4. Explanatory notes to the statement of profit or loss

in PLN millions, unless otherwise stated

Note 4.1. Expenses by nature

Note		2017	2016
9.3	Depreciation of property, plant and equipment and amortisation of intangible assets	1 072	993
11.1	Employee benefits expenses	3 210	3 023
	Materials and energy, including:	5 831	5 482
	Purchased metal-bearing materials	3 750	3 469
	Electrical and other energy	775	745
	External services, including:	1 531	1 392
	Transport	215	228
	Repairs, maintenance and servicing	446	392
	Mine preparatory work	437	367
5.2	Minerals extraction tax	1 765	1 338
5.2	Other taxes and charges	389	387
	Advertising costs and representation expenses	37	37
	Property and personal insurance	21	19
	Other costs	68	105
	Total expenses by nature	13 924	12 776
	Cost of merchandise and materials sold (+)	182	145
	Change in inventories of finished goods and work in progress (+/-)	(1 097)	( 256)
	Cost of manufacturing products for internal use (-)	( 110)	( 118)
	Cost of sales, selling costs and administrative expenses, including:	12 899	12 517
	Cost of sales	12 022	11 603
	Selling costs	112	126
	Administrative expenses	765	761

Note		2017	2016
7.2	Measurement and realisation of derivatives	226	167
	Foreign exchange gains on assets and liabilities other than borrowings	-	482
	Interest on loans granted	300	376
	Fees and charges on re-invoicing of bank guarantees costs securing payments of liabilities	51	41
	Other	103	79
	Total other operating income	680	1 145

7.2	Measurement and realisation of derivatives	(439)	( 243)
7.3	Impairment loss on available-for-sale assets	-	( 57)
Part 3 Note 6.1	Impairment loss on shares in subsidiaries	(330)	(4 856)
Part 3 Note 6.2	Allowance for impairment of loans granted to subsidiaries	(606)	(1 130)
Część 3	Impairment loss on exploration and evaluation assets	-	( 136)
	Other	( 130)	( 152)

	Total other operating costs	(2 684)	(6 574)

	Other operating income/(costs)	(2 004)	(5 429)

Note		2017	2065
	Exchange differences on borrowings	1 247	-
7.2	Measurement of derivatives	-	26
	Total income	1 247	26

	Interest on borrowings	(113)	( 76)
	Bank fees and charges on borrowings	(28)	( 45)
	Foreign exchange losses on borrowings	-	( 398)
	Unwinding of the discount	(43)	( 39)
7.2	Measurement and realisation of derivatives	( 30)	( 9)
	Total costs	( 567)	( 159)

	Finance income/(costs)	( 1 033)	( 541)

	2017	2016
Impairment losses on assets recognised in:
cost of sales, of which:	25	59
allowance for impairment of trade receivables	1	-
Write-down of inventories	24	59
in other operating costs, of which:	941	6 197
Impairment losses on fixed assets under construction and intangible assets not yet available for use	4	154
Impairment losses on available-for-sale financial assets	-	57
Impairment losses on investments in subsidiaries	330	4 856
allowance for impairment of loans granted	606	1 130
allowance for impairment of other financial receivables	1	-
Impairment losses, total	966	6 256

Reversal of impairment losses on assets, recognised in:
cost of sales, of which:	-	3
write-down of inventories	-	3
Other operating income, of which:	2	2
allowance for impairment of other receivables	2	2
Reversal of impairment losses, total	2	5

Financial statements