Bogdanka has presented its financial and operating results for 2022

In 2022the Company realized a production plan of 8.4 million tons and a sales plan of 8.4 million tons. A total of nearly 33 kilometers of roadway works were completed. In Q4 alone, production reached 1.2 million tons. The average yield at the end of 2022 was 66.2%, up from 69.4% a year ago.

We achieved a good financial result, despite the geological difficulties experienced in the third quarter of last year. This is due to the hard work and great commitment of our entire staff. We are optimistic about what lies ahead for Bogdanka in the future. The acquisition of shares by the State Treasury will give the company a developmental boost, and the new strategy will bring answers to questions about the directions of Bogdanka's development in the coming years.

said Kasjan Wyligała, President of the Management Board of Lubelski Węgiel Bogdanka S.A.

The Company maintained its strong market position, reaching a market share of 21.7% in steam coal sales by the end of 2022, and a market share of 27.1% in steam coal sales to the commercial power sector. More than 76% of sales generated during the year were made to, among others, Enea Wytwarzanie sp. z o.o., Enea Elektrownia Połaniec S.A. and Grupa Azoty Zakłady Azotowe Puławy S.A.

Despite unfavorable geological conditions and Bogdanka's production profile aimed mainly at the supply of fine coal to the commercial power generation segment, we were making every effort to ensure the availability of heating coal for municipalities in the Lubelskie Voivodeship, to the extent of our production capacity. In close cooperation with the Ministry of State Assets and the Lublin Voivodeship Office, the Company delivered coal to 152 municipalities before the end of 2022.

said Dariusz Dumkiewicz, Vice-President of the Management Board for Trade and Investments at Lubelski Węgiel Bogdanka S.A.

In 2022the LW Bogdanka Group incurred capital expenditures in the range of PLN 609.1 million. The largest chunk of this amount, PLN 449.8 million, was spent on new roadways and modernization of existing ones.

LW Bogdanka is back to mining on an average of three to four longwalls per year. In this way, we can respond efficiently to market needs and react flexibly to geological and mining conditions encountered. Our main goal is to maximize the utilization of the production potential while fully maintaining safety procedures for the crew and equipment.

said Adam Partyka Vice-President of the Management Board, Labor and Social Affairs at Lubelski Węgiel Bogdanka S.A.

I assess Bogdanka's economic performance for 2022 as good. We have generated these results by taking advantage of the demand for hard coal from Polish industry as well as retail customers. In the first half of the year, the Company achieved production levels that were about 7% higher than the assumptions made at the beginning of the year. The geological problems in Q3 2022 had a significant impact on the final production result, which, in turn, affected the recorded financial results. The net profit of more than PLN 175 million was achieved on the basis of higher contract prices and strict cost control.

said Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs at Lubelski Węgiel Bogdanka S.A.