KGHM to increase its 2005 profit projection by 100%

The document will be accepted by the supervisory board on September 12. "Apart from the correction, we will also present the planned dividend policy," said Andrzej Szczepek, KGHM's deputy president. At the end of 2004, the management board announced that the company's net profit for 2005 would amount to zł.943 million, as compared to zł.1.4 billion in 2004. However, after the increase in global copper and silver prices the concern's financial results also improved. After H1 the revenues projection for the whole year have been realized in nearly 60%, and the net profit projection has already been exceeded by 8%. According to Sebastian Słomka from BDM PKO BP, the management board can increase the profit projection by 100% and even that would be a conservative prognosis. The analyst believes that this year KGHM can record a net profit of about zł.1.85 billion, but 2006 will not be as successful for the concern as 2005, as market analysts predict that the net profit will be by some zł.800 million lower. (Parkiet, p. 3)