Identification of indications to verify the recoverable amount of international mining assets

Wednesday, 15 January, 2020

The Management Board of KGHM Polska Miedź S.A. (“the Company”) announces that as a result of reviewing the technical and economic parameters of key international mining assets belonging to the KGHM Polska Miedź S.A. Group and current forecasts of pricing paths of commodities, indications of a possible change in the recoverable amounts of a part of these assets were identified.

As a result, pursuant to IAS 36, it obliges the Company to conduct tests for impairment as at the end of the last reporting period, i.e. 31 December 2019 in order to estimate the recoverable amount with respect to assets due to involvement in the joint venture Sierra Gorda SCM, assets of the Sudbury Basin mines (i.e. Morrison/Levack mine, McCreedy mine and the Victoria project) and the Franke, Robinson and Carlota mines.

For other key international mining assets, 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)

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