Nine Months 2014 Results

Amsterdam, 13 November 2014

Unaudited 9M 2014 Results

New World Resources Plc ('NWR' or the 'Company') today announces its unaudited financial results for the first nine months of 2014. Comparative information, unless stated otherwise, is for the nine months ended 30 September 2013.

9M 2014 Financial summary

§ Revenues from continuing operations of EUR 504 million, down 21%.

§ Coking coal average realised price of EUR 86/t, down 12%; Thermal coal average realised price of EUR 56/t, flat year on year.

§ Cash mining unit costs[1] of EUR 68/t, down 16% (10% on a constant currency basis) on 2% lower production.

§ Selling and administrative expenses from continuing operations down 26% to EUR 100 million.

§ Positive EBITDA from continuing operations of EUR 4 million, up EUR 54 million from the comparative period.

§ Basic loss from continuing operations per A share of EUR (0.16).

§ Net debt of EUR 734 million, including cash of EUR 77 million as of 30 September 2014.

§ Pro forma Net debt of EUR 202 million, including cash of EUR 151 million as if restructuring was completed as of 30 September 2014 (actually completed on 7 October 2014).

§ As at 30 September 2014, EUR 28 million of approximately EUR 42 million of associated costs have been incurred in relation to the restructuring process.

§ Balance sheet restructuring completed on 7 October 2014.

9M 2014 Operational summary

§ Safety metrics LTIFR[2] of 7.19 in 9M 2014, vs. 7.41 in FY 2013.

§ Coal production of 6.3Mt, down 2% and coal sales of 6.1Mt, down 15%.

§ Coal sales mix of 60% coking coal and 40% thermal coal.

§ CAPEX of EUR 45 million, down 56%.

§ Coal Inventory of 612kt, up 9% year on year.

§ Total headcount from continuing operations including contractors down 8%.

§ Start of a strategic review of the Debiensko development project.

§ Ian Ashby and Colin Keogh joined the board of NWR as independent directors.

§ Steven Schuit, Paul Everard and Hans-Jörg Rudloff retired from the Board. .

Management expectations

FY 2014 Prices[3]and targets

§ Coking coal Q4 2014 average price agreed at EUR 85/t, up 4% on previous quarter.

§ An average price of EUR 54/t has been agreed for thermal coal production in 2014.

§ Production and sales volume targets of 8.75 - 9.0Mt.

§ Target of 55% - 60% coking coal in the sales mix.

§ CAPEX below EUR 90 million.

§ Further improvement in LTIFR towards the 2015 target of below 5.

§ Cash mining unit costs in the mid EUR 60's excluding the Paskov Mine.

2015 price expectation and targets (further targets shall be provided in February 2015)

§ No significant price movements in either coking or thermal coal expected.

§ Coal production target of 7.5 - 8.0Mt

Results of the Balance Sheet Restructuring

Substantial balance sheet strengthening achieved with net debt reduction from prior to the completion of the restructuring EUR 734 million to EUR 202 million upon completion. The main characteristics of the restructuring were:

§ EUR 150 million of new equity capital has been raised.

§ A new EUR 35 million super senior credit facility has been provided by existing noteholders.

§ EUR 300 million Senior Secured Notes due 2020, EUR 150 million Mandatory Convertible Notes due 2020, and EUR 35 million Contingent Value Rights have replaced EUR 500 million Senior Secured Notes due 2018 and EUR 275 million existing Senior Unsecured Notes due 2021.

Chairman's statement

The key event for New World Resources during the period under review was the balance sheet restructuring process that we initiated at the beginning of the year and completed in the first half of October. With the support and participation of our stakeholders, an agreement was reached that led to the raising of EUR 185 million in new capital, reduced our outstanding total debt by 35 per cent from EUR 825 million to EUR 535 million, extended the term of the new senior notes to 2020, and significantly reduced our debt servicing costs.

