JASTRZEBIE-ZDROJ, Poland, May 31, 2011 /PRNewswire/ --
-- Not for Release, Publication or Distribution, Directly or Indirectly, in or Into the United States of America, Canada, Australia or Japan.
Jastrzebska Spólka Weglowa S.A. ('JSW' or 'the Company' and together with its subsidiaries 'the Group'), today announces its intention to proceed with an Initial Public Offering of ordinary shares to be listed on the main market of the Warsaw Stock Exchange. The Group is the largest producer of high quality hard coking coal and a leading coke producer in the European Union in terms of production volume. The offering is expected to comprise existing shares to be offered by the State Treasury of the Republic of Poland. JSW also announces that on 12 May it filed a Polish language prospectus with the Polish Financial Supervision Authority.
Group Overview
The Group is the largest producer of high quality hard coking coal and is a leading coke producer in the European Union in terms of production volume. The Group's core business centres on the production and sale of both coking coal and steam coal, and the production and sale of coke and coal derivatives.
Five active mines operate within the Group with an aggregate, 1.932 billion tonnes of JORC coal resources and 552 million tonnes of JORC coal reserves. The Group intends to extend its coal reserves to 844 million tonnes, which the Company believes will enable it to maintain its strong position in international markets for the next 60 years. The Group's total mining area of approximately 170 km2 is located in the south-western portion of the Upper Silesian Coal Basin, which is Poland's primary coal mining area. Overall, these resources are among the largest high quality coking coal resources in the European Union.
The Group also owns and operates the Koksownia Przyjazn coking company which with five coking batteries is the largest non-integrated (i.e. not operating within a steel mill business) coke producer in the European Union. The acquisition of a second coking company, KK Zabrze, with four coking batteries, is underway. Completion of the final agreement on the acquisition of KK Zabrze is conditional upon Pricing of the Offering. The Group is also the majority owner of Polski Koks, one of the world's largest coke sellers in terms of sales volume.
The Group intends to focus on the most crucial and profitable investment projects, continue to implement cost optimisation activities, exploit synergies between its coal mining and coking operations and further exploit the benefits resulting from economies of scale of its operations.
Coal Operations
In 2010, the Group produced approximately 13.3 million tonnes of coal and sold approximately 13.1 million tonnes. Of this amount, approximately 9.2 million tonnes of coal were sold to external customers consisting of approximately 5.2 million tonnes of coking coal and approximately 4.0 million tonnes of steam coal, corresponding to 75.2% and 24.8% of the Group's revenues from external sales of coal, respectively. The remaining volume of coal (3.9 million tonnes) was used by the Group predominantly in its coking operations. Approximately 7.3 million tonnes (82.9%) of the 8.8 million tonnes of coking coal sold was hard coking coal.
In the first three months of 2011, the Group produced 3.2 million tonnes of coal and sold approximately 3.5 million tonnes, with approximately 2.4 million tonnes sold to external customers. 1.5 million tonnes of coking coal were sold to external customers of which approximately 93% was hard coking coal. 1.1 million tonnes of coal was used by the Group predominantly in its coking operations.
Coking Operations
In 2010, Koksownia Przyjazn sold approximately 2.5 million tonnes of predominantly metallurgical coke, corresponding to PLN 2,627.5 million, or 36.1% of the Group's revenues and in the first three months of 2011 Koksownia Przyjazn sold approximately 0.7 million tonnes of predominantly metallurgical coke, corresponding to PLN 811.5 million, or 35.8% of the Group's revenues. In 2010, KK Zabrze produced approximately 1.2 million tonnes of metallurgical and industrial heating coke. In the first three months of 2011, KK Zabrze produced approximately 0.3 million tonnes of metallurgical and industrial heating coke. Both coking plants produce high quality coke using the Group's coking coal as well as, to a lesser extent, utilising coal from third parties amounting to approximately 13.7%.
The Offering
Citi (comprising Citigroup Global Markets Limited, Bank Handlowy w Warszawie S.A. and Dom Maklerski Banku Handlowego S.A.), Goldman Sachs International, J.P. Morgan Securities Ltd. and UniCredit (UniCredit CAIB Poland S.A. and UniCredit Bank AG London Branch) are acting as Joint Global Coordinators and Joint Bookrunners.
Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna Oddzial - Dom Maklerski PKO Banku Polskiego w Warszawie is acting as Joint Bookrunner and Offering Agent in connection with the Offering. IPOPEMA Securities S.A. and Société Générale Corporate & Investment Banking are acting as Joint Bookrunners and Dom Inwestycyjny BRE Banku and Wood & Company Financial Services, A.S., Spólka Akcyjna, Oddzial w Polsce are acting as Co-Managers.
The Offering and listing on the Warsaw Stock Exchange will be subject to receipt of all necessary regulatory approvals, including the relevant registrations, approvals and / or notifications by the Polish Financial Supervision Authority, registration with the Polish National Depository for Securities and admission to trading on the main market of the Warsaw Stock Exchange.
The Offering will be made available to retail and institutional investors in Poland and to selected institutional investors abroad and is expected to be complete in Q3 2011, subject to market conditions.
Aleksander Grad, Minister of State Treasury, said:
"The JSW public offering will be one of the most important transactions on the Polish capital market in 2011 and a landmark event on the Polish and European coal market. Given the expected significant value of the transaction, we plan to offer JSW shares to a wide audience of institutional investors in Poland as well as to foreign investors worldwide."
JarosLaw Zagórowski, JSW's Chief Executive Officer, said:
"Since its inception in 1993, JSW has grown into a major force in the European coal and coke market. The public offering of the Company's shares will serve as the next stage in JSW's development, as we aim to further strengthen our position as leaders in the market.
"Our innovative strategy, focused on expanding reserves, increasing production and maximizing efficiency, will ensure we are well placed to meet growing demand and provide real value for our shareholders."
Notes to Editors
Summary of Financial and Operating Information
The table below sets forth certain key performance indicators of the Group for the first three months ended 31 March 2011 and 2010 and the years ended 31 December 2010, 2009 and 2008.
Selected data from
Consolidated Financial
Statements* For three months ended For years ended 31
(PLN in million) 31 March December
2011 2010 2010 2009 2008
Sales revenues 2,267.2 1,483.7 7,288.9 4,470.1 7,646.1
Gross sales profit / 953.2 359.9 2,562.0 (152.5) 2,057.3
(loss)
EBITDA** 989.7 410.3 2,770.5 33.7 1,889.8
Net Income 619.4 149.3 1,501.9 -669.1 806.0
| | Prepared | in | accordance | with | IFRS |
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