Receipt of information on the commencement by Sumitomo of preparations for the disposal of its interest in the joint venture company Sierra Gorda SCM

Report number
29/2020

The Management Board of KGHM Polska Miedź S.A. („Company”) announces that on 7 October 2020 the Management Board of the Company was informed by Sumitomo Metal Mining Co., Ltd., Sumitomo Corporation and SMM Sierra Gorda Inversiones Limitada („Sumitomo”) of the planned commencement of the process of sale of Sumitomo’s 45% interest in the joint venture company Sierra Gorda SCM („Sierra Gorda”, „SG”) („Transaction”) and of preparations preceding the formal commencement of the Transaction, including the planned commencement of marketing activities aimed at potential investors.

The current Strategy of KGHM Polska Miedź S.A. for the years 2019-2023 does not assume any changes in the scale of involvement of the Company in Sierra Gorda. All of the efforts towards optimisation carried out to date, aimed at enhancing the value of Sierra Gorda, will be continued. They are yielding the expected results, which is reflected in the surpassed half-year production budget targets for 2020.

Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union dated 12 June 2014, no. L 173/1)