15th Oct 2014 08:53
LONDON (Alliance News) - New World Resources PLC, the central European hard coal producer, Wednesday said it has revised downward its full-year coal production target due to unanticipated "geological challenges".
The company did not release details of the challenges faced, but said it has stabilised the problem and revised its full-year target to 8.75 million to 9.0 million tonnes of coal from the previous target of 9.0 million to 9.5 million tonnes of coal.
The revised target comes following the company's production update for the third quarter. In the quarter, the company produced 1,103 kilotonnes of coking coal, achieving a price of EUR82 per tonne, compared to producing 1,301 kilotonnes, achieving a price of EUR84 per tonne in the second quarter.
It produced 962 kilotonnes of thermal coal, achieving a price of EUR52 per tonne in the third quarter, compared to 812 kilotonnes, achieving a price of EUR55 per tonne in the second quarter.
All of its producing coal mines are in the Czech Republic.
For the first nine months of 2014, the company has produced 3,647 kilotonnes of coking coal, achieving an average price of EUR86 per tonne and 2,437 kilotonnes of thermal coal, achieving an average price of EUR56 per tonne.
New World said the coal sales mix in the first half comprised of 63% coking coal and 37% thermal coal, although the company is targeting a sales mix of between 55% to 60% coking coal for 2014, which it has reiterated after the third quarter.
New World shares were untraded Wednesday. They closed Tuesday at 1.67 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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