Montenegro: Higher net profit recorded at Coalmine Pljevlja in 2019, Mining
Pljevlja coalmine’s operating income reached 47.17 million euros at the end of December 2019, which is by 9.1 % more than in in 2018, according to the financial report. The coalmine recorded a net profit in the amount of 9.56 million euros in 2019, which is 43.5 % higher compared to 6.65 million euros profit in the previous year.
At the same time, operating expenses rose by 3.8 %, reaching 35.88 million euros. Salaries, benefits and other personnel expenses reached 14.14 million euros, costs of materials amounted to 9.82 million euros, depreciation and provisions reached 7.57 million euros, while other expenses reached 4.24 million euros. Total assets of Pljevlja coalmine at the end of December 2019 were worth 79.86 million euros, which is 6.7 % more than a year before. The company’s long-term provisions and liabilities amounted to 16.49 million euros, short-term to 12.73 million euros, while deferred tax liabilities reached 1.19 million euros. Retained earnings stand at 13.93 million euros. In April 2018, power utility EPCG announced that it has launched a buyout bid for the entire capital (5,064,443 shares) of Pljevlja coalmine. The bid was valid in the period between 20 April and 4 May and EPCG offered to pay 6.4 euros/share of the coalmine. According to the analysis performed by Deloitte, which said that although the price of Pljevlja coalmine shares stood at 6.9 euros at the end of 2017, the fair price is 6.4 euros/share. According to the decision of the Commission for the Capital Market in early June, EPCG became the majority owner of Pljevlja coalmine.