in PLN millions, unless otherwise stated
On 13 January 2021, the Parent Entity signed a credit agreement in the form of overdraft facility for the amount of USD 50 million with ING Bank Śląski S.A. in Katowice. Interest on the credit is based on LIBOR plus a margin. The credit is available for 2 years, with the option to extend it by one more year.
On 20 January 2021, the Parent Entity signed a credit agreement in the form of overdraft facility with CaixaBank S.A. Polish Branch in Warsaw for the amount of USD 30 million. Interest on the credit is based on LIBOR plus a margin. The credit is available for 2 years, with the option to extend it by one more year.
On 28 January 2021, the Management Board of the Parent Entity announced that the Supervisory Board of the Company approved KGHM Polska Miedź S.A.’s Budget and the KGHM Polska Miedź S.A. Group’s Budget for 2021.
The main budgetary assumptions are presented in Note 6.5 of the Management Board’s Report on the activities of KGHM Polska Miedź S.A. and of the KGHM Polska Miedź S.A. Group in 2020.
In 2020, decisions to change the business profile of Future 2 Sp. z o.o., which has not conducted any operating activities so far were made. The company’s role is to act as a technology company supporting the area of data analysis in the Group, including the construction of BigData. In February 2021, a change in the subject of the company’s business profile and name of the company to „KGHM Centrum Analityki sp. z o.o.” was registered by the Court.
On 1 March 2021 a guarantee agreement securing the proper execution by DMC Mining Services (UK) Ltd. and DMC Mining Services Ltd. (companies of the KGHM INTERNATIONAL LTD. Group) of a contract for shaft sinking under a project advanced in the United Kingdom as at 31 December 2020 in the amount of PLN 188 million (USD 50 million) was terminated.
On 6 July 2021, the current 10th term of the Management Board of KGHM Polska Miedź S.A. expires. Therefore, on 5 March 2021 the Supervisory Board of KGHM Polska Miedź S.A. adopted a resolution on initiating qualification proceedings for Members of the Management Board of KGHM Polska Miedź S.A. for the new, 11th term. The announcement of qualification proceedings on Members of the 11th term Management Board of KGHM Polska Miedź S.A. was published in the Public Information Bulletin of the Ministry of State Assets and on the corporate website www.kghm.com.
On 22 March 2021, the Management Board of KGHM Polska Miedź S.A. announced that the Member of the Management Board of the Company, Katarzyna Kreczmańska-Gigol – Vice President of the Management Board (Finance), resigned from taking part in the on-going qualification proceedings for the position of the Member of the 11th term Management Board of KGHM Polska Miedź S.A.
Due to the continuing rate of COVID-19 infections in the first quarter of 2021 and the implementation of enhanced security measures throughout Poland from 20 March 2021, which will be in force until 9 April 2021, KGHM Polska Miedź S.A. is continuously monitoring the situation in order to assess its potential negative impact on the KGHM Polska Miedź S.A. Group’s operations and eventually take additional actions mitigating this impact. KGHM Polska Miedź S.A., thanks to the implementation of a wide scope of preventative actions in the areas of production, sales, supply chain, personnel management and finances, significantly mitigates the negative impact of the pandemic on the KGHM Polska Miedź S.A. Group’s activities. The decision to institute restrictions could, just as in the previous periods, have an impact mainly on the hotel and spa services provided by subsidiaries of KGHM Polska Miedź S.A. by subjecting them to the temporary ban on conducting activities. The Parent Entity is continuously monitoring and analysing the impact of the restrictions related to COVID-19 on the KGHM Polska Miedź S.A. Group in subsequent quarters and at the moment, the assessment of the impact of the coronavirus pandemic on the future results of the mining activities has not changed as compared to the assessment presented in Note 12.12.