KGHM Unveils "Strategy 2055+," Pledging Over $8.55 Billion in Investment
KGHM, the Polish state-owned producer of silver as well as copper, laid out a new strategy on Friday that shows a commitment of about $8.55 billion in spending through the upcoming years, alongside fresh targets for production and earnings.
Under the blueprint, branded "Strategy 2055+", the company is aiming for average yearly adjusted core earnings (EBITDA) of 12 billion zlotys, which is equivalent to about $8.55 billion, with copper output of 730K tonnes, and silver output of 1,290 tonnes over the next 4 years window.
Chief Executive Remigiusz Paszkiewicz said the goal beyond 2035 is for KGHM to operate as a modern industrial group spanning multiple raw materials, and he noted plans to construct a new Polish mine the company is calling "KGHM 2.0."
The strategy underlines KGHM's drive to line up ore closer to its smelters at home and trim transport costs. Management anticipates that roughly 80% of copper will come from Polish operations, leaving the remainder to overseas mines.
At the same time, the plan puts renewed weight on the company's international footprint. According to KGHM, close to 80% of the earmarked investment is destined for its central Polish operations, with the balance channelled to holdings in Chile, the United States, and Canada.
Last year foreign assets accounted for about half of the group's EBITDA, dominated by the Chile's Sierra Gorda mine and the Nevada's Robinson mine.
Anna Sobieraj-Kozakiewicz, the deputy chief executive responsible for non-domestic assets, said the firm wants its overseas holdings to take on a larger role, arguing that doing so will bolster KGHM's standing worldwide and its ability to weather structural upheaval. She added that the company would pursue fresh prospects guided by analysis of their efficiency.
Related assets: Silver