Amsterdam, 23 January 2012
NWR Trading Update and Q1 2012 Prices
New World Resources Plc ('NWR' or the 'Company') announces that it has reached agreements with its customers for coking coal and coke sales for the first calendar quarter of 2012 as well as thermal coal sales for the calendar year 2012. The Company also announces production and sales volumes for the fourth calendar quarter of 2011 and its 2012 production and sales targets.
2011 performance update
NWR will publish its preliminary results for the year ended 31 December 2011 on Thursday 23 February 2012 when further information will be provided. Below is a brief overview of a number of the Company's key performance indicators for Q4 2011 as well as for the FY 2011. These figures are unaudited estimates and subject to change.
| Q4 2011 Production Volume (kt) | Q4 2011 Sales Volume (kt) | Q4 2011 Avg. Realised Price (EUR/tonne) |
Coking Coal | 2,606 | 1,183 | 167 |
Thermal Coal1 | 1,450 | 72 |
Coke | 186 | 125 | 350 |
| FY 2011 Production Volume (kt) | FY 2011 Sales Volume (kt) | FY 2011 Avg. Realised Price (EUR/tonne) |
Coking Coal | 11,247 | 4,415 | 181 |
Thermal Coal1 | 6,231 | 70 |
Coke | 770 | 555 | 365 |
With total coal production at 11.2Mt and total external coal sales at 10.6Mt, NWR has slightly exceeded its full year 2011 coal production target of 11Mt as well as the coal sales target of 10.3Mt, mainly due to higher volumes of thermal coal. Thermal coal sales also included approximately 382kt of PCI coking coal in 2011. Coke sales were within the guided range of 525-575kt.
2012 Outlook
Production
NWR expects to produce between 10.8 and 11Mt of coal and 700kt of coke in 2012.
Sales
NWR expects external sales of between 10.25 and 10.5Mt of coal split approximately 48 per cent coking coal, including PCI coking coal, and 52 per cent thermal coal. NWR further expects to sell approximately 600kt of coke in 2012.
Pricing
Coking coal pricing
The average agreed price of coking coal, including PCI coking coal, for delivery in the first calendar quarter of 2012 is EUR 142 per tonne, a decrease of 13 per cent compared to the fourth quarter realised price2, and in line with the developments in the global coking coal markets.
The above price is based on expected Q1 2012 coking coal sales of approximately 54 per cent hard coking coal, 38 per cent semi-soft coking coal, and 8 per cent PCI coking coal.
Coke pricing
The average price agreed for coke sales during the first calendar quarter of 2012 is EUR 311 per tonne, a decrease of 11 per cent compared to the fourth quarter realised price, as a result of continued weakness in the European coke market, in particular for blast furnace coke.
The above price average is based on the expectation of Q1 2012 sales to be approximately 70 per cent foundry coke, 20 per cent blast furnace coke, and 10 per cent other types.
Thermal coal pricing
The average price agreed for thermal coal sales for the calendar year 2012 is EUR 74 per tonne. This is an increase of 11 per cent compared to the 2011 average realised price2 and reflects strong regional demand for thermal coal as a source of power generation.
All of the announced prices are based on an exchange rate of CZK/EUR of 25.00. 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 please contact:
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
NWR 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, a.s. ('OKD'), the largest hard coal mining company in the Czech Republic. NWR's coke subsidiary, OKK Koksovny, a.s. ('OKK') is Europe's largest producer of foundry coke. NWR currently has two development projects in Poland, Debiensko and Morcinek, 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 document 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, risk 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 document. 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 report 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.
