24 Apr 2014 10:08
Amsterdam, 24 April 2014
Q1 2014 Trading Update and Q2 2014 Prices
New World Resources Plc (the 'Company' or 'NWR') announces today that we have reached agreements with our customers for coking coal for the second quarter of 2014. The Company also announces production and sales volumes as well as realised prices for the first quarter of 2014.
Q1 2014 operating update
Below is a brief overview of the Company's key production and sales indicators for Q1 2014. NWR will publish its Q1 2014 financial results on Thursday 15 May 2014.
| Q1 2014 production volume (kt) | Q1 2014 sales volume (kt) | Q1 2014 avg. realised price (EUR/tonne) |
Coking Coal | 2,226 | 1,243 | 91 |
Thermal Coal | 663 | 60 |
The average EUR/CZK FX rate in Q1 2014 was 27.4.
2014 Production and sales targets
The Company continues to target FY 2014 coal production and sales of 9 - 9.5 Mt, with 55 - 60 per cent of coking coal in the sales mix.
Q2 2014 coking coal pricing
The average agreed price for coking coal deliveries in the second quarter of 2014 is EUR 85 per tonne, a 6 per cent decrease compared to the first quarter of 2014 realised price.
This average coking coal price is based on the expectation that coking coal sales for the second quarter 2014 will be split approximately 47 per cent hard coking coal (mid-volatility), 44 per cent semi-soft coking coal and 9 per cent PCI coking coal.
2014 thermal coal pricing
An average price of EUR 54 per tonne has been agreed for 80% of expected thermal coal production in 2014, a 4 per cent decrease compared to FY 2013 realised price. This average thermal coal price is based on the expectation that thermal coal sales for the full year 2014 will be split approximately 77 per cent thermal coal and 23 per cent middlings. The remaining 20% of expected thermal coal production will be sold and priced later in the year.
Notice
All prices are expressed as blended averages between the different qualities both for coking and thermal coal and are ex-works.
All of the announced prices are indicative prices, and are based on an exchange rate of EUR/CZK of 27.0. 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 -
Contacts:
Investor Relations Corporate Communications
Tel: +31 20 570 2244 Tel: +31 20 570 2229
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.
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.