Copper-bottomed confidence
The world's sixth-largest copper producer, KGHM, is expecting a year-on-year rise in net profit for 2005 from its core mining and smelting operations, due to advantageous exchange rates and high copper prices, according to Wiktor Błądek, the company's CEO.
Net profits for Q1 2005 stood at zł.523 million, compared to zł.411 million for the same period in 2004. Q1 sales increased to zł.1.67 billion from zł.1.56 billion the year before.
The company's forecast for 2005 predicts a net profit of zł.948 million - lower than last year's ał.1.4 billion, because it plans to spend more on renovation and other costs. However, the company considers this a conservative forecast.
"One of the elements that significantly influences my assessment is the złoty/dollar rate - it's approaching zł.3.30 to the dollar, the level set in our plans, and continued high copper prices also have a positive effect," said Błądek. (Reuters) A.K.
Net profits for Q1 2005 stood at zł.523 million, compared to zł.411 million for the same period in 2004. Q1 sales increased to zł.1.67 billion from zł.1.56 billion the year before.
The company's forecast for 2005 predicts a net profit of zł.948 million - lower than last year's ał.1.4 billion, because it plans to spend more on renovation and other costs. However, the company considers this a conservative forecast.
"One of the elements that significantly influences my assessment is the złoty/dollar rate - it's approaching zł.3.30 to the dollar, the level set in our plans, and continued high copper prices also have a positive effect," said Błądek. (Reuters) A.K.
