12th Apr 2016 07:43
LONDON (Alliance News) - New World Resources PLC on Tuesday said it produced more coking coal and thermal coal in the first quarter of 2016 than it did the previous year, but the low price environment pushed down average prices.
The coal miner, with operations in Poland and the Czech Republic, had warned at its full-year results in February that falling commodity prices looked set to continue into 2016, and would mean losses for the company between 2015 and 2018.
New World Resources posted its production figures from the first quarter of the year on Tuesday, which showed total coal production totalled 1.9 million tonnes, up from 1.8 million tonnes for the same period a year earlier.
As a result of this higher production, as well as efforts by the company to boost sales due to an increased stockpile, coking coal sales rose to 1.1 million tonnes, from 999,000 tonnes a year earlier, but average price was down at EUR76 per tonne from EUR90 per tonne the previous year.
Thermal coal sales were also up at 805,000 tonnes from 566,000 tonnes the previous year, but the company noted a fall in average price to EUR47 per tonne from EUR56 per tonne.
The company said in February that coal sales would increase 9.0% in 2016, as its coal inventory rose 11% in 2015, with 742,000 tonnes of coal stockpiled at the year-end in December.
Shares in New World Resources were down 22% at 0.330 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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