Latest news for KGHM Polska Miedz (OTC:KGHPF) Stock

KGHM Polska Miedz SA engages in copper ore mining and copper production predominantly in South-Western Poland. The company also produces precious metals such as silver, which is typically used for coins, jewelry, photography products, and industrial purposes. The bulk of group revenue is generated through copper sales, and the remainder is through sales of silver, while a minor portion is generated through the production of gold, salt, and casting of light metals. The materials are sold domestically, and exported to Germany, China, the U.S., the United Kingdom, and the Czech Republic, among many other European nations.

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Copper stocks may face turbulent times if Donald Trump returns as his trade policies could have a bigger impact. History shows tariffs are trouble for the sector.

Trump 2.0 Trade Policies Could Hit Copper Stocks Harder, Warns JPMorgan Analyst

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Copper investment landscape ignited by bullish predictions from Pierre Andurand. Demand to double, supply constraints, COPX ETF outperforming.

Copper To $40,000 A Tonne, Says Hedge Fund Titan Pierre Andurand: What ETF Investors Should Watch

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KGHM Q3 Profit Down 65%

KGHM POLSKA MIEDZ SA ORD by KGHM Polska Miedz S.A.

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Copper stocks, like Freeport-McMoRan Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) and Teck Resources Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>), may face another turbulent period if Donald Trump <a href="https://www.benzinga.com/topic/donald-trump">returns to office.</a>



JPMorgan analyst Bill Peterson warns that Trump 2.0&#8217;s trade policies could deal an even more significant blow than his first term.



<h2 class="wp-block-heading">Trump 1.0 Vs. Trump 2.0: Higher Stakes, Bigger Tariffs</h2>



During Trump&#8217;s presidency, the 2018 trade war slapped a 25% tariff on Chinese imports, leading to a sharp downturn in metal prices and causing global mining stocks to fall by over 10%.



Copper, a key indicator of global economic health, was hit hard as fears of slowing demand and higher costs rippled through the markets. The United States Copper Index Fund ETV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPER#NYSE">CPER</a>) serves as a performance barometer for copper as a commodity. The Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>) tracks the equity of copper miners, with its top holdings including KGHM Polska Miedz SA (OTCPK:KGHPF), First Quantum Minerals Ltd (OTCPK:FQVLF), Teck Resources and Freeport-McMoRan.



Peterson said that if Trump returns to the White House, his proposed Trump 2.0 policies could increase tariffs on Chinese imports to 60%, a significant escalation that would amplify trade tensions.



He suggests that while China&#8217;s share of U.S. imports has dropped from over 21% in 2018 to under 14% in 2023, the sheer size of the tariff increase could lead to even more significant disruptions in global copper demand, potentially increasing the impact by 40%.



Read Also: <a href="https://www.benzinga.com/news/large-cap/24/10/41176539/vale-plans-to-expand-copper-output-invests-184m-for-domestic-critical-minerals">Vale Plans To Expand Copper Output, Invests $184M For Domestic Critical Minerals</a>



<h2 class="wp-block-heading">The Great Copper Rollercoaster: Boom, Bust, Repeat?</h2>



Comparing the two periods, Trump's 2016 election win initially buoyed copper stocks, with investors optimistic about deregulation and infrastructure spending. 



However, the optimism quickly faded as the trade war unfolded in 2018, causing copper prices and related stocks to plunge. A similar pattern could unfold under Trump 2.0: a post-election boost followed by another painful downturn if tariffs escalate, according to the analyst.



Adding further uncertainty, Peterson points to upcoming Federal Reserve rate cuts.



<h2 class="wp-block-heading">History&#8217;s Lesson: Copper Tariffs Are Trouble</h2>



Historically, industrial metals like copper have underperformed following rate-cutting cycles, with the Bloomberg Industrial Metals Index typically falling 6% on average within nine months of cuts. 



Despite being long-term bullish on copper due to structural demand, Peterson advises caution in the near term, as macro risks remain significant.



The lesson from Trump 1.0 is clear: tariffs led to a steep decline in copper equities, and Trump 2.0's aggressive stance could trigger a similar or even worse outcome for the sector.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/commodities/24/10/41295764/copper-rebounds-as-chinas-stimulus-boosts-market-sentiment-but-us-elections-loom-large">Copper Rebounds As China&#8217;s Stimulus Boosts Market Sentiment, But US Elections Loom Large</a></li>
</ul>



Photo: Shutterstock

The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">manager Pierre Andurand</a>. 



Andurand's <a href="https://www.ft.com/content/725234a6-9e6f-4a4a-9406-2bda667ca511">forecast</a> of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks and the Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>).



Here are the drivers behind his optimistic outlook for copper. Benzinga will also touch upon the performance and holdings of the Global X Copper Miners ETF and examine technical indicators to present a comprehensive case for investors.



