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Q3 2013 Trading Update and Q4 2013 Prices

14 Oct 2013 16:42

RNS Number : 4733Q
New World Resources Plc
14 October 2013
 



Amsterdam, 14 October 2013

 

 

Q3 2013 Trading Update and Q4 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 fourth quarter of 2013. The Company also announces production and sales volumes for the third quarter of 2013.

Q3 2013 operating update

Below is a brief overview of the Company's key production and sales indicators for Q3 2013 as well as 9M 2013. NWR will publish its results for the first nine months of 2013 on Wednesday 6 November 2013, when further information will be provided.

Q3 2013 production volume (kt)

Q3 2013 sales volume (kt)

Q3 2013 avg. realised price (EUR/tonne)

Coking Coal[1]

2,171

1,117

91

Thermal Coal[2]

1,252

56

Coke[3]

163

142

232

 

9M 2013 production volume (kt)

9M 2013 sales volume (kt)

9M 2013 avg. realised price (EUR/tonne)

Coking Coal1

6,452

3,423

98

Thermal Coal2

3,762

56

Coke3

503

440

240

The average EUR/CZK FX rate in Q3 2013 was 25.9.

The Company expects FY 2013 coal production of 9.0-10.0Mt, coal sales of 9.5-10.5Mt (including approx. 500kt of coking coal sales to OKK and approx. 500kt of sales from thermal coal inventories.) NWR further expects FY 2013 coke production of 700kt and coke sales of 600kt.

Q4 2013 coking coal pricing[4]

The average agreed price for coking coal deliveries in the fourth quarter of 2013 is EUR 101 per tonne, an 11 per cent increase compared to the third quarter of 2013 realised price.

 

This average coking coal price is based on the expectation that coking coal sales for the fourth quarter 2013 will be split approximately 60 per cent hard coking coal (mid-volatility), 32 per cent semi-soft coking coal and 8 per cent PCI coking coal.

2013 thermal coal pricing

As announced earlier, an average price of EUR 60 per tonne applies to 2013 thermal coal deliveries, excluding the sales of middlings and lower grades of thermal coal from inventories. This average thermal coal price is based on the expectation that thermal coal sales for the full year 2013 will be split approximately 80 per cent thermal coal and 20 per cent middlings.

 

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.

Q4 2013 coke pricing

The average agreed price for coke deliveries in the fourth quarter of 2013 is EUR 231 per tonne, which is flat compared to the third quarter of 2013 realised price.

 

The average coke price is based on the expectation that fourth quarter 2013 sales will be split approximately 62 per cent foundry coke, 25 per cent blast furnace coke and 13 per cent other types.

 

Notice

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 -

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.

 

In 2013 the Company announced a strategic outlook to reposition NWR into Europe's leading miner and marketer of coking coal by 2017.

 

NWR is listed in London, Prague and Warsaw. It is a constituent of FTSE Small Cap index.

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.


[1] Following the announcement of the proposed disposal of OKK dated 27 September 2013, coking coal sales to OKK are now reported as part of the external sales from continuing operations. Volumes sold to OKK in Q3 and 9M 2013 were 131kt and 389kt, respectively, and these sales are included in the coking coal figures in the above tables.

[2] The average realised thermal coal price has been impacted by the sales of middlings and lower grades of thermal coal from inventories.

[3] Starting from Q3 2013 results due on 6 November 2013, the coke segment will be reported as discontinued operations following the announcement of the proposed disposal of OKK dated 27 September 2013.

[4] Including sales to OKK.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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