KGHM reaps the rewards of record copper prices

Since January the price of KGHM's shares have already increased by about 46%. The reason for such growth is an unusually good situation on the metal market. Thursday saw yet more record copper prices on the London bourse, where one ton of the metal cost $3,835. On the whole, global copper prices increased by about 21% since the beginning of the year. KGHM's financial projections for 2005 envisage a net profit of zł.1.92 billion, as compared to zł.1.4 billion in the previous year. Due to the company's good results, trade unions are demanding a bonus equal to a month's salary for each employee. The implementation of this idea would cost KGHM around zł.100 million. The management board agreed to pay a bonus 50% lower than the one proposed by the union, but wants the final decision to be taken by the supervisory board. (Parkiet, p. 3) A.F.