Despite challenging market situation and results being under the pressure of coal price drops, the Company’s profitability ratios remain at a level higher than average, which may be illustrated with EBITDA margin amounting in the third quarter of 2014 to 36.4%.

Such a high yield in the third quarter was a result of launching, in September this year, of the new Mechanical Coal Processing Plant which is at the stage of a start-up.

Lubelski Węgiel BOGDANKA S.A., the most modern and efficient hard coal mine in Poland, in connection to the information it received on 8 September 2014, of a negative outcome regarding its application for the mining licence for the K-6-7 area, announces that it has applied for reconsideration of the case.

Lubelski Węgiel BOGDANKA S.A. announces that it intends to promptly apply for reconsideration of its application for the mining licence for the K-6-7 area; LW BOGDANKA has recently received information of a negative response to the application.

EBITDA for that period amounted to PLN 304.3 million, EBIT reached PLN 126.7 million and the net profit exceeded PLN 91.4 million. Despite challenging market situation and results being under the pressure of coal price drops, the Company’s profitability ratios remain at a level higher than the average recorded in the industry.

Lubelski Węgiel BOGDANKA S.A. obtained the K-3 area mining licence and the Ostrów deposit exploration licence.

Along with the K-3 area licence, the Company filed an application for the mining licence for the K-6-7 area (decision is pending).  LW BOGDANKA is also trying to obtain an exploration licence for the Ostrów deposit (relevant application was filed already in March 2013).

Lubelski Węgiel BOGDANKA S.A., the most advanced and effective hard coal mine in Poland and the leader in the domestic market for power coal producers, extracted 2.02 million tonnes of commercial coal in the second quarter of 2014. This result is comparable in amount to the one achieved in the same period last year when the extraction reached 2.05 million tonnes. Cumulatively in the first half of 2014 the Company extracted 4.25 million tonnes of commercial coal, which represents an increase of 4.2% as compared to the same period of the previous year. 

The Lubelski Węgiel BOGDANKA Group, with its Parent being Lubelski Węgiel BOGDANKA S.A. – the most modern and efficient hard coal mine in Poland and domestic leader on the market of power coal producers, showed in the first quarter of 2014 good results, in spite of difficult situation in the market. Revenue amounted to PLN 481.5 million (increase of 11.8%), EBITDA was PLN 174.1 million (increase of 0.9%) and EBIT was nearly PLN 86 million (decrease of 4.2%). The net profit reached PLN 62.6 million (decrease of 10.7%). Although decreased prices of coal affected profitability, the Company’s profitability ratios have remained at a level higher than average in the industry, which is shown for example by EBITDA margin of 36.2% after the first quarter.

The level of commercial coal production in the first quarter of 2014 was in line with the plan and amounted to 2.24 million tonnes, which means that it was higher by 10.2% than a year before and higher by 6.2% than in the fourth quarter of 2013. LW BOGDANKA upholds production assumptions for the entire 2014 at a level of 9.3 to 10 million tonnes.  

At the end of March 2014, Lubelski Węgiel Bogdanka S.A. signed an annex to the Long-Term Agreement for the Sale of Power Coal of 19 July 2011, concluded with EDF Paliwa Sp. z o.o. (formerly Energokrak Sp. z o.o.).