The Management Board of KGHM Polska Miedź S.A (“Company”), in reference to regulatory filing no. 3/2020 dated 16 January 2020, hereby announces a revision of a target of the Budget of KGHM Polska Miedź S.A. and the KGHM Polska Miedź S.A. Group for 2020 (“KGHM’s Budget”) with respect to other capital expenditures, by increasing the base amount of PLN 133 million by the equivalent of USD 55 million (PLN 232 million per the exchange rate of the NBP from 11 May 2020).
The assumed increase in capital expenditures is directly related to the plan to provide owner’s financing to Sierra Gorda in the amount of USD 55 million.
The necessity to provide additional financing to Sierra Gorda is determined by macroeconomic conditions under which products are sold, which are different from those assumed in the Budget, i.e. lower metal prices. A key factor determining the said disparity is, among others, the impact of the COVID-19 pandemic on the global commodity markets.
Financing will be provided following the approval of the Supervisory Board of KGHM Polska Miedź S.A.
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)