Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby reports that it has completed asset impairment tests of Jastrzębska Spółka Węglowa S.A. in accordance with the provisions of IAS 36 Impairment of Assets.
The results of the tests carried out by JSW point to impairment of the carrying amount of non-current assets in the coal segment pertaining to the assets of the “Jastrzębie-Bzie” Coal Mine, in the amount of PLN 430.9 million. The main reason for the decline in the recoverable amount of assets is the adverse impact exerted by the SARS-CoV-2 coronavirus on the economy by reducing steel production capacity, which drives down coal prices, causes a partial loss of revenue and necessitates adjustment of investment plans.
The impact of the pandemic on other cash-generating units is not greater than the loss recognized to date as a result of the impairment of assets, meaning that there is no need to recognize any additional impairment losses on this account.
Recognition of the impairment loss will reduce the operating result of JSW and the Group but will not impact their liquidity position. The final value of the impairment loss will be presented in the standalone and consolidated financial statements of JSW and the JSW Group, respectively, for H1 2020.
Please be advised that the above figures are estimates and are subject to change.
Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.