Management Board Report on the activity of the JSW S.A. for 2012
3.8. Differences between the financial results captured in the annual report and the previously published forecasts of results for 2012
In the Management Board report on the activity of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2011, Item 3.2 “Information about the Company’s current and expected financial standing" presents the main assumptions of JSW S.A.’s Technical and Economic Plan for 2012 which was adopted by the Company’s Management Board and which received a positive opinion from the JSW S.A. Supervisory Board. The basic assumptions of the Plan for 2012 and their implementation are presented in the following table.
2012 actuals
2012 plan
Growth rate
Production (in thousands of tons)
13,462.4
13,303.0
101.2%
Coking coal (in thousands of tons)
9,469.2
9,675.1
97.9%
Share of coking coal
70.3%
72.7%
- 2.4 p.p.
Steam coal (in thousands of tons)
3,993.2
3,627.9
110.1%
Expenditures for purchases and construction of property, plant and equipment (in PLN millions)
In 2012, JSW S.A.’s mines produced 13,462.4 thousand tons of coal, including 9,469.2 thousand tons of coking coal, representing 70.3% of total production. In terms of net production of coal, 101.2% of the volume assumed in the Technical and Economic Plan was achieved, with a surplus of 159.4 thousand tons. The structure of coal production was adjusted to demand and customer expectations.
In 2012, the Company incurred capital expenditures the amount of PLN 1,455.9 million, i.e. PLN 200.6 million (16.0%) more than had been planned. The scope of capital expenditures in 2012 demonstrated a strong commitment to the execution of the Company’s capital expenditures program whose main objectives are:
opening new resources through the implementation of horizontal and vertical expansion of the mines,
maintaining the current production capacity of the mines,
reducing labor intensity and downtime ratios through purchases of modern machinery and equipment,
improving occupational health and safety conditions,
improving the quality of coal and adjusting production levels to customer needs through the modernization of key process units in the mines’ processing plants,
execution of environmental protection projects.
As at 31 December 2012, JSW S.A.’s headcount stood at 22,678 persons, i.e. 404 persons fewer than planned. The assumptions made in the employment policy provided for replenishment of the headcount in numbers sufficient to fill in vacancies resulting from employee attrition due to retirement or disability. The fill-ins included the hiring of graduates of mining schools.
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