CEZ and Czech Coal (CC) will reportedly sign a contract within a matter of days for deliveries of coal from CC’s Vršany mine to CEZ’s Pocerady power plant until the mine is exhausted in 30-50 years. The deal is worth 200 bln. CZK. The coal will be priced initially at CZK 39 per GJ and will later be tied to the black-coal price. / In-line with previous speculations, therefore should be NEUTRAL for CEZ shares; CEZ depends on Czech Coal deliveries for about 8.5m tons of coal a year. We estimate CEZ’s cost with external brown coal deliveries to be 2.5-3 bln. CZK in 2012 with an estimated price of CZK 31-33 per GJ. CEZ should thus pay of about 600-700 mln. CZK more this year (i.e. 1.7% of NI).