The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby announces that pursuant to the provisions of IAS 36 Impairment of Assets, the Company is obligated to test the recoverable amount of an asset (test) each time there is an indication of impairment of the asset. Considering the following: excess supply of thermal coal in the Polish market and decrease of its prices in relation to 2013, the necessity to incur capital expenditures to maintain the current production with limited financial resources, the talks conducted with the social side as regards the employee costs incurred by the Company, the JSW Management Board has concluded that it is necessary to conduct the tests for the Company’s plants producing thermal coal. As a result of the tests, the Management Board has made a decision to recognize an impairment loss of JSW’s asset, Kopalnia Węgla Kamiennego “Krupiński”, in the amount of PLN 224.2 million.
At the same time the Management Board does not rule out the possibility of adjustment of the impairment loss as a result of comments made by the statutory auditors currently auditing the financial statements. The recognized loss will be reflected in the financial result of the JSW Capital Group for 2014.