KGHM Consolidated Net Profit Seen Down 64%

Nov 06, 2012 (Dow Jones) –

KGHM Polska Miedz (KGH.WA):3Q Earnings
Due: Nov. 12 at 0600 GMT

DJ Survey of 12 Analysts
Average Unconsolidated Net Profit:PLN1.10B, down 66% (PLN3.20B in 3Q 2011)
Average Unconsolidated Ebit: PLN1.52B, down 59% (PLN3.69B in 3Q 2011)
Average Unconsolidated Revenue: PLN4.75B, down 9.4% (PLN5.24B in 3Q 2011)

DJ Survey of 7 Analysts
Average Consolidated Net Profit:PLN1.16B, down 64% (PLN3.19B in 3Q 2011)
Average Consolidated Ebit: PLN1.62B, down 56% (PLN3.71B in 3Q 2011)
Average Consolidated Revenue: PLN6.54B, up 13% (PLN5.78B in 3Q 2011)

Note: KGHM's consolidated net profit is seen shrinking by 64%, as it is paying a newly imposed royalty on copper and silver. The company's stock has recovered all the ground it has lost in the past 12 months, but investors are worried lower demand from China and Europe will push copper prices down and eat into those gains. Investors will focus on how KGHM is managing its newly acquired assets in Chile and Canada, as well as where things stand on talks with KGHM's largest shareholder, the Polish state, on dividend levels.