Conclusion of a significant supply agreement by a subsidiary of the Issuer

Current report No 2/2020

Legal basis: Article 17(1) of the Market Abuse Regulation (MAR) – confidential information.                                                     

The Management Board of Polimex Mostostal S.A. with the registered office in Warsaw (the “Issuer”) informs that a subsidiary of the Issuer, Mostostal Siedlce Sp. z o.o. Sp. k. with the registered office in Siedlce, has concluded an agreement for the supply of zinc in 2020 (the “Agreement”) with Huta Cynku “Miasteczko Śląskie” S.A. with the registered office in Miasteczko Śląskie. The price of individual zinc deliveries will comprise an amount calculated based on the average quotations of zinc by Cash Seller & Settlement on the London Metal Exchange (the "LME") and a fixed amount determined by the parties to the Agreement for each ton of this raw material. The estimated value of the Agreement should not exceed USD 17.9 million net. The Management Board has emphasised that due to the fact that the final price calculation will involve the values from the LME zinc quotations, it is not possible to accurately indicate the value of the Agreement at the time of its conclusion. All payments arising from the Agreement will be made in PLN converted from USD according to the arithmetic mean of the average exchange rates of the National Bank of Poland calculated on the business days during the quoting period. The Agreement is compliant with the Incoterms 2010 conditions.