The Management Board of KGHM Polska Miedź S.A. (“the Company”) announces that as a result of reviewing the 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 a part of 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 a possible change in the recoverable amount of the assets, and obliges the Company to conduct tests for impairment as at the end of the last reporting period, i.e. 31 December 2017 in order to verify the recoverable amount with respect to the Robinson mine, mining assets of the Sudbury Basin (i.e. the Morrison mine and the Victoria project), the Franke mine and the KGHM Ajax project.
With respect to assets due to involvement in the joint venture Sierra Gorda SCM, including the value of the Sierra Gorda SCM investment and loans granted to Sierra Gorda SCM, indications to conduct tests have not been identified.
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)