New World Resources Regulatory News (NWR)

Amsterdam, 18 May 2011

New World Resources N.V.

Unaudited results for the three-month period ended 31 March 2011

New World Resources N.V. ("NWR" or the "Company"), Central Europe's leading hard coal and coke producer, today announced its financial results for the three-month period ended 31 March 2011.

Highlights

·; Consolidated revenues[*] of EUR 385 million, up 17%

·; EBITDA1 of EUR 82 million, up 42%

·; Profit before tax of EUR 11 million1 (EUR 14 million loss in Q12010)

·; Strong operating cash flow of EUR 119 million, up 342%

·; Net debt reduced by 4% to EUR 307 million

·; Continued improvement in safety with mining LTIFR[†] down 3%

·; Coal production of 2,582kt, and external sales of 2,637kt

·; Coke production of 202kt, and external sales of 180kt

·; Coking coal and coke average prices for Q2 2011 agreed at EUR 215/t and EUR 400/t, respectively

·; First phase of Debiensko's detailed feasibility study completed

·; Reincorporation in the United Kingdom completed, with FTSE UK index series inclusion expected in June

·; On track to deliver FY 2011 production and sales targets, as previously announced

Chairman's statement

"The results for the first three months of this year show significant improvements year on year, especially in terms of revenues, due to improved market conditions and increased coal and coke prices.

As previously announced, we expect to extract 11Mt of coal and produce 800kt of coke this year, and we remain on track to do just this. As a result of our continued efforts to increase development works underground, we expect production to ramp up progressively through the year. This will also continue to improve our coal sales mix, which we expect to consist of 50% of coking coal and 50% of thermal coal for the FY 2011, and should also benefit mining unit cash costs later in the year. We further expect to increase production of coking coal towards the end of 2011 with a view to returning to the 60/40 coking coal to thermal coal sales mix in 2012.

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Our decision to adopt quarterly pricing for our coking coal sales allows us to follow the global pricing trends more closely and benefit indirectly from the price influence of growth markets in Asia and other emerging markets. The effects of this decision can already be seen in our negotiated Q2 2011 average coking coal price of EUR 215 per tonne, which implies a premium to global benchmark prices. This premium is due to favourable regional dynamics, as coking coal supply is restricted against increased demand mainly driven by Central Europe's automobile industry.

We have recently completed the first phase of the detailed feasibility study for opening the Debiensko mine. We continue to work on preparation of the site and are ready to break ground by summer 2011, subject to the finalisation of the regulatory and licensing process. The Board of Directors is scheduled to meet in Poland in June for final decision-making purposes regarding the Debiensko project.

On 5 May 2011, we announced the successful outcome of our recommended share Offer for all of the "A" ordinary shares of Existing NWR. This result, we believe, underlines the confidence of investors in our strategy and means that our re-incorporation in the UK is now completed, paving the way for FTSE UK Index series eligibility, while maintaining our premium listed status on the London Stock Exchange (LSE).

Our recommended share Offer will remain open until further notice. We remind our existing A Shareholders who have not yet accepted the Offer, that we have given notice of our intention to cancel our NWR N.V. share listings on the London, Prague and Warsaw Stock Exchanges. The last day's trading in the NWR N.V. shares on the LSE and the PSE is expected to be 3 June 2011. Delisting is likely to reduce significantly the liquidity and marketability of the shares in respect of which the Offer has not been accepted.

Our continued improvement in injury frequency, with mining LTIFR[‡] down 3% in Q1 2011, results from sustained training and investment initiatives. Despite that, one of our miners tragically died in April this year. This is a further reminder that we must make every effort to further improve health and safety standards with the ultimate aim of zero harm.

Looking ahead, we remain positive about Central Europe and believe we are well positioned to take advantage of the current favourable regional market conditions. Demand for coking coal and coke remains strong, with local steel producers and foundries running close to full capacity. Steel production in Central and Eastern Europe in Q1 2011 was 7% higher than last year.

Mike Salamon, Executive Chairman of NWR

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Selected financial and operational data

(1) From continuing operations, excluding electricity trading sub-segment

(2) The Company's continuing businesses are represented in three segments; "Coal segment", "Coke segment" and "Other segment". The full disclosure on all operational segments including the consolidation adjustments and eliminations as well as details on the segment accounting policies, measurement and disclosure is presented in the Operating and Financial Review for the three-month period ended 31 March 2011.

(3) Adjusted to current number of shares, see also Earnings per Share section

(4) In thousands of tonnes

(5) Including contractors

(6) OKD, a.s. ("OKD") is a subsidiary of NWR

(7) OKK Koksovny, a.s. ("OKK") is a subsidiary of NWR

(8) Profit from continuing operations is lower by EUR 10 million as a result of a reclassification of the portion of the profit from the sale of the energy business related to the electricity trading sub-segment, which is included in discontinued operations. This has no impact on the profit for the Group.

Production & sales volumes

Total coal production in Q1 2011 was 6% lower than Q1 2010 due to more challenging underground conditions, but in line with our expectations, while external coal sales remained flat year on year.

Coking coal sales in Q1 2011 comprised approximately 46% hard coking coal and 54% semi-soft coking coal. Thermal coal sales in the period were approximately 82.5% coal and 17.5% middlings.

Coke production and coke sales decreased by 20% and 35% respectively in Q1 2011 compared to Q1 2010 due to the closure of the Jan Sverma coking plant at the end of 2010, which reduced the Group's production capacity but significantly enhances our cost position.

