MBF Group
The Management Board of MBF Group SA announces that on January 10, 2023, the Issuer signed a strategic contract for the sale of hard coal. The agreement was made with a company based in Lithuania. Under the signed Agreement, the company has contracted to sell up to 360,000 tons of hard coal of 5-20 mm sort to the Contractor over the next 12 months.
The commodity contracted at the Balkan mine will be used for the execution of the aforementioned Agreement first, the Company announced in Current Report No. 27/2022 dated December 7, 2022. The parameters and quality of this raw material were unreservedly accepted by the Contractor. Regardless of the above, the Issuer will strive to increase its raw material purchasing base in order to fulfill and fulfill the signed Agreement in 100%.
As a first step, we will make efforts to increase the allocated quota of 100,000 MT. We do not rule out that negotiations with the mine authorities will be required. The first activities have already been undertaken, and we are waiting for an invitation to talks or a repeat visit to the Balkans. This will show that it is close to success and agreement.
In our opinion, the concluded Contract is strategic and crucial to the Company’s future, its estimated revenues and profits, and its market position. According to the schedule agreed with the Contractor, a preliminary distribution of hard coal deliveries was adopted, based on which it was decided that as early as February 10,000 tons should be delivered, in March 20,000 tons, and from April and in the following months – no less than 30,000 tons of raw material.
Based on the above, the Board estimates that the implementation of the above. deliveries should bring the Issuer revenues of no less than: $1,500,000 USD / February, $3,000,000 USD / March and $4,500,000 USD / each subsequent month of the Agreement. Due to the great significance of the Contract and its importance for the Company, the Issuer will inform about the values of individual transactions by separate current communications.
The contract was concluded for a period of one year with the possibility of renewal, and its provisions will apply to all subsequent transactions completed by the parties. The other terms of the Agreement do not deviate from the commonly used standards. The Company is required not to provide detailed transaction terms in view of the fact that disclosure of such information could harm the competitive position and legitimate interests of the parties.
