2015-01-26 22:05 Herbert Wirth, President of KGHM [photo: Wojciech Stróżyk / Reporter] 
The updated strategy KGHM assumes that by 2020. Annual production will amount to more than 1 million tons of copper equivalent from own concentrate, and EBITDA to grow by 70 percent. compared to 2014. – gave concern.
KGHM also plans to reduce the cost of cash C1 by about 10 percent. compared to 2014.
The primary objective of the new strategic perspective for the years 2015-2020 is to achieve a total annual production capacity of over 1 million tonnes of copper equivalent and the continuation of the continuous improvement of the efficiency of the processes carried out mining activities – said in a statement.
KGHM assumes that the share of copper production equivalent of foreign assets will increase at that time to 40 percent. with 17 per cent. The company said that in mid-2015. Plans to reach full production capacity and the Sierra Gorda project phases (ie. 120 thous. Tons of annual production of copper), and duration of the new strategy wants to start the second phase of the project and start the processing of oxide ore.
As one of the pillars of the strategy of KGHM shows the evolution of the resource base.
As part of the exploration activities and acquisitions, the company provides for the replacement of each tonne of copper extracted three tons of copper contained in the new resource. This will allow you to secure the long-term prospects of the company’s operations and improving cost position – written in the press release.
The company will focus on exploration around the existing areas of mining activity and the search for low-cost assets located in stable geopolitical locations – added.
KGHM plans to spend part of a strategy zł 27 billion in investment.
These measures are dedicated to the development of the current portfolio of investment projects mainly development programs in the core business and lead to the production phase of resource projects in the country and abroad (Deep Industrial Głogów, Victoria, Sierra Gorda second phase, the Sierra Gorda of oxide ore and Afton Ajax) – are given.
The implementation of the investment project portfolio will significantly increase the production capacity of the group and to improve its position on the global cost curve cost copper producers – added.
KGHM assumes that the period of the strategy net debt / EBITDA will be maintained in the range of 1-2. The strategy was developed with the assumption of the following macroeconomic conditions: average copper prices in the period 2015-2020 at the level of 7.600 USD / t (2015. – 6800 USD / t); average silver and molybdenum in the period 2015-2020 respectively, $ 21 / troz (2015. – $ 18 / troz) and $ 12 / lbs (2015. – $ 12 / lbs) and the average target level of PLN USD exchange rate for the period 2015 -2020 at 3 zł (2015 r.- 3.30).
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