Coke sales in Q1 2011 were approximately 33% blast furnace coke, 59% foundry coke and 8% other types.

Average realised prices[§]

Prices for coking coal and coke were significantly higher in Q1 2011 compared to the same period last year, reflecting higher international benchmark prices as well as improved economic conditions in the region.

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[§] Final realised prices can be influenced by a range of factors including, but not limited to, exchange rate fluctuations, quality mix, timing of the deliveries and flexible provisions in the individual agreements. Thus the actual realised price for the period may differ from the average prices announced. The indicated expected sales volumes can be influenced by the production structure as well as by the sales structure and individual quality assortment delivered to customers.

Coking coal

From April 2011, 100% of our coking coal sales will be priced on a quarterly basis, in line with international markets. The average agreed price of coking coal for delivery in the second calendar quarter of 2011 is EUR 215 per tonne, an increase of 35% compared to the first quarter realised price and 52% higher than the FY 2010 average realised price. This average price is based on the expectation that coking coal sales for Q2 2011 will be evenly split between semi-soft coking coal and hard coking coal.

Thermal coal

NWR sells 100% of its thermal coal volumes on a calendar year basis. As previously announced, the average price agreed for thermal coal sales for the 2011 calendar year is EUR 71 per tonne, a 13% increase compared to the 2010 average realised price.

NWR's thermal coal sales consist of approximately 80% coal and 20% middlings.

Coke

The average price agreed for coke sales during the second calendar quarter of 2011 is EUR 400 per tonne, an increase of 19% compared to the first quarter realised price. This average price is based on the expectation of Q2 2011 sales to be approximately 19% blast furnace coke, 67% foundry coke and 14% other types.

All of the forward-looking price guidance for 2011 is based on an exchange rate of CZK/EUR of 24.30. Prices are expressed as blended averages between the different qualities both for coal and coke and are ex works.

The Company's revenues increased by 13% on a constant currency basis in Q1 2011 compared to Q1 2010 mainly due to increased prices for both coking coal and coke, partly offset by lower sales volumes and changes in product mix.

Operating expenses

Main operating expenses (comprising consumption of material and energy, service and personnel expenses) from continuing operations increased by 12% in Q1 2011 compared to the previous year. The increase was in all three main cost categories and reflected, as expected, increased underground development works, more intensive maintenance of mining equipment and rising input prices, combined with the effect of the appreciation of the Czech Koruna against the Euro. Excluding the impact of the appreciation of the Czech Koruna, main operating expenses were up 8%.

(1) Excluding employee benefits

Main expenses for the coal segment increased by 12%, or 6% excluding the impact of currency movements. The increase in consumption of mining materials was mainly driven by continued intensive underground development work to enable increased production in subsequent quarters.

Service expenses in the coal segment, excluding transportation costs, grew by 33% mainly due to an increase in contractor expenses attributable to an increase in both the unit costs per shift and number of shifts worked, leading to increased contractor headcount, as well as an increase in maintenance expenses. Transportation costs, which decreased by 8%, are passed directly through to customers and therefore have no impact on the bottom-line.

Personnel expenses for the coal segment increased by 5%, reflecting a 4% increase in basic wages agreed with the trade unions for 2011, which was partly offset by ongoing headcount reduction. On a constant currency basis, personnel expenses for the coal segment decreased by 1%.

Mining cash costs per tonne[**]

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[**]Mining cash costs per tonne reflect the operating costs incurred in mining both coking coal and thermal coal.

Mining cash costs per tonne, which do not include the cost of transportation, rose by 16% compared to Q1 2010 on a constant currency basis, mainly due to a 6% decrease in production combined with increased costs related to intensified underground development works as well as higher input costs.

NWR continues to expect its mining unit cash costs for FY 2011 to increase by approximately 10% compared to 2010, on a constant currency basis. We expect production to ramp up progressively through the year, which will have a positive effect on our mining unit cash costs.

(1) Includes both internal and external coal purchase charges

Main expenses for the coke segment increased by 9%, or 4% excluding the impact of currency appreciation. The increase in consumption of materials and energy was mainly driven by the increased cost of third party coking coal purchases.

Excluding the impact of transportation costs, which are passed on to customers, service expenses for the coke segment grew by 14%.

Personnel expenses for the coke segment decreased by 18% on a constant currency basis, mainly due to a headcount reduction following the closure of the Jan Sverma coking plant in 2010.

Coke conversion cash cost per tonne

Coke conversion cash cost per tonne, which does not include the cost of coal and transportation, decreased by 2%, excluding the impact of currency movements, as a result of increased efficiency as all coke production is now concentrated in one plant.

Coke unit conversion costs for FY 2011 are expected to be approximately 15% lower than in 2010, on a constant currency basis, as a result of the completion of COP 2010 and the concentration of the coke works in one plant.

EBITDA from continuing operations of EUR 82 million for Q1 2011 was 42% higher than in the previous year due to increased revenues, mainly as a result of higher realised prices for coking coal and coke in the period.

Operating income from continuing operations was EUR 38 million.

Both financial income and financial expense decreased by 40% and 23%, respectively, mainly as a result of currency effects. Positive impacts on financial expenses were partly offset by an increase of EUR 10 million in interest expenses resulting from the issuance of senior secured notes due 2018 in May 2010, which refinanced a senior secured loan.

Profit before tax from continuing operations was EUR 11 million.

NWR recorded a net income tax expense of EUR 7 million in Q1 2011, compared to EUR 2 million in the same period of 2010.

