Details of the audited Parent Entity
KGHM Polska Miedź S.A. (“the Parent Entity”) with its registered office in Lubin at 48 M.Skłodowskiej-Curie Street is a joint stock company registered at the Wrocław Fabryczna Regional Court, Section IX (Economic) in the National Court Register, entry no. KRS 23302, operating on the territory of the Republic of Poland. The Parent Entity was assigned a tax identification number (NIP) 692-000-00-13 and a statistical REGON number 390021764.
KGHM Polska Miedź S.A. has a multi-divisional organisational structure, which comprises its Head Office and 10 divisions: 3 mines (Lubin Mine Division, Polkowice-Sieroszowice Mine Division, Rudna Mine Division), 3 metallurgical plants (Głogów Smelter/Refinery Division, Legnica Smelter/Refinery Division, the Cedynia Wire Rod Division), the Concentrator Division, the Tailings Division, the Mine-Smelter Emergency Rescue Division and the Data Center Division.
The shares of KGHM Polska Miedź S.A. are listed on the Warsaw Stock Exchange.
According to the classification of the Warsaw Stock Exchange, KGHM Polska Miedź S.A. is classified under the "basic materials” sector.
The principal activities of the Parent Entity comprise:
- mining of copper and non-ferrous metals ore
- excavation of gravel and sand
- production of copper, precious and non-ferrous metals
- production of salt
- casting of light and non-ferrous metals
- forging, pressing, stamping and roll forming of metal - powder metallurgy
- waste management
- wholesale based on direct payments or contracts
- warehousing and storage of merchandise
- holding management activities
- geological and exploratory activities
- general construction activities with respect to mining and production facilities
- generation and distribution of electricity, steam and hot water, production of gas and distribution of gaseous fuels through mains
- scheduled and non-scheduled air transport and
- telecommunication and IT services
The business activities of the Group also include:
- production of mined metals, such as copper, nickel, gold, platinum and palladium
- production of goods from copper and precious metals
- underground construction services
- production of machinery and mining equipment
- transport services
- activities in the areas of research, analysis and design
- production of road-building materialn and
- recovery of associated metals from copper ore
Going concern assumption
The consolidated financial statements were prepared under the assumption that the Group companies will continue as a going concern during a period of at least 12 months from the end of the reporting period in an unaltered form and business scope, and there are no reasons to suspect any intentional or forced discontinuation or significant limitation of its current activities. As at the date of signing of the annual consolidated financial statements the Management Board of the Parent Entity was not aware of any facts or circumstances that may cast doubt about the going concern in the foreseeable future.
The activities of the KGHM Polska Miedź S.A. Group with respect to the exploration for and mining of deposits of copper, nickel and precious metals ores are based on concessions held by KGHM Polska Miedź S.A. to mine deposits in Poland and legal titles held by KGHM INTERNATIONAL LTD., KGHM AJAX MINING INC. and KGHM Kupfer AG for the exploration for and extraction of these basic materials in the USA, Canada, Chile and Germany.
The activities of the Parent Entity involving the mining of the copper ore deposit are based on concessions held by the Company, which were issued by the Minister of the Environment in 2013, mining usufruct agreements and mining operating plans for the five basic deposits. The concessions and mining usufruct agreements for the five basic deposits are in force to 31 December 2063 and the mining operating plans for three mines are approved for the years from 2014 to 2016 (to 31 December 2016).
Legal title to carry out mining in North and South America are in accordance with federal and state laws.
KGHM INTERNATIONAL LTD. holds all required permits to conduct the aforementioned activities in an unaltered form and scope for a period of at least 12 months from the end of the reporting period.
KGHM Kupfer AG held a concession to explore for minerals in the „Weisswasser” area, issued by the Saxon Mining Office (SOBA) in October 2013. The concession is valid to 31 December 2016.
KGHM AJAX MINING INC. conducts its operations based on granted surface rights and mineral claims, based on which permits were received which are required in the process of preparing environmental assessment applications and identifying additional ore potential.
Period of operation
KGHM Polska Miedź S.A. has been conducting its business since 12 September 1991. The Parent Entity has an unlimited period of operation.
The legal antecedent of KGHM Polska Miedź S.A. was the State-owned enterprise Kombinat Górniczo-Hutniczy Miedzi in Lubin transformed into a State-owned joint stock company in accordance with principles set forth in the law dated 13 July 1990 on the privatisation of State-owned enterprises.
Composition of the Management Board of the Parent Entity
As at 1 January 2014 the composition of the 8th-term Management Board of KGHM Polska Miedź S.A. was as follows:
- Herbert Wirth - President of the Management Board
- Jarosław Romanowski - 1st Vice President of the Management Board (Finance)
- Marcin Chmielewski - Vice President of the Management Board (Corporate Affairs)
- Jacek Kardela - Vice President of the Management Board (Development)
- Wojciech Kędzia - Vice President of the Management Board (Production)
On 18 December 2014 Wojciech Kędzia submitted his resignation from the function of Member of the Management Board, effective as of 31 January 2015. On 18 December 2014, the Supervisory Board appointed Mirosław Laskowski as a Member of the Management Board of KGHM Polska Miedź S.A., appointing him as a Vice President of the Management Board (Production), effective as of 1 February 2015.
As at the date of signing these financial statements the composition of the Management Board was as follows:
- Herbert Wirth - President of the Management Board
- Jarosław Romanowski - 1st Vice President of the Management Board (Finance)
- Marcin Chmielewski - Vice President of the Management Board (Corporate Affairs)
- Jacek Kardela - Vice President of the Management Board (Development)
- Mirosław Laskowski - Vice President of the Management Board (Production)
Composition of the Supervisory Board of the Parent Entity
As at 1 January 2014 the composition of the 8th-term Supervisory Board of KGHM Polska Miedź S.A. was as follows:
- Aleksandra Magaczewska - Chairman
- Krzysztof Kaczmarczyk - Deputy Chairman
- Marek Panfil - Secretary
- Andrzej Kidyba
- Iwona Zatorska – Pańtak
- Jacek Poświata
as well as the following employee-elected member:
- Bogusław Szarek
On 23 June 2014, following the expiry of the 8th-term Supervisory Board, the General Meeting resolved to appoint the following persons to the 9th-term Supervisory Board: Tomasz Cyran, Bogusław Stanisław Fiedor, Marcin Moryń, Jacek Poświata, Andrzej Kidyba, Barbara Wertelecka – Kwater and elected by the employees: Józef Czyczerski, Leszek Hajdacki and Bogusław Szarek.
As at 31 December 2014 the composition of the 9th-term Supervisory Board was as follows:
- Marcin Moryń, Chairman
- Tomasz Cyran, Deputy Chairman
- Bogusław Stanisław Fiedor
- Jacek Poświata
- Andrzej Kidyba
- Barbara Wertelecka-Kwater
as well as the following employee-elected members:
- Bogusław Szarek, Secretary
- Józef Czyczerski
- Leszek Hajdacki.
To the date of signing of these consolidated financial statements there were no changes in the composition of the Supervisory Board.
Authorisation of the annual consolidated financial statements (consolidated financial statements)
The consolidated financial statements were authorised for issue and signed by the Management Board of the Parent Entity on 16 March 2015.