KGHM Polska Miedz SA, Poland’s sole copper producer, raised its 2010 profit forecast for the second time this year as the price of the metal advanced and the zloty appreciated against the dollar. Its shares jumped to a record.
The state-controlled producer, whose stock has turned in the best performance in Warsaw’s benchmark WIG20 Index this year, increased its net income target by 14 percent to 4.46 billion zloty ($1.5 billion) and raised its prediction for sales by 7.4 percent to 15.5 billion zloty, according to a regulatory statement today.
That compares with the 4.4 billion-zloty average estimate for the company’s profit in a Bloomberg survey of 12 analysts.
KGHM increased its forecast for the average 2010 copper price 12 percent from its September revision, to $7,475 per ton, and its prediction of the average zloty rate against the dollar by 2.8 percent, to 3.015.
KGHM jumped 4.8 percent to 151.9 zloty, closing at the highest level since its stock started trading in 1997 and extending its gain for this year to 15 percent. That helped the WIG20 Index advance 1.3 percent to a one-month high of 2,747.28.
Copper for delivery in three months was little changed at $8,730 a metric ton on the London Metal Exchange today, while the zloty traded at 3.02 against the dollar.