KGHM Polska Miedź S.A.

Management Reports • Jan 11, 2019

Main assumptions of the Budget for 2019

Production of KGHM Polska Miedź S.A.
Copper in concentrate (kt)	397
Silver in concentrate (t)	1 238
Electrolytic copper (kt)	559
- including from own concentrate	406
Metallic silver (t)	1 341

Sales of KGHM Polska Miedź S.A.
Payable copper (kt)	601
- including copper in concentrate	41
Payable silver (t)	1 454
- including silver in concentrate	97

Production of KGHM International
Payable copper (kt)	75
TPM (koz t)	88

Production of Sierra Gorda (on a 55% basis)
Payable copper (kt)	57
Molybdenum (mn lbs)	11

The expected total unit cost of copper production from own concentrate(1) in KGHM Polska Miedź S.A. amounts to 20 thousand PLN/t.

KGHM Polska Miedź S.A.'s capital expenditures on property, plant and equipment planned for 2019 amount to PLN 2 516 million, while other capital expenditures(2) amount to PLN 1 462 million (including the acquisition of investment certificates related to the restructuring of FIZAN in the amount of PLN 388 million, which will be offset by proceeds arising from it). Other capital expenditures, excluding the restructurisation of FIZAN, amount to PLN 1 074 million.

• (1) The sum of costs of mining, floatation, 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 loans granted to these subsidiaries

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)