Body of the Report:
The Management Board of JSW SA ("Company", "JSW") reports that on 15 July 2014, a contract ("Contract") was concluded between Jastrzębska Spółka Węglowa S.A. with its registered offices in Jastrzębie-Zdrój (named "Seller" in the Contract) and ArcelorMittal Poland S.A. with its registered offices in Dąbrowa Górnicza (named "Buyer" in the Contract) the estimated value of which exceeds 10% of the Issuer's equity.
The subject matter of the Contract is delivery of coking coal to the Buyer in 2014.
Material terms and conditions of the Contract:
The Contract is in effect from 1 January 2014 to 31 December 2014.
The estimated net value of the Contract during its entire term is PLN 1.2 billion (one billion two hundred million zloty) of which PLN 569,8 million of the turnover under the contract was realized by the date of this report.
The settlement currency of the Contract is PLN.
Pricing is agreed upon quarterly.
The contract comprises mutual provisions on sanctions in the event of failure to perform the contractual obligations by any of the parties in the amount of 10% of the gross value of goods that have not been delivered/collected. If the parties to the contract suffer a loss exceeding the payable contractual penalty, they can pursue supplementary damages.
The remaining terms and conditions of the Contract do not deviate from the terms and conditions generally applied in contracts of this type.
At the same time, the Company reports that, in the last 12 months, the value of trading between companies of the JSW Capital Group and companies of the ArcelorMittal Poland S.A. Capital Group was PLN 596.9 million, while the estimated value of contracts concluded in the last 12 months before the date of this report until their expiration is PLN 690.9 million, which totals PLN 1.3 billion and exceeds 10% of the Company's equity.
Legal basis:
§ 5 section 1 item 3 of the Finance Minister’s Regulation of 19 February 2009 on the current and periodic information conveyed by securities issuers and the conditions for recognizing the information required by the regulations of a non-member state as being equivalent (Journal of Laws of 2009, No. 33, Item 259 as amended).