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Czech coal miner, New World Resources, announces 2012 production and price outlook

World Coal,

New World Resources (NWR) has reached agreements with its customers for metallurgical coal and coke sales for Q1 2012, as well as thermal coal sales for the calendar year 2012. The company also announced production and sales volumes for the Q4 2011 and its production and sales targets for this year.

2011 performance update

With total coal production at 11.2 million t and total external coal sales at 10.6 million t, NWR exceeded its 2011 coal production target of 11 million t, as well as the coal sales target of 10.3 million t, mainly due to higher volumes of thermal coal. Thermal coal sales also included approximately 382,000 t of PCI coking coal in 2011. Coke sales were within the guided range of 525,000 – 575,000 t.

2012 outlook

  • Production: NWR expects to produce between 10.8 and 11 million t of coal and 700,000 t of coke in 2012.
  • Sales: NWR expects external sales of between 10.25 and 10.5 million t of coal split approximately 48% metallurgical coal, including PCI coking coal, and 52% thermal coal. NWR also expects to sell approximately 600,000 t of coke.

2012 pricing

  • Coking coal pricing: the average agreed price of metallurgical coal, including PCI coking coal, for delivery in Q1 2012 is E142/t, a decrease of 13% compared to Q4 2011, and in line with the developments in the global coking coal markets. The price is based on expected Q1 2012 coking coal sales of approximately 54% hard coking coal, 38%semi-soft coking coal, and 8% PCI coking coal.
  • Coke pricing: the average price agreed for coke sales during the Q1 2012 is E311/t, a decrease of 11%, compared to the Q4 price, as a result of continued weakness in the European coke market, in particular for blast furnace coke. The price average is based on the expectation of Q1 2012 sales of approximately 70% foundry coke, 20% blast furnace coke, and 10% other types.
  • Thermal coal pricing: the average price agreed for thermal coal sales for 2012 is E74/t. This is an increase of 11% compared to the 2011 price and reflects strong regional demand for thermal coal as a source of power generation.

NWR is one of Central Europe’s leading hard coal and coke producers. The company produces quality coking and thermal coal for the steel and energy sectors through its subsidiary OKD, a.s., the largest hard coal mining company in the Czech Republic. NWR's coke subsidiary, OKK Koksovny, a.s. is Europe's largest producer of foundry coke. NWR currently has two development projects in Poland, Debiensko and Morcinek, which form part of its regional growth strategy.

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