One of the things I warned silverbugs about appears to be coming true. As a result of strong base metals, copper in particular, copper production and silver byproduct have increased.
KGHM has really been ramping up and after producing 18moz of silver in the first six months, did over 12moz in the 3rd quarter alone. A few more quarters like that and they will knock Penoles out as #1 silver producer.
Warsaw. (Interfax-Europe) - KGHM, the world's sixth-largest copper producer and second-biggest silver maker, met expectations by turning in a PLN 90.8 mln net profit in the third quarter as revenues grew 15.8% to a better-than-expected PLN 1.25 bln, according to a standalone report out Tuesday.
A rally in copper prices on world markets had given rise to strong hopes ahead of the release. Analysts cited an 8% increase in copper prices over the three-month period and a 12% year-on-year gain.
"The increase results mainly from higher metal quotations and a volume sales increase alongside a less favorable currency rate of the zloty to the dollar," management said of results.
Net sales revenues in the third quarter were up almost 16% year on year. And the gross sales margin nearly doubled. KGHM is running at full capacity, something it does regardless of market trends as feisty unions demand work. The approach is paying off today, as mines that should have been shut down several years back are now capable of profit.
Volume copper sales rose an annualized 5.4% to 396,182 tons for the nine-month period. Silver volumes were up 8.7% to 991,611 kg as prices rose 2.7%.
MORE: interfax.com |
