NWR H1 revenues down 20% on coking coal price slump

Czech coal miner New World Resources (NWR) saw revenues drop by 20% year-on-year in the first half of 2014 to €346 million ($460 million), driven by a slump in coal prices, the miner said in its first-half results on Thursday August 21.

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The miner realised average prices of €87 ($115) in the first half of 2014, down 15% from levels of €102 per tonne ($135) achieved in the first half of 2013.

NWR posted a loss of €57 million ($75.8 million) for the period, equivalent to a basic loss of €0.22per share, despite driving down cash costs by 24%.

This was improvement on the previous year when it posted a loss equivalent to €0.56 per share, the company said.

Earnings before interest, taxes, depreciation and amoritisation (Ebitda) totalled €19 million ($25.2 million), NWR said, adding that the company had cut capital spending to €24 million ($32 million) from €61 million ($81 million) a year earlier.

NWR said it would maintain its coal production and sales target at 9-9.5 million tonnes for 2014, with coking coal to make up 55-60% of production.

“The past few years have undeniably been tough, not just for NWR but for the whole coal mining sector and related industries,” executive chairman Gareth Penny said in a statement.

“I am confident that with the radical steps that we have taken, and are continuing to do so, NWR will emerge as a much stronger regional player and better positioned to capitalise on the opportunities that will be afforded when conditions recover,” Penny added.

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