In reference to an electronic publication, concerning the amount of € 55 billion as estimated value for lignite reserves, it is noted that:
Since the IPO of PPC in December 2001, and in accordance with the generally accepted accounting principles as well as the International Financial Reporting Standards, the Company includes in its financial statements which are audited by Certified Accountants, the value of the extracted lignite reserves (cost of extraction) or purchased lignite (purchase cost) which have not been consumed. Consequently, the lignite which has not been extracted is not valued and, thus, is not reflected in the financial statements of the Company. For this reason, it is obvious that in any case, the Company can not, by any means, comment on the publication about the lignite reserves worth of € 55 billion since they are not included in its assets and therefore not valued by the Company.
Based on the Company’s reported financial statements as of 31.3.2011, the value of the assets of the Mines Business Unit (land and mining equipment, machinery, works under construction, etc.) amounts to € 1.5 billion, while the value of the extracted and non-consumed lignite reserves, at the same date was € 44 million.
Regarding the share price of PPC, it has declined, since the beginning of the year and up to August 3rd 2011, by 28.8%, compared to a 28% drop of the FTSE20 index of the ASE and a 39% drop of the FTSE Bank index over the same period.
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