<h1 class="wp-block-heading">Copper Demand-Supply Dynamics</h1>



Copper, a critical metal in the energy transition, is poised for significant demand growth. Andurand&#8217;s prediction is based on the increasing electrification of the world, including:



<ul>
<li>electric vehicles</li>



<li>renewable energy infrastructure</li>



<li>military applications</li>



<li>data centers</li>
</ul>



As these sectors expand, the demand for copper is expected to double, outpacing supply, which traditionally takes about 15 years to develop new mines.



<h1 class="wp-block-heading">Pierre Andurand's Bullish Outlook For Copper</h1>



Andurand, known for his success in commodities trading, shifted his focus to copper after experiencing setbacks in the oil market.



His Commodities Discretionary Enhanced fund rebounded from a 55% loss last year and is now up 83% year-to-date, largely due to diversified commodity investments.



He believes current supply constraints and robust demand will propel copper prices to unprecedented heights.



<h1 class="wp-block-heading">COPX ETF Overview</h1>



The Global X Copper Miners ETF (COPX) offers a targeted investment in copper mining companies. With an expense ratio of 0.65%, the ETF has shown impressive returns:



<ul>
<li>3 Month Return: 32.70%</li>



<li>YTD Return: 27.36%</li>



<li>1 Year Return: 39.32%</li>
</ul>



<h1 class="wp-block-heading">Key Holdings</h1>



Global X Copper Miners ETF's portfolio includes leading copper miners, reflecting a diversified exposure to the industry (Company name, U.S.-listed ticker, allocation%):



<ol>
<li>First Quantum Minerals Ltd. (OTCPK:FQVLF) &#8211; 5.31%</li>



<li>KGHM Polska Miedz S.A. (OTCPK: KGHPF) &#8211; 5.30%</li>



<li>Boliden AB (OTCPK:BDNNY) (OTCPK: BLIDF) &#8211; 4.82%</li>



<li>Lundin Mining Corp. (OTCPK: LUNMF) &#8211; 4.72%</li>



<li>Teck Resources Limited Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) &#8211; 4.69%</li>



<li>BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) &#8211; 4.64%</li>



<li>Glencore plc (OTCPK: GLCNF) (OTCPK: GLNCY) &#8211; 4.60%</li>



<li>Zijin Mining Group Co., Ltd. Class H (OTCPK: ZIJMF) (OTCPK: ZIJMY) &#8211; 4.58%</li>



<li>Antofagasta plc (OTCPK: ANFGF) &#8211; 4.54%</li>



<li>Freeport-McMoRan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) &#8211; 4.51%</li>
</ol>



Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38292100/freeport-mcmoran-vs-teck-resources-which-copper-stock-has-more-upside">Freeport-McMoRan Vs. Teck Resources — Which Copper Stock Has More Upside?</a>



<h1 class="wp-block-heading">Charts Indicate Bullish Outlook For Global X Copper Miners ETF</h1>



The technical indicators for Global X Copper Miners ETF reveal a moderately bullish trend, with buying pressure suggesting a positive outlook.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png" alt="" class="wp-image-357042" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>



<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>



The Global X Copper Miners ETF share price is $48.66 while the 8-day simple moving average (SMA) is $49.98, which signals short-term bearishness.



However, the 20-day SMA at $48.35 and the 50-day SMA at $45.74 both indicate a bullish momentum. The 200-day SMA stands at $38.34, further reinforcing the bullish signal as the stock price remains well above it.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png" alt="" class="wp-image-357043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>



<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>



The Moving Average Convergence Divergence (MACD) indicator is 1.21, suggesting bullishness, while the Relative Strength Index (RSI) at 53.65 indicates that the ETF is neither oversold nor overbought. 



Additionally, the Bollinger Bands support bullish signals as the ETF is trading within the upper range.



Given the bullish forecast for copper prices, driven by robust demand and constrained supply, copper miner stocks and the COPX ETF represent a compelling investment opportunity. 



Andurand's expertise and confidence in the market, coupled with strong ETF performance and supportive technical indicators, suggest that investors could consider taking exposure to this sector. 



As the world continues to electrify and transition towards renewable energy, the demand for copper is set to soar, making now an opportune time to invest in copper miners through Global X Copper Miners ETF.



Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">Not Just Nvidia, AI Is Also Fueling Global Copper Demand: Analyst Reveals 3 Top Stock Picks</a>



Photo: Shutterstock

KGHM Polska Miedz SA (OTC: <a class="ticker" href="/stock/kghpf#OTC">KGHPF</a>) reported a 65% drop in its third-quarter unconsolidated net profit.

KGHM's quarterly unconsolidated net profit declined to 1.12 billion zlotys ($343 million). However, analysts were expecting a profit of PLN1.1 billion. 

Its consolidated net profit dropped 61% to PLN1.23 billion. KGHM's sales came in at PLN6.79 billion, versus analysts' estimates of PLN6.54 billion.

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