News Parkiet

Mining

KGHM mulling new coal mine

KGHM copper mining group is considering plans to build a new open-pit coal mine, extending operations after it runs out of its main resource.

State-owned mine holding says it may be able to secure mining license covering 4 billion ton lignite deposits around the town of Legnica, near its home base in southern Poland.

Most of KGHM?s existing copper mining licenses expire in 2013. CEO of Turów power plans says his company may also be interested in using lignite as fuel to generate electricity.

There are no specific estimates about the cost of new coal mine at this stage. However, industry sources say the project could easily cost much more than the 1 billion dollar Sczerców pit build by Elektrownia Bełchatów power plant.

Separately, regional politicians from the opposition PiS (Law and Order) party said they would seek dismissal of KGHM?s chief executive Stanisław Speczik because of his plans to give top management company stock worth 300 million zloty. KGHM has since backed down from this proposal.

Equity market

DI BRE tries to recover money lost in futures? market scandal

Dom Inwestycyjny BRE brokerage house has asked Warsaw district attorney to unfreeze the account containing funds seized from tax heaven-registered holding company involved in a scheme to manipulate WSE futures market.

BRE was forced to pay about 400.000 zloty in its own money because Polish authorities froze the account of its client, Virgin Islands-registered Cagliari. Warsaw?s DA seized the account containing as much as 6.5 million zloty after three rogue brokers from DI BRE and BDM PKO helped some of their clients gain an estimated 2.5 million zloty manipulating the market for WIG20 index futures.

Outsourcing

Impel wins contract for PKO BP

cleaning services

Publicly traded cleaning, catering and security company Impel S.A. said it has signed a new contract to provide cleaning services at the approximately 800 branches of PKO BP bank in key Polish cities.

Wrocław-based Impel estimates five-year revenue stream from the new contract at PLN 56 million, or 14.7 million dollars. That compares with this year?s projected sales of PLN 537 million, some 20 percent higher than last year.

One analyst who follows the company, DM BZ WBK?s Krzysztof Socha welcomed the new contract, saying cleaning and security services represent better growth opportunity for Impel than catering services outsourced by public hospitals.

On the WSE, Impel rose almost 4.3 percent to close at 26.8 zloty after the announcement.

Telecommunications

PTC?s net almost doubles in 2003

Net earnings of Deutsche Telekom and Vivendi subsidiary Polska Telefonia Cyfrowa rose 89 percent to a record 654 million zloty ($171 million) last year, company representatives said at yesterday?s press conference.

Sales were up 13.6 percent to PLN 5.6 billion, while EBITDA margins remained relatively steady at 37.6 percent despite price cuts and higher number of prepaid users.

PTC, better known by its Era brand had just over 6.2 million subscribers at the year?s end. Prepaid users accounted for 54 percent of the total.

PTC also said it will consider paying out its first ever dividend of 450 million zloty ($112 million).

PTC?s ownership is split between T-Mobile, which controls 49 percent stake, France?s Vivendi and Polish industrial group Elektrim, each of which owns roughly half of the remaining shares.

Equity markets

PBG announces IPO to raise money

for growth plans

PBG pipeline maintenance and services company plans to raise ?tens of millions of zlotys? in an IPO scheduled tentatively for summer holiday period. Formerly known as Technologie Gazowe Piecobiogaz will file its prospectus with the Polish SEC within a few days. Poznań-based firm says it needs the money to expand its operExisting shareholders, including the founder and CEO Jerzy Wiśniewski will retain 70 percent stake in the company after the IPO.

PBG also said yesterday its earnings last year totaled 11.3 million zloty, up 40 percent from the year before. Sales were up 16 percent to PLN 181 million.