BASE METALS

KGHM surprises with strong Q4 performance

An uptick in operational performance at KGHM’s domestic assets and at the Sierra Gorda mine in Chile saw the Polish copper player post better than expected production figures for Q4.

Staff reporter
KGHM's Głogów copper smelter in Poland

KGHM's Głogów copper smelter in Poland

Copper production across the company's portfolio amounted to 173,000 tonnes, down 2.8% versus Q3 but 5% ahead of the 164,000t forecast by Canadian investment bank BMO. Metallic Silver production of about 12Moz was 20% above BMO's estimates.

However copper sales were 17% lower than BMO expected, which the KGHM put down "the schedule of deliveries agreed with customers of copper cathodes".

However, recent difficulties at the company's core Polish operations (KGHM experienced a protracted and sometimes troubled smelter/refinery revamp) meant BMO remained cautious on the company meeting its production target for 2020.

"Given recent challenges, we have been a little cautious of KGHM meeting lofty 2020 guidance; continued strong delivery may cause us to reconsider," BMO analyst Edward Sterck said in a note.

 

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