Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby reports that on 10 July 2015 a contract was entered into by and between Jastrzębska Spółka Węglowa S.A. with its registered office in Jastrzębie-Zdrój (referred to in the Contract as the “Seller”), represented by the subsidiary company Polski Koks S.A., and ArcelorMittal Poland S.A. with its registered office in Dąbrowa Górnicza (referred to in the Contract as the “Buyer), for deliveries of coke to the plants of ArcelorMittal Business Division East as well as ArcelorMittal’s other plants following pertinent arrangements between the parties (“Contract”).
The estimated value of the Contract during the entire term of the Contract is PLN 864 million (eight hundred sixty-four million Polish zloty). i.e. more than 10% of the Issuer’s equity. At the same time, JSW hereby reports that revenues of approx. PLN 170 million on account of the performance of the Contract were included in Current Report No. 34/2015 of 15 June 2015.
The term of the Contract is from 1 January 2015 to 31 December 2017 and, unless terminated by either party by 31 December 2016, will be extended for two more years, and in subsequent periods, unless the Contract is terminated one year before the end of the term, the term of the Contract will be each time extended for two more years.
The settlement currency of the Contract is PLN and EUR.
Pricing is agreed upon on a quarterly basis.
The Contract does not contain any provisions regarding liquidated damages except for the customary clauses on the settlement of quality in the form of price reductions to be applied in the event of failure to fulfill the guaranteed quality parameters.
The remaining terms and conditions of the Contract do not deviate from the terms and conditions generally applied in contracts of this type.
Legal basis:
§ 5 Section 1 Item 3 of the Regulation issued by the Finance Minister on 19 February 2009 on the Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent (Journal of Laws of 2009 No. 33 Item 259, as amended)