This has given the Company a capital structure that is more sustainable in a period when market conditions remain severe, with subdued demand on one hand and oversupply on the other hand resulting in low global prices for coking coal and low regional prices for thermal coal. Given these price pressures, the average price of EUR 85 for a tonne of our coking coal recently agreed for the fourth quarter deliveries represents a decent result. Our thermal coal is priced at an average of EUR 54 per tonne for the calendar year.

The low pricing environment is clearly reflected in our revenues, which were down 21 per cent. On the operating level we have managed to drive the unit cash costs down by 16 per cent and Administrative and Selling expenses by 26 per cent leading to a positive EBITDA for the nine-month period of this year. But we cannot and will not stop here. This stark backdrop has necessitated a continued focus on operational optimization at our mines. We simply must ensure that OKD, our Czech mining operation, continues to move down the cost curve.

For many months there has been an enormous amount of effort across all levels of the workforce at OKD to optimize operations, capture efficiencies and drive down costs. Indeed, management and the workforce have together done a sterling job. But with no immediate sign of any material improvement in market conditions, it is imperative that we continue to focus on operational optimization and tight cost management, and all the while work to improve our safety performance.

In 2015, we do not expect any dramatic price movements in either coking or thermal coal. Our production target for next year is expected to be in the range of 7.5 to 8.0 million tonnes and we shall provide more precise guidance - together with other non-financial targets - at our full year results in February 2015.

Besides the continuous attack on our cost base, another priority is keeping the optionality in terms of future growth when there is coal price recovery. Therefore, we have started a strategic review of our Polish development project Debiensko, which comprises a huge coal resource of 556 million tonnes of predominantly hard coking coal, for which we suspended development in early 2013 given the aforementioned market conditions.

All in all, it has been another tough period for NWR. We have had to grapple with restructuring our balance sheet at the same time as driving operational efficiency in OKD in the face of continued market weakness. Today, our business is leaner and more flexible. We have a stronger balance sheet, new Board members and we maintain a focus on operational excellence. The market environment in 2015 does not look as if it will be any easier, but our Sales and Marketing team and our New Business Development team are both making great progress and are looking at several innovations and opportunities, which I hope to report on over the coming months. Our vision of becoming the Europe's leading miner and marketer of coking coal by 2017 in a safe and sustainable way thus remains firmly in place.

Gareth Penny

Executive Chairman of NWR

Selected financial and operational data (continuing operations) [4]

9M 2014 earnings call and webcast:

NWR's management will host an analyst and investor conference call on 13 November 2014 at 10:00 GMT (11:00 CET). The presentation will be made available via a live audio webcast on www.newworldresources.euand then archived on the Company's website.

For those who would like to join the live call, dial in details are as follows:

Conference call details are:

UK & rest of Europe +44 (0)20 3427 1908

USA +1 718 971 5738

Netherlands (Toll free) 0800 020 2576

Czech Republic (Toll free) 800 701 229

Poland (Toll free) 00 800 121 4330

Participants code 8803017Contacts:

Investor Relations Corporate Communications

Tel: +31 20 570 2244 Tel: +31 20 570 2229

[email protected] [email protected]

Website: www.newworldresources.eu

About NWR:

New World Resources Plc is a Central European hard coal producer. NWR produces quality coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic.

About New World Resources N.V.:

New World Resources N.V. is a wholly owned subsidiary of NWR Plc. It is a company incorporated under the laws of the Netherlands and registered at Dutch Trade Register of the Chamber of Commerce under number 34239108 and registered as an overseas company at Companies House in the UK with UK establishment number BR016952 and its address at 115 Park Street, London, W1K 7AP, United Kingdom (Telephone +44 (0) 207 371 5990, Fax +44 (0) 207 371 5999).

New World Resources Plc

Consolidated statement of comprehensive income

The notes on pages 12 to 24 are an integral part of these condensed consolidatedinterim  financial statements.

New World Resources Plc

Consolidated statement of financial position

The notes on pages 12 to 24 are an integral part of these condensed consolidated interim financial statements.

