Coal price hikes drive Polish miner Bogdanka

Lubelski Wegiel Bogdanka SA

02/01/2023 08:43

** Shares of Polish hard coal miner Bogdanka  LWBP.WA  rise
10%, extending previous session's gains on contractual price
hikes
    ** On Friday Bogdanka said it had signed annexes, increasing
the value of its long-term deals with Polish utility Enea
 ENAE.WA  units  urn:newsml:reuters.com:*:nFWN33K0T8, urn:newsml:reuters.com:*:nFWN33K0NU 
    ** Bogdanka shares have surged over 50% since announcing the
updates
    ** "Good news for Bogdanka. Higher coal prices with the main
client may mean over 1 billion zlotys of additional revenue for
the company in 2023," Erste Securities analyst Jakub Szkopek
wrote in a note
    ** He pointed out that price hikes for other customers were
possible
    ** "If Bogdanka similarly increased prices for Grupa Azoty
 ATTP.WA , it would mean over 100 million zlotys of additional
costs per year for the producer of fertilizers," Szkopek added
    ** The group's shares gained 56% in 2022
 (Reporting by Karol Badohal)
 ((karl.badohal@thomsonreuters.com))