Company results. for Q August Presentation for Analysts Meeting 8 August 2007

Transcription

1 Company results for Q August 2007 Presentation for Analysts Meeting 8 August 2007

2 Contents Macroeconomic conditions Production results Financial results Costs by type and unit cost Balance sheet Cash flow 2

3 Macroeconomic conditions Copper prices USD/t Silver prices USD/troz Exchange rate PLN/USD IIQ'06 IIIQ'06 IVQ'06 IQ'07 IIQ'07 Budget '07 IIQ'06 IIIQ'06 IVQ'06 IQ'07 IIQ'07 Budget '07 IIQ'06 IIIQ'06 IVQ'06 IQ'07 IIQ'07 Budget '07

4 Production results Ore extraction (mln t d.w.) Copper production in concentrate ( 000 t) Electrolytic copper production ( 000 t) Metallic silver production (t) A decrease in copper content in ore from 1,80% to 1,70% including from purchased copper-bearing materials: IIQ'06 IIQ'07 6M'06 6M'07 Budget '07 IIQ'06 IIQ'07 6M'06 6M'07 Budget '07 IIQ'06 IIQ'06 IIQ'07 IIQ'07 6M'06 6M'06 6M'07 6M'07 Budżet '07 Budget '07 IIQ'06 IIQ'07 6M'06 6M'07 Budget '07

5 Financial results (mln PLN) IIQ 06 IIQ 07 6M 06 6M 07 Budget 07 Revenues from sales (excluding effects of hedging transactions) Adjustment of revenues due to effects of hedging transactions Sales (including effects of hedging transactions) Basic operating activity costs Other operating costs Operating profit Profit before taxation Income tax Share in profits (losses) of subordinated entities accounted for using the equity method x x x x 290 Profit for the period

6 Financial results (mln PLN) A decrease in net profit versus H by PLN 386 mln Incl. volume of: copper (-264), silver (-31), gold (-13) Incl. prices: copper (+686), silver (+137), gold (+3) Incl. due to: - measurement and settlement of derivative transactions (PLN -269 mln) - dividend from Polkomtel S.A. (PLN -259 mln) - Exchange rate differences (-75) 1844 Result 6M'06 Prices of Cu, Ag, Au* Exchange rate* * Effect on revenues from product sales Sales volume of Cu, Ag, Au* Hedging* PLN (932) mln after 6M 06 PLN (620) mln after 6M 07 Basic operating activity costs Other operating activities Tax Other Result 6M'07 6

7 7 Risk management Risk management positions held at Cu ( 000 t) Ag (mln troz) USD (mln) Revenues & results on hedging transactions (mln PLN) H H H Since 2006 the Company has been using hedging instruments enabling participation in price rises (options) 132* Hedging transactions entered in H1 2007: tonnes of copper with put options in 2008 at levels above the budgeted Cu price 19,2 m troz hedging transactions on silver (put options) USD 300 mln for H2 of 2007 with forwards M'06 6M' * * Fair value of open positions in in derivatives at 30 June 2007

8 Costs by type (mln PLN) OTHER incl.: depreciation (186) taxes and fees (127) ENERGY CONSUMPTION EXTERNAL SERVICES A decrease in costs by type versus 6M 06 by PLN 520 mln, i.e. by 14% An increase in total production cost by PLN 106 mln i.e. by 3% OTHER incl.: depreciation (204) taxes and fees (133) ENERGY CONSUMPTION 331 LABOR COSTS EXTERNAL SERVICES 407 CONSUMPTION OF OTHER MATERIALS AND FUELS 430 LABOR 6M 06 COSTS M 07 CONSUMPTION OF EXTERNAL COPPER BEARING MATERIALS CONSUMPTION OF OTHER MATERIALS AND FUELS CONSUMPTION OF EXTERNAL COPPER BEARING MATERIALS COSTS BY TYPE CHANGE (main result of change in inventories)* TOTAL PRODUCTION COST COSTS BY TYPE CHANGE (main result of change in inventories)* TOTAL PRODUCTION COST * Mainly respecting semi-products, work in progress and finished products 8

9 Factors affecting the change of costs by type (mln PLN) -533 Copper bearing materials external concentrates, blister copper, matte copper, scraps (PLN +60 mln) * A decrease in volume of: -27 Depreciations Other materials and fuels External services concentrates (-4,7) ( 000 t) matte copper (-1,6) ( 000 t) blister (-0,6) ( 000 t) and increase of external scrap volume by 4,2 ( 000 t) Labor costs 10-2 Other * In 2007 also used were copper-bearing materials from prior-year inventories totalling PLN 146 mln 9

10 10 Unit cost of electrolytic copper production (PLN/t) Unit cost of electrolytic copper production USD/t USD/t USD/t USD/t USD/t IIQ'06 IIQ'07 6M'06 6M'07 Budget '07... from internal charges... from purchased copper-bearing materials IIQ'06 IIQ'07 6M'06 6M'07 Budget '07 IIQ'06 IIQ'07 6M'06 6M'07 Budget '07

11 Balance sheet - Assets (mln PLN) An increase in Company assets in H by PLN mln, i.e. by 13% Noncurrent assets Other current assets Current receivables Incl. PLN sale from products and services Inventories Assets structure at the end of H Property, plant and equipment Shares in consolidated subsidiaries Current assets Cash and cash equivalents Investments in associates accounted for using equity method in the consolidated financial statements Other non-current assets incl., derivatives Budget'07 11

12 Balance sheet Equity and Liabilities (mln PLN) An increase in Company equity and liabilities in H by PLN mln, i.e. by 13% Liabilities Share capital (7 414), profit retained (-364) and other equity (128) Equity and liabilities structure at the end of H Non-current liabilities Liabilities due to dividend payout (3 394) Current liabilities due to dividend Equity Other current liabilities, due to: Derivative financial instruments (342) Current income tax (224) Current liabilities due to trade payables and other liabilities, due to: - Trade payables (516) - Accruals and deferred income (307) - Taxation and insurance (209) Budget'07 12

13 13 Cash flow (mln PLN) Monetary assets after six months of 2007 increased by PLN mln, i.e. by 59% Mon. assets at Operating activities Investing activities Financing activities Mon. assets at

14 Thank you 14