KGHM to write down nearly PLN 2 bln

Poland's copper producer KGHM informed it flagged PLN 1.93 billion in write-downs on key foreign investments due to extremely low metals prices, the company reported. Writedowns regarding Chile-based Sierra Gorda mine will exceed PLN 1 billion (including tax effect). According to the company, write-downs will not impact its dividends and credit covenants, as the current and predicted financial condition will be taken into account. Furthermore, KGHM has begun revising its 2015-2020 strategy to reduce capital needs in the short and medium term. KGHM also said last month it would have to run an asset impairment test because of continued low commodity prices.