Amsterdam, 22 January 2015
Debiensko Project Reserves and Resources Update
New World Resources Plc (‘NWR’ or the ‘Company’) today announces the completion of a positive pre-feasibility study for the Debiensko project undertaken by DMT Consulting GmbH (‘DMT’). DMT has identified a total of 263 million tonnes of proven and probable coal reserves under the JORC 2012 code. All of these reserves are hard coking coal that after processing will yield 186 million tonnes of marketable reserves.
Following this study — as part of the strategic review of the Debiensko project announced in November 2014 — NWR is now exploring opportunities to attract funding for the estimated two-year feasibility stage of the project. Moelis & Company UK LLP has been engaged to assist the Company in this process.
The project is the development of an underground mine to exploit coking coal reserves in the Debiensko area located in the Upper Silesia Coal Basin in Southern Poland. The project is one of the largest undeveloped hard coking coal deposits in Europe.
NWR initially started planning the project in 2006 and was granted a 50-year mining license in 2008. In 2012, however, the project was suspended. In 2013 DMT was contracted to undertake a pre-feasibility study to evaluate alternative development options and re-estimate the project’s reserves.
On 30 July 2014, IMC GCL Limited, completed a Competent Person’s Report on the Debiensko project in the context of the Company’s debt restructuring. This was published as part of the prospectus issued in relation to the rights issue and the placing of new ordinary shares of the Company. At that time IMC GCL Limited concluded that the project was marginally sub-economic which prevented a statement of reserves in accordance with the JORC 2012 code being made.
Since then NWR has made further improvements to the project’s business, development and mining plan, and has undertaken a value engineering exercise. This resulted in a reduction in capital and operational expenditure. The long-term price for Debiensko’s hard coking coal that is used in the pre-feasibility study is EUR 130 per tonne.
On the basis of this additional work the DMT pre-feasibility study reported a total of 263 million tonnes of proven and probable coal reserves under the JORC 2012 code, that at a projected processing yield of 70.7 per cent yields 186 million tonnes of marketable reserves.
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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.
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.