The Management Board of KGHM Polska Miedź S.A. announces that on 6 January 2006 a contract was signed between KGHM Polska Miedź S.A. and KGHM Polish Copper Ltd. (a subsidiary of KGHM Polska Miedź S.A.) for the sale of copper cathodes in 2006. The estimated value of this contract is USD 286 920.0 thousand (i.e. PLN 901 387.9 thousand). This amount was estimated based on the copper price and National Bank of Poland exchange rate from 5 January 2006. This contract foresees contractual penalties for failure to execute payments on time.
The criteria used for describing the contract as significant is that the estimated value of the contract exceeds 10% of the equity of KGHM Polska Miedź S.A.
The total value of contracts entered into over the last 12 months between KGHM Polska Miedź S.A. and KGHM Polish Copper Ltd. is estimated at around PLN 1 176 135,3 thousand.
Legal basis: § 5 sec. 1 point 3 of the Decree of the Minister of Finance dated 19 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 Nr 209, item 1744)