First, a body blow was stroke by Kompania Weglowa and its 2015 spring sale, which completely ruined the business. Next one was even worst: Enea decided to hit bellow the belt and went after their market value. Strike three came on Friday, from a company tied to a country with a long boxing tradition, at least among their national animals.
On today’s conjoined press conference of Enea and its new daughter LW Bogdanka, CEO of that last one was presenting the final audited results for 2015, confirming net loss of 279.6m PLN. As if the loss and facing the fact that his company lost its stock value by 50% within just one year were not enough for him, he was also reminded of an adverse decision of Provincial Administrative Court in Warsaw (WSA) that was announced on Wednesday, in regards to coal deposits right next to Bogdanka’s fence.
K-6 and K-7 are promising areas for hard coal mining, located in Cycow, just 10km from where Zbigniew Stopa eats lunch in his office. Thinking of further development, since 2010 Bogdanka was planning to get a mining license on these fields, but two years later Australian company PD Co stole their thunder and got a search permit on them and a few other deposits surrounding LWB. Since then, Australians made a lot of marketing and PR fuss about their Lublin Coal Project and Jan Karski mine, promising best quality coal (7000kcal) at a cost of next to nothing (25 USD/Mt, according to PFS presented two weeks ago).
Ignoring PD Co and their search, Bogdanka decided to apply for mining license anyway, arguing that they are the only ones in the region with equipment and background sufficient enough to actually start any real mining operations in the area, but they failed in Ministry of Environment. Appealing in WSA also brought them no success, as the court acknowledged PD Co’s anteriority a week ago (due to the expenditures they had with the search). Zbigniew Stopa was clearly irritated by this decision and two days later announced further appeal to the National Administrative Court.