KGHM Polska Miedz SA (KGH) headed for its longest rally in two months after Poland’s Treasury Minister said the country’s only copper producer ought to pay more than a third of its 2012 profit as dividends.
The stock rose 1.8 percent to 136.6 zloty as of 1:31 p.m. in Warsaw. It has posted a 5.4 percent gain in its five-day winning streak, the longest since July 5, according to data compiled by Bloomberg. The shares outperformed Warsaw’s benchmark WIG20 Index (WIG20), which climbed 2.5 percent in the same period.
Poland wants KGHM to pay more than 30 percent of 2012 net income as dividend, Mikolaj Budzanowski told TVN CNBC network in an interview today. That comes after Chief Executive Officer Herbert Wirth said this week KGHM plans to raise this year’s profit forecast in October.
KGHM has reached 54 percent of 2012 profit target in the first half of the year, the company said on Aug. 13. The company has forecast an unconsolidated net income of 3.8 billion zloty.
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