Polish copper and silver miner KGHM reported first-quarter profit that more than doubled from a year earlier and beat market expectations, helped by higher copper and silver prices.
The state-controlled miner, whose share price had more than doubled in the year through March, reported adjusted core profit of 5.46 billion zlotys ($1.51 billion).
The growth was primarily driven by the company’s core Polish unit, where adjusted core profit more than tripled.
The company flagged in April it is seeking to invest in mines in Europe and Morocco to secure ore supplies closer to its smelting operations in Poland and lower logistics costs.
KGHM also said its currency hedging partially offset the negative impact of a weaker US dollar on its revenues.
Net profit for the January-March period jumped more than tenfold to 3.53 billion zlotys, significantly above the 2.33 billion zloty forecast seen in a Reuters poll.
($1 = 3.6274 zlotys)
(By Alicja Surdy and Rafal Nowak; Editing by Matt Scuffham)
