KGHM says copper price drop no threat to earnings forecast
The chief executive of KGHM, Europe’s No. 2 copper producer, said the recent drop in copper prices was probably temporary and should not threaten the Polish company’s earnings forecasts. “The weaker zloty should make up for a lower copper price in dollars,” chief executive Herbert Wirth told Reuters on Monday, adding the company was in advanced talks to buy copper deposits.London copper futures fell 7 percent on Monday to their lowest level since July 2010, over concerns of a global recession.
The recent fall in metal prices has seen KGHM shares fall 30 percent since the start of August.
The stock was nearly flat in early trade.
Earlier this month, KGHM raised its 2011 net profit target 16 percent to 9.6 billion zlotys ($2.9 billion) boosted by expected proceeds from the sale of telecoms assets.
($1 = 3.258 Polish zlotys)
(Reporting by Agnieszka Barteczko; Editing by Dan Lalor)
The recent fall in metal prices has seen KGHM shares fall 30 percent since the start of August.
The stock was nearly flat in early trade.
Earlier this month, KGHM raised its 2011 net profit target 16 percent to 9.6 billion zlotys ($2.9 billion) boosted by expected proceeds from the sale of telecoms assets.
($1 = 3.258 Polish zlotys)
(Reporting by Agnieszka Barteczko; Editing by Dan Lalor)
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