Reseña y análisis de las Proposiciones de Ley

Payment to subsidiaries 47 948 45 210

Other financial receivables 1 055 1 149

Loans granted 35 210 40 240

Total loans and financial receivables, net _29.1 84 213 86 599

Non-financial receivables, net 8 9

Trade and other non-current receivables, net 84 221 86 608 Trade and other current receivables

Trade receivables 1 114 611 1 735 014

Deposits - 351 130

Loans granted 7 261 6 551

Payment to subsidiaries 16 167 15 955

Other financial receivables 39 352 43 301

Receivables due to unsettled derivative * 29 834 -

Impairment allowances (34 560) (29 600)

Total loans and financial receivables, net _29.1 1 172 665 2 122 351

Non-financial receivables, net 340 412 287 084

Impairment allowances (10 133) (15 449)

Total non-financial current receivables, net 330 279 271 635 Total trade and other current receivables, net 1 502 944 2 393 986 Total trade and other current and non-current receivables, net 1 587 165 2 480 594

*The amount of receivables due to unsettled derivatives represents the derivatives whose date of settlement falls on 4 January 2012 for the balance as at 31 December 2011 and 5 January 2011 for the balance as at 31 December 2010.

12. Inventories

At

31 December 2011 31 December 2010

Materials 190 103 167 496

Half-finished products and work in progress 1 618 890 1 649 380

Finished goods 544 506 194 509

Merchandise 2 242 8

Total carrying amount of inventories 2 355 741 2 011 393 Note _{For the period}

Write-down of inventories in the financial period from 1 January 2011 to 31 December 2011

from 1 January 2010 to 31 December 2010

Write-down of inventories recognised in cost of sales 24 2 572 802

Reversal of write-down recognised in cost of sales 24 307 374

As at 31 December 2011, the balance of merchandise includes property rights resulting from certificates of origin for energy from renewable resources and cogeneration in the amount of PLN 2 242 thousand, with respect to green energy (3 816 229 allowances), yellow energy (5 324 606 allowances), red energy (35 022 200 allowances) and violet energy (175 000 allowances).

In accordance with executive regulations respecting property rights, the Company, based on the amount of energy sold to end users, and based on the amount of energy purchased on the Warsaw Stock Exchange

through the brokerage Dom Maklerski Banku Ochrony Środowiska S.A., is required to present for redemption property rights resulting from certificates of origin in the following amounts:

- 15 233 964 allowances - green energy, - 4 833 856 allowances - yellow energy, - 32 518 653 allowances - red energy, - 171 574 allowances – violet energy.

For the acquisition of lacking rights resulting from certificates of origin for energy from renewable resources for obligatory redemption the Company created a provision in the amount of PLN 3 195 thousand for the purchase of 11 417 735 allowances for green energy.

13. Cash and cash equivalents

At Note

31 December 2011 31 December 2010

Cash in hand 80 56

Cash at bank 8 374 50 178

Other financial assets with a maturity of up to 3 months

from the date of acquisition 12 827 545 2 545 295

Total cash and cash equivalents 29.1 12 835 999 2 595 529

Other financial assets with a maturity of up to 3 months from the date of acquisition include deposits in the amount of PLN 12 811 794 thousand (as at 31 December 2010: PLN 2 538 807 thousand), and deposit interest in the amount of PLN 15 751 thousand (as at 31 December 2010: PLN 6 488 thousand).

Components of cash and cash equivalents presented in the statement of cash flows are the same as those presented in the statement of financial position.

14. Non-current assets held for sale

As at 31 December 2011, no non-current assets held for sale had the Company in the statement of financial position (as at 31 December 2010 they were immaterial).

As at 31 December 2011, the share capital of the Company, in accordance with the entry in the National Court Register, amounted to PLN 2 000 000 thousand and was divided into 200 000 000 shares, series A, fully paid, having a face value of PLN 10 each. All shares are bearer shares. The Company has not issued preference shares. Each share gives the right to one vote at the general meeting. The Company does not have treasury shares.

