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Press Releases / 2012 / NWR Trading Update and Q4 2012 Prices 

NWR Trading Update and Q4 2012 Prices

15/10/2012

New World Resources Plc (‘NWR’ or the ‘Company’), one of Central Europe’s leading hard coal and coke producers, announces that it has reached agreements with its customers for coking coal and coke sales for the fourth calendar quarter of 2012. The Company also announces production and sales volumes for the third calendar quarter of 2012.

Performance update

Below is a brief overview of the Company’s key production and sales indicators for Q3 2012 as well as 9M 2012. These figures are unaudited estimates and subject to change. NWR will publish its results for the nine-month period ended 30 September 2012 on Wednesday 14 November 2012, when further information will be provided.

 

Q3 2012 production volume (kt)

Q3 2012 sales volume (kt)

Q3 2012 avg.

realised price (EUR/tonne)

Coking Coal

2,829

1,164

126

Thermal Coal

1,221

73

Coke

176

129

286

 

 

9M 2012 production volume (kt)

9M 2012 sales volume (kt)

9M 2012 avg. realised price (EUR/tonne)

Coking Coal

8,608

3,835

131

Thermal Coal

3,373

73

Coke

525

432

299

The average EUR/CZK FX rate in Q3 2012 was 25.1.

2012 Production and sales guidance

For the full year 2012, the Company continues to expect to produce between 11.0Mt and 11.1Mt of coal and 700kt of coke. NWR now expects external sales of between 10.2Mt and 10.3Mt of coal split approximately 50 per cent thermal coal and 50 per cent coking coal. NWR further expects to sell approximately 600kt of coke in 2012. Finally, NWR expects year-end coal inventories of 600-700kt.

Coking coal pricing

The average agreed price of coking coal for delivery in the fourth quarter of 2012 is EUR 102 per tonne, a 20 per cent decrease compared to the third quarter realised price.

This average coking coal price is based on the expectation that coking coal sales for the fourth quarter 2012 will be split approximately 47 per cent hard coking coal (mid-volatility), 45 per cent semi-soft coking coal and 8 per cent PCI coking coal.

Coke pricing

The average price agreed for coke sales during the fourth quarter of 2012 decreased by 8 per cent to EUR 264 per tonne compared to the third quarter realised price.

The average coke price is based on the expectation of the fourth quarter 2012 sales to be approximately 73 per cent foundry coke, 9 per cent blast furnace coke and 18 per cent other types.

Thermal coal pricing

As previously announced, the average price agreed for thermal coal sales for the calendar year 2012 is EUR 74 per tonne, 11 per cent higher than the 2011 average realised price.

All of the announced prices are based on an exchange rate of EUR/CZK of 25.0. Prices are expressed as blended averages between the different qualities both for coal and coke and are ex-works.

Average prices announced are indicative prices. 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. Thus the actual realised price for the period may therefore differ from the average prices announced. The indicated expected sales volumes can be influenced by the production structure as well as by the sales structure and individual quality assortment delivered to customers.

- Ends -

For further information:

Investor Relations                                                      Corporate Communications

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

Email: ir@nwrgroup.eu                                              Email: pr@nwrgroup.eu

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.

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