KGHM management said it would present an updated document on company strategy, with possibly higher profit guidance, in September. By that time it should also decide, whether to go ahead with the disposal of Dialog fixed line telephony operator. Trade union representatives said they would demand more bonus payments, following record high earnings at KGHM this year, according to ‘Puls Biznesu’ daily.
Our view: We view the company news as neutral, since the trade unions claims do not go beyond their usual rhetoric. On the other hand, it is almost certain that KGHM will need to raise its profit guidance following very good results of 1H06. We think that the market would rather focus on today’s news on mine workers strike in the world’s largest copper mine in Escondia, which has pushed copper prices higher late on Friday.