Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

13.1 Expenses by nature

in PLN millions, unless otherwise stated

from 1 October 2020
to 31 December 2020
from 1 October 2019
to 31 December 2019
from 1 October 2020
to 31 December 2020
from 1 October 2019
to 31 December 2019
Depreciation of property, plant and equipment and amortisation of intangible assets 618 571 2 062 2 013
Employee benefits expenses 1 620 1 444 5 884 5 594
Materials and energy 2 132 1 984 7 914 7 945
External services 665 720 2 226 2 655
Minerals extraction tax 505 328 1 625 1 520
Other taxes and charges 163 133 544 521
Reversal of impairment losses on property, plant and equipment and intangible assets (1) (19) (2) (19)
Reversal of write-down of inventories (9) (13) (29) (38)
Advertising costs and representation expenses 22 26 61 71
Property and personal insurance 17 15 65 59
Impairment losses on property, plant and equipment and intangible assets 70 217 162 217
Write-down of inventories 25 33 127 38
Other costs 12 15 62 78
Total expenses by nature 5 839 5 454 20 701 20 654
Cost of merchandise and materials sold (+) 121 126 672 681
Change in inventories of finished goods and work in progress(+/-) 547 476 474 337
Cost of products for internal use of the Group(-) (510) (429) (1 376) (1 404)
Total cost of sales, selling costs and administrative expenses, including: 5 997 5 627 20 471 20 268
Cost of sales 5 551 5 190 18 981 18 767
Selling costs 106 121 432 432
Administrative expenses 340 316 1 058 1 069

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