POLISH COAL MARKET MIDWEEK SUMMARY 10/2016

Warsaw Stock Exchange treats coal investments like they were leprous. One misunderstood statement by Piotr Wozniak led to sudden drop in stock prices of PGNiG (6%). Company makes no bones of its interests in taking over heat plant from JSW (the offer was made on Monday), yet there were no inclinations of PGNiG TERMIKA to take part in PGG or acquire some of the Silesian mines (as it was stated by Polish Press Agency on Friday).

“I met the gentlemen from labor unions, they are very forthright and do not hesitate to speak their mind” – said the new CEO of Kompania Weglowa Tomasz Rogala after meeting between company’s officials and the miners on Friday, which means that the discussion was hard. Not many key issues were solved though, and the another meeting is scheduled for Thursday.

Prairie Mining revealed their Preparatory Field Study for Jan Karski mine in LZW. Knowing the importance of production costs (today tormenting Silesian companies), Australians plans to keep them at a level of 25 USD/Mt, with annual output of 6.34m Mt (starting from 2023-2024). As for the financial part of the investment, the company needs additional 631.7m USD (so far PM spent only 4% of that amount).

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