Identification of indications to conduct tests for the impairment of international mining assets

Report number
46/2016

The Management Board of KGHM Polska Miedź S.A. (“the Company”) announces that as a result of the review of technical and economic assumptions of key international mining assets belonging to the KGHM Polska Miedź S.A. Group, there has been a significant change in the parameters for these assets as regards mine lives, metals production volumes, assumed operating costs and the level of capital expenditures during the life of individual mines.

In accordance with IAS 36, a significant change in the aforementioned assumptions is the indication of the possible impairment of assets, and obliges the Company to conduct tests for impairment as at the end of the nearest reporting period, i.e. 31 December 2016, with respect to:

  • key international mining assets, in particular Sierra Gorda, Robinson, mining assets of the Sudbury Basin (i.e. the Morrison mine and the Victoria project) and the KGHM Ajax project, as well as
  • inter-Group loans granted to finance the key international mining assets.

The results of the tests will be disclosed by the Company in a separate regulatory filing.

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)