KGHM POLSKA MIEDŹ S.A.
font size: A A A PDF report
Homepage / Results and forecast / Review of financial position / Equity and liabilities

Review of financial position

In 2011 the basic source for financing assets was equity, whose share in total assets increased from 73% to 79%. In 2011 the Company did not make use of borrowing. At the end of the year there were finance lease liabilities.

Equity and liabilities (‘000 PLN)
    31.12.2010 31.12.2011

Equity

  14 456 477 23 135 511

Share capital

  2 000 000 2 000 000

Accumulated other comprehensive income

  211 159 535 673

Retained earnings

  12 245 318 20 599 838

Current and non-current liabilities

  5 372 819 6 117 678

Trade and other payables

  1 742 188 1 839 115

Borrowings and finance lease liabilities

  11 455 93

Derivatives

  1 193 432 868 667

Current corporate tax liability

  668 924 1 587 847

Employee benefits liabilities

  1 221 287 1 323 826

Provisions for other liabilities and charges

  535 533 498 130

Total liabilities and provisions

  19 829 296 29 253 189

There were significant changes in the following items of equity and liabilities:

  • Equity – an increase by PLN 8 679 034 thousand, mainly due to an increase in retained earnings by PLN 8 354 520 thousand, due to the higher profit for the period (PLN 11 334 520 thousand in 2011; PLN 4 568 589 thousand in 2010), alongside a higher than in 2010 dividend payout (PLN 2 980 000 thousand in 2011, PLN 600 000 thousand in 2010).
  • Current corporate tax liability – an increase by PLN 918 923 thousand due to the higher amount of taxable income. Both in 2010 as well as in 2011, the Company paid monthly instalments on income tax in advances.
  • Derivatives – a decrease by PLN 324 765 thousand due to a change in forward metals prices, the forward USD/PLN exchange rate, the settlement of instruments during the year and the opening of new transactions on the copper, silver and currency markets. In the case of the copper market there was a decrease in liabilities by PLN 632 571 thousand, while for the silver and currency markets there was an increase in liabilities respectively by PLN 34 015 thousand and PLN 273 791 thousand.

 

Contingent assets and liabilities

As at 31 December 2011, contingent assets of the Company amounted to PLN 373 223 thousand and related mainly to guarantees received (in the amount of PLN 167 018 thousand), mainly related to securities to cover potential claims by the Company due to the non-execution or improper execution of agreements by contractors) and to overpayment of the tax on underground mines (PLN 85 489 thousand). Other contingent assets primarily involve disputed State budget issues, promissory note receivables and implementation of projects and inventions.

Contingent liabilities at the end of 2011 amounted to PLN 141 430 thousand, including PLN 113 967 thousand due to implementation of projects and inventions.




Report on shortcuts