In an interview with daily Parkiet, Dorota Wloch, the deputy CEO stated that KGHM is working on a strategy update which is likely to be published in February. An update is triggered by the Quadra take-over as it almost fulfill the production goals from the last strategy encompassing years 2009-2018. The new document would encompass years till 2020 and would likely to be focused more on energy projects than on new mining ventures. This however does not mean that KGHM abandons the M&A market, it means that the company would target rather junior projects on early stages of development where the acquisition price is lower but potential future development CAPEX could be relatively high. Our view: The update of Sierra Gorda projects seems to be the most important information which is being awaited by the market. We expect that KGHM in the new strategy would specify the outlays which are ready to spend on projects such as nuclear power plant, shale gas or other conventional power plants projects. We expect the company to post PLN 5.37 bn (-51.5% y/y) of consolidated net profit and PLN 4.91bn (-56.6%y/y) for the full year 2012.