POLISH COAL MARKET MIDWEEK SUMMARY 14/2016

Small, almost unnoticeable change in declarations regarding Polska Grupa Gornicza, with huge consequences for the company. A month ago Ministry of Energy was promising that PGG will start its operations BY 1st May, now they say it will happen NO SOONER THAN 1st May. Lets remember, that officially Kompania Weglowa has fair to middling financial liquidity only until the end of April.

Postponing goes also for the meetings between KW and labor unions. During last one (Friday 1st Apr) the only thing that both sides agreed on was the date of next meeting, but yesterday it was rescheduled for Thursday (7th Apr). KW-unions rendezvouses goes on since February, which frustrates traders and miners, but the unions and PGG investors are rather glad of the situation.

On the bright side: Weglokoks Kraj (daughter company of Weglokoks Group, the main savior of KW and soon also KHW) recorded 7.6m PLN gross profit in 2015 on the two mines (KWK Bobrek and KWK Piekary) the company took over from Kompania Weglowa in May last year. Net profit is expected to be not much smaller, as VP of Trade Andrzej Krzysztalowski claims. In 2016 Weglokoks Kraj plans to invest 70m PLN  in Bobrek and 35m PLN in Piekary, and with production at a level of 2.4m Mt reach 40m PLN profit.

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