Significant contract

Thursday, 16 June, 2011
Report no. 17/2011

The Management Board of KGHM Polska Miedź S.A. announces that on 15 June 2011 appendices were signed to contracts for the sale of copper wire rod in the years 2010-2011, entered into on 4 May 2010 (current report no. 16/2010 dated 5 May 2010) with nkt cables GmbH (Cologne) and its subsidiaries: nkt cables Warszowice Sp. z o.o., nkt cables s.r.o., nkt cables Velke Mezirici k.s., nkt cables Vrchlabi k.s. and nkt cables a/s. These appendices prolong the lifetime of the contracts by a further two years, i.e. 2012 and 2013. 

The total estimated value of contracts for the years 2012-2013 is from 4 033 516 921 PLN to 4 400 200 277 PLN, depending on the amount of tonnage under option. 
This amount was calculated based on the forward copper curve from 14 June 2011 and the USD/PLN exchange rate per the NBP from 15 June 2011. 
Due to contractual provisions, it is not possible to determine with which of the entities of the nkt cables group the highest-value contract was signed. The contracts provide for the flexible re-allocation of tonnage within the nkt cables group. 
The criteria used for describing the contract as significant is that the total estimated value of the contracts exceeds 10% of the equity of KGHM Polska Miedź S.A. 

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 (Journal of Laws from 2009 No. 33, item 259 with subsequent amendments)