Subsidiaries and associates do not have shares of KGHM Polska Miedź S.A.

In the years ended 31 December 2011 and 31 December 2010 there were no changes in the registered share capital or in the number of shares.

In 2011 there were no changes in significant packets of shares of KGHM Polska Miedź S.A. In 2010 the State Treasury decreased its share in the share capital and the total number of votes at the General Meeting from 41.79% to 31.79%.

At 31 December 2011 and at the date of preparation of these financial statements, the shareholder structure of the Company is as follows:

shareholder number of shares/votes total nominal value of shares

percentage held in share capital/ total number of votes

State Treasury 63 589 900 635 899 000 31.79%

Other shareholders 136 410 100 1 364 101 000 68.21%

Accumulated other comprehensive income due to:

Note Available-for-sale financial assets

Cash flow hedging financial instruments Total accumulated other comprehensive income At 1 January 2011 121 385 89 774 211 159

Fair value losses on available-for-sale

financial assets (186 833) - (186 833)

Impact of effective cash flow hedging

transactions entered into - 839 725 839 725

Amount transferred to profit or loss – adjustment due to the reclassification of available-for-sale financial assets

(10 692) - (10 692)

Amount transferred to profit or loss - adjustment due to the reclassification of hedging instruments

(241 565) (241 565)

Deferred income tax 20 37 530 (113 651) (76 121)

Other comprehensive income (159 995) 484 509 324 514

At 31 December 2011 (38 610) 574 283 535 673

At 1 January 2010 1 489 125 739 127 228

Fair value gains on available-for-sale

financial assets 152 734 - 152 734

Impact of effective cash flow hedging

transactions entered into - 97 786 97 786

Amount transferred to profit or loss – adjustment due to the reclassification of available-for-sale financial assets

(4 715) - (4 715)

Amount transferred to profit or loss - adjustment due to the reclassification of hedging instruments

- (142 187) (142 187)

Deferred income tax 20 (28 123) 8 436 (19 687)

Other comprehensive income 119 896 (35 965) 83 931

At 31 December 2010 121 385 89 774 211 159

Accumulated other comprehensive income components

At

31 December 2011 31 December 2010

Gross value Net value Gross value Net value Accumulated other comprehensive

income due to available-for-sale financial assets

(47 668) (38 610) 149 857 121 385

Fair value gains/(losses) (47 668) (38 610) 149 857 121 385

Accumulated other comprehensive income due to cash flow hedging instruments

708 992 574 283 110 832 89 774

Gains on measurement 708 992 574 283 110 832 89 774

Total accumulated other comprehensive

income 661 324 535 673 260 689 211 159

Note Reserve capital created in accordance with the Commercial Partnerships and Companies Code, art. 396 Reserve capital created from profit in accordance with the Statutes Profit/(loss) from prior years

Retained earnings, total

At 1 January 2011 660 000 7 016 729 4 568 589 12 245 318

Profit for the period - - 11 334 520 11 334 520

Transfer to reserve capital - 1 588 589 (1 588 589) -

Dividend approved and paid 33 - - (2 980 000) (2 980 000)

At 31 December 2011 660 000 8 605 318 11 334 520 20 599 838

At 1 January 2010 660 000 5 076 544 2 540 185 8 276 729

Profit for the period - - 4 568 589 4 568 589

Transfer to reserve capital - 1 940 185 (1 940 185) -

Dividend approved and paid - - (600 000) (600 000)

At 31 December 2010 660 000 7 016 729 4 568 589 12 245 318

Based on the Commercial Partnerships and Companies Code, the Company is required to create reserve capital for any potential (future) or existing losses, to which no less than 8% of a given financial year’s profit is transferred until the reserve capital has been built up to no less than one-third of the registered share capital. The reserve capital created in this manner may not be employed otherwise than in covering the loss reported in the financial statements.

As at 31 December 2011 the statutory reserve capital in the Company amounts to PLN 660 000 thousand, and is recognised in equity under Retained earnings.

At

Note 31 December 2011 31 December 2010