President of KGHM: the end of the year is expected to be known to the audit of the Sierra Gorda – Puls Biznesu

“As for the date of completion of the audit, it is a very short period of time for its completion. By the end of the year will be ready,” – said when asked by PAP President of skin.

The need for an audit of the company pointed minister Treasury Dawid Jackiewicz. In late February, the Minister said that it will show “why we met with such great difficulty when it comes to investment in the Sierra Gorda mine in Chile.” “This audit must bring answers to some basic questions, first, how to diversify the company’s activities, that it was not exposed to financial problems in the event of falling copper prices,” – said the Jackiewicz.

On Thursday, authorities the company presented at a press conference financial results of KGHM. Chilean mine Sierra Gorda recorded in the first half of the year 481 million zł net loss of weighted share of KGHM in this project. KGHM has 55 percent. stake in the mine. EBITDA amounted to 154 million zł, and revenues from the sale of 683 million zł.

President of skin reported that the Sierra Gorda intensive work associated with the achievement of target parameters of financial and production, projected for Phase I, including, .in. stability of the processing plant. “The renegotiated are selected contracts and agreements, and is conducted to verify the long-term business plan and development” – he said.

Vice President of KGHM for. Development Mirosław Bilinski told the conference that the bed transitional Sierra Gorda, will be used also in future periods. Its operation contributed to lower production levels in the mine in the second quarter of this year. “We do not publish to the front of the production results Sierra Gorda, and the bed transitional to some extent will be in the following time periods used, will be scheduled for production in the next quarter,” – said Bilinski. He added that “at this time we verify and optimize project, work is underway geological so as to make the most of it. “

Vice-President reported that continued cooperation with the Chilean regulator Environmental (SMA). Sierra Gorda presented the program adjusts operation of the plant to the requirements of the regulator and is currently awaiting its formal approval by SMA .

“duplicate a proven solution from Polish, set up a team of international experts, who supervises the tank flotation Sierra Gorda” – he said. He added that in June appointed Robert Wunder as chief manager of the Sierra Gorda.

Production of copper in the Sierra Gorda in the first half of 2016 years amounted to approx. 48 thous. tonnes and molybdenum approx. 12.5 million pounds. In the second quarter the mine produced 22 thousand. tonnes of copper and 3.6 million pounds of molybdenum, which is less than in the first quarter of the year. The company said that the high content of pyrite in the ore influences the achieved yields and work processing plant molybdenum.

The total loss of the Sierra Gorda reached in the first half of the year 875 million zł, EBITDA amounted to 279 million zł, and revenues 1 24 billion zł. In the second quarter it was successively 468 mln zł losses, 126 million zł profit and 666 million zł market.

The company announced that in the first half of 2016 years KGHM Group generated a net profit of 298 million zł, and EBITDA in the period amounted to 2.1 billion zł, and revenues reached 8.5 billion zł. KGHM Group recorded an increase in the production of copper equivalent of 5 thousand. t, which was a result of the increase in production volumes associated metals – gold and molybdenum. The volume of production of precious metals in relation to 2015 increased by a total of 26 percent.

The net debt of the Group in the period January-June 2016. Increased by 207 million USD, which was related to the financing of investment activities. Ratio of net debt to EBITDA (with EBITDA for the 12 months ended 06.30.2016 r.) Is 1.8, and remains in a safe, controlled level.

According to the company, the situation on the raw materials market is still difficult. Compared to the same period the price of copper in the first half of 2016 years were lower by 21 per cent., Silver by 4 per cent., While molybdenum by 25 percent.

KGHM is one of the largest Polish companies of the Treasury and is one of the world’s leading producers of copper and silver. Currently, the State Treasury holds 31.79 percent. KGHM. The remainder is in the hands of Polish and foreign institutional and individual shareholders.