Poland's KGHM targets lower output after 2015 loss widens

Thu Mar 17, 2016 12:52pm EDT
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WARSAW, March 17 (Reuters) - Europe's No.2 copper producer, Poland's KGHM, on Thursday signalled plans to cut its copper output in 2016 after 2015 net loss came in larger than expected at 5.01 billion zlotys ($1.33 billion) due to write-downs.

State-run KGHM, which has just undergone a management reshuffle, said it raised the 2015 write-downs on its foreign assets to a record $1.3 billion, with the largest drag coming in from its key overseas mine in Chilean Sierra Gorda.

The miner expects 2016 copper prices to average at $5,000 per tonne compared to $5,495 last year, and sees its full-year output 9-percent down year-on-year at 525,400 tonnes. ($1 = 3.7678 zlotys) (Reporting by Adrian Krajewski)