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Blue-chip copper firm KGHM ups 2010 revenue forecast by 23%, net profit - by 35%

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Date: 2010-09-06 20:31

In line with earlier pledges, blue-chip copper and silver producer KGHM has raised its 2010 revenue forecast by 23% to 11.73bn and net profit forecast - by 35% to PLN 3.91bn, the firm announced on Monday.


"The increase in the forecasted result is mainly due to: a more favourable USD/ PLN exchange rate than assumed in the budget; a higher sales volume. The 7% higher level of total unit costs results mainly from higher measurement and higher volume of purchased copper-bearing materials," the firm's release reads.

KGHM also Said that the level of its planned equity investments (up by 28.6% to 2.10bn) results mainly from the purchase of 5.15% of shares in the country's second-biggest power group Tauron as well as a decrease in expenditure for the Afton-Ajax project.

In H1/2010, the company posted unconsolidated net profit of PLN 2226.64mn compared with PLN 1472.63mn profit a year earlier, on sales of PLN 7199.55mn vs. PLN 5099.26mn, respectively.

On the consolidated level, KGHM's net profit in H1/2010 was PLN 2399.85mn compared with PLN 1291.16mn profit a year earlier, on sales of PLN 7811.78mn vs. PLN 5611.91mn, respectively.

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