The Dividend Policy of KGHM Polska Miedź S.A. is part of its on-going efforts to ensure a balance between dividends paid out to shareholders and opportunities to efficiently invest the Company’s funds.
The Dividend Policy of KGHM Polska Miedź S.A. assumes that the Management Board will recommend allocation of up to one-third of the Company’s net profit for the previous financial year as a dividend, while taking into account the current and anticipated financial situation of the Company and the Group. In particular, in making its recommendation the Management Board will take into account the Company’s anticipated requirements for capital to complete the Company’s development program as well as a safe debt level for the Group.
The final decision regarding the amount of dividends paid is made by the General Meeting of KGHM Polska Miedź S.A.
* In the years 2015-2016 the company reported a net loss, mainly due to the impairment of assets. The dividend payout ratio for this period was calculated on the basis of the company's net result, after eliminating the impact of the impairments.
Decisions regarding the allocation of net profit earned by KGHM Polska Miedź S.A. and the amount of dividends paid out are made by the General Shareholders Meeting. The Management Board presents its recommendations regarding profit allocation to the Annual (Ordinary) General Shareholders Meeting; this recommendation is then submitted to the Supervisory Board for its approval. The Annual General Meeting also sets the dividend date (i.e. the record date) and the dividend payment date. Only those shares which are registered at the close of trading on a given record date entitle their owners to the respective dividends paid by the company.None of the shares of KGHM Polska Miedź S.A. are privelaged shares, including in terms of dividend payout, thus each share entitles its owner to the same amount of dividend.
Dividends are paid by the company on the „dividend payment date”. The process of paying out dividends is performed through the depositary system of the Central Securities Depository of Poland (KDPW).
The Annual General Meeting sets the gross amount of the dividend payout. Shareholders, however, receive dividends in their net amount, i.e. net of the withholding tax payable in the Republic of Poland.