WARSAW – Poland's KGHM, one of the world's biggest copper and silver producers, reported on Tuesday a 38% annual fall in its first quarter net profit due to lower production and sales.
The State-run KGHM said its net profit for the three months of the year stood at 439-million zlotys compared with 453-million expected by analysts and 710-million zlotys reported a year ago.
KGHM's standalone net profit, which reflects the company's operations in Poland, fell 34% year-on-year to 530-million zlotys as electrolityc copper production declined by 15%. The group's flagship oversees mining project, the Chilean Sierra Gorda mine, made a net loss of $66-million, little changed year on year because higher costs were offset by a revenue uplift from rising metal prices.
KGHM said the average copper price in the first quarter rose by 19% year-on-year.