of $1.3
billion on its foreign assets due to falling metal prices, with
the largest drag coming from its main overseas mine Sierra Gorda
in Chile.
KGHM, which underwent a management reshuffle this year,
expects 2016 copper prices CMCU3 to fall further and average
$5,000 per tonne compared with $5,495 last year, and expects its
full-year output to fall 9 percent to 525,400 tonnes.
The company, which is also the world's largest silver miner,
had planned to almost double its copper output to more than 1
million tonnes a year by 2020, but signalled a revision of its
plans and its foreign assets after worries about Chinese demand
battered metals prices.
Copper has regained some ground this year and is trading at
about $5,000 a tonne.
KGHM shares have risen 13.5 percent so far this year. They
still has some way to go to make up for their 42 percent fall in
2015, the year it launched commercial production at the Sierra
Gorda mine it co-owns with Japan's Sumitomo 5713.T 8053.T .
The miner plans to investment 4.02 billion zlotys in 2016
slightly higher than the 3.91 billion spent in 2015.
($1 = 3.7678 zlotys)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.