NWR's consolidated profit for the period was EUR 3 million, which represents an increase of EUR 17 million compared to a loss of EUR 14 million in Q1 2010.

The adjusted earnings per A share[††] for the three-month period ended 31 March 2011 amounted to EUR 0.01.

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[††] Adjusted to current number of shares, see also Earnings per Share section of the Operating and Financial Review for the three-month period ended 31 March 2011.

Operating cash flow

Net operating cash flow for Q1 2011 was EUR 119 million, EUR 139 million higher than in Q1 2010. This increase was mainly attributable to higher EBITDA, driven by higher coking coal and coke prices, as well as favourable movements in working capital during the period.

Polish development project: Debiensko

As planned, NWR concluded the first phase of the Detailed Feasibility Study (DFS) for its Debiensko project in Poland. The DFS maps out the project scope, execution plan, budget and schedule. NWR will be ready to break ground by summer this year as previously announced, subject to the finalisation of the regulatory and licensing process.

The Company plans to start preparation activities during the summer, subject to final approval by the Board of Directors in its June meeting in Krakow in Poland.

NWR expects to invest approximately EUR 50 million of CAPEX in its Debiensko project in 2011. More on the DFS will be announced in due course.

Health and safety

NWR has stringent and sophisticated safety procedures, monitoring systems and practices in place throughout its mines and coking plants. These are applied rigorously and diligently at all times to ensure optimal operating conditions.

Regrettably, despite the overall improvement in our safety performance, one of our people died in an accident in April 2011. All accidents are investigated by a committee comprised of members of the Czech Mining Authority in Ostrava, the mine management, OKD management, the trade union and the local police; and appropriate measures are taken based on the findings of these investigations.

The mining Lost Time Injury Frequency Rate (LTIFR) improved by 3% to 8.13 in Q1 2011, compared to 8.34 in Q1 2010.

At OKK, LTIFR was nil in Q1 2011, the same as for Q1 2010.

Exchange rates

The Czech Koruna appreciated against the Euro by approximately 6% between the three-month period ended 31 March 2011 and the same period in 2010. The average exchange rate for the period was CZK/EUR 24.38.

Approximately 50% of the Company's revenues and about 85% of its operating costs are denominated in CZK.

The Company's current policy is to hedge approximately 70% of its cash flow exposure to currency fluctuations. Approximately 60% of the forecast cash flow exposure for the second calendar quarter of 2011 is currently covered by forward currency contracts, with additional forwards in place for the remainder of the year.

Liquidity and capital resources

As at 31 March 2011, the Company's net debt was EUR 307 million, down 42% from 31 March 2010, and down 4% year to date. The Company's first significant debt maturity is not until 2015.

Unrestricted cash amounted to EUR 545 million at 31 March 2011, up from EUR 481 million as at 31 March 2010 and EUR 529 million as at 31 December 2010.

The restricted payment basket, as defined by the 7.375% Indenture and the 7.875% Indenture, amounted to approximately EUR 158 million as of 31 March 2011.

For more information, please refer to the Liquidity and Capital Resources section in the notes of the Operating and Financial Review for the three-month period ended 31 March 2011.

CAPEX

Total capital expenditure in Q1 2011 was EUR 66 million, 4% above the Q1 2010 level. Maintenance CAPEX for OKD and OKK accounted for EUR 35 million, while EUR 30 million were used for investments to improve the existing operations.

Reincorporation in the United Kingdom

On 11 April 2011, the boards of New World Resources N.V. (NWR) and New World Resources Plc (New NWR) announced a recommended share offer for all of the "A" ordinary shares of EUR 0.40 each in the capital of NWR (the "Existing A Shares") (the "Offer"). The full terms and conditions of the Offer were set out in a combined prospectus and offer document jointly published by NWR and New NWR on 11 April 2011 (the "Combined Prospectus and Offer Document").

On 5 May 2011 (the first closing date of the Offer), valid acceptances were received in respect of 256,780,388 Existing A Shares (representing approximately 97 per cent of the issued Existing A Shares) and the Offer, therefore, became unconditional as to acceptances.

On 6 May 2011, 256,780,388 New NWR's 'A' ordinary shares (the "New A Shares") were admitted (i) to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's main market for listed securities under the ticker "NWR", and (ii) unconditionally to trading on the main market of the Prague Stock Exchange also under the ticker "NWR". New NWR also confirmed that the resolution adopted by the Management Board of the Warsaw Stock Exchange to conditionally admit the New A Shares to trading on the main market of the Warsaw Stock Exchange had become unconditional and trading commenced on the Warsaw Stock Exchange on 9 May 2011. Accordingly, the Offer then became wholly unconditional in all respects.

The Offer will remain open until further notice and at least 14 days' notice will be given if New NWR decides to close the Offer. Existing A Shareholders who have not yet accepted the Offer are encouraged to do so without delay.

Holders of Existing A Shares are reminded that NWR has given notice of its intention to cancel its listing on the Official List of the UK Listing Authority and the admission to trading of the Existing A Shares on the London Stock Exchange, the Prague Stock Exchange and the Warsaw Stock Exchange. The last day's trading in the Existing A Shares on the London Stock Exchange and the Prague Stock Exchange is expected to be 3 June 2011. Delisting is likely to reduce significantly the liquidity and marketability of any Existing A Shares in respect of which the Offer has not been accepted. New NWR and NWR intend to apply to cancel the listing of the Existing A Shares on the Warsaw Stock Exchange as soon as practicable in accordance with the applicable laws and regulations.

