Feb. 15 (Bloomberg) -- KGHM Polska Miedz SA, Poland’s sole copper producer, fell for a fifth day, its longest losing streak since July, after it said profit will drop 32 percent this year on a stronger zloty, lower output and higher taxes.
The shares fell 1.2 percent to 185.5 zloty at 5:30 p.m. in Warsaw, their lowest close in a month. Warsaw’s benchmark WIG20 Index rose 0.5 percent today.
Net income will probably decline to 3.2 billion zloty ($1 billion) from 4.74 billion zloty that KGHM forecasts for 2012, the Lubin, Poland-based company said in a regulatory statement today. Copper output will fall to 548,000 tons from 564,200 tons last year as KGHM plans a three-month shutdown of its Glogow smelter for maintenance.
“KGHM is known for its conservative first budget releases which are typically revised upwards at a later stage,” Michal Kuzawinski, a Warsaw-based analyst at JPMorgan Chase & Co., said in a note today. “The key takeaway is the planned volumes decrease driven by maintenance works.”
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. Three-month copper traded at $8,242 a ton on the London Metal Exchange today, while the zloty was at 3.1379 against the dollar, losing 1.3 percent this year.
The state-controlled company will also pay a higher tax on copper extraction. The levy was introduced in April 2012.
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