In the first three months of this year, the JSW Group produced more than 3.2 million tons of coal, up 13.1 percent, and nearly 0.8 million tons of coke, up 7.1 percent from Q1 2025. At the same time, compared to the fourth quarter of 2025, coal production was down 7.3 percent, while coke production fell by 11.3 percent. One positive sign is that during this period, the mining cash cost fell by 8.9% to PLN 631 per ton, while the cash conversion cost (CCC) dropped by as much as 28.5%. The Management Board's cost targets for this year are even more ambitious.
When comparing the first quarter of 2026 to the fourth quarter of 2025, the average prices of coking coal and coke were PLN 722.39 per ton (an increase of 9.2 percent) and PLN 923.58 per ton (an increase of 4.2 percent), respectively. Total sales revenues, in turn, came in at just under PLN 2.1 billion, down 12.6 percent from Q4 2025.
- In the first quarter of 2026, we observed a slight rebound in coking coal prices. This is a positive sign for our company, but the current market environment remains very challenging. Therefore, the consistent implementation of the restructuring program, which aims to restore operational efficiency, is crucial for JSW’s future. An important part of this process will be the implementation of one-off cash severance payments and the use of miners’ leave, which are intended to support workforce optimization and improve JSW’s operational efficiency - said Bogusław Oleksy, acting president of the JSW SA. management board. - At the same time, we are taking steps to secure the necessary financing for the JSW Group’s operations. A key element of this process will be the ability to secure financing through a loan from ARP, as provided for in the amended provisions of the Act, as well as the further diversification of commercial sources of capital - added Bogusław Oleksy.
As for the JSW Group’s capital expenditures, cash expenditures surpassed PLN 630 million, or 20.7 percent less than in the previous quarter. These were primarily capital expenditures related to the acquisition of new longwall shearers and the opening of new deposits and mining levels.
In light of the JSW Group’s difficult financial position, the Company’s Management Board is continuing its intensive efforts aimed at improving liquidity and stabilizing operations. In the fall of 2025, work began on a comprehensive restructuring plan, which included cost optimization, simplification of the organizational structure and renegotiation of financing terms with financial institutions. A key element of the restructuring process was the agreement reached in February 2026 with the trade unions to align labor costs with the Company’s financial capacity.
Jastrzębska Spółka Węglowa is also prepared to implement the measures provided for in the Act on the Functioning of the Mining Industry, including enabling employees to take mining leave and receive one-off cash severance pays. This is a key component of the restructuring process, helping the Company to ensure a smoother transition through organizational changes and aligning staffing levels with the Company’s current needs.
In March of this year, JSW signed a preliminary agreement to sell PBSz and JZR to the Industrial Development Agency (ARP), which will provide the Company with over PLN 1 billion in funds to support the implementation of its restructuring program. An additional factor helping to stabilize the Company’s situation is the amendment to the Act on the System of Development Institutions, whose provisions allow ARP to grant loans to companies of strategic importance to the economy, including JSW. This proposal – introduced to the Sejm by Silesian lawmakers and developed by the Ministry of State Assets in cooperation with the Ministry of Energy – is a key component of the implementation of the February 2026 Implementation Memorandum of Agreement and will provide the Company with access to the necessary liquidity instruments. At the same time, JSW’s Management Board is taking steps to secure commercial financing on international markets, which is intended to enable the consistent implementation of the restructuring program.
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The JSW Group is the European Union’s largest producer of high quality coking coal and a significant producer of coke used to produce steel. Coking coal has the status of a critical raw material for the European economy for the fourth time, i.e. a raw material of strategic economic importance at risk of supply disruption due to the high concentration of its production outside the European Union.
