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"By the end of the week, we will release a message about further steps, but realistically it is a matter of several months, with approval and corporate consent, so that we will be able to develop a structure [transaction]," said Ozon in a conversation with Parkiet TV.
"The conversations between companies are purely business and I think that we can work out a solution that would make arbitration unattended," the president also pointed out.
Earlier in February, Prairie formally informed the Polish government that a dispute arose in connection with the Polish authorities taking actions violating the Energy Charter Treaty and bilateral investment protection agreements signed by Poland with the United Kingdom and Australia. The company said that it counts on an amicable settlement of the dispute, but takes arbitrage into account.
Financing for the construction of a new mine
At the end of the third quarter of 2018, JSW had PLN 2.4 billion in cash and PLN 724 million in loans, borrowings and bonds. In addition, the company had PLN 1.5 billion in the stabilization fund. The high prices of coking coal maintained in the fourth quarter of 2018 and at the beginning of 2019 will certainly keep the company's high profitability and, therefore, have the potential to increase cash in the company at least at the beginning of this year.
This time, the government, basing on the bad experiences of companies from the past (resulting, among others, from the high economic situation in global coal prices), is trying to build up financing for new, strategic investments with a greater capital reserve. These include the construction of the new Jan Karski mine in the Lublin Coal Basin and the start of use of the Debiensko deposit, which is adjacent to the Szczyglowice infrastructure.
The concessions for these two deposits are now held by the Australian Prairie Mining, with which JSW has been negotiating the acquisition terms for a long time. It seems that the acquisition is only a matter of time and price. JSW has the possibility of taking over the whole company by calling. The current capitalization of Prairie on the stock exchange is around PLN 200 million, but the price may include the premium for taking control.
The second option is buying back individual projects. Then JSW will have to invest very large amounts of money for the construction of mining infrastructure. The new Jan Karski mine may cost several billion zlotys. In Debiensk, however, you will not have to start from scratch, because the use of these resources can be started without the need to build a new shaft using the infrastructure of Szczyglowice. In addition to potential expenses for new projects, JSW will carry out other investments estimated at PLN 1.4 billion annually, compared to an annual depreciation of approx. PLN 800 million.
"Listed coal miner JSW may seek to return to paying a dividend and mull a share issue as a way to raise money for investments, CEO Daniel Ozon told Parkiet TV."
"PRAIRIE MINING -Talks on taking over assets from Prairie Mining continue and the company will by the end of the week announce its next steps on the matter."
http://biznes.pap.pl/en/news/all/info/2680709,highlights:-jsw-coal-to-seek-dividend-payout--mull-share-issue---ceo
There is a 23 min interview with Daniel Ozon dated today on www.rp.pl Is he saying anything new ?
There is suppose to be a programme today regarding the potential takeover of Prairie mining at 12 o clock today
on www.parkiet.com and www.rp.pl.Later, the conversation will be available on the Parkiet TV channel on You Tube.
Taken from Hot Copper posting by Butzbuster.
Only problem it is in Polish!
It is actually extremely bad publicity for a country in the EU to be behaving as if it were a former soviet union colony where fairness and democracy are controlled by the state. Wouldn't encourage me to set up my next manufacturing plant in Poland whatever the grants.
It doesn't send out a very good message for companies that may want to invest in Poland.
I cannot see the Polish government wanting to see the bad publicity that a court case would bring. IMO
JSW are Europe' s largest coal producer and the largest supplier of coke 34.
I think the frustration Prairie have with the MOE and the internal politics surrounding the CEO of JSW
and lack of progress made over the past 14 months re co-operation and possible a deal ,has
forced Prairie to make a stand. It cannot be in any ones interest to have the resource sitting in the ground
indefinitely. A lot of Coke 34 is imported from Australia at present and Prairies assets can be produced
a lot cheaper. It would also create a lot of employment in the area.
As far as I can understand it from reading the Hot copper website PDZ have gone to international arbitration against the Polish Government claiming 8-10 billion Zloty (£2Billion) on account of polish government delays on giving consents on the 2 mining projects. Obviously DYOR but I suspect that it is probably correct in generality, but obviously will take months/years to play out. I don't think the fact that PDZ have instituted litigation proceedings necessarily requires a RNS. It is just part of the ongoing shenanigans with the polish government, who as far as I can see have been trying to run the clock down against PDZ to enable JSW to buy the mines more cheaply. As I say DYOR as nothing is 100% clear. The market obviously supports the move, and I do too.
Someone posted that Prairie are suing for a substantial amount in court for compensation.
As there has been nothing confirmed it may just be another poster wanting to make a quick buck
Lets wait and see iff we get an RNS at some stage. Seems strange that there has been a few buys this morning
Suggest we wait and see.
back to snoozeville for this company...1
I assume the price drop is reflecting ASX and poland trading?
Seems like a few have given up.
Nevermind
Am I missing an RNS?
Thus the reason why sp falling. They are burning cash while they cant move forward with their plans. Really sad.
Thanks guys
to post link,
gornictwo.wnp.pl/ministerstwo-energii-napiecia-w-jsw-mamy-za-soba,338647_1_0_1.html
You'll need Google translator unless you can unstand Polish.
Try to delete "s" in https:// it's working on my PC
I couldnt open that link can you send again please
Ministry of energy: JSW tension is behind us :
https://gornictwo.wnp.pl/ministerstwo-energii-napiecia-w-jsw-mamy-za-soba,338647_1_0_1.html
At this rate, if a takeover/offer does come, it'll be about 25p!
In so far s the RNS relates to Jan Karski this is good news as it removes the outstanding legal obstacle to sale of JK, price obviously still has to be agreed. THe issue on Debrienko still needs to be resolved, but it is in my view less of an obstacle as it only related to not starting mining by the relevant date. PDZ consider that they have a strong legal position here and hopefully between JSW, PDZ and the authorities a reasonable agreement can be reached
So what is happening with pdz, any progress?
seeks growth through acquisitions
https://uk.reuters.com/article/uk-climate-change-accord-jsw/eus-largest-coking-coal-producer-seeks-growth-through-acquisitions-idUKKBN1O52AO
St Barbara (patron saint of Miners - among others).
This is a review of the state of Polish coal mining in general in Polish. Includes some comments about JSW and the coking coal sector. This includes JSW's improved financial position (and plans to resume dividends) and its plans for new investment.
https://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=search&rurl=translate.google.com&sl=pl&sp=nmt4&u=https://biznes.interia.pl/wiadomosci/news/gornictwo-przed-barborka-wysokie-ceny-wegla-rosnacy-import,2594728&xid=17259,15700023,15700124,15700149,15700186,15700190,15700201,15700237,15700245&usg=ALkJrhhLA6LVx_ckcggNZdAxY0wTzAbsXA#utm_medium=frame&utm_campaign=wyrzucenie_z_ramki&utm_source=undefined