Lubelski Węgiel Bogdanka plans to spend more than PLN 934 million on investments. For comparison, in 2009 the mine spent PLN 380 million on that purpose.
 “The Company faces problems with bidders in the tender for construction of a mechanical coal processing plant, as those whose bids were rejected, filed protests against the proceedings. That fact can cause a half-year delay to the investment,” says Mirosław Taras, the President of Bogdanka. He admits that the forecast of increasing the coal output to 7 million tonnes in 2011 is now threatened because of the protests.
“Nevertheless, next year the output will be higher than this year and it will reach 5.3-5.4 million tonnes as our processing plant has still extra capacities,” explains Mirosław Taras. He also emphasises that, as it was announced before, the extension of the production is not at risk and will double in 2014, reaching 11.1 million tonnes thanks to the construction of the Stefanów Field. The whole investment will cost PLN 1.5 billion. Bogdanka obtained PLN 528 million from the last year’s share issue. The Company does not rule out a new share issue and plans an offer worth PLN 300-500 million.
Yesterday the mine (private since March, after the State Treasury had sold majority shareholding to pension funds) has declared the results for 2009. They are not different than those before the audit and amount to PLN 190.8 million net profit with income exceeding PLN 1.11 billion. The Management Board is not declaring any forecasts for 2010.
 “We have to consult that with the company’s owners,” says Taras.
Now the biggest blocks of shares of the company are held: OFE PZU Złota Jesień (9.76%), ING OFE (13.01%), AVIVA OFE BZWBK (16.33%).
The Management Board of Bogdanka sustained the declaration contained in the issue prospectus – until 2011 they will not recommend dividend payout.
 “The plans regarding the investment outlays assume leaving the whole profit in the Company,” says Taras.
On Wednesday the Company launches one of its largest investments, the coal-ploughing complex used in exploitation of thin coal seams which was bought from Bucyrus for EUR 39.5 million. “The mechanical coal miner will reach full output capacity of approximately 10 thousand tonnes per day in approx. three months,” says Zbigniew Stopa, the Vice-President of Bogdanka. “Our team has already participated in trainings in Germany and in Zofiówka mine where such a machine is used,” he adds.
Yesterday the price of Bogdanka shares were increasing until noon by 6%. The closing price of the securities increased by 0.3% to 77.752*
KBAC23-03-2010 PARKIET