Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. ("JSW", "Company") reports that on 12 May 2020 it adopted a decision on terminating talks on potential cooperation with Prairie Mining Limited ("PDZ") concerning PDZ’s coal projects in Poland. The Company reported that these talks were being conducted in current reports no. 11/2018, 29/2018 and 15/2019, 58/2019.
The major factor contributing to making the decision to terminate the talks between JSW and PDZ and the reason for JSW no longer being interested in potential cooperation is the limitation of the Company’s investment activity related to the pandemic due to the spread of the SARS-CoV-2 coronavirus and in connection with the adverse change of market conditions. One of the main reasons exerting an adverse impact on the operation of mining sector companies, including JSW should be identified as the considerable decline in the price of raw materials, including coking coal, which is the basis of JSW’s production.
The Company intends to focus its production activity on utilizing its resource base to the maximum degree possible while taking into consideration the current needs of the Company’s clients.
The Company has notified the other party in writing about having made the decision to terminate the talks on potential cooperation between JSW and PDZ while observing the rules put in place to date by the parties for these talks.
Legal basis: Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse 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