Budryk and Borynia mines under mortgage. JSW is implementing a rescue plan

The Extraordinary General Meeting of Jastrzębska Spółka Węglowa agreed to establish security interests in the assets of the Budryk and Borynia mines in connection with the preliminary agreement on the sale of companies belonging to the JSW group: Przedsiębiorstwo Budowy Szybów (PBSz) and Jastrzębskie Zakłady Remontowe (JZR) to the Industrial Development Agency.

JSW announced this in Tuesday's current report. March 4 this year JSW informed about the convening on March 31 this year. extraordinary general meeting of the company with draft resolutions related to the preparation of sales processes of part or all of the PBSz and JZR shares held by JSW.

On March 9, JSW informed about concluding a preliminary agreement for the sale of shares in both companies with ARP. JSW sells 95.81 percent. PBSz shares for PLN 274.4 million and 59.39 percent shares in JZR for PLN 791.6 million. The total price of PBSz shares and shares in JZR will be PLN 1,066 million. ARP will pay JSW PLN 400 million in advance.

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The transaction is part of JSW's activities in the field of divestment, improvement of liquidity and financial stabilization. The funds obtained by the company will be used for the current operations of JSW – it was explained on March 9.

Restructuring at JSW is gaining momentum

According to Tuesday's report, the extraordinary general meeting adopted resolutions on the day on establishing mortgages on the real estate of the Budryk mine and registered pledges on the set of movable items constituting the property of this plant, as well as establishing mortgages on the real estate of the Borynia mine and registered and ordinary pledges on the assets of this mine in favor of the Industrial Development Agency.

As explained in the first resolution, security on Budryk's real estate and assets was made in connection with the concluded annex to the consortium agreement regarding financing in the sustainability-linked loan formula, which, among other things, allows JSW to sell the shares of PBSz and JZR to the Industrial Development Agency. JSW obtained a “green” loan in the amount of PLN 1.65 billion from a consortium of financial institutions in 2023, aimed at achieving the company's climate transformation goals

In turn, Tuesday's second resolution consents – in connection with the sale of PBSz and JZR – to the establishment of additional security for ARP's receivables.

Another resolution adopted on Tuesday lowers the multipliers that translate into the amount of remuneration for members of the JSW supervisory board (from the Act on the principles of shaping the remuneration of persons managing certain companies): from 1.7 to 1.55 for the chairman of the board and from 1.5 to 1.35 for other members of the board.

They are cutting salaries on the JSW Supervisory Board

On Thursday, March 26 this year. Deputy Minister of State Assets, Grzegorz Wrona, referring in the Sejm to questions from PiS MPs about the remuneration of current JSW management staff, emphasized that they have already been reduced in the JSW management board, and the extraordinary general meeting is also to reduce them in the supervisory board.

In the report of March 4 this year JSW explained that the intention to sell the companies PBSz and JZR is related to previous information regarding the business restructuring process in the scope of activities aimed at obtaining funds from the sale of assets – shares and shares in JSW's subsidiaries.

On February 13, the company signed agreements with unions, including: suspending some employee benefits. The suspension agreement adopted by employees in a referendum on February 12 this year, like the planned sale of some assets, is an element of a broad restructuring plan aimed at improving JSW's financial situation and securing its future in the face of difficult market conditions.

JSW bought PBSz, a company with 80 years of tradition, for over PLN 200 million from a company from the Famur group in 2019. JZR was established in 1998 as a result of the transformation of the Warsztaty Remontowe unit, which was previously a subsidiary of JSW.

Jastrzębska Spółka Węglowa is trying to fill the hole

The JSW Capital Group is a joint-stock company, the largest producer of high-quality coking coal in the EU and one of the leading producers of coke used to melt steel. The core business of the JSW group is the production and sale of coking coal as well as the production and sale of coke and carbon derivatives. JSW mines in four mines: Borynia-Zofiówka, Budryk, Knurów-Szczygłowice and Pniówek. The company is listed on the Stock Exchange.

JSW had a cumulative net loss of PLN 2.9 billion after three quarters of 2025. Sales revenues amounted to PLN 7 billion, and the EBITDA result was minus PLN 1.4 billion. In the third quarter alone, JSW generated PLN 2.3 billion in sales revenues, with a gross loss on sales of PLN 524 million. EBITDA excluding one-off events amounted to minus PLN 485 million and the net loss was PLN 794 million.

JSW initially declared the publication of the standalone and consolidated annual report for 2025 on March 26 this year, but on March 11 this date was postponed to April 28 this year.

mtb/drag/