KGHM Polska Miedź S.A., in a current report dated 23 February 2009, published projected results for 2009 consistent with the Budget assumptions as approved by the Supervisory Board. Revenues from sales in the amount of PLN 7 048 million and net profit of PLN 488 million were projected based on a copper price of 3 200 USD/t and an exchange rate of 2.90 USD/PLN (copper price in Polish zloty: 9 280 PLN/t).
The actual macroeconomic factors in the first quarter of 2009 were better than those assumed in the Budget – the average copper price amounted to 3 435 USD/t with an exchange rate of 3.45 USD/PLN (copper price in Polish zloty: 11 877 PLN/t).
Despite the improvement in macroeconomic factors as compared to those assumed in the Budget for 2009, there continues to be high volatility in copper prices and in the USD/PLN exchange rate in the financial markets, which means that the financial results of the Company are characterised by high uncertainty.
Based on the sensitivity of the net profit of the Company (“a change in the copper price by 100 USD/t would cause a change in net profit by PLN 84 million, a change in the exchange rate by PLN 0.05 would cause a change in net profit by PLN 70 million”), as presented in the Annual report of the Company for 2008 (Report of the Management Board on the Company’s activities in 2008, page 34), and on the assumption that the macroeconomic factors in the first quarter of 2009 continue throughout 2009, it is estimated that the financial results will be more favourable than those assumed in the Company Budget for 2009.
Currently, the Company is re-evaluting the accepted Budget assumptions. Should these favourable macroeconomic factors continue, the Company will publish an updated report of the projected results.
Legal basis: art. 56 sec. 1 point 1 of the Act dated 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organised trading, and on public companies (Journal of Laws from 2005 No. 184, item 1539 with subsequent amendments)