Precious metals' price hike has KGHM raising hopes

These figures earlier stood at zł.943 million and zł.5.93 billion respectively. The new estimates of the budget include an average annual increase in the price of copper by 25%, up to $3,200 per tonne, and an increase in the price of silver up to $222 for one kilo, which is up by 19%. During a meeting yesterday with financial investors, the management of KGHM also presented its assumptions for an economic plan between 2005 and 2009. The company is expecting the situation in the metal sector to worsen and assumes that the price of copper and silver will fall. However, a significant decrease in its production costs is also expected. Until 2009 KGHM will spend a joint sum of zł.3.95 billion on the purchase and construction of fixed assets. This year these investments will stand at almost zł.660 million. (Parkiet, p. 4) A.K.