KGHM Advances as Erste Advises Accumulate Polish Copper Miner

KGHM Polska Miedz SA (KGH), Poland’s sole copper producer, rose to the highest in almost 1 1/2 years after Erste Group Bank AG gave an accumulate recommendation on the stock.

The shares rose as much as 1.1 percent and traded 0.8 percent up at 194.1 zloty as of 11:08 a.m. in Warsaw, the highest since July 2011, valuing the Lubin, Poland-based company at 38.8 billion zloty ($12.7 billion). Erste set its target price at 210 zloty per share.

KGHM completed Poland’s biggest foreign purchase by buying Canada’s Quadra FNX Mining Ltd for $2.9 billion in cash in March. In October, the company increased its 2012 profit forecast 25 percent to 4.74 billion zloty.

“KGHM became a multinational company, which, in our opinion, deserves a fair comparison versus its closest international peers,” Michal Zasadzki, a Warsaw-based analyst at Erste, said in a note to investors. “KGHM is traded with a 14 percent discount” to peers, he said.

To contact the reporters on this story: Piotr Bujnicki in Warsaw at; Marta Waldoch in Warsaw at

To contact the editor responsible for this story: Wojciech Moskwa at

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