New World Resources Plc 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 December 31st 2011 on February 23rd 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 '11 Production Volume | Q4 '11 Sales Volume | Q4 '11 Avg Realized Price | |
| Coking Coal | 2606 | 1,183 | 167 |
| Thermal Coal | 1,450 | 72 | |
| Coke | 186 | 125 | 350 |
Volumes in '000 tonnes
Avg Realized Price - EUR per tonne
| FY '11 Production Volume | FY '11 Sales Volume | FY '11 Avg Realized Price | |
| Coking Coal | 11247 | 4,415 | 181 |
| Thermal Coal | 6,231 | 70 | |
| Coke | 770 | 555 | 365 |
Volumes in '000 tonnes
Avg Realized Price - EUR per tonne
With total coal production at 11.2 million tonnes and total external coal sales at 10.6 million tonnes, 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 382,000 tonnes of PCI coking coal in 2011. Coke sales were within the guided range of 525,000 tonnes 575,000 tonnes.
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 million tonnes and 10.5 million tonnes of coal split approximately 48% coking coal, including PCI coking coal, and 52% 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% compared to the fourth quarter realized price 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% hard coking coal, 38% semi soft coking coal, and 8% 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% compared to the fourth quarter realized 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% foundry coke, 20% blast furnace coke and 10% 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% compared to the 2011 average realized price 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 realized prices. Thus the actual realized 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.
