Management Board recommendation on payment of dividend

Wednesday, 08 May, 2013
Report no.13/2013

The Management Board of KGHM Polska Miedź S.A. announces that it will recommend to the Ordinary General Meeting of KGHM Polska Miedź S.A. the payment of a dividend from profit for financial year 2012 in the amount of PLN 1 600 000 thousand (i.e. 8 PLN/share). 
The level of dividend recommended by the Management Board allows for realisation of the planned investment program alongside a safe level of borrowing, without exposing the Company to excessive liquidity risk, reflecting: 

  • the effects of the mineral extraction tax introduced in the previous year, representing a permanent and significant burden on the Company's results, 
  • the high sensitivity of the Company’s results to the fluctuating situation on the financial and basic materials markets, and 
  • the long-term nature of the investment program, one which is typical for the mining sector. 


The proposed level of dividend, in the opinion of the Management Board, represents a compromise between the current interests of shareholders and the need to ensure realisation of the Company’s long-term program of development. 
Simultaneously, the Management Board of KGHM Polska Miedź S.A. announces that it will propose to the Ordinary General Meeting of KGHM Polska Miedź S.A. the following dates concerning the dividend from profit for financial year 2012: 

  • a right to dividend date of 12 July 2013, 
  • date of payment of the first dividend installment of 4 PLN/share: 14 August 2013, 
  • date of payment of the second dividend installment of 4 PLN/share: 14 November 2013. 

The proposed period between the right to dividend date and the payment date is longer than the 15 working days recommended by the Code of Best Practice for WSE-Listed Companies. 

Setting a longer period between these dates is justified by the need to execute taxpayer obligations by KGHM with respect to the flat-rate corporate income tax on dividends paid in a timely manner and in accordance with laws in force. 
The proposals of the Management Board were positively evaluated by the Supervisory Board of KGHM Polska Miedź S.A. 

The final decision on the appropriation of profit of KGHM Polska Miedź S.A for financial year 2012 and on the setting of a right to dividend date and dividend payment date will be made by the Ordinary General Meeting of KGHM Polska Miedź S.A. 

Legal basis: § 38 sec. 1 point 11 of the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws from 2009 No. 33, item 259 with subsequent amendments)