Management Board Report on the activity of the JSW S.A. for 2012
3.2. Information about the Company’s current and expected financial standing
JSW S.A.'s current financial standing is good. In 2012, no occurrences having a negative impact on the Company's continued operations were recorded. The JSW S.A. Management Board anticipates the maintenance of a sound financial situation, a safe assets and capital structure and the continued ability to settle the Company’s liabilities.
In 2012, the Company developed an action plan for 2013 based on tentative results for 2012 and assumptions for detailed operational plans. The basic assumptions of the plan for 2013 are presented in the following table.
2013
2012
Growth rate
Production (in thousands of tons)
13,525.0
13,462.4
100.5%
Coking coal (in thousands of tons)
10,048.0
9,469.2
106.1%
Share of coking coal
74.3%
70.3%
4.0 p.p.
Steam coal (in thousands of tons)
3,477.0
3,993.2
87.1%
Expenditures on non-current assets (in PLN millions)
The main objective with respect to production defined in the Technical and Economic Plan for 2013 will be the optimal utilization of the mines’ resource base and production capacity, and increase of share of coking coal production in total production. In 2012, JSW S.A.’s mines produced 13.5 million tons of coal compared to the planned 13.3 million tons. In 2013, the Company plans to slightly increase the production level (by 62.6 thousand tons). The basic condition for achieving this objective will be to ensure the mining capability of the mines and proper preparation of the mining front for 2013 and the next year through performance of the quantity of heading work assumed in the plan. At the same time, it is assumed that the production volume of coking coal will increase by 0.6 million tons as compared to 2012 (an increase by 6.1%). Thus the share of coking coal in total production will increase by 4.0 percentage points to reach the level of 74.3%.
In 2013, the Company plans to incur expenditures on non-current assets in the amount of PLN 1.4 billion which will be earmarked for the following groups of activities:
securing the mines' planned production capacities (mining work, purchase of technical equipment and upgrades of facilities),
technical and organizational integration of the Borynia-Zofiówka and Jas-Mos mines,
expansion of the Borynia-Zofiówka-Jastrzębie Mine, Zofiówka Section, by opening and utilization of the new “Bzie-Dębina 2-Zachód” and “Bzie-Dębina 1-Zachód” coking coal deposits,
construction of the 1080 level in the Borynia-Zofiówka-Jastrzębie Mine, Zofiówka Section,
expansion of the Pniówek Mine by opening and utilization of the new “Pawłowice1” coking coal deposit,
construction of the 1000 level in the Pniówek mine,
construction of the 1290 level in the Budryk mine,
opening the seams in the Zgoń section of the Krupiński mine and the reserves of part of the Żory-Suszec deposit,
execution of necessary tasks related to environmental protection.
The Company’s plan for 2013 aims to reduce the headcount by 248 persons compared to 31 December 2012. However, in the event of special circumstances threatening the execution of production tasks, this headcount may change.
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