On 7 October 2014 the Group completed a capital restructuring which substantially altered its capital structure. See notes 3 and 15.

New World Resources Plc

Consolidated statement of cash flows

The notes on pages 12 to 24 are an integral part of these condensed consolidatedinterim  financial statements.

New World Resources Plc

Consolidated statement of changes in equity

The notes on pages 12 to 24 are an integral part of these condensed consolidatedinterimfinancial statements.

1. Corporate Information

New World Resources Plc ('NWR' or the 'Company') is a public limited liability company with its registered office at One Silk Street, London EC2Y 8HQ, United Kingdom.

These condensed consolidated interim financial statements comprise the Company and its subsidiaries (together the 'Group'). The Group is primarily involved in coal mining. The objective of the Company is to act as a holding company and to provide management services for the Group.

2. Financial Results Overview

On 6 December 2013, the Group completed the sale of OKK Koksovny, a.s. ('OKK'), representing its entire Coke segment, whose results are presented as a discontinued operation in the comparative period.

Continuing Operations

Revenues. The Group's revenues decreased by 21% (17% on a constant currency basis), from EUR 634 million in 9M 2013 to EUR 504 million in 9M 2014. This is mainly attributable to lower sales volumes of thermal coal; and to lower realised prices of coking coal that were partly offset by higher coking coal sales volumes.

Cost of sales. Cost of sales decreased from EUR 664 million to EUR 464 million or by 30% (26% on a constant currency basis) in 9M 2014 compared to 9M 2013. This is mainly attributable to:

§ lower depreciation following the impairment charge recognised in 2013;

§ less development work combined with lower input costs per equipped coal panel resulting in lower consumption of mining material and spare parts;

§ lower consumption of energy combined with lower energy prices resulting in lower energy costs; and

§ reduction in headcount combined with the finalisation of the Collective Bargaining Agreement in December 2013 which led to lower holiday and Christmas allowances, resulting in lower personnel expenses.

Cost of sales are further positively affected by a EUR 56 million year on year inventory impact following the build-up of inventories in the first nine months of 2014 compared to the reduction in inventories in the comparative period.

Selling expenses. Selling expenses decreased from EUR 75 million to EUR 47 million or by 36% (34% on a constant currency basis) in 9M 2014, attributable to lower sales volumes and lower transport prices as well as reduced inventory allowances.

Administrative expenses. Administrative expenses decreased from EUR 61 million to EUR 53 million or by 14% (9% on a constant currency basis) mainly due to reduction in administrative headcount resulting in lower personnel expenses.

EBITDA. 9M 2014 saw a positive EBITDA from continuing operations of EUR 4 million, an increase of EUR 54 million compared to negative EBITDA of EUR 50 million recorded in 9M 2013, attributable mainly to the decrease in operating expenses that outweighed the decrease in revenues.

Capital Restructuring. The Group incurred EUR 28 million (of which EUR 4 million are directly attributable to the equity component of the transaction) in costs relating to the Capital Restructuring as described in note 3.

Loss for the period. The reported loss from continuing operations for the period is EUR 128 million, compared to the loss of EUR 448 million in 9M 2013. Excluding the impact of impairment charges, the loss for the comparative period would have been EUR 195 million.

3. Basis of Presentation

The condensed consolidated interim financial statements (the 'financial statements') presented in this document are prepared:

§ for the nine-month period ended 30 September 2014, with the nine-month period ended 30 September 2013 as the comparative period;

§ based on the recognition and measurement criteria of International Financial Reporting Standards as adopted by European Union ('adopted IFRS') and on the going concern basis (see below); and

§ in accordance with IAS 34 Interim Financial Reporting.

The financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements as at and for the year ended 31 December 2013, which are contained within the 2013 Annual Report and Accounts of the Company, available on the Group's website at www.newworldresources.eu.

