Expected developments in 2015

By the middle of 2015, it is assumed that Sierra Gorda will achieve the full capacity planned for the first stage of the project, enabling the production of 120 thousand tonnes of copper per year (processing 110 thousand tonnes of orelexicon.png per day).

The Parent Entity assumes it will maintain close to last year’s volume of electrolytic copperlexicon.png production. Silver production is expected to be 8 per cent lower than in 2014, mainly due to lower silver content in ore.

KGHM Polska Miedź assumes an increase in the cash cost of copper production in concentrate (C1) of 2 per cent and a pre-precious metals credit unit cost of electrolytic copper production from own concentrate by 4 per cent, due to higher expenses by nature (mainly due to higher depreciation and a wider scope of mine development work than in 2014).

For 2015, the Parent Entity expects metal prices to remain at a level similar to that of the previous year, alongside a more favourable USD/PLN exchange rate. As a result, copper prices expressed in PLN are expected to be at a 4 per cent higher level than in 2014, and for silver 1 per cent lower.

Other key objectives of the Group include maintaining the pace of advancement of the Victoria and Ajax projects and continued work related to the expansion of the Żelazny Most tailings storage facility.