The Management Board of KGHM Polska Miedź S.A. announces that on 20 December 2011 KGHM Polska Miedź S.A. signed a contract for the sale of copper cathodes in the years 2012-2016 with China Minmetals Corporation. This is a framework contract.
The value of this contract is estimated from USD 1 827 712 750.00 (PLN 6 300 125 849.25) to USD 3 655 425 500.00 (PLN 12 600 251 698.50), depending on the amount of tonnage under option.
This value was estimated based on the forecasted copper price (using a forward curve) from 19 December 2011 and the USD/PLN exchange rate per the National Bank of Poland from 19 December 2011.
The contract foresees contractual penalties for delays in delivery.
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.
Legal basis: § 5 sec. 1 point 3 of the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws from 2009 No. 33, item 259 with subsequent amendments)
At a Glance
A brief overview of KGHM