The Management Board of KGHM Polska Miedź S.A. announces that the total value of contracts entered into between KGHM Polska Miedź S.A. and KGHM Polish Copper Ltd. (a subsidiary of KGHM Polska Miedź S.A.) over the last 12 months exceeded 10% of the equity of KGHM Polska Miedź S.A. and is estimated from PLN 1 154 334.4 thousand to PLN 1 352 509.7 thousand.
The highest-value contract signed during this period is the contract from 18 March 2008 for the sale of copper cathodes in 2008.
The estimated value of this contract is from USD 245 047.8 thousand to USD 306 276.2 thousand, i.e. from PLN 552 827.8 thousand to PLN 690 959.1 thousand, depending on the amount of tonnage under option.
This amount was estimated based on the forecast copper price (using a forward curve) and on the National Bank of Poland exchange rate from 17 March 2008.
This contract foresees contractual penalties for failure to execute payments on time.
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 October 2005 regarding current and periodic information published by issuers of securities (Journal of Laws from 2005 No. 209, item 1744)