KGHM sees the rationale for a dividend payout, looking at the economic situation, but the management board has not made a decision on a recommendation regarding profit distribution, President Marcin Chludziński said during a conference after the publication of financial results.
When asked about the dividend, the CEO replied: “We are approaching the formal deadlines when we announce this. Looking at the economic situation, there are reasons, but we will analyze it and decide on the dividend.”
KGHM sees the rationale for a dividend payout, looking at the economic situation, but the management board has not made a decision on a recommendation regarding profit distribution, President Marcin Chludziński informed during the conference after the publication of financial results.
The strategy of the KGHM group for 2019-23 published in December 2018 assumes average annual metallurgical production of copper in Poland at the level of 540,000 tonnes and mining production at the level of 450,000 tonnes of copper in the ore. By the end of 2030, 50 percent of KGHM Polska Miedź’s demand for electricity is to come from its own sources and renewable energy sources.
The average annual copper prices on the London Metal Exchange (LME) in 2020 were at the level of USD 6,181/t, which is 3% above the 2019 average price ($ 6,000/t). At the end of December 2020, the price of copper was USD 7,766 / t.
At the end of February, the LME paid over USD 9.4 thousand per ton of copper – the higheset since August 2011.
KGHM’s financial results
The adjusted EBITDA of the KGHM group amounted to PLN 2.205 billion in the fourth quarter of 2020, compared to PLN 1.767 billion in the third quarter of 2020 and compared to PLN 1.117 billion a year ago, the company said in its annual report. The result turned out to be in line with the PAP Biznes consensus which assumed PLN 2.18bn of adjusted EBITDA.