EBITDA for Q2 of the year, net of non-recurring events, amounted to PLN 257.5 million.
In Q2, the mines produced almost 2.9 million tons of coal, which was 8.5% less than in the previous quarter. Coke production in Q2 was 12.3% lower than in the previous quarter and amounted to 0.7 million tons. Total coal sales to external customers were more than 1.6 million tons. On the other hand, coke sales for the period in question were more than 0.7 million tons.
The average price of coking coal in the period was PLN 945.26 per ton, 10.7% lower than in the first quarter. The price of coke increased slightly by 0.4% to PLN 1,376.57. As a result, sales revenues decreased by 19.1% compared to Q1 2024 to PLN 2.7 billion.
- The situation of the JSW Group is far from ideal. The level of coal production has been unsatisfactory for many months. Additionally, we are facing an unfavorable market conditions, with falling prices on global markets. The cost level, which has been increasing in recent years, puts us in a difficult financial position. The Management Board has decided to use PLN 2 billion of the funds accumulated in the Closed-End Investment Fund - explains Ryszard Janta, President of the JSW SA Management Board, adding: - As the Management Board, we are aware of all the threats we face. We have ahead of us strategic decisions, that will stabilize the Company’s financial position and secure jobs in a stable, growing company.
In Q2 of the year, the JSW Group spent PLN 1 billion on capital expenditures (on a cash basis), which is 19.1% less than in the previous quarter. However, if we compare the first half of 2024 with the same period last year, the increase is more than 18%. This is an effect of, among other things, capital expenditures for mine workings, the purchase and modernization of powered supports, transportation equipment, as well as investments in JSW KOKS.
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The JSW Group is the largest producer of high quality coking coal and a significant producer of coke in the European Union. Coking coal, also known as metallurgical coal, has been identified as one of the 34 critical raw materials for the European Union, representing a high supply risk for European industry. This strengthens the strategic importance of the JSW Group to the European economy.
Coking coal is an essential ingredient in steel production - a key component in the development of an innovative economy and modern infrastructure. Currently there are no alternative and economically viable technologies for smelting steel without using coking coal.
