The Management Board of KGHM Polska Miedź S.A. announces that the Supervisory Board of the Company, at its meeting on 14 February 2013, approved the Company Budget for 2013 submitted by the Management Board. The bases for preparation of the Budget were the preliminary results for 2012 and the assumptions of individual operating plans.
The forecast of Company results, which is based on the assumptions used in the approved Budget, assumes the achievement in 2013 of revenues from sales of PLN 18 930 million, profit for the period of PLN 3 204 million, and EBITDA at the level of PLN 5 337 million.
Details of the forecast assumptions are the following:
- production of copper in concentrate 425.1 thousand t
- electrolytic copper production 548.0 thousand t
- of which from purchased copper-bearing materials 146.6 thousand t
- silver production 1 075 t
- average annual copper price 7 800 USD/t
- average annual silver price 32.00 USD/troz
- USD/PLN exchange rate 3.10 USD/PLN
- total unit cost of electrolytic copper production from own concentrate 17 087 PLN/t
- cash cost of concentrate production – C1 1.76 USD/pound
- capital expenditure PLN 2 470 million
- equity investments limit PLN 523 million
The decrease in profit versus 2012 is mainly due to:
- a change in the level of the USD/PLN exchange rate,
- lower production volume of basic products due to the planned maintenance shutdown in the Głogów Smelter, and
- recognition of the full impact of the minerals extraction tax (in the previous year the Company incurred this tax from 18 April).
The above factors are also the main reason for the increase in costs of electrolytic copper production from own concentrate and the cash cost of concentrate production – C1.
The assumed decrease in the level of production, and consequently in the sales of basic products, is due to the necessity of carrying out a planned three-month maintenance-modernisation shutdown at the Głogów II Smelter.
Realisation of this forecast will be monitored by the Company on an on-going basis. Should there occur significant deviation from the amounts forecasted, the Company will perform an adjustment to the forecast and immediately will publish it in the form of a current report.
Legal basis: § 5 sec. 1 point 25 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)