Going concern basis of accounting

The Group manages its liquidity through cash (EUR 77 million (31 December 2013: EUR 184 million)) and receivable financing.

At the present market prices for coal, the Group is currently cash flow negative and the current low coal price environment has placed significant pressure on the Group's liquidity position and also on its solvency resulting in the Group having net liabilities of EUR 324 million at 30 September 2014.

The prolonged global pressure on both coking and thermal coal prices, the expiry on 7 February 2014 of the Group's RCF credit line and the likely downward revision of coal resource and reserve balances (as a direct result of the deterioration in the long term coal price outlook), triggered the Directors to initiate a review of the Group's capital structure on 22 January 2014. Following such a review, the Group commenced the Capital Restructuring announced on 6 June 2014 which includes the Rights Issue and the Placing of shares in the Company as well as the financial, debt and corporate restructuring of the Group.

As at 30 September 2014, the Group had completed certain aspects of the Rights Issue resulting in the receipt of net proceeds of EUR 85 million (EUR 89 million of gross proceeds less issue costs of EUR 4 million), with the gross proceeds held in an escrow account until the overall completion of the Capital Restructuring.

Subsequent to 30 September 2014, the Group completed the Capital Restructuring on 7 October 2014, raising EUR 185 million of new money by way of a EUR 150 million Rights Issue and Placing (including the funds on the aforementioned escrow account) and by certain noteholders providing a EUR 35 million new Super Senior Credit Facility. The Group repurchased the Existing Notes for a mixture of cash and new debt, comprising (i) cash consideration of EUR 90 million (ii) New Senior Secured Notes of EUR 300 million (iii) New Convertible Notes of EUR 150 million, and (iv) New Contingent Value Rights of EUR 35 million.

Further, the ECA Facility Lenders have provided their consent to amend the EUR 49 million ECA Facility, including amending the repayment profile and waiving the breaches as at 30 September 2014, whereby, the Group had moved its Centre of Main Interest to England and having commenced negotiations with its creditors as part of the Capital Restructuring without consent having been obtained by the ECA Facility Lenders that time.

On completion of the Capital Restructuring, the Group has sufficient working capital available, that is, for at least the next 12 months following the date of this report. However, under a reasonable Downside Scenario, arising from a deterioration in coal prices and/or other operating issues, the Directors expect the Group could run out of cash in mid Q4 2015 as the Group would be in breach of the minimum available cash requirement for the Super Senior Credit Facility, which is set at EUR 40 million and is first tested as at 31 October 2015. At that time the ECA Facility would also be capable of acceleration and, should that acceleration be reasonably probable, all of the remaining debt of the Group could become immediately repayable.

The Directors recognise that these circumstances represents a material uncertainty that may cast significant doubt as to the Group's ability to continue as a going concern and that it may be unable to realise all of its assets and discharge all of its liabilities in the normal course of business. Nevertheless, the Directors expect that the risks associated with a deterioration in coal prices and/or other operating issues have been appropriately taken into consideration and accordingly the financial statements have been prepared on a going concern basis and no break up adjustments have been made.

On 30 July 2014, NWR announced that it had published a prospectus and circular relating to, among other things, the proposed rights issue and placing in connection with the consensual restructuring transaction. The prospectus describes the Capital Restructuring in more details and containsfurther risks relating to the Capital Restructuring. The defined terms used above have the meaning given in the prospectus. Note 15Subsequent Event and Other Information of this document includes a pro forma statement of net assets which illustrates the impact of the Capital restructuring on the Group's financial position.

4. Significant Accounting Policies

The financial statements have been prepared under the historical cost convention, except for certain financial instruments, which are stated at fair value.

The financial statements have been prepared on the basis of accounting policies and methods of compilation consistent with those applied in the consolidated financial statements as at and for the year ended 31 December 2013, with the exception described below.

