KGHM management proposes to invest PLN 1.6bn this year, “PB” has just learnt. The budget is supposed to be approved of by the supervisory board which is meeting on March 27th. It looks like many projects, so far postponed, will be launched as early as in this half of the year.
„Huge investments have been neglected. All the projects are necessary and need to be implemented quickly”, Ryszard Kurek, member of KGHM supervisory board and the representative of ZZPPM trade union.
In his opinion, last year the management failed to stick to investment agenda.
“Former management cared only for high net income. Unfortunately, by limiting investments”, a “PB” source which asks not to be revealed said.
Krzysztof Skora, KGHM ex-CEO, rejects the allegations. He believes that all decisions were right.
When he was the CEO, in the years 2006 and 2007, the company invested PLN 709m and PLN 828m respectively.
The management forecasts PLN 2.8-2.9bn of net income this year.
“With today’s copper prices, the forecast is very cautious. Shareholders get clear message that their expectations concerning the dividend won’t be met. They may not be that much worried with the level of investments as with the lack of clear message what the funds will be spent for. They are afraid of the second Congo when KGHM had lost a lot”, Pawel Puchalski, DM BZ WBK analyst commented.
(PLN 1 = EUR 0.281)