KGHM shares on Thursday afternoon expensive on the WSE by 3.3 percent. and at one point the course reached PLN 171.7, which is the highest level from mid -April 2022 (the hair was broken by the local peak from May 2024 around PLN 171.55). For comparison, the WIG20 index, which includes the company from Lubin, gained 1.3 percent on Thursday afternoon.
This is another day when KGHM shares are clearly more expensive. On Wednesday, closing the exchange rate grew by 3.8 percent, on Monday by 5.3 percent, and a week ago during one of the sessions by as much as 7.2 percent. In total, the quotations gained 30.3 percent for a month, clearly distancing the benchmark, because WIG20 gained “only” 4 percent. Only during 10 sessions the exchange rate has grown by almost 28 percent.
From the beginning of the year, KGHM shareholders could reach almost 49 % rate of return compared to 31.8 % In the case of WIG20 (taking into account WIG20 dividends, Total Return brought 38 % earnings). The 12-month return rate from the company's copper shares is no longer so impressive: it is only less than 5 percent. To almost 25 percent for WIG20 and 30.8 percent WIG20 TR.
The KGHM group informed a few days ago that it is expanding the surface infrastructure of the GG-1 shaft. Completion of the current stage of work is planned for September 2029. On Wednesday morning, information appeared that the Erste Group analyst Jakub Szkopek raised a recommendation for KGHM to “buy” with “hold”, determining the target price of the company's shares at PLN 185.9.
The price of copper for about three weeks lasts above 10,000 hole. For a ton, and on Thursday, copper on the LME stock exchange in London was slightly more expensive, by 1.1 percent, to around $ 10,383. for a ton. The increase in copper prices is conducive to KGHM results, especially if it is accompanied by the dollar strengthening, and recently the dollar is weak (less zlotys obtained from sale in dollars).
As we wrote recently in Business Insider, KGHM found himself on investor radars in September. The copper giant recorded a clear one Search jump according to Ticker Ranki.e. the ranking of companies that arouse the greatest interest of users of the popular STOOQ.pl portal. She jumped to the first place, ahead of Orlen, who has a permanent place at the head of the list.
Dividends much more modest
It is also worth noting that while on the volatility of the KGHM share course it was possible to earn recently, long -term investors, using the “Buy and Hold” strategy, in recent years they had no reason to be happy. KGHM lost the status of dividend champion: he once offered a dividend rate of reaching 7-8 percent. Recently, such a high indicator was given in 2013. In the following years, the dividend rate did not exceed 3 percent, and in the last five years it was about 1 percent. or slightly less (the exception is 2022, when it was 2.9 percent, but it was mainly a “merit” of a low exchange rate, not high -nominal payments).
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KGHM
The dividend payment rate is also lower than years ago, i.e. what part of the annual profit the company transfers to its shareholders. “Dividend policy KGHM Polska Miedź assumes that the management board will recommend dividend payment to one third of the unit net profit obtained in the previous financial year, taking into account the current and anticipated financial situation of the company and the capital group. In particular, the management board will take into account the expected capital needs of the company for the implementation of the development program and safe level of debt in the capital group” – we read on the company's website.
