KGHM predicts lower profits from increased production

Copper and silver miner KGHM Polska Miedz said yesterday its copper output would increase to 520,000 tonnes this year, up 2% on 2002, while silver production was likely to fall 8% to 1,095 tonnes. In its annual report, KGHM reiterated its earlier statement that net profit on core operations is likely to drop to zl. 154 million ($38.6 million) from zl. 255 million in 2002, mainly due to an expected stronger zloty against the dollar. The company sees its revenues falling to zl. 4.149 billion in 2003, down nearly 8% from zl. 4.488 billion. In its business plan for 2003, KGHM, the world's sixth largest copper producer and number two by silver output, assumed the average annual price of copper at $1,625 per tonne and silver at $143 per kg. (Reuters) J.K.