The Management Board of KGHM Polska Miedź S.A. announces that on 21 August 2007 it confirmed the adjusted Budget for 2007. The document mentioned above will be presented for approval to the Supervisory Board at the meeting on 30 August 2007.
The adjusted Budget assumes the achievement of revenues from sales in the amount of PLN 11 854 mln and net profit of PLN 3 682 mln. This means increase in the projected amounts by 11% and 24% respectively.
The decision to verify the Budget is based on the economic and financial results realised in the first half of the year and events affecting the financial situation of the Company in the second half of 2007, including:
- updating of the macroeconomic forecast,
- decision of the Ordinary General Shareholders Meeting on the dividend payment from 2006 profit,
- change in the work system in the mines – discontinuance of mining on Sundays,
- updating of the investment program.
| J.m. | Budżet 2007 * | Korekta Budżetu 2007 ** | Zmiana | |
|---|---|---|---|---|
| Średnioroczne notowania miedzi elektrolitycznej | USD/t | 5 700 | 6 950 | 1 250 |
| Średnioroczne notowania srebra metalicznego | USD/troz | 12 | 12,5 | 0,5 |
| Średnioroczny kurs walutowy | zł/USD | 2,95 | 2,8 | -0,15 |
| Produkcja miedzi elektrolitycznej | tys. t | 538 | 531,5 | -6,5 |
| - w tym ze wsadów obcych | tys. t | 73 | 80 | 7 |
| Produkcja srebra metalicznego | t | 1 125 | 1 148 | 23 |
| Całkowity jednostkowy koszt | zł/t | 9 450 | 10 320 | 870 |
| produkcji miedzi elektrolitycznej | USD/t | 3 203 | 3 686 | 483 |
| - w tym ze wsadów własnych | zł/t | 8 290 | 8 655 | 365 |
| Nakłady na zakup i budowę środków trwałych | mln zł | 1 142 | 1 020 | -122 |
| Przychody ze sprzedaży | mln zł | 10 647 | 11 854 | 1 207 |
| Wynik netto | mln zł | 2 978 | 3 682 | 704 |
The unit cost of electrolytic copper production higher by 9% than that assumed in the Budget before adjustment, results mainly from the increase of the cost copper bearing materials used, higher provisions for the additional annual bonus and the decrease in production volume.
The assumptions for the following years as presented in the current report dated 17 January 2007 and the annual report of the Company for 2006 will be subject to verify within the Technical and Economic Plan 2008-2012 under construction.
Legal basis: art. 56 sec.1 point 5 of the Act dated 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organised trading, and on public companies (Journal of Laws Nr 184, item 1539)