By 2014, the production of copper-paid was similar to production in 2013 and amounted to 663 thousand. tons. Metallic silver production increased by 8 percent and reached 1 256 tons. The production of precious metals such as gold, palladium, platinum amounted to 152.9 thousand. Trojan ounces, an increase of 15 percent. KGHM Group ended 2014 years net profit at 2.45 billion zł.
– The biggest influence on the result of a change in relation to 2013 was the low point of raw materials, primarily copper and silver. The price of silver fell by almost 20 percent and copper by more than 6 percent compared to 2013. Significant burden on the results of KGHM was a tax on mineral extraction, which amounted to 1.5 billion and accounted for 30 percent of the unit cost of production of concentrate.
The net result achieved in such conditions is due to stable production and maintenance cost discipline – explains Jaroslaw Romanowski, and Executive Vice President. Finance.
One of the most significant events of 2014 years was the start of production in Sierra Gorda mine in Chile.
– The realization of this project confirmed the high competence of KGHM and enabled the entrance to one of the largest copper producer in the world. Launch of production in the Sierra Gorda KGHM not only an increase in the production of copper, but also a significant increase in cost efficiency and expanding portfolio products- says Herbert Wirth, President of the Board of KGHM.
The achievement of projected production capacity of the first phase of the Sierra Gorda mine will be in accordance with the schedule in the middle of this year. Areas adjacent to the currently operated area is characterized by a high potential exploratory. Preliminary estimates indicate the possibility of significantly prolong the life of the mine.
A stable level of production in Poland offer launched in 2014 in the area of operation of Deep Industrial Głogów below 1 200 meters and intensive work aimed at the development of the resource base.
– We have obtained the rights to the new concessions in areas adjacent to the current operating areas. As a result of exploration work documented copper ore resources in the region Gaworzyce-Radwanice at 4.1 million tons of copper and about 7.5 thousand. tons of silver. As a result, the estimated life of the deposits in Poland is currently 30-40 years. We want to replace one tonne of copper metal sczerpanej three tons of newly proven reserves – says Maciej Horse, CEO of the Center for Strategic and resource base development.
KGHM completed sooner than expected pillars of the Strategy for the years 2009-2018, expanding base of reserves and production of copper reaching close to the level of 700 thousand. tons. At the beginning of 2015 years was adopted strategy for the years 2015 to 2020 with a view to the year 2040. The main objective of the new strategic perspective is to achieve annual production capacity of over 1 million tonnes of copper equivalent and the continuation of processes aimed at increasing the efficiency of our mining operations.
– According to the Strategy over the next six years will process the largest investment program in the history of KGHM worth 27 billion zł. A significant portion of these funds, as many as 65 percent will be allocated for development investments and other investments replacement and retention. The foundation for the implementation of strategic plans will be efficiency and innovation, which today stand KGHM, and in the future will provide the Company a competitive advantage – says Herbert Wirth, President of the Board of KGHM.
The new projects related to the development of the Group will be possible due to security in 2014, the financing of the investment program of development of the Group. KGHM obtained a syndicated loan in the amount of $ 2.5 billion and an investment loan from the European Investment Bank in the amount of 2 billion zł.
– The funds will allow us to carry out future projects and to develop KGHM in subsequent years. At the same time, and we plan to continue a policy of sustainable financing, according to which use internal sources supplemented finasowania debt to the extent that the net debt to EBITDA ratio remained at a safe level – says Jaroslaw Romanowski, and vice president for KGHM. Finance.
In 2015, the following goals and priorities:
“Maintaining a stable volume of electrolytic copper production,” Achieving the full processing capacity under Phase I (110 thous. tons daily processing) mine Sierra Gorda and production of molybdenum; “Maintaining the pace of implementation of the preparatory work in Victoria and Ajax projects,” Continuation of work related to the expansion tank Extractive Waste Treatment Iron Bridge; “Continuation of investment aimed at creating a modern and environmentally friendly structure of the steel industry.
In view of the rules adopted Dividend Policy, Strategy aims and objectives of the Company, including the necessary investments in the Group to implement the development and safe level of debt ratios, the Board of KGHM proposes a dividend of 800 million zł (4.00 zł per share), representing 33% of net profit in 2014.
KGHM is today a global company that works with respecting the interests of social, ethical and environmental impacts, in accordance with the common to the entire Group values, which are security, interoperability, results orientation, responsibility and courage. Whatever the location of their plants, KGHM operates according to the same, the highest standards. It is a reliable manufacturer, a trusted business partner, a stable employer and the company consistently leads the policy of sustainable development.
opr.MZB
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