Mr. Bylicki, deputy CEO at KGHM has reiterated that the company would increase its official profit forecast for 2007, on the back of higher copper prices, from PLN 2.8bn currently, at the time of the announcement of its 2Q07 results, on 6th of August.
Our view: We do not expect any major price impact of the news. The official profit forecast has been unrealistically low. However, please note that the market is in the process of upgrading its estimates for KGHM earnings in 2007. The current consensus of PLN 3.3bn seems to be too low as well. We reiterate our estimate for PLN 3.9bn net profit at KGHM, assuming average price of copper of $/t 7240 for the remaining months of 2007.