Recommendation of the Management Board concerning the appropriation of profit for 2009

Thursday, 15 April, 2010
Report no.11/2010

The Management Board of KGHM Polska Miedź S.A. hereby announces that it will propose to the Ordinary General Meeting of KGHM Polska Miedź S.A. payout of a dividend for 2009 in the amount of PLN 600 000 000, i.e. PLN 3 per share. 

In addition the Management Board will propose the following dividend-related dates: 

  • right to dividend date: 17 June 2010, 
  • dividend payment date: 8 July 2010. 

The presented recommendation concerning the appropriation of profit for 2009 results mainly from:

  • the significant volatility in copper prices and the exchange rate, 
  • the planned needs of the Company for financial resources, and 
  • the high level of dividends paid in prior years. 

The remaining portion of profit left at the disposal of the Company (PLN 1 940 185 319.47) will increase reserve capital and will be used to continue the realisation of the Company’s Strategy for the years 2009-2018, in particular with respect to the realisation of development projects in the core operating business as well as projects related to diversifying activities. The investment decisions taken by the Company in 2010 will affect the level of expenditures as well as the level of financing through borrowing in subsequent years. 
The amount of the dividend, in the opinion of the Management Board, represents a compromise between current shareholder interest and the actual needs of the Company. Given conditions of high volatility in copper prices and in the exchange rate, the proposal of the Management Board ensures secure financing for realisation of the strategy, whose long-term goal is to increase the value of the Company. 
The above proposal of the Management Board must be evaluated by the Supervisory Board of KGHM Polska Miedź S.A. before it is submitted to the Ordinary General Meeting. 

The final decision respecting appropriation of the profit of KGHM Polska Miedź S.A. for financial year 2009 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)