Outlook

NWR's production and sales targets are unchanged for the full year 2011.

Production

NWR expects to produce approximately 11Mt of coal and 800kt of coke in 2011. As a result of the Company's continued efforts to increase development works underground, production is expected to ramp up progressively through the year.

Sales

NWR expects external sales to reach approximately 10.3Mt of coal (evenly split between coking and thermal coal) and 720kt of coke in 2011. The Company expects an increase in coking coal volumes towards the end of 2011 and a subsequent rebalancing of the product mix towards coking coal in 2012.

Costs

Given production targets are achieved and save fluctuations in exchange rates and further increases in input costs, cost guidance for FY 2011 remains unchanged.

NWR expects its mining unit cash costs in 2011 to increase by approximately 10% compared to 2010, on a constant currency basis.

Coke unit conversion costs are expected to be approximately 15% lower than in 2010, on a constant currency basis, as a result of the completion of COP 2010 and the concentration of the coke works in one plant.

CAPEX

The Company believes that going forward its CAPEX requirements will be between EUR 200 - 250 million per annum. This is due to incremental underground development work with a view to maintaining production volumes and mix, as well as ongoing provision for replacement and renewal of longwalls in particular. The Company is also provisioning for higher safety-related CAPEX, especially as the underground environment becomes increasingly challenging as we mine deeper.

For 2011, NWR also expects to invest about EUR 50 million of CAPEX related to its Debiensko project.

NWR's senior management will hold a conference call today, Wednesday 18 May 2011, at 11:00 CET (10:00 GMT), to discuss the financial results for the period.

A live webcast of the call will also be made available on NWR's website at www.newworldresources.eu.

Dial in details:

The Netherlands +31 (0)20 707 5510

Czech Republic (Toll free) 800 142926

Poland (Toll free) 00 800 111 4858

UK & the rest of Europe +44 (0)20 7806 1955

USA +1 212 444 0413

Confirmation Code: 1223646

For further information:

Investor Relations

Agnes Blanco Querido Radek Nemecek

Tel: +31 20 570 2270 Tel: +31 20 570 2244

Email: ablanco@nwrgroup.eu Email: rnemecek@nwrgroup.eu

Corporate Communications

Petra Masinova

Tel: +31 65 476 4119

Email: pmasinova@nwrgroup.eu

Website: www.newworldresources.eu

New World Resources N.V.

NWR is the sole owner of OKD, a.s., the Czech Republic's largest hard coal mining company and one of the largest producers in Central Europe by revenue and volume. Serving customers mainly in the Czech Republic, Slovakia, Austria, Poland, Hungary and Germany, the Company produced 11.4Mt of coal and 1.0Mt of coke in 2010. 

Disclaimer and Cautionary Note on Forward Looking Statements and Notes on Certain Other Matters

Certain statements in this document are not historical facts and are or are deemed to be "forward-looking". The Company's prospects, plans, financial position and business strategy, and statements pertaining to the capital resources, future expenditure for development projects and results of operations, may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology including, but not limited to; "may", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "will", "could", "may", "might", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks, uncertainties and other facts that may cause actual results to be materially different from those expressed or implied in these forward-looking statements because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond NWR's ability to control or predict. Forward-looking statements are not guarantees of future performances.

Factors, risk and uncertainties that could cause actual outcomes and results to be materially different from those projected include, but are not limited to, the following: risks relating to changes in political, economic and social conditions in the Czech Republic, Poland and the CEE region; future prices and demand for the Company's products, and demand for the Company's customers' products; coal mine reserves; remaining life of the Company's mines; coal production; trends in the coal industry and domestic and international coal market conditions; risks in coal mining operations; future expansion plans and capital expenditures; the Company's relationship with, and conditions affecting, the Company's customers; competition; railroad and other transportation performance and costs; availability of specialist and qualified workers; and weather conditions or catastrophic damage; risks relating to Czech or Polish law, regulations and taxation, including laws, regulations, decrees and decisions governing the coal mining industry, the environment and currency and exchange controls relating to Czech and Polish entities and their official interpretation by governmental and other regulatory bodies and by the courts; and risks relating to global economic conditions and the global economic environment. Additional risk factors are as described in the Company's annual report.

Forward-looking statements are made only as of the date of this document. The Company expressly disclaims any obligation or undertaking to release, publicly or otherwise, any updates or revisions to any forward-looking statement contained in this report to reflect any change in its expectations or any change in events, conditions, assumptions or circumstances on which any such statement is based unless so required by applicable law.

This document does not contain or constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities in the United States or in any other jurisdiction.

In this Quarterly Financial Report and the Operating and Financial Review for the three month period ended 31 March 2011, the Company provides information that is required to be published in interim management statements under Directive 2004/109/EC, on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC, and the national laws implementing such Directive.

New World Resources N.V.

Consolidated income statement

New World Resources N.V.

All components of Other comprehensive income are presented net of tax. There is no tax related to Foreign currency translation differences and Other movements as these items are non-taxable.

The notes on pages 10 to 40 are an integral part of this condensed consolidated financial information.

New World Resources N.V.

Consolidated statement of financial position

New World Resources N.V.

Consolidated statement of financial position (continued)

The notes on pages 10 to 40 are an integral part of this condensed consolidated financial information. 

New World Resources N.V.

New World Resources N.V.

New World Resources N.V.

Consolidated statement of changes in equity

For the three-month period ended 31 March 2011

New World Resources N.V.

Consolidated statement of changes in equity

For the three-month period ended 31 March 2010

* see consolidated statement of comprehensive income on page 3.

