Update of the hedging policy

The Management Board of Orzeł Biały SA hereby announces that on 15.12.2016 it made a decision by way of the Resolution no 44/2016 as approved by the Supervisory Board Resolution No 763/IX/2016 on the update of the hedging policy (The Procedure And Instructions To Hedge The Risk Of Lead Quotation And Exchange Rate Volatility) with respect to the risk of lead trading and foreign exchange fluctuations (hereinafter referred to as “The Hedging Policy”, “The Policy”).

The Hedging Policy was adopted by the Company in 2006. The Company systematically informed about the instruments used and the results of hedging transactions in the Company’s interim reports.

The reason for updating the existing Hedging Policy is the need to adapt it to ongoing business processes and to better align The Issuer to the changing market situation in this business area of the Company. The Company strives to minimise the impact of volatility (both positive and negative) of listings/exchange rates on its future cash flows.

The Hedging Policy as updated shall, besides instruments previously used by the Company:

a. allow for transactions to hedge lead prices, not only with brokers at the London Metal Exchange (“LME”), but also with commercial banks,
b. extend the possibility of using commercially available hedge products in the form of various foreign currency options,
c. allow hedging the risk arising from foreign currency exposures on the Company’s premiums.

Besides the above-indicated amendments, other changes to the Hedging Policy are merely for good order sake and are designed to align the Policy to the current organisational structure and ongoing purchasing and production and sales processes.


The Issuer believes that the Company using the said instruments introduced to the updated Hedging Policy may affect the results achieved by the Company, and the information about it may affect the price of financial instruments of the Issuer.

In the case of use of the above-mentioned hedging instruments, the Company will informed about it in the interim report.

Legal basis: Art. 17 MAR at 13.35

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