The Management Board of KGHM Polska Miedź S.A. (“the Company”) announces that as a result of reviewing the technical and economic parameters of international mining assets belonging to the KGHM Polska Miedź S.A. Group based on approved budgets and current forecasts of pricing paths of commodities as at the end of the reporting period, i.e. 31 December 2023, and taking into account that the market capitalisation of KGHM Polska Miedź S.A. remained significantly below the carrying amount of its net assets, indications of the possibility of impairment, or indications that the impairment loss recognised in prior periods may be reduced, were identified for the following:
a) the Polish production assets (mining and metallurgical assets) of KGHM Polska Miedź S.A.,
b) the interest in the joint venture Sierra Gorda S.C.M.,
c) the Robinson mine,
d) the Carlota mine,
e) the mining assets of CGU Sudbury,
f) the Victoria Project, and
g) the company Future 1 Sp. z o.o.
As a result, pursuant to IAS 36, it obliges the Company to conduct tests for impairment as at the end of the reporting period, i.e. 31 December 2023, in order to estimate the recoverable amount with respect to the aforementioned assets.
The results of the verification of the amounts of these assets 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)