The management has confirmed that it would announce new, higher profit forecast for 2006, driven by rallying copper price, together with the publication of company’s unconsolidated quarterly results, on Friday, May 5, after the session. Separately, the management will discuss union demands of additional bonus payment, relating to record high earnings in 1Q06, amounting to PLN 90m on May 11th.
We expect KGHM to trade in an upward trend, in anticipation of historically high quarterly results, scheduled to be published on Friday. We reiterate our Buy rating for the stock with PLN 133.3 fair value estimate.