WARSAW, March 18 (Reuters) - Europe’s No.2 copper producer, Poland’s state-run KGHM, said its 2016 market expectations are cautious, adding it is working on further cost cuts at its mines after the group booked a record loss in 2015 due to write-downs.
“We are making cautious macroeconomic assumptions, especially regarding copper prices,” Stefan Swiatkowski, KGHM’s chief financial office, said in a statement posted on the company website, adding that the group’s financial situation is stable.
“At the same time ... we are working on further cost cuts at our assets.”
KGHM expects 2016 copper prices to fall further, averaging $5,000 per tonne compared with $5,495 last year.
The miner also signalled plans to cut its copper output by 9 percent this year after record writedowns pushed its 2015 net loss higher than expected to 5.01 billion zlotys ($1.33 billion). ($1 = 3.7799 zlotys) (Reporting by Adrian Krajewski)