UPDATE 1-Polish KGHM flags more than $1 bln in writedowns in 2015
* KGHM recognises $494 mln loss after impairment tests
* Group also books $510 mln loss on key Sierra Gorda asset
* One-off losses stem from commodity price slump
* KGHM maintains dividend policy despite losses (Adds more detail, company comments)
WARSAW, Feb 8 (Reuters) - Poland's KGHM, Europe's second-biggest copper producer, on Monday flagged a record $1 billion in writedowns on key foreign assets, including the Sierra Gorda mine in Chile, due to plunging metals prices.
The state-controlled group said the writedowns will not impact its dividends and credit covenants, adding that it has begun revising its 2015-2020 strategy to significantly reduce capital needs in the short and medium term.
The move is the latest in a series of writedowns on resource assets and downgrades of earnings forecasts by miners in the face of a global commodity slump.
KGHM, which closed the first three quarters of the year with a consolidated net profit of 1.2 billion zlotys ($301.6 million), recognised a $494 million loss following impairment tests on its assets in Chile, the United States, and Canada.
It also announced a $510 million loss on its investment in the Sierra Gorda SCM firm that owns the Sierra Gorda mine - KGHM's largest foreign asset - bringing the group's total impairments for the year to just over $1 billion. Continued...