Cooperation between the KGHM Group and PKO Leasing, from the PKO Bank Polski Group, on the US market: a deal worth over USD 120 million

KGHM INTERNATIONAL Ltd. has signed a lease financing agreement with PKO Leasing for investment purposes, to refinance the purchase of construction and mining machinery used at the Robinson mine in Nevada. The value of the contract exceeds USD 120 million. This marks a new stage in cooperation and the creation of synergies between the largest Polish capital groups on the US market. The agreement also represents a further step towards strengthening the financial independence of KGHM’s foreign assets in financing investment projects.

Cooperation for development

– The cooperation between Polska Miedź and PKO Leasing on the US market is not merely a testament to the global capabilities of our corporate groups. It represents a further dimension in strengthening economic potential and building value based on local content principles, even beyond our national borders. We have combined the experience of partners from the PKO Bank Polski Capital Group with the KGHM Group’s knowledge of local regulations, and have developed a model for international cooperation from which tangible benefits and profits will flow into the Polish economy, said Remigiusz Paszkiewicz, President of the Management Board of KGHM Polska Miedź S.A.

– As part of the PKO Bank Polski Group, we possess the expertise to effectively provide financial support for ambitious projects undertaken by clients with global aspirations. Our role today is not only to provide financing, but also to help create conditions favourable to long-term growth and the strengthening of companies’ competitiveness. We are delighted that, in cooperation with PKO Leasing, we can support the development of one of Poland’s largest companies and one of the world’s leading copper producers, the KGHM Group, said Szymon Midera, President of the Management Board of PKO Bank Polski.

– PKO Leasing is setting a new standard in the leasing market, and our cooperation with the KGHM Group is the best example of this. The uniqueness of this project is evidenced not only by the impressive value of the transaction, but also by its unprecedented and international model. The Polish companies PKO Leasing and PKO Bank Polski are financing the client’s investments directly in the United States, meaning they provide full contract management abroad. We are sending a strong signal to the market – we know how to execute unique, high-volume projects, including those outside Poland and Europe, thanks to the work of a specialised team dedicated to strategic transactions, said Tomasz Bogus, President of the Management Board of PKO Leasing.

KGHM supports the development of the regional and national economy through close cooperation with Polish contractors. For 65 years, it has been engaging local businesses and research institutions, helping to create tens of thousands of jobs. Today, local content principles are also integral to Polska Miedź’s business model beyond Poland’s borders. The use of domestic expertise and capital in overseas projects not only strengthens Poland’s international position but also generates tangible benefits for its economy and budget.

Active management

The partnership between KGHM INTERNATIONAL Ltd. and PKO Leasing involves the provision of a lease loan for investment purposes amounting to over USD 120 million, the proceeds of which will be used to restructure the financing for the purchase of machinery used at the Robinson open-cast mine in Nevada. This includes e.g., dump trucks and excavators. The corporate guarantor for the investment lease loan to KGHM INTERNATIONAL Ltd. is KGHM Polska Miedź S.A.

– One of KGHM’s priorities is to systematically increase the financial independence of its foreign assets and their ability to finance investment and operational activities. The agreement just concluded marks the next stage in optimising the cash management process within our subsidiaries, said Piotr Krzyżewski, Vice-President of the Management Board for Finance, KGHM Polska Miedź S.A.

– The development of Polska Miedź’s overseas assets requires stable and cost-effective financing. Thanks to KGHM INTERNATIONAL’s sound financial and operational position, the company has been able to refinance part of its liabilities on favourable terms, which will have a positive impact on its liquidity. The funds thus released will be allocated, for example, to finance the development of the Advanced Exploration phase of the Victoria Project.  This is a key project for our Group in North America, said Anna Sobieraj-Kozakiewicz, Vice-President for Overseas Assets, KGHM Polska Miedź S.A.

KGHM and the Robinson Mine

The Robinson Mine, owned by KGHM INTERNATIONAL Ltd., is located in White Pine County, Nevada, at an average altitude of 2,130 metres above sea level. The mine comprises three open-cast pits: Ruth, Liberty and Tripp-Veteran. Mining is carried out using conventional open-pit methods and involves blasting. The mine employs around 650 people, and its annual production of copper in concentrate averages around 50,000 tonnes.