The notes pages 10 to 40 are an integral part of this condensed consolidated financial information.

Corporate Information

New World Resources N.V. ("the Company") is a public limited liability company with its registered office at Jachthavenweg 109h, 1081 KM Amsterdam, the Netherlands. The Company is the sole producer of hard coal in the Czech Republic and a leading producer of hard coal in Central Europe on the basis of revenues and volume, and serves customers in the Czech Republic, Poland, Austria, Slovakia, Hungary and Germany, among others. The Company is primarily focused on hard coal mining and coke production.

The Company operates four mines and four coking batteries in the Czech Republic and serves several large Central and Eastern European steel and energy producers. Among its key customers are Arcelor Mittal Steel, US Steel, Dalkia, Moravia Steel, voestalpine, Verbund and ČEZ. The majority of coal sales are based on long-term framework agreements, with thermal coal being priced on an annual calendar year basis. The majority of coking coal sales was priced for the Japanese Fiscal Year during 2010, until March 2011. Starting April 2011, 100% of our coking coal sales will now be priced on a quarterly basis. This shift should allow the Company to further align its coking coal pricing with that of the international coal markets.

The Company's largest source of revenue is coking coal, which accounted for EUR 168,645 thousand and EUR 134,459 thousand in external sales during the three-month period ended 31 March 2011 and 31 March 2010 respectively. Additionally, external thermal coal sales amounted to EUR 109,561 thousand in the three-month period ended 31 March 2011 and EUR 80,715 thousand in the same period in 2010. External coke sales totalled EUR 60,738 thousand during the three-month period ended 31 March 2011, compared to EUR 53,767 thousand in the same period in 2010.

Financial Results Overview

Revenues. The Company's revenues increased by 17%, from EUR 328,563 thousand in the three-month period ended 31 March 2010 to EUR 384,799 thousand in the three-month period ended 31 March 2011. This is mainly attributable to increased revenues from coking coal and coke, driven by higher prices as well as to increased revenues from thermal coal, driven by both higher sales volumes and prices.

Operating expenses. Total operating expenses including depreciation and amortisation increased from EUR 304,219 thousand to EUR 337,600 thousand or by 11% for the three-month period ended 31 March 2011 compared to the same period in 2010. This is attributable to increased mine development and planned maintenance of mining equipment, resulting in higher mining material consumption and maintenance costs, to the increase in basic wages by 4% (in CZK terms) as agreed with the Trade Unions resulting in higher personnel expenses and to the increase in prices of external purchased coal resulting in higher costs for external coal consumption used for coking.

EBITDA. EBITDA from continuing operations increased by 42% from EUR 57,278 thousand in the three-month period ended 31 March 2010 to EUR 81,567 thousand in the three-month period ended 31 March 2011. This is mainly due to an increase in revenues from continuing operations of EUR 56,236 thousand, partially offset by a decrease in change in inventories of EUR 3,851 thousand and an increase in operating expenses of EUR 33,381 thousand. Total EBITDA, which includes the results of discontinued operations in 2010, increased by 37%, from EUR 59,653 thousand in the three-month period ended 31 March 2010 to EUR 81,567 thousand in the three-month period ended 31 March 2011.

Basis of Presentation

General information

The condensed consolidated interim financial information ("financial information") presented in this document is prepared for the three-month period ended 31 March 2011. The financial information for the period ended 31 March 2010 represents the comparative period.

The financial information includes New World Resources N.V. and its following subsidiaries (collectively "the Group") as of 31 March 2011:

Consolidated subsidiaries

The objective of the Company is to act as a holding and financing entity for the Group.

See note "Changes in the consolidated group" on page 13 for information on the comparable period.

All of the Company's consolidated subsidiaries are incorporated in the Czech Republic, with the exception of NWR KARBONIA S.A. ("NWR Karbonia"), which is incorporated in Poland.

Statement of compliance

The presented unaudited financial information is prepared based on IFRS recognition and measurement criteria as adopted by the European Union.

These consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended 31 December 2010.

The financial information has been prepared on the basis of accounting policies and methods of compilation consistent with those applied in 31 December 2010 annual financial statements contained within the 2010 Annual Report and Accounts of the Group, which is available on the Company's website at www.newworldresources.eu. Changes in accounting policies are described in the following section.

Accounting policies

The accounting policies applied by the Group in these interim consolidated financial statements are identical to those applied in the 31 December 2010 annual consolidated financial statements.

Basis of preparation

The financial information is prepared on the historical cost basis, except for derivative and other financial instruments, which are stated at their fair value. It is presented in Euros (EUR) and is rounded to the nearest thousand. Financial information of operations with functional currency other than EUR was translated to the Group presentation currency (EUR).

The functional currency of the Company is EUR. The functional currency of NWR KARBONIA is Polish Zloty (PLN). The functional currency of the remaining consolidated companies is Czech Koruna (CZK).

The Group is organised into two divisions: the Mining Division and the Real Estate Division. The Company had A Shares and B Shares outstanding for the presented periods. The A Shares and B Shares are tracking stocks, which are designed to reflect the financial performance and economic value of the two divisions. The A Shares track the financial performance and economic value of the Mining Division, but do not track the financial performance or economic value of the Real Estate Division, which is represented by the B Shares. The B Shares are owned solely by the BXR Group, which also holds approximately 64% of the A Shares.The ownership of the A Shares and the B Shares represents an ownership interest in the Group as a whole, but does not represent a direct legal interest in the assets and liabilities of the assets of the Mining Division or the Real Estate Division, respectively. The financial statements of the Group reflect the results of operations and the financial position and performance of the assets and businesses currently owned and operated by the Mining Division and the Real Estate Division. As the A Shares and B Shares are tracking stocks of the same legal entity, separate financial statements are not provided. With effect from 31 December 2007, the Group has tracked the financial performance of the two divisions and presents corresponding financial information in the segmental information in its consolidated financial statements. See "Divisions and segments" for the segmental analysis of the Group.