New standards and interpretations

The Group adopted the following new/revised standards, which are effective for its accounting period starting 1 January 2014:

§ IAS 27 Separate Financial Statements (as revised in 2011, effective 1 January 2014)

§ IAS 28 Investments in Associates and Joint Ventures (as revised in 2011, effective 1 January 2014)

§ Amendment to IAS 32 Financial Instrument: Presentation - Offsetting Financial Assets and Financial Liabilities (effective 1 January 2014)

§ IFRS 10 Consolidated Financial Statements (effective 1 January 2014)

§ IFRS 11 Joint Arrangements (effective 1 January 2014)

§ IFRS 12 Disclosure of Involvement with Other Entities (effective 1 January 2014)

The adoption of the new/revised standards has no impact on the recognised assets, liabilities and comprehensive income of the Group.

Estimates

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 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 of the Company as at and for the year ended 31 December 2013. 

5. Non-IFRS Measures

The Company defines EBITDA as net profit/(loss) before income tax, net financial costs, depreciation and amortisation, impairment of property, plant and equipment ('PPE') and gains/losses from the sale of PPE.

While the amounts included in EBITDA are derived from the Group's financial information, it is not a financial measure determined in accordance with adopted IFRS and should not be considered as an alternative to net income or operating income as a sole indication of the Group's performance or as an alternative to cash flows as a measure of the Group's liquidity. The Company currently uses EBITDA in its business operations to, among others, evaluate the performance of its operations, develop budgets and measure its performance against those budgets.

The Company defines net debt as total debt less cash and cash equivalents. Total debt includes issued bonds, long-term and short-term interest‑bearing loans and borrowings, less related expenses. Interest‑bearing loans, bond issues, and borrowings are measured at amortised cost.

6. Exchange Rates

Throughout this document, the financial results and performance in both the current and comparative periods are expressed in Euros. The financial information could differ considerably if the financial information was presented in CZK. The Company may where deemed relevant, present variances using constant foreign exchange rates (constant currency basis), marked 'ex-FX', excluding the estimated effect of currency translation differences. These are non-IFRS financial measures.

7. Financial Performance of Continuing Operations

Revenues

The Group's largest source of revenue is the sale of coking coal, which accounted for 62% of total revenues in 9M 2014, whilst the sale of thermal coal accounts for 27% of total revenues in this period.

*For the purpose of this analysis, where the Group sells products on an EXW or similar basis, the notional transport element is shown separately in order to separate the impact of changing transport revenues from changes in the underlying achieved price for the products sold.

Total revenues decreased by 21% mainly as a result of lower sales volumes of thermal coal and lower realised prices of coking coal (see below) that were partly offset by its higher sales volumes. Lower sales volumes and lower transport charges also resulted in a decrease of transport revenues, with a similar decrease in transport costs, with no material impact on profitability.

All of the Group's coking coal sales are priced quarterly and the majority of thermal coal sales are priced on a calendar year basis.

Total production of coal in 9M 2014 decreased by 2% compared to 9M 2013. Coal volumes sold were lower by 15% as a result of lower thermal coal sales, partially offset by increased sales of coking coal in 9M 2014. Coal inventories increased by 232kt in 9M 2014 compared to a decrease by 723kt in 9M 2013.

* Inventory consists of coal available for immediate sale and coal that has to be converted from raw coal. Opening and closing inventory balances do not always reconcile due to various factors such as production losses.

Cost of Sales

Excluding the EUR 56 million year on year impact in change in inventories driven by the Group producing on stock, cost of sales decreased by EUR 144 million, principally as a result of:

§ lower depreciation following the impairment charge recognised in 2013;

§ a decrease in development work combined with lower input costs per equipped coal panel lowering consumption of mining material and spare parts;

§ a decrease in consumption of energy combined with lower energy prices resulting in lower energy costs; and

§ a 10% decrease in the number of employees combined with lower holiday and Christmas allowances, resulting in lower personnel expenses.

Selling Expenses

Lower sales volumes together with lower transport charges resulted in a reduction in transport costs by 39%, with a similar decrease in transport revenues, with no material impact on profitability. The Group recognised lower allowance for inventories compared to 9M 2013.

