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Thanks to an increase in coal production, Polish coal miner Bogdanka expects profits of more than zł.500 million in 2014, reported Parkiet.

The company's new dividend policy will be announced in the first quarter of this year and will assume annual profit-sharing, the newspaper wrote.

Thanks to a zł.1.5 billion investment in the Pole Stefanów coal field, Bogdanka's production amounted to 5.8 million metric tons in 2011 and is expected to rise to 11.5 million tons in 2014.

Since 2009, the company's board has been opposed to dividend payouts, but shareholders have now decided that the company should share its profits on a more regular basis.

“As of 2013, owners will expect a hefty dividend. Last year, the company paid zł.1.4 per share. For 2011, we expect a dividend of zł.1 per share,” Tomasz Duda, an analyst at Ipopema Securities, told Parkiet.

Recently, Raiffeisen Bank raised its target price for Bogdanka from zł.151 to zł.170, with a recommendation to “buy.”

Poland A.M.