KGHM of Poland Triples Net to $1.24 Billion on Polkomtel, Topping Estimate
KGHM Polska Miedz SA (KGH) said fourth- quarter unconsolidated net income almost tripled as the copper producer with the largest European mine output sold its stake in mobile phone operator Polkomtel SA.
Unconsolidated net income, which excludes earnings at certain units such as power utility Energetyka Sp. z o.o., jumped to 3.81 billion zloty ($1.24 billion) from 1.32 billion zloty a year earlier, the Lubin, southwestern Poland-based company said in a regulatory statement today. That beat the 3.72 billion-zloty mean estimate of 13 analysts surveyed by Bloomberg.
KGHM sold its 24 percent stake in Polkomtel, Poland’s second-largest wireless phone company, in November making a pretax profit of 2.31 billion zloty. The transaction helped the world’s third-largest silver producer report an annual profit of 11.3 billion zloty, a record for any Polish company.
Fourth-quarter sales increased 2 percent to 4.85 billion zloty, compared with an estimate of 4.82 billion zloty.
In a separate statement today KGHM said it received all approvals needed to complete its C$2.87 billion ($2.89 billion) acquisition of Quadra FNX Mining Ltd. (QUX), part of the company’s global expansion plans. In 2010 KGHM bought a stake in Canadian Afton-Ajax mining project and it has until April 4 to decide whether to invest $795 million to develop the site, it said in the earnings statement today.
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