In addition to the divisional segment reporting, the Group presents within the Mining Division the financial information on its main operations in three sub-segments: the coal sub-segment, the coke sub-segment and the other sub-segment, containing the holding entity. Comparative information includes separate, electricity trading sub-segment, within the discontinued operations and the electricity distribution business, within the continuing operations as part of other sub-segments. The energy business was sold on 21 June 2010. See also next section Changes in the consolidated group.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim consolidated financial statements, the significant judgements made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2010.

Changes in the consolidated group

The changes listed below include all changes in the consolidated group for the period from 1 January 2010 to 31 March 2011 to ensure comparability of the presented periods.

A business combination involving entities or businesses under common control is a business combination in which all of the Group entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and such control is not transitory.

In the absence of more specific guidance, the Group entities consistently applied the book value measurement method to all common control transactions. Differences between consideration paid and carrying value of acquired net assets are recognised as a change in consolidated equity.

On 24 June 2009 the Board of Directors of the Company ("the Board") approved its intention to sell the energy business of the Group. The energy business of the Group entailed NWR Energy, a.s., NWR Energetyka PL Sp. z o.o. and CZECH-KARBON s.r.o. Based on the Board's decision to sell the energy business, part of the energy business, which historically was presented as the electricity trading segment, is presented as discontinued operations in comparatives of this financial information. The sale was closed on 21 June 2010.

Non-IFRS Measures

The Company defines EBITDA as net profit after tax from continuing operations before non-controlling interest, income tax, net financial costs, depreciation and amortisation, impairment of property, plant and equipment ("PPE") and gains/losses from sale of PPE. While the amounts included in EBITDA are derived from the Company's condensed consolidated financial statements, it is not a financial measure determined in accordance with IFRS. Accordingly, EBITDA should not be considered as an alternative to net income or operating income as an indication of the Company's performance or as an alternative to cash flows as a measure of the Company's liquidity. The Company currently uses EBITDA in its business operations to, among other things, evaluate the performance of its operations, develop budgets, and measure its performance against those budgets. The Company considers EBITDA a useful tool to assist in evaluating performance because it excludes interest, taxes and other non-cash charges.

The Company defines net debt as total debt less cash and cash equivalents. Total debt includes issued bonds, long-term interest‑bearing loans and borrowings, including their current portions, plus short-term interest‑bearing loans and borrowings. Total debt is defined as gross amount of debt less related expenses. Interest‑bearing loans, bond issues, and borrowings are measured at amortised cost.

Exchange Rates

The Czech Koruna appreciated (based on the average exchange rate) by 6% between the period ended 31 March 2011 and the same period of 2010.

Throughout this presentation of the operating results, the financial results and performance compared to the prior period, both in absolute and percentage terms, are expressed in Euros. The Company may also, where deemed significant, present variances in terms of constant foreign exchange rates, marked ex-FX, which exclude the effect of currency translation differences and is a non-IFRS financial measure. The financial information and described trends could differ considerably if the financial information was presented in CZK.

Financial Performance

Revenues

Revenues of the Group increased by 17% to EUR 384,799 thousand in the three-month period ended 31 March 2011 compared to the same period in 2010.

The increase in total revenues mainly reflects higher revenues from sales of coking coal, thermal coal and coke. The increase in coking coal and coke revenues is attributable to higher prices, while the increase in thermal coal revenues is attributable to both an increase in sales volumes and higher prices. Partly offsetting the increase in revenues from sales is a decrease in Other revenues, which results from the sale of the energy business in June 2010. Other revenues in 2010 contain EUR 13,672 thousand of electricity distribution revenues.

The following table shows average realised coal and coke prices for the three-month period ended 31 March 2011 and 2010.

The following table shows coal production and sales for the three-month period ended 31 March 2011 and 2010.

Total production of coal in the three-month period ended 31 March 2011 decreased by 6% compared to production volume in the same period in 2010. Coal volumes sold to third parties decreased by 1%. Inventories decreased by 215kt in the three-month period ended 31 March 2011 compared to a decrease of 275kt in the same period in 2010.

The following table shows coke production and sales for the three-month period ended 31 March 2011 and 2010.

The closing of the Jan Sverma coking plant and the centralisation of all coke production into the Svodoba coking plant, lead to a reduction in the Company's coke production capacity, which is now a maximum of about 850 kt of coke per year. This is the main factor that lead to the 20% decrease of coke production in the three-month period ended 31 March 2011 when compared to the same period in 2010. Lower production also influenced sales of coke, which decreased by 35% in comparison to 2010. Higher sale volumes in 2010 resulted in a decrease of inventories by 44 kt compared to a decrease of 5 kt in the same period in 2011.

