The Group’s current and expected financial standing

The Group's current financial standing is good. No occurrences having a negative impact on its continued operations were recorded. Anticipated for the next 12 months is the maintenance of a sound financial situation, a safe assets and capital structure and the continued ability to settle the Company’s liabilities.

In 2012, the Group developed an action plan for 2013 based on tentative results of the Group companies for 2012 and assumptions for detailed operational plans. The basic assumptions of the plan for 2013 are presented in the following table.

	2013	2012	Growth rate
Production (in thousands of tons)	13,525.0	13,462.4	100.5%
Coking coal (in thousands of tons)	10,048.0	9,469.2	106.1%
Share of coking coal	74.3%	70.3%	4.0 p.p.
Steam coal (in thousands of tons)	3,477.0	3,993.2	87.1%
Production of coke (in thousands of tons)	3,772.8	3,849.4	98.0%
Expenditures on non-current assets (in PLN millions)	1,823.8	1,816.7	100.4%
Headcount – as at 31 December	29,774	29,718	100.2%

download table

The main objective with respect to production defined in the Plan for 2013 will be the optimal utilization of the mines’ resource base and production capacity, and an increase in the share of coking coal production in total production. In 2012, the Group’s mines produced 13.5 million tons of coal compared to the planned 13.3 million tons. In 2013, the Group plans to slightly increase the production level (by 62.6 thousand tons). At the same time, it is assumed that the production volume of coking coal will increase by 0.6 million tons as compared to 2012 (an increase by 6.1%). Thus the share of coking coal in total production will increase by 4.0 percentage points to reach the level of 74.3%.

In 2013, the Group plans to incur expenditures on non-current assets in the amount of PLN 1.8 billion, including PLN 1.4 billion for the Parent Company, which will be earmarked for the following groups of activities:

- securing the mines' planned production capacities (mining work, purchase of technical equipment and upgrades of facilities),
- technical and organizational integration of the Borynia-Zofiówka and Jas-Mos mines,
- expansion of the Borynia-Zofiówka-Jastrzębie Mine, Zofiówka Section, by opening and utilization of the new “Bzie-Dębina 2-Zachód” and “Bzie-Dębina 1-Zachód” coking coal deposits,
- construction of the 1080 level in the Borynia-Zofiówka-Jastrzębie Mine, Zofiówka Section,
- expansion of the Pniówek Mine by opening and utilization of the new “Pawłowice 1” coking coal deposit,
- construction of the 1000 level in the Pniówek mine,
- construction of the 1290 level in the Budryk mine,
- opening the seams in the Zgoń section of the Krupiński mine and the reserves of part of the Żory-Suszec deposit,
- execution of necessary tasks related to environmental protection.
 

Also planned are capital expenditures in the energy and coke areas.

The Group's Plan for 2013 does not assume any significant changes in headcount compared to 31 December 2012. It is estimated that the headcount will increase by 56 persons by the end of 2013.