Growing energy costs and depreciating dollar may make it impossible for KGHM to revise its forecasts this year.
“We need to verify our budget. We must see to what extent the income generated thanks to higher copper prices will be affected by potentially higher costs”, Maciej Tybura, KGHM deputy CEO for financial operations said.
KGHM had planned to generate PLN 2.9bn (EUR 864.2m) of net income and PLN 11.19bn of sales this year. But the copper producer had expected that copper would cost USD 7,100 per ton while today it costs USD 8,400 already. At the same time, the company had assumed that USD 1 would cost PL 2.5 while it costs PLN 2.13 today which adversely affects KGHM’s sales. That’s why Maciej Tybura refuses to say whether the budget will be revised, and if so – whether up or down.
(PLN 1 = EUR 0.298)