Operating Expenses

Total operating expenses including depreciation and amortisation increased from EUR 304,219 thousand to EUR 337,600 thousand or by 11% for the three-month period ended 31 March 2011 compared to the same period in 2010. This is attributable to the increased development works and maintenance of mining equipment in OKD, resulting in higher costs for consumption of mining material (EUR 5,766 thousand) as well as higher maintenance cost (EUR 6,129 thousand). The 4% basic wage increase (in CZK terms) agreed with the Trade Unions and higher accrual for holiday allowance led to higher personnel expenses (EUR 8,682 thousand). Furthermore, the increase in prices of external purchased coal led to higher costs of external coal consumption used for coking (EUR 3,831 thousand).

Consumption of Material and Energy

The following table sets out the Group's costs for the consumption of material and energy:

The costs for consumption of externally purchased coal for coking operations increased due to higher prices of coal, partly offset by decrease in consumed volumes.

The increase in the line items Mining material and Spare parts results from higher input costs per equipped longwall due to more demanding geological conditions, as the Company mines in greater depths and the use of higher grades of steel for reinforcement underground.

In the three-month period ended 31 March 2011 the cost of energy consumption for coal mining increased by 10% mainly due to an increase in the price of electricity and distribution in the Czech Republic by 11% (in CZK terms) slightly offset by a decrease of 1% in electricity consumption volumes. The cost of energy for coking decreased by 35% as a result of lower consumption of electricity and heat, following the closure of Jan Sverma coking plant and reduced production volumes of coke.

Service Expenses

Service expenses increased by 17% in the three-month period ended 31 March 2011 compared to the same period in 2010, as set forth in the table below.

The increase in service expenses is mainly attributable to an increase in the maintenance costs, as planned, due to an overhaul of reinforcement in the Karvina mine in the amount of EUR 4,308 thousand.

The increase in Contractors costs (OKD) is the result of a 4% increase in unit costs per shift combined with a 16% increase in number of shifts worked, which also led to an increase in contractor headcount as reflected in the table below.

Advisory expenses include accrual for one-off cost associated with the re-incorporation process in amount of EUR 1,500 thousand.

The increase in Other service expenses is attributable mainly to an increase in geological works by EUR 1,047 thousand and IT outsourcing by EUR 1,292 thousand (IT has been outsourced as of July 2010).

Personnel Expenses

The following table shows personnel expenses excluding employee benefits for the three-month period ended 31 March 2011 and 2010.

Personnel expenses (excluding employee benefits) increased by 5%,ex-FX, reflecting a 4% increase in basic wage per employee at OKD in CZK terms as agreed with the Trade Unions and higher accrual for holiday allowance by EUR 2,508 thousand when compared to the three-month period ended 31 March 2010. This increase is partly offset by a headcount decrease of 8%. Personnel expenses also include the costs for share‑based payments to Directors and employees in the amount of EUR 2,360 thousand and EUR 2,656 thousand for the three-month period ended 31 March 2011 and 2010, respectively. Share-based payments are described in detail in the Share-based payments section of this document.

The following table shows the average number of employees:

For the three-month period ended 31 March 2011, the average number of employees decreased by 8% compared to the average number of employees in the same period of 2010. This decrease, however, was partly offset by the increase in contractors headcount, leading to a decrease in total headcount of 4%. The total number of workers decreased mainly due to higher productivity at mines as well as the closure of the Jan Sverma coking plant at the end of 2010.

Other Operating Income and Expenses

The following table reflects other operating income and expenses for the three-month period ended 31 March 2011 and 2010.

Other operating income and expenses is composed of insurance costs and payments, mining damage and indemnity, related provisions and their release and other fees. Since the amounts are relatively low, they are sensitive to one‑time effects and seasonal fluctuations. Other operating expenses increased in the three-month period ended 31 March 2011 mainly due to higher provision for mining damages by EUR 2,055 thousand when compared to the same period in 2010.

EBITDA

The following table compares EBITDA for the three-month period ended 31 March 2011 and 2010.

* EBITDA from discontinued operations in 2010 includes the result of electricity trading business. Energy business was sold on 21 June 2010.

The Company's EBITDA from continuing operations for the three-month period ended 31 March 2011 was EUR 81,567 thousand, which is EUR 24,289 thousand higher than in the three-month period ended 31 March 2010, representing a 42% increase between the periods.

As EBITDA is a non-IFRS measure, the following tables provide a reconciliation of EBITDA from continuing operations and EBITDA from discontinued operations to IFRS line items of the income statement.

Continuing Operations

Depreciation

The following table shows depreciation for the respective periods.

The majority of property, plant and equipment of the Group are located in the Czech Republic, therefore most of the depreciation costs is recorded in CZK. Excluding the impact of changes in the exchange rate, depreciation increased by 6% in the period compared to 2010. This increase is mainly due to higher depreciation charges on new mining equipment, in particular the POP 2010 mining equipment and higher depreciation charges for OKK due to the activation of the new coking battery No.10.

Financial Income and Expense

Net financial loss decreased by 14% for the three-month period ended 31 March 2011 compared to 2010 as set forth in the table below.

Both financial income and financial expenses decreased as a result of decrease in foreign exchange gains and losses. Additionally, financial expenses decreased due to decrease in loss on derivative instruments and decrease in interest expense on senior secured loan that was refinanced in May 2010. These positive impacts on financial expenses were partly offset by increased bond interest expenses resulting from the issuance of the Senior Secured Notes due 2018 in May 2010, which refinanced the above mentioned senior secured loan.

Profit/(Loss) from Continuing Operations before Tax

Profit from continuing operations before tax for the three-month period ended 31 March 2011 was EUR 10,639 thousand, an increase of EUR 24,161 thousand compared to a loss of EUR 13,522 thousand for the same period of 2010.

