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Update of 2012 operating performance &2013 outlook

14 Jan 2013 07:23

RNS Number : 4423V
New World Resources Plc
14 January 2013
 



Amsterdam, 14 January 2013

 

 

Update of full year 2012 operating performance and 2013 outlook

 

 

New World Resources Plc and New World Resources NV ('NWR' or the 'Company') jointly announce production and sales volumes for the full year 2012, as well as 2013 outlook.

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 available as of 14 January 2013 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)

Coking Coal

2,598

1,163

Thermal Coal

1,354

Coke

155

123

 

FY 2012 production volume (kt)

FY 2012 sales volume (kt)

Coking Coal

11,206

4,998

Thermal Coal

4,727

Coke

680

555

 

 

Current market outlook

Thermal coal

In the Central European thermal coal markets, due to recent declines in energy demand and broader market conditions, thermal coal inventories have been above the historical average levels. These conditions are likely to create pricing volatility and continued downwards pressure on thermal coal prices in the near term.

NWR is currently in the process of negotiating the thermal coal pricing for the current period and expects to close the negotiations and announce the results of these negotiations in the coming weeks. NWR currently anticipates that in 2013 its average agreed thermal coal prices will decline.

Coking coal

The Central European coking coal market continues to be impacted by soft demand that has been observed globally, and which is affecting international realised prices for coking coal. The global market dynamics are contributing to the uncertainty surrounding the pricing environment for 2013 for NWR's coking coal and coke products. Thus, NWR expects pricing pressure in the coking coal market to continue in the near term, with improved international supply-demand balance driving a recovery in the medium to long term.

 

NWR is currently in the process of negotiating the coking coal pricing for the current period and expects to close the negotiations and announce the results of these negotiations in the coming weeks.

Company's 2013 outlook

Given the fact that both thermal coal and coking coal markets remain under pressure due to broader market conditions, NWR will continue to focus, among other things, on management of capital and operating expenditures. Detailed plans and guidance for the current year shall be finalised and communicated to the market in February 2013 together with the announcement of NWR FY 2012 Financial results. Currently, NWR expects the following for 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%.

 

Notes for editors

 

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.

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