Poland's KGHM reiterates goals after Q2 beats expectations

Thu Aug 13, 2015 11:43am EDT
 
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WARSAW Aug 13 (Reuters) - Europe's No.2 copper producer, Poland's KGHM, reiterated its 2015 sales and output targets, after a weaker zloty helped it beat market forecasts with a 35-percent rise in its second-quarter net profit

The state-controlled miner reported a bottom line of 824 million zlotys ($219.5 million), compared with 685 million expected by analysts.

A weaker zloty currency helped KGHM outweigh the effect of low copper prices, which are hovering near the threshold of $5,000 a tonne, which KGHM sees as its "pain level".

Sales jumped by 10 percent to 4.325 billion zlotys, while analysts expected a 6-percent rise.

In the first half of the year the miner booked around half of both its copper output and sales targets for 2015 of, respectively, 567,500 tonnes and 564,700 tonnes. KGHM reiterated both goals.

The figures represent the miner's unconsolidated results, generated only by the parent company, and the basis for its dividend payouts.

They do not factor in foreign subsidiaries. KGHM's biggest overseas asset, the Sierra Gorda mine in Chile, launched commercial production last month.

On the group level, KGHM reported a surprise 17-percent net profit growth to 796 million zlotys in the second quarter. Analysts expected the consolidated net profit to fell 15 percent. ($1 = 3.7548 zlotys) (Reporting by Adrian Krajewski; Editing by Agnieszka Barteczko)