Administrative Expenses

Administrative expenses decreased by 14% mainly due to reduction in administrative headcount resulting in lower personnel expenses. 

Total Personnel Expenses and Headcount

Total personnel expenses have reduced principally through lower headcount (see below) and lower holiday and Christmas allowances based on the new Collective Bargaining Agreement with employees, executed in December 2013.

EBITDA

The Group's EBITDA from continuing operations increased by EUR 54 million compared to 9M 2013 mainly as a result of lower operating expenses that outweigh the decrease in revenues.

As EBITDA is a non-IFRS measure, the following table provides a reconciliation of EBITDA from continuing operations and net loss after tax.

Impairment

As at 30 June 2013, due to reduced price expectations for the Group's products, the Group assessed the recoverable amount of its cash generating units ('CGUs'). As a result, an impairment loss of EUR 310 million was recognised. Later as at 31 December 2013, following continued price reductions, a further impairment loss of EUR 500 million was recorded.

As at 30 June 2014, while prices have continued to decline for the Group's products, the Group considers these reductions to be in line with the expectations and assumptions made as at 31 December 2013 and accordingly has assessed that the Group's CGUs remain stated at their recoverable value. Further assessment of recoverable amount is planned to be carried out at the year-end 2014.

Financial Income and Expense

The decrease in net financial expense of EUR 8 million in 9M 2014 compared to 9M 2013 is mainly attributable to the loss recorded in the comparative period due to the repayment of the Senior Notes due 2015, consisting of the write off of unamortised transaction costs (EUR 4 million) and the cost of early redemption (EUR 4 million).

Loss from Continuing Operations before Tax

The loss before tax in 9M 2014 was EUR 133 million, down EUR 407 million compared to a loss of EUR 540 million in 9M 2013.

Income Tax

The Group recorded a net income tax benefit of EUR 5 million in 9M 2014, compared to a net income tax benefit of EUR 92 million in 9M 2013.

Deferred tax assets are recognised to the extent that they are recoverable in the jurisdiction in which they were incurred.

Loss from Continuing Operations

The Group recognised a loss from continuing operations of EUR 128 million in 9M 2014, which represents a decrease of EUR 320 million compared to the loss of EUR 448 million in 9M 2013.

8. (Loss) / Earnings per Share

The calculation of (loss)/earnings per share was based on (loss)/profit attributable to the shareholders of the Company and a weighted average number of shares outstanding during the nine-month period ended 30 September:

On 7 October 2014, the Company completed a EUR 150 million capital increase via a 1:19 fully underwritten rights issue and a placing. The number of ordinary A shares issued under the Rights Issue was 5,030,100,717. The current and prior period basic and diluted earnings per share have been adjusted by the bonus element associated with the Rights Issue.

During the period ended 30 September 2014, the Company undertook a sub-division of its share capital, whereby, one A share with nominal value of EUR 0.40 was subdivided into one A share with nominal value of EUR 0.0004 and 999 D shares with nominal value of EUR 0.0004 per share. Altogether the Company issued 264,477,400,857 D shares. These have no rights to dividends and there is no impact on the EPS calculation as a result of the issuance of the D shares.

9. Cash Flow

Cash Flow from Operating Activities

Cash outflows arising from operating activities, after working capital changes and before interest and tax in 9M 2014 were EUR 18 million, reflecting amongst others the fact the Group was producing on stock; and represents a EUR 43 million decrease compared to cash inflows of EUR 25 million in 9M 2013.The comparative period was affected by material sell down of low quality thermal coal inventories.

Cash Flow from Investing Activities

Capital expenditures amounted to EUR 45 million in 9M 2014, a decrease of EUR 57 million when compared to 9M 2013 (of which EUR 6 million spent in coke segment in 9M 2013). 

