KGHM launches impairment tests for foreign units

WSE-listed copper and silver giant KGHM launched impairment tests for some of its key foreign assets. “As a result of reviewing the technical and economic assumptions of key international mining assets belonging to the KGHM, there has been a significant change in the parameters for a part of these assets as regards mine lifespan, metals production volumes, assumed operating costs and the level of capital expenditures during expected lifespan of the mines,” KGHM said in a market filing The mines include US Robinson mine, Canadian Sudbury region and Ajax projects, as well as Franke mine in Chile. It will not include Chilean Sierra Gorda assets. According to KGHM's FY 2016 report, the recoverable value of Sudbury assets measured PLN 1.424 billion, PLN 532 million for Robinson, PLN 334 million at Ajax, and PLN 54 million in Franke.