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 for 2010 in the amount of PLN 1 600 000 thousand (i.e. 8 PLN/share).
The dividend level recommended by the Management Board enables realisation of the investment program arising from the Company Strategy for the years 2009-2018, related to increasing the production of the KGHM Polska Miedź S.A. Group to 700 thousand tonnes of copper in concentrate annually and diversifying activities. In addition, in subsequent years, the Company assumes the continuation and commencement of new, capital-intensive investments in the core business, which are critical for maintaining the effectiveness of the production line.
Realisation of the investment plans of KGHM Polska Miedź S.A., given the recommended level of dividend for 2010, assumes financing through the use of borrowing at a safe level, without exposing the Company to excessive credit risk.
The investment decision taken by the Company in 2011 will impact the level of expenditures as well as the level of financing through borrowing in subsequent years.
The recommended amount of dividend, in the opinion of the Management Board, represents a compromise between the current interests of shareholders and the need to ensure the long-term operation of the Company.
The aforementioned proposal of the Management Board, prior to submission to the Ordinary General Meeting, requires evaluation by the Supervisory Board of KGHM Polska Miedź S.A.
The final decision on the appropriation of the profit of KGHM Polska Miedź S.A. for financial year 2010 will be taken 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)