Thanks to rising copper prices, its set to be a bumper year for KGHM

In view of the recovery of world copper prices, Polish copper miner KGHM, is almost certain to make more than its 2003 projected net profit of zł. 249 million. Currently, the price per tone is circulating around $1,870 on the London Metal Exchange. "This is the same level it reached in 2000 at the peak of the world copper boom when KGHM earned zł. 600 million," remembered Sebastian Słomka from BDM PKO BP, adding that as the price was below $1,500 per tone at the beginning of 2003, KGHM may post an end of year profit of zł. 300-340 million. However, the company management is unlikely to change its forecast in the foreseeable future. A possible explanation might be the wage pressures the company faces. "From the company's perspective it would be better if the recovery of copper prices came in a year or two, when the concern could have complete its restructuring program. With copper prices rising, the social pressure to slow down this process will probably be too strong," said Słomka. (Puls Biznesu, p. 8) M.K.