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Homepage / Results and forecast / Review of financial position / Projected financial situation of the Company

Review of financial position

On 14 February 2013, the Supervisory Board of KGHM Polska Miedź S.A. approved the Budget for 2013. The basis for preparing the Budget were the results of 2012 and the assumptions of operating plans. The basic assumptions of the Budget for 2013 are presented in the table.

 

The decrease in profit versus 2012 is mainly due to:

  • a change in the level of the USD/PLN exchange rate;
  • lower production volume of basic products due to the planned maintenance shutdown in the Głogów Smelter, and
  • recognition of the full-year impact of the minerals extraction tax (in 2012 the Company paid the tax as of 18 April).

 

The factors mentioned above are also the main reason for the increase in costs of electrolytic copper production from own concentrate and the cash cost of concentrate production – C1.

 

The assumed decrease in the level of production, and consequently in the sales of basic products, is due to the need to carry out the planned three-month maintenance and modernisation shutdown at the Głogów II Smelter.

 

Company Budget assumptions for 2013

 

Unit

Performance
2012

Budget
2013

Sales

PLN m

20 737

18 930

Profit for the period

PLN m

4 868

3 204

EBITDA

PLN m

7 198

5 337

Average annual copper price

USD/t

7 950

7 800

Average annual silver price

USD/troz

31,15

32,00

FX rate

USD/PLN

3,26

3,10

Total unit cost of electrolytic copper production from own concentrate

PLN/t

14 590

17 087

C1 cash cost of concentrate production

USD/lb

1,34

1,76

Production of copper in concentrate

kt

427,1

425,1

Electrolytic copper production

kt

565,8

548,0

– of which from purchased copper-bearing materials

kt

146,7

146,6

Silver production

t

1 274

1 075

Capital expenditure

PLN m

1 766

2 470

Equity investments limit *

PLN m

9 637

523

* Purchase of shares and investment certificates, increases of share capital and loans granted and payments to subsidiaries.

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