14th May 2014 09:38
LONDON (Alliance News) - New World Resources PLC Wednesday said its pretax loss narrowed in the first quarter of 2014 despite a fall in revenues due to lower coal prices, as costs dropped significantly after the company launched cost-containment measures in spring 2013.
The European mining company said its pretax loss narrowed to EUR25.8 million in the first quarter from EUR94.4 million in the first quarter of 2013, as its cost of sales fell 37% to EUR147 million from EUR235 million.
The company said its cost of sales fell as part of its ongoing cost-containment plan which was started in spring 2013 and included lower energy consumption, reduction in headcount of staff, lower levels of development work, and lower depreciation after an impairment charge in the 2013 figures.
New World Resources also noted that its cash mining unit costs fell 23% to EUR66 per tonne from EUR86 per tonne, and its administrative expenses fell 15% to EUR36 million from EUR43 million due to its cost saving measures.
However, the company also noted that revenues fell 18% to EUR173 million from EUR211 million as its average realised prices for coking coal fell 12% to EUR91 per tonne from EUR103 per tonne and its thermal coal prices fell 6% to EUR60 per tonne from EUR64 per tonne.
New World Resources said its coal production during the period increased 4% to 2.2 million tonnes from 2.1 million tonnes but its external sales fell 12% to 1.9 million tonnes from 2.2 million tonnes.
The company said its operational targets for 2014 remain unchanged, with coal production and sales between 9 million and 9.5 million tonnes.
New World Resources shares were up 3.4% to 38.00 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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