SELECTED ASPECTS OF FINANCIAL PLANNING AT MINING COMPANIES

Abstract

Corporate financial planning is a continuous process of detailing methods of achieving financial targets. It constitutes a significant element of the entire planning cycle of a company (Fig. 1). It is considered that the main purpose of company operations is to maximise the market value of its shareholders’ equity [5]. Frequently its basic purpose is defined as its survival, which requires maintaining liquidity. Corporate financial planning is necessary because the company aims to maximise value and remain liquid. The main objectives of company operations, which include maintaining liquidity and raising value are financial in nature, so the degree of their achievement can be assessed using financial measures. Financial planning constitutes an indispensable tool for achieving priority objectives of the operation of any economic entity [7]. The introduction of new, completely different rules of commerce in the 1990s forced the mining sector to make radical changes, also in its organisation and management sphere. The current structure of the hard coal mining industry is clearly dominated by multi-facility mining enterprises. The largest is Kompania Weglowa SA comprising 16 mines, followed by Jastrzebska Spolka Weglowa SA (6 mines) and Katowicki Holding Weglowy SA (4 mines and 1 subsidiary mine — KWK (Hard Coal Mine) „Kazimierz Juliusz”) and other important players: Lubelski Wegiel Bogdanka SA as well as Poludniowy Koncern Weglowy SA [1].