Cash flow from investing activities was positively influenced by a release of EUR 7 million from an escrow account related to the sale of the Coke segment in December 2013 (the Coke segment was sold for EUR 95 million with EUR 7 million paid into an escrow account to be released three months after the date of sale, subject to the satisfaction of any claims by the purchaser under the OKK Share Purchase Agreement).

Cash Flow from Financing Activities

Cash flow from financing activities reflects the transaction costs related to capital restructuring of EUR 21 million. Cash flow from financing activities in the comparative period was influenced by the issuance of new EUR 275 million Senior Notes due 2021 (the '2021 Notes') that were used to repay in full the outstanding amount of EUR 258 million under the Senior Notes due 2015 (the '2015 Notes'). Additional transaction costs of EUR 9 million were incurred in connection with the refinancing. Cash flow from financing activities in the comparative period also consisted of an instalment of the ECA Facility of EUR 7 million.

10. Borrowings, Liquidity and Capital Resources

The liquidity requirements of the Group arise primarily from the need to fund operating losses, working capital requirements and the need to fund capital expenditures. The principal uses of cash are anticipated to fund planned operating expenditures, capital expenditures, scheduled debt service on the Senior Notes and other borrowings, and other distributions.

Indebtedness and liquidity

As at 30 September 2014, the Group held cash and cash equivalents of EUR 77 million and had indebtedness of EUR 811 million (carrying value), of which EUR 49 million is contractually repayable in the next 12 months (see below). This results in a net debt position for the Group of EUR 734 million, 17% higher when compared to EUR 625 million as at 31 December 2013.

As a reaction to the continuation of difficult trading conditions and price pressures and the expiry of the Group' EUR 100 million RCF credit line (expired on 7 February 2014), the Directors initiated a review of the Group's capital structure, which was successfully completed on 7 October 2014. For more information about the review, liquidity and going concern basis of accounting please refer to note3 Basis of Presentation and note 15 Subsequent Events and Other Information.

Subsequent to period end and as part of the Capital Restructuring, the ECA Facility Lenders have provided their consent to amend the EUR 49 million ECA Facility, including amending the repayment profile and waiving the breaches as at 30 September 2014, whereby, the Group had moved its Centre of Main Interest to England and having commenced negotiations with its creditors as part of the Capital Restructuring without consent having been obtained by the ECA Facility Lenders. However, as at 30 September 2014, as the Company was still in breach of the undertakings of the ECA Facility, the outstanding amount of EUR 49 million has been recognised as a current liability.

11. Financial Instruments

Financial assets and liabilities by category

Financial assets and liabilities are categorised as shown below and stated at their carrying amounts. Where the carrying amount of a financial asset or liability does not approximate its fair value, this is disclosed.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

In order to determine the fair value of the financial instruments, the Company implements valuation techniques used by banks in which all significant inputs were based on observable market data.

(1)The fair value of interest rate derivatives is estimated by discounting the difference between the contractual interest rate and current interest rate for the residual maturity of the contract using a risk-free interest rate.

(2) The fair value of foreign exchange forwards is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

12. Segments and Divisions

Until the end of 2013, NWR's business was organised into two main segments - Coal and Coke segment. On 6 December 2013, the Group completed the sale of its entire Coke segment, which is now presented separately as discontinued operations within comparative period (see Note 13). Financial and other performance measures of the remaining Coal segment are regularly evaluated by the Chief Operating Decision Maker ('CODM'). The CODM is the Company's Board of Directors.

The Group is further organised into two divisions: the Mining Division ('MD') and the Real Estate Division ('RED'). 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 MD and RED, respectively. Due to the public listing of the Company's A shares, the Group provides divisional reporting showing separately the performance of the MD and RED. The main rights, obligations and relations between the RED and MD are described in the Divisional Policy Statement, available at the Company's website www.newworldresources.eu. The divisional reporting, as such, is essential for the evaluation of the equity attributable for the listed part of the Group. The whole Mining Division represents the Coal segment.