January 18, 2016 / 2:16 PM / 2 years ago

Poland's KGHM CEO flags lower dividend due to asset impairment

LUBIN, Poland, Jan 18 (Reuters) - Poland’s KGHM, Europe’s second-biggest copper producer may have to cut its 2015 dividend if it has to write down the value of its assets as a result of the copper rout, KGHM’s chief executive said on Monday.

Last month, KGHM said it would have to run an asset impairment test because of continued low commodity prices. Copper, used in power and construction, touched $4,318 on Friday, its lowest since May 2009, putting KGHM at a risk of generating losses.

“I think the test’s results will be known at the turn of January and February. Depending on the outcome, I cannot rule out that it could result in a proposal of lower dividend form 2015,” KGHM CEO Herbert Wirth told Reuters.

Reporting by Wojciech Zurawski; Writing by Agnieszka Barteczko; Editing by Louise Heavens

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