The Strategy for the years 2015 – 2020 with an outlook to 2040 is based on the following three main pillars:
Resource Base Development
As part of its exploration and acquisition activities, the Company plans to replace every mined tonne of copper with three tonnes of copper in new resources. This will ensure the long-term operational prospects of the Company and an enhanced position on the cost curve. The Company will mainly concentrate on exploration in areas adjacent to the Company’s current operations and on the search for low-cost assets in geopolitically-stable regions. The development plan of KGHM’s resource base will ensure long-term mining activities and secure higher production volume.
Production Assets Development
According to the Strategy, the Company plans to invest PLN 27 billion over the period from 2015 to 2020. These funds will be allocated to developing the current portfolio of investment projects, including programs to develop the core business in Poland and those leading to the operational commissioning of resource projects in Poland and abroad (Deep Głogów, Victoria and Ajax). Completion of its investments projects will enable a substantial increase in Group production capacity and enhance its position on the global cost curve of copper producers. KGHM Polska Miedź S.A. is committed to efficiently allocating financial resources and developing projects which have the highest rate of return.
KGHM Polska Miedź S.A. aims to ensure stable production levels while optimizing production costs and maintaining the highest safety level. Under KGHM’s Strategy for the years 2015-2020 the Company plans to increase the annual volume of mined ore from the mines of KGHM Polska Miedź S.A. in Poland.
Efficiency and innovation
Current priorities include new project development and gaining skills in terms of discovering and developing natural resources as well as creating a global organisation that continues to follow the path of growth.
REVISION OF THE STRATEGY
The Management Board of KGHM Polska Miedź S.A. has decided to undertake work on a fundamental revision of the Company’s strategy. The existing „Strategy for the years 2015-2020 with an outlook to 2040” announced on 26 January 2015 must be changed due to the facts set forth below, in the Justification.
The Management Board plans to conduct its strategy revision over the next 9 months. It is expected that the results of this work will be announced together with the annual results for 2016 (February – March).
During the process of strategy revision, the Management Board will focus in particular on adapting the company’s investment plans to its anticipated financial capabilities, taking into consideration market conditions and the need to optimise costs.