KGHM Sees 2013 Profit Falling on Tax, Lower Copper Output

KGHM Polska Miedz SA, Poland’s sole copper and silver producer, expects its profit to slump 32 percent this year on lower output and higher tax payments.

Net income will probably decline to 3.2 billion zloty ($1 billion) from 4.74 billion zloty that the Lubin, Poland-based company forecasts for 2012. Sales will fall to 18.9 billion zloty from last year’s target of 20.6 billion zloty. The producer is due to publish 2012 earnings on March 1.

KGHM forecasts are based on the average copper price of $7,800 a ton this year and the average zloty-dollar rate of 3.1.

Copper output in Poland will fall as the company plans a three-month shutdown of its Glogow smelter for maintenance. The state-controlled company will also pay higher tax on copper extraction, it said.

KGHM, which operates Europe’s largest copper deposit, bought Canada’s Quadra FNX Mining Ltd. for $2.9 billion last year as part of a plan to increase annual output to 700,000 tons of copper.

To contact the reporters on this story: Marta Waldoch in Warsaw at mwaldoch@bloomberg.net; Maciej Martewicz in Warsaw at mmartewicz@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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