The Management Board of KGHM Polska Miedź S.A. announces that on 8 May 2015 a contract was signed between KGHM Polska Miedź S.A. and Tele-Fonika Kable S.A. for the sale of copper wire rod in the years 2016 – 2018 with the option to extend it for a subsequent two years („the Contract”).
The estimated value of the Contract during the first three years ranges from PLN 3 913 148 257 to PLN 4 245 765 859, depending on the volume of options used and the relocation of material between plants belonging to Tele-Fonika Kable S.A.
The value of the Contract was calculated based on the forward copper price curve as at 7 May 2015 and the average USD/PLN and EUR/PLN exchange rates announced by the National Bank of Poland as at 7 May 2015.
The Contract’s coming into force is contingent on Tele-Fonika Kable S.A. receiving necessary financing for the repayment of financial liabilities as specified in the Contract, but no sooner than on 1 January 2016 (condition precedent). If the condition precedent is not met by 30 June 2016 the Contract will expire.
If the condition precedent is not met by 1 January 2016, the Parties will undertake steps to extend the contract dated 16 January 2013 and annexed on 29 December 2014 (current report 32/2014 dated 30 December 2014).
The Contract is classified as significant, based on the estimated value of the Contract which exceeds 10% of the KGHM Polska Miedź S.A.’s equity.
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 from 2014 No. 133)