KGHM Polska Miedź S.A., in the current report on 23 February 2009, published projected results for 2009 consistent with the Budget assumptions as approved by the Supervisory Board.
Due to an improvement in macroeconomic factors and to a change in costs by type, the Company updated the projected financial results published in the above current report. The projection foresees the achievement in 2009 of revenues from sales in the amount of PLN 9 065 million and net profit at the level of PLN 1 906 million.
The projection reflects the financial results of the Company realised in the first quarter of 2009 and the updated macroeconomic assumptions and basic elements of the production plan. Following are details of the projected assumptions:
- copper price: 3 800 USD/t
- silver price: 12.60 USD/troz
- exchange rate: 3.25 USD/PLN
- electrolytic copper production: 496 thousand t
- of which from external copper-bearing materials: 81 thousand t
- metallic silver production: 1 159 t
- total unit cost of electrolytic copper production: 10 659 PLN/t
The lower final volume of production is mainly due to a shortage on the market of external copper-bearing materials.
Despite an improvement in macroeconomic factors, there continues to be high volatility in copper prices and in the USD/PLN exchange rate on the financial markets, meaning that the financial results of the Company are characterised by high uncertainty.
In the second quarter of 2009 the Company will start working on the adjusted Budget for 2009.
Legal basis: art. 56 sec. 5 of the Act dated 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organised trading, and on public companies (Journal of Laws from 2005 No. 184, item 1539 with subsequent amendments)