KGHM Slumps as CEO Says 2014 ‘Tough’ for Copper: Warsaw Mover

KGHM Polska Miedz SA, Poland’s sole copper and silver producer, fell the most in two weeks after Chief Executive Officer Herbert Wirth said declining metals prices will have a “significant” impact on earnings next year.

The shares lost as much as 4.9 percent and traded 2.3 percent lower at 118.2 zloty as of 1:49 p.m. in Warsaw. KGHM has been the worst-performing stock in Warsaw’s benchmark WIG30 Index this year, losing 38 percent. Next year will be “tough” and the state-controlled company is working on a cost-cutting program to offset dropping prices, Wirth told reporters today.

“The comments might have come as a surprise to those investors who bet an improvement in global economy and a copper price rebound,” Tomasz Duda, a Warsaw-based analyst at Erste Group Bank AG, said by phone today.

Wirth wouldn’t comment on next year’s profit forecast. Net income will exceed 3 billion zloty ($972 million) in 2013, in line with the company’s forecast of 3.2 billion zloty, he added.

KGHM’s net income will probably slump to 2.57 billion zloty next year from this year’s 2.99 billion zloty, according to the mean estimate in a Bloomberg survey of 17 analysts.

Copper for delivery in three months fell 0.2 percent to $7,005 a ton on the London Metal Exchange today, extending this year’s decline to 12 percent. KGHM sees copper to trade between $6,800 and $7,200 a ton next year, Wirth said, adding that prices will probably rebound in 2015.

To contact the reporter on this story: Konrad Krasuski in Warsaw at

To contact the editor responsible for this story: James M. Gomez at

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