The Management Board of KGHM Polska Miedź S.A. (“Company”) announces that on 20 June 2016 a contract was signed for the sale of copper cathodes in the years 2017 - 2021 between KGHM Polska Miedź S.A. and China Minmetals Corporation. This is a framework contract.
The value of this contract depends on the volume of options used and is estimated to be from USD 1 178 110 500.00, or PLN 4 562 115 100.20, to USD 2 827 565 000.00, or PLN 10 949 462 706.00. The value was estimated based on the forward copper price curve from 17 June 2016 and the USD/PLN exchange rate announced by the National Bank of Poland on 20 June 2016. The contract foresees contractual penalties for delays in delivery.
As a result of signing today’s contract, the total value of contracts concluded in the last 12 months between KGHM Polska Miedź S.A. and the China Minmetals Corporation Group exceeded 10% of the Company’s equity and, depending on the volume of options used, is estimated to be from USD 1 294 659 884.30, or PLN 5 013 109 808.84, to USD 2 944 114 384.30, or PLN 11 400 457 414.64.
The contract from 20 June 2016 is the highest in value among all of the contracts.
The value of contracts concluded in the last 12 months, the final value of which is not yet known, was estimated based on the forward copper price curve from 17 June 2016 and the USD/PLN exchange rate announced by the National Bank of Poland on 20 June 2016.
Legal basis: § 5 sec. 1 point 3 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 (unified text: Journal of Laws 2014.133).