The Management Board of KGHM Polska Miedź S.A. (“Company”) announces that on 6 November 2018 a contract was signed between the Company and China Minmetals Nonferrous Metals Co. Ltd. (a company within the China Minmetals Corporation group) for the sale of copper cathodes produced by the Company in the years 2019-2023.
This is a framework contract which will replace the current framework contract signed on 20 June 2016 with China Minmetals Corporation for the years 2017-2021 and announced by the Company via regulatory filing no. 22/2016 dated 20 June 2016, and at the same time will ensure the sale of cathodes to the Chinese market in the years subsequent to the current contract. The new contract’s entry into force is conditional on the termination of the current contract with China Minmetals Corporation.
The value of this contract depends on the volume of options used, and is estimated to be from USD 1 590 148 750.00, or PLN 6 027 776 866.63, to USD 3 816 365 000.00, or PLN 14 466 694 805.50.
The value was estimated based on the forward copper price curve from 2 November 2018 and the USD/PLN exchange rate announced by the National Bank of Poland on 5 November 2018. The contract foresees contractual penalties for delays in delivery.
Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union dated 12 June 2014, no. L 173/1)