Body of the report:
In reference to the information set forth in the 2019 annual report published on 19 March 2020 pertaining to the impact exerted by the spread of the COVID-19 coronavirus epidemic on the JSW Group’s business (“JSW Group”) the Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) reports that JSW has undertaken a number of preventive measures and other measures to strengthen employee safety to prevent the spread of the coronavirus and is implementing a contingency plan comprising measures to ensure operational continuity.
The following may be treated as some of the major measures taken, namely the change in the organization of working time in all the mines belonging to JSW and the introduction of a three-shift system of work as of 23 March 2020 to replace the four-shift system to limit interactions between employees working on different shifts to the maximum degree possible.
This change in the organization of work accompanied by the high level of absenteeism exceeding 30% contributed to the level of coal production, which fell by roughly 40% week on week. In the opinion of the Company’s Management Board, the decline in production does not, however, affect JSW’s readiness to perform its concluded commercial contracts on an ongoing basis, which also includes supplying coal to the coking plants belonging to the JSW Group because the coal inventories are sufficient to perform these contracts on an ongoing basis. Similarly, the level of coke production and coke inventories are sufficient to perform the contracts in the coke segment.
Recently, the Company has received information concerning limitations on clients’ performance of their contractual obligations, also as a result of their declaration of force majeure.
One major risk factor that may disrupt or impede the JSW Group’s business would be the limitation of rail or marine transport.
The above assessment has been made in accordance with JSW’s best knowledge as of the date of preparing this current report. The actual magnitude of the future consequences of the COVID-19 coronavirus epidemic and their impact on the Company and the JSW Group’s business, financial and operational standing and their prospects is at present unknown and impossible to estimate and depends on factors that are beyond JSW’s control and that are rapidly changing.
The JSW Management Board would like to assure you that it is monitoring on an ongoing basis the evolution of the situation involving the persisting consequences of the spread of the coronavirus and their impact on the Company and the JSW Group’s business and is undertaking any and all possible measures to mitigate the impact of the pandemic’s adverse effects and procure the JSW Group’s business continuity.
In subsequent current reports the Company will report any and all material circumstances altering the Company’s current business position or ones that may exert an impact on its current or future financial results.
Legal basis: Article 17 section 1 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC