JSW is in dire straits. "Employees may be shocked by the company's real situation."

• Jastrzębska Spółka Węglowa is in a very difficult situation and is fighting for survival.
• In 2024, it recorded a loss of PLN 7.3 billion (this was mainly due to the recognition of a write-down on non-financial fixed assets in the total amount of PLN 6.4 billion).
• JSW closed the first quarter of 2025 with a loss of PLN 1.36 billion. Here, "the result was significantly impacted by the recognition of a PLN 648 million impairment charge on non-financial fixed assets related to the January fire at the Knurów-Szczygłowice Ruch Szczygłowice mine."

"As trade unions and employees, we are waiting for the management of Jastrzębska Spółka Węglowa to finally tell the truth about the company's situation. Regarding its financial and production situation," Paweł Kołodziej, chairman of the Federation of Miners' Trade Unions of Jastrzębska Spółka Węglowa, emphasized in an interview with WNP.

- The information we are receiving indicates that we are in a tragic situation and that we can already talk about the former stabilization fund, the resources of which have been practically exhausted - adds Paweł Kołodziej.

Unfortunately, the "piggy bank" in the form of the stabilization fund is almost empty.

- The Management Board of Jastrzębska Spółka Węglowa adopted a resolution on granting consent to the redemption of Investment Certificates of JSW Stabilization Closed-End Investment Fund: series A in the amount of 179,274 units, series C in the amount of 67,227 units and series G in the amount of 22,408 units with a total estimated amount of PLN 400 million - the company announced in a press release dated September 9.

The JSW Management Board has consented to the redemption of FIZ Investment Certificates in 2025 with a total estimated value of PLN 3.61 billion.

- After the redemption of the FIZ referred to in this report, the value of the investment in the FIZ asset portfolio according to the valuation of 29 August 2025 after the redemption date is estimated at approximately PLN 0.36 billion - JSW noted in the press release.

"Employees may feel shocked by the real situation at JSW"

"JSW will likely undergo a major restructuring as a result," emphasizes Paweł Kołodziej. "But we expect the management board to finally release information on this matter, as so far the market has been flooded with reports of only 'successes.' Employees should finally be informed of all this, as they are convinced that everything is fine at the company. And they may be shocked by JSW's actual situation," emphasizes Paweł Kołodziej.

In his opinion, it is high time for the management of Jastrzębska Spółka Węglowa to provide detailed information about the company's true situation.

"The government must finally respond to the situation JSW finds itself in. This is about the well-being of tens of thousands of employees and the entire region," concludes Paweł Kołodziej.

Jastrzębska Spółka Węglowa is in an extremely difficult situation, but production data offer some optimism. Between January and August 2025, the company produced a total of 8.44 million tons of coal, which represents 100.5% of its planned production.

JSW emphasizes that despite operational challenges and unfavorable market trends, the company is maintaining a consistent course of action. The implementation of the production plan in the coal segment and the good results in the coke segment confirm that the optimization and strategic actions undertaken as part of the Strategic Transformation Plan are bearing fruit.

In August 2025 alone, JSW managed to produce 1.01 million tons of coal, representing 84% of its monthly plan. The main reasons for the lower production include the effects of an endogenous fire at the Budryk coal mine (a force majeure declaration in May), the early termination of mining operations at some longwalls, and difficult geological and mining conditions.

Coal production at JSW finally on schedule

However, the results did not negatively impact the annual plan implementation. Between January and August 2025, the company produced a total of 8.44 million tons of coal, representing 100.5% of the assumed plan.

The key factor here was the earlier increase in production thanks to the accelerated launch of new longwalls and the incentive measures implemented as part of the Strategic Transformation Plan.

Coal sales in August totaled 1.18 million tons (95.3% of the monthly plan), and year-to-date reached 8.40 million tons, or 100.5% of the plan. Steam coal sales performed particularly well in August, reaching 0.25 million tons compared to the planned 0.19 million tons (135.4%). Coking coal sales, however, were lower than planned (0.93 million tons vs. 1.05 million tons).

The coke segment recorded by far the best results in August. Coke production reached 0.3 million tons, 116.3% of the monthly plan, and sales reached 0.29 million tons, 110.1% of the target. Year-to-date, the company has produced 2.01 million tons of coke (103.9% of the plan) and sold 1.98 million tons (97.8% of the plan). These results were made possible, among other things, by increased capacity utilization at JSW's coking plants.

Jastrzębska Spółka Węglowa needs to launch a voluntary redundancy program as soon as possible

- The situation is such that the first half of the year for Jastrzębska Spółka Węglowa does not look promising - Jakub Szkopek, an analyst at Erste Securities, points out in an interview with WNP.

"Deep losses are looming, both at the EBITDA and net profit levels. For the first time in many years, the company will report net debt. In recent years, cash has been in excess of debt. Financial liquidity is currently a priority for Jastrzębska Spółka Węglowa. Fortunately, the company is managing to increase production in the second half of the year. However, there are no significant cost savings – this is due to salary cuts," points out Jakub Szkopek.

He also draws attention to another important issue for the company.

"If the company were to be refunded the PLN 1.6 billion in so-called solidarity contributions, it would certainly provide an opportunity to improve liquidity and further increase production," emphasizes Jakub Szkopek. "Jastrzębska Spółka Węglowa needs to launch a voluntary redundancy program as soon as possible, which would alleviate the company's high employment costs. The technical aspects of implementing this lie with the owner," concludes Jakub Szkopek.

According to former Kopex CEO Marian Kostempski, the current management board of Jastrzębska Spółka Węglowa is doing everything it can.

"The first results are visible, although there are plenty of problems there. The question is whether the government will support it," emphasizes Marian Kostempski. "And the problem is serious, because it concerns a huge entity, and therefore a large part of the Upper Silesia region," adds our interlocutor.

The Jastrzębska Spółka Węglowa capital group is the largest producer of hard coking coal in the European Union and one of the leading producers of coke used for steelmaking. The production and sale of coking coal, as well as the production and sale of coke and coal derivatives, constitute the core business of the JSW Group.

The nature and scope of the group's operations and products offered remain largely sensitive to changes in the interconnected steel, coking coal and coke markets.

The lack of sufficient domestic supply sources means that the European Union is almost entirely dependent on imports of both iron ore and coking coal. After the Czech company OKD Jastrzębska Spółka Węglowa ceases mining operations in the first quarter of 2026 , it will remain the sole coking coal producer in the European Union.