The Management Board of KGHM Polska Miedź S.A. announces that the Supervisory Board of KGHM Polska Miedź S.A. at its meeting on 24 August 2009 approved the Adjusted Budget for 2009, prepared based on the financial results of the Company achieved in the first half of 2009 and verified assumptions in the following: macroeconomics conditions, production, capital expenditures, equity investments and hedging. The adjusted Budget for 2009 assumes the achievement in 2009 of revenues from sales in the amount of PLN 9 662 million and profit for the period at the level of PLN 1 950 million, meaning an increase in the projected amounts by 7% and 2% respectively (and not exceeding 10% of the significance criterion) with reference to the Projection published in the current report on 14 May 2009.
Following are details of the projected assumptions:
| J.m. | Projekcja 2009* | Korekta Budżetu 2009** | Zmiana Projekcja 2009 = 100 | |
|---|---|---|---|---|
| Przychody ze sprzedaży | mln zł | 9 065 | 9 662 | 106,6 |
| Zysk netto | mln zł | 1 906 | 1 950 | 102,3 |
| Produkcja miedzi elektrolitycznej | tys. t | 496 | 500,9 | 101 |
| - w tym ze wsadów obcych | tys. t | 81 | 87,3 | 107,8 |
| Produkcja srebra | t | 1 159 | 1 203 | 103,8 |
| Całkowity jednostkowy koszt produkcji miedzi elektrolitycznej | zł/t | 10 659 | 11 160 | 104,7 |
| Średnioroczne notowania miedzi | USD/t | 3 800 | 4 500 | 118,4 |
| zł/t | 12 350 | 13 950 | 113 | |
| Średnioroczne notowania srebra | USD/troz | 12,6 | 13 | 103,2 |
| Kurs walutowy USD/PLN | USD/PLN | 3,25 | 3,1 | 95,4 |
| Nakłady na zakup i budowę środków trwałych | mln PLN | 1 235 | 1 235 | 100 |
| Inwestycje kapitałowe | mln PLN | 939 | 369 | 39,3 |
The slight increase in the projected result despite an improvement in the assumed copper price and increase in the copper and silver production mainly results from: - a lower exchange rate than that assumed in the Projection, - higher costs by type, mainly due to a higher price and volume of external copper-bearing materials, and - limitation of the positive effects of hedging transactions resulting from an increase in the copper price. The decrease in equity investments results from resignation from the assumed purchase of a foreign mining entity due to the increase in the valuation of mining companies and to the payment of a dividend from 2008 profit. The most significant factors impacting the results of the Company are: metals prices, the exchange rate and electrolytic copper production costs. In connection with the continuation of the high volatility in copper prices and in the USD/PLN exchange rate, the Company will evaluate on a regular basis the realisation of the Adjusted Budget assumptions and will assess the possibility of realisation of the published Adjusted Budget after the Management Board reviews the results of the 3rd quarter 2009.Legal basis: art. 56 sec. 5 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)