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Trading Update and Q3 2011 Prices

22 Jul 2011 07:04

RNS Number : 8794K
New World Resources Plc
22 July 2011
 



Amsterdam, 22 July 2011

 

 

NWR Trading Update and Q3 2011 Prices

 

New World Resources Plc ('NWR' or the 'Company') announces that it has reached agreements with its customers for coking coal and coke sales for the third calendar quarter of 2011. The Company also announces production and sales volumes for the second quarter of 2011.

Performance update

NWR will publish its results for the period ended 30 June 2011 on 24 August 2011 when further information will be provided. Below is a brief overview of a number of the Company's key performance indicators for Q2 2011 as well as H1 2011. These figures are unaudited estimates and subject to change.

Q2 2011 Production Volume (kt)

Q2 2011 Sales Volume (kt)

Q2 2011 Avg. Realised Price

(EUR/tonne)

Coking Coal

3,251

1,121

210

Thermal Coal

1,645

69

Coke

198

141

392

 

H1 2011 Production Volume (kt)

H1 2011 Sales Volume (kt)

H1 2011 Avg. Realised Price

(EUR/tonne)

Coking Coal

5,832

2,183

185

Thermal Coal

3,220

69

Coke

400

321

361

 

 

NWR reiterates its full year 2011 production and sales targets. The Company remains on track to produce 11Mt of coal and 800kt of coke.

As previously announced NWR expects to externally sell 10.3Mt of coal, evenly split between coking and thermal coal, and 720kt of coke in FY 2011.

Coking coal pricing

Starting April 2011, 100% of our coking coal sales are priced on a quarterly basis.

The average agreed price of coking coal for delivery in the third calendar quarter of 2011 is EUR 192 per tonne, a decrease of 9% compared to the second quarter realised price, in line with lower international prices both for hard and semi-soft coking coal.

The above price average is based on the expectation that coking coal sales for Q3 2011 will be evenly split between semi-soft coking coal and hard coking coal.

Coke pricing

The average price agreed for coke sales during the third calendar quarter of 2011 is EUR 378 per tonne, a decrease of 4% compared to the second quarter realised price, as a result of lower prices for both foundry and blast furnace coke in the European market.

The above price average is based on the expectation of Q3 2011 sales to be approximately 13% blast furnace coke, 70% foundry coke and 17% other types.

Thermal coal pricing

As previously announced, the average price agreed for thermal coal sales for the calendar year 2011 is unchanged at EUR 71 per tonne, 13% higher than the 2010 average realised price.

All of the announced prices are 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.

Average prices announced are indicative prices. 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, may influence final realised prices. Thus the actual realised price for the period may therefore 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.

- Ends -

 

For further information please contact:

Investor Relations Corporate Communications

Tel: +31 20 570 2270 Tel: +31 65 476 4119

Email: ir@nwrgroup.eu Email: pr@nwrgroup.eu

 

Website: www.newworldresources.eu

About NWR

NWR is one of Central Europe's leading hard coal and coke producers. NWR produces quality coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, a.s. ('OKD'), the largest hard coal mining company in the Czech Republic. NWR's coke subsidiary, OKK Koksovny, a.s. ('OKK') is Europe's largest producer of foundry coke. NWR currently has two development projects in Poland, Debiensko and Morcinek, which form part of NWR's regional growth strategy. NWR is a FTSE 250 company, with listings in London, Prague and Warsaw.

 

 

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 information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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