KGHM Polska Miedź S.A.

Regulatory Filings • Jan 16, 2020

Main assumptions of the Budget for 2020

Production of KGHM Polska Miedź S.A.
Copper in concentrate (kt)	399
Silver in concentrate (t)	1 448
Electrolytic copper (kt)	563
- including from own concentrate	410
Metallic silver (t)	1 432

Sales of KGHM Polska Miedź S.A.
Payable copper (kt)	566
- including copper in concentrate	5
Payable silver (t)	1 451
- including silver in concentrate	14

Production of KGHM International
Payable copper (kt)	72
TPM (koz t)	63

Production of Sierra Gorda (on a 55% basis)
Payable copper (kt)	79
Molybdenum (mn lbs)	9

The expected total unit cost of copper production from own concentrate(1) in KGHM Polska Miedź S.A. amounts to 19.3 thousand PLN/t.

KGHM Polska Miedź S.A.'s capital expenditures on property, plant and equipment planned for 2020 amount to PLN 2 250 million, while other capital expenditures(2) amount to PLN 133 million.

• (1) the sum of costs of mining, flotation, smelter processing per cathode and support functions, together with cathode selling costs, adjusted by the value of inventories of half-finished products and work in progress, less anode slimes and divided by the volume of electrolytic copper production from own concentrate
• (2) acquisition of shares and investment certificates of subsidiaries and related entities, as well as loans for these entities

Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union dated 12 June 2014, no. L 173/1)