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NWR Trading Update and Q1 2013 Prices

28th Jan 2013 07:00

RNS Number : 4619W
New World Resources Plc
28 January 2013
 



Amsterdam, 28 January 2013

 

 

NWR Trading Update and Q1 2013 Prices

 

New World Resources Plc ('NWR' or the 'Company') announces that it has reached agreements with its customers for coking coal, thermal coal and coke prices for the current period. The Company also reiterates its operating update for the fourth calendar quarter of 2012 and 2013 outlook, as published on January 14, 2013.

Q4 2012 operating update

Below is a brief overview of the Company's key production and sales indicators for Q4 2012 as well as FY 2012. These figures are unaudited estimates and subject to change. NWR will publish its results for the twelve-month period ended 31 December 2012 on Thursday 21 February 2013, when further information will be provided.

Q4 2012 production volume (kt)

Q4 2012 sales volume (kt)

Q4 2012 avg. realised price (EUR/tonne)

Coking Coal

2,598

1,163

100

Thermal Coal

1,354

75

Coke

155

123

255

 

FY 2012 production volume (kt)

FY 2012 sales volume (kt)

FY 2012 avg. realised price (EUR/tonne)

Coking Coal

11,206

4,998

124

Thermal Coal

4,727

74

Coke

680

555

289

 

The average EUR/CZK FX rate in Q4 2012 was 25.2.

2013 Outlook

As previously announced the Company expects for the FY 2013:

·; Coal production in the range of 10-11Mt;

·; Coke production of approximately 800kt;

·; Broadly flat mining unit costs year-on-year at constant FX;

·; Significant reduction of total CAPEX year-on-year on the order of 30-50 per cent.

More details will be communicated to the market in February 2013 together with the announcement of NWR FY 2012 Financial results.

Coking coal pricing

The average agreed price of coking coal for delivery in the first quarter of 2013 is EUR 103 per tonne, a 3 per cent increase compared to the fourth quarter 2012 realised price.

 

This average coking coal price is based on the expectation that coking coal sales for the first quarter 2013 will be split approximately 45 per cent hard coking coal (mid-volatility), 47 per cent semi-soft coking coal and 8 per cent PCI coking coal.

Coke pricing

The average price agreed for coke sales during the first quarter of 2013 is EUR 253 per tonne, a 1 per cent decrease compared to the fourth quarter 2012 realised price.

 

The average coke price is based on the expectation of the first quarter 2013 sales to be approximately 76 per cent foundry coke, 15 per cent blast furnace coke and 9 per cent other types.

Thermal coal pricing

An average price of EUR 60 per ton has been concluded for 2013 thermal coal deliveries, a 19 per cent decrease compared to the FY 2012 realised price.

 

Approximately 80 per cent of the thermal coal prices have been concluded on the basis of the yearly pricing, while a quarterly pricing period has been applied to approximately 20 per cent of deliveries.

 

All prices are expressed as blended averages between the different qualities both for coal and coke and are ex-works.

 

All of the announced prices are indicative prices, and are based on an exchange rate of EUR/CZK of 25.0. 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. The actual realised price for the period may therefore differ from the average prices announced.

- Ends -

 

Notes for editors

 

For further information:

Investor Relations Corporate Communications

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

Email: [email protected] Email: [email protected]

 

Website: www.newworldresources.eu

 

 

About NWR:

New World Resources Plc 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, the largest hard coal mining company in the Czech Republic. NWR's coke subsidiary OKK, is Europe's largest producer of foundry coke. NWR currently has several development projects in Poland and the Czech Republic, 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 announcement 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, risks 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 announcement. 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 announcement 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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