Income Tax

The Group recorded a net income tax expense of EUR 7,202 thousand in the three-month period ended 31 March 2011, compared to a net income tax expense in the amount of EUR 2,113 thousand in the same period of 2010. Higher income tax expense corresponds to the increase in profitability, mainly in OKD and OKK.

Profit from Discontinued Operations

Profit from discontinued operations, reflecting the result of the electricity trading business, equals to EUR 1,150 thousand for the period ended 31 March 2010. The energy business was sold on 21 June 2010.

Profit/(Loss) for the Period

Profit for the three-month period ended 31 March 2011 was EUR 3,437 thousand, which represents an increase of EUR 17,922 thousand compared to the loss of EUR 14,485 thousand for the same period of 2010. This increase was the result of increased profit before tax, which was partly reduced by an increase in the income tax expense.

Share-based Payments

Introduction to share-based payments of the Company

The cost of equity-settled transactions with employees is measured by reference to the fair value at the grant date and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. The fair value is determined by reference to the share price on the grant date. In valuing equity-settled transactions of the Company, no account is taken of any vesting conditions because no market conditions apply for vesting. At each balance sheet date, before the end of the vesting period, the cumulative expense is calculated, representing the extent to which the vesting period has expired and of the number of equity instruments that is expected to ultimately vest. The movement in cumulative expense compared to the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity or liability, based on the type of share-based scheme.

For cash-settled share-based payment transactions, the Company measures the liability incurred at the fair value of the liability. The Company re-measures the fair value of the liability at the date of settlement and at the end of each reporting period until the liability is settled, with any changes in fair value recognised in profit or loss for the period.

The impact of the Group's share-based remuneration schemes on the diluted earnings per share is calculated according to the requirements of IFRS 2 and IAS 33.

The Company offers independent members of the Board and certain employees of the Group share-based remuneration packages (see below).

a) Shares granted to Independent Directors

No shares were granted to Independent Directors within the three-month period ended 31 March 2011 and 2010.

b) Shares and share options granted to Executive Directors

On 31 August 2008 Mr. Miklos Salamon was granted options for A Shares with exercise price of EUR 0.01 in the amount equal to 0.5 % of the issued share capital of the Company. This remuneration package is classified as an equity-settled share-based payment transaction and is presented correspondingly, in a separate equity category in the balance sheet of the Company. 263,800, 264,351 and 265,150 options vested on 1 September 2008, 1 September 2009 and 1 September 2010, respectively. On each of the following two subsequent anniversaries an additional 20% of the granted options will vest. The accrued expense for the granted share options has an impact of EUR 501 thousand for the three-month period ended 31 March 2011, compared to EUR 1,224 thousand for the same period in 2010.

Mr. Salamon's option plan has no dilutive impact as the stock option plan forms an integral part of Mr. Salamon's base compensation, i.e. the fair value of the weighted average number of shares that would have been issued at average market price is offset by the fair value of services the Company received from Mr. Salamon.

According to his employment contract with OKD, the Executive Director of the Company and the Chief Executive Officer of OKD, Mr. Klaus-Dieter Beck is entitled to receive 250,045 A Shares for each full year of his engagement, starting as of 1 July 2007, up to a maximum total amount of 1,250,225 A Shares. The remuneration package is classified as an equity-settled share-based payment transaction with cash alternative and is presented accordingly as a short-term liability.

Mr. Beck's incentive plan has no dilutive impact as the share plan forms an integral part of Mr. Beck's base compensation, i.e. the fair value of the weighted average number of shares that would have been issued at average market price is offset by the fair value of services the Group received from Mr. Beck.

c) Share options granted to employees of the Group

A group of eligible employees and Directors of the Group were granted options for A Shares of the Company in accordance with its Stock Option Plan for Executive Directors, senior management and key employees ("the NWR Share Option Plan"). This remuneration package is classified as equity-settled. The Company grants options once a year. The exercise price of the options granted on 9 May 2008 is GBP 13.25. The corresponding vesting period for these share options, numbering 603,601 in total, runs from 9 May 2008 to 9 May 2011. The second granting of options to certain employees and Directors took place on 24 June 2009. The exercise price of these options is GBP 2.8285. The corresponding vesting period for these share options, numbering 3,188,835 in total, runs from 24 June 2009 to 24 June 2012. The third granting of options to certain employees and Directors took place on 17 March 2010. The exercise price of these options is GBP 7.1280. The corresponding vesting period for these share options, numbering 1,722,319 in total, runs from 17 March 2010 to 17 March 2013.

Similarly to the options granted to Mr. Salamon, the fair value of the options per grant date was calculated by using the Black-Scholes model.

Due to the Company's average share price for the three-month period ended 31 March 2011, which is lower than the exercise price of options granted under the NWR Share Option Plan on 9 May 2008, these are out-of-the-money and therefore, do not have any dilutive potential regarding the calculation of the diluted earnings per share.

The second tranche of granted options is in-the-money. The average share price for the three-month period ended 31 March 2011 was GBP 9.8512. The dilutive impact of the second tranche is 2,273,250 shares.

The third tranche of granted options is in-the-money. The average share price for the three-month period ended 31 March 2011 was GBP 9.8512. The dilutive impact of the second tranche is 476,108 shares.

Due to the implementation of the Deferred Bonus Plan, the Board decided to terminate the Stock Option Plan as of 31 December 2010. Subsequently, no further options may be granted, although the provisions of the Stock Option Plan will continue in relation to options already granted.

d) Deferred Bonus Plan