1
Font size: A A A PDF version Print report
Homepage / Results and forecast / Review of financial position / Financial resources of the Company

Review of financial position

The structure of the Company’s cash and cash equivalents is presented in the table below:

 

Structure of cash and cash equivalents (PLN million)
 

31.12.2011

31.12.2012

Cash*

8

18

Other monetary assets with a maturity up to 3 months

12 828

689

Total

12 836

707

* In hand and on-demand bank deposits.

 

Loans and borrowings received


In 2012, KGHM Polska Miedź S.A. made use of borrowing in the form of bank loans, using both an overdraft facility as well as a working capital facility. Open lines of credit are available in PLN, USD and EUR. At 31 December 2012, liabilities due to borrowings amounted to PLN 1 013 million.

 

Bank loan balances (million)

Type of borrowing

Currency

Balance in currency

Balance in PLN

Maturity

Working capital facility

USD

90

279

31.08.2013

Overdraft facility

USD

142

441

14.10.2013

Overdraft facility

USD

33

102

25.09.2013

Overdraft facility

EUR

47

191

21.10.2013

Total

   

1 013

 

 

Loans granted


On 21 December 2009, the Company granted a loan to “Energetyka” Sp. z o.o. in the amount of PLN 50.3 million. Interest on the loan is based on WIBOR 1M + a margin of 1.49%, with interest payable monthly. Repayment is in forty equal instalments in the amount of PLN 1.3 million payable at the end of each quarter, beginning from 31 March 2010. In 2012, “Energetyka” made partial repayment of the loan in the amount of PLN 5.0 million. At 31 December 2012, the balance of the loan granted was PLN 35.2 million.

 

On 8 May 2012, KGHM Polska Miedź S.A. granted a loan to KGHM LETIA S.A. in the amount of PLN 7.5 million. Interest on the loan is based on WIBOR 1M + a margin of 2.5%, with interest capitalised monthly. In accordance with Appendix no. 1 to this loan dated 17 December 2012, repayment of the principal together with interest will be made by 30 June 2013. At 31 December 2012, the balance of the loan granted (together with capitalised interest) amounted to PLN 7.8 million.

 

Statement of profit or loss

 

The Company posted a profit for 2012 in the amount of PLN 4 868 million, a decrease by PLN 6 526 million (57%) versus profit earned in 2011.

 

Basic items of the profit and loss statement (PLN million)
 

2011*

2012

Sales

20 097

20 737

Operating costs

10 660

13 602

Profit from operations

9 437

7 135

Profit on other operating activities

4 324

- 709

Profit on the sale of companies

2 662

-

Exchange differences

895

- 566

Measurement and realisation

321

- 84

Dividends

277

57

Other

169

- 117

Operating profit (EBIT)

13 761

6 426

Finance costs

34

9

Profit before income tax

13 727

6 417

Profit for the period

11 394

4 868

EBITDA (EBIT + depreciation/amortisation)

14 433

7 198

* Data restated due to a change in accounting principles (Note 2.1.1 of the Financial Statements).

 

The most important factors with impact on the results are presented in table “Main factors with impact on the financial result”.

Main factors with impact on the financial result

Item

Impact on result (PLN million)

Description

Increase in basic operating costs

-2 942

An increase in costs, mainly due to the impact of the minerals
extraction tax in the amount of PLN 1 327 million from April
2012, and on the higher costs of consumption of purchased
copper-bearing materials (PLN 762 million).

Sale of subsidiaries
and associates

-2 662

In 2011, the Company earned a profit on the sale of Polkomtel S.A. and DIALOG S.A. In 2012 there were no sales of shares of subsidiaries or associates.

Change in prices of
basic products (Cu, Ag)*

-2 129

A decrease in the price of copper by 10% and silver by 11%.

Change in exchange rate*

+1 968

A change in the exchange rate from 2.96 USD/PLN
to 3.26 USD/PLN.

Exchange differences

-1 461

In 2011 the result on exchange differences amounted to
PLN +895 million, while in 2012 it was PLN –(566) million.

Income tax

+784

The lower tax is due to the lower tax base in 2012.

Change in volume of sales of basic products (Cu, Ag, Au)*

+693

An increase in sales due to a higher volume of copper sold by
13.4 kt, silver by 87 t and gold by 247 kg.

Impact of hedging

-314

Including a change in the result due to the measurement and
exercise of derivatives (PLN (405) million) and a change in
adjustment to sales due to hedging (+PLN 91 million).

Impairment loss on availablefor- sale financial assets

-158

At 31 December 2012, an impairment loss was recognised on
investments in the total amount of PLN (158) million, of which
PLN (151) million was in respect of Tauron Polska Energia S.A.,
and PLN (7) million was in respect of Abacus Mining &
Exploration Corporation.

* Impact on sales.

 

Basic ratios describing financial liquidity, the profitability of assets and equity and financing is shown in charts.

 

Report on shortcuts