By Patryk Wasilewski
WARSAW--Poland's copper miner KGHM Polska Miedz SA (KGH.WA)
plans to spend 27 billion zlotys ($7.3 billion) on capital
expenditures by 2020 in order to increase its production levels to
1 million metric tons annually, the company's Chief Financial
Officer Jaroslaw Romanowski said Tuesday.
Mr. Romanowski added that KGHM's goal is to mainly increase its
production levels abroad, where production costs are lower than in
Poland, bringing costs down and increasing earnings before
interest, taxes, depreciation and amortization to PLN9 billion a
year.
"We plan Ebitda earnings to be 70% higher than last year's
result," Mr. Romanowski said. The company has yet to release its
full year financial results for 2014.
Thanks to its earlier acquisitions, mainly the takeover of
Canadian miner Quadra FNX for 2.87 billion Canadian dollars ($2.30
billion), the Polish producer increased its production levels to
around 700,000 metric tons. Now it plans to focus its future
investments on expanding the existing facilities and exploration
nearby.
Takeovers will be possible only in case of favorable market
conditions and attractive market financing for such a project, the
company added in a presentation.
Write to Patryk Wasilewski at patryk.wasilewski@wsj.com