New World Res A Share Discussion Threads

[m.t.glass] 14/4/2010 12:51

So they were inclined to cash in at this morning's 8.8% rise -- and we now have a 19.7% midday rise

[mirshahik] 14/4/2010 11:51

From FT Alphaville:

here's the take of Liberum:

New World Resources has announced an exceptionally strong coking coal settlement recording an annual price settlement of €163/t, a siginificant premium to the Q1 settlement at €101/t and even above the 2008 settlement of €135/t. Applying a 20% discount for NWR's mix (60% semi-soft, 40% hard) we estimate the settlement equates to a hard coking coal number of c.$280/t, around 40% ahead of BHP's Q2 settlement with the Japanese!

In addition there is a floating element to the settlement with 20% of volumes to be renegotiated on a quarterly basis, providing more exposure to spot pricing (in conjunction with coke volumes that are already sold on spot).
The stock is currently up +8.8% on the news and we would take profits into this strength.

Putting this settlement in, we estimate the company is now on 11.2x 2010 and 9.4x 2011 (running today's settlement price through our model) the stock now trades in line with the sector and we would see this as an opportunity to take profits into share price strength. Put another way, the 3 year FCF pre-expansion capex on spot is 50% of market cap or 25% post capex – we prefer the larger diversified plays.

[m.t.glass] 14/4/2010 11:12

Corporate borrowers in the Czech Republic are enjoying very low, attractive borrowing costs and are finding it cheaper to issue bonds now than to borrow via bank loans...


....Regional hard-coal miner New World Resources is expected to return to the market soon with its EUR700 million senior secured notes offering. The company wants to use the funds to refinance its long-term debt. The issue was planned for early February, but it was shelved due to market volatility, NWR said.

On Friday the company told Dow Jones Newswires it is closely watching the situation to gauge when to hit the market.

"Now is a good time to borrow, yields have dropped significantly since the beginning of the year," Vyskovsky said. He added that now "there's no crisis in financing for government, it's very cheap."

[m.t.glass] 14/4/2010 11:06

"..The information Wednesday pushed NWR's shares 15% higher in early trade, yet the good news doesn't stop there..."


A reference to industrial growth among NWR's local customers

[dizzylizzy2] 14/4/2010 10:38

very good news today! can't wait for the qtrly report next month. the rns mentioned the return of bonuses so i presume the report will contain some comments on divi. a very bullish 2010 and beyond for coal and nwr!

[jeremy40] 14/4/2010 10:38

Could this hasten the return to the 2008 listing price?

[m.t.glass] 14/4/2010 09:42

"...BHP Billiton Ltd., the world's largest producer of the commodity, and Rio Tinto Group, the world's third-largest mining company, this month won a 55 percent price increase to about $200 a metric ton for coking-coal deliveries to Japan's second- and third-largest steelmakers from April..."






AGM coming up (in Amsterdam) on Tuesday 27 April

[its the oxman] 14/4/2010 09:22

anyone got new eps figure for nwr on the back of this news or broker update info?

[m.t.glass] 14/4/2010 08:56

There is another big energy company floatation going ahead around the end of this month - Essar Energy. A play on energy growth in India. Expected to go straight into the FTSE-100

The article compares it with NWR's floatation.

I've set up a temporary ESSAR thread at

[rafieh] 14/4/2010 08:42

Reaching £10 should not take more than a week.

[its the oxman] 14/4/2010 08:36

excellent news - could well make a major break up and see us test and very likely break 1000p resistance - then technically a clear run to 1400-1500p level - just hope it proves that simple.

[rafieh] 14/4/2010 08:34

Will NWR qualify for FTSE 100 if we breach £10?

[mustau] 14/4/2010 08:24

I expect more pi's picking this one now, easy 50% to be gained here.

[rafieh] 14/4/2010 08:22

The inevitable is now unfolding.

[seible] 14/4/2010 08:14

Wow, excellent news! Now we are due a complete re-rating.

[mustau] 14/4/2010 08:09

Answers in the share price, Hopefully we should break 10 very quickly and head towards its high of 08.

[m.t.glass] 14/4/2010 07:43

"The coking coal and coke price increases of 87% and 71% over 2009 prices we have announced today are very pleasing...."


How do these coal prices sound? And will they have any impact on current share price?



TIDMNWR

RNS Number : 1461K
New World Resources N.V
14 April 2010

Amsterdam, 14 April 2010

Update on 2010 Prices

New World Resources N.V. ("NWR" or the "Company"), Central Europe's leading hard coal and coke producer, today announced that it has reached agreements with its customers for coking coal sales for the next 12 months as well as coke sales for the next 3 months. In line with the Company's strategy of more closely aligning its pricing cycle with international global coal markets, coking coal contracts for 2010 now largely follow the Japanese Fiscal Year ("JFY") with some coking coal subject to quarterly pricing.

NWR has entered into agreements to sell 5.5Mt of its coking coal to external
customers between April 2010 and March 2011. Prices for approximately 80% of
these sales are agreed for the JFY 2010 period. The average price of the JFY
2010 settlements is approximately EUR 163 per tonne, representing a 58% increase over the Q1 2010 prices of EUR 103 per tonne and 87% higher than average 2009 prices. The price for the remaining 20% of the sales volumes will be renegotiated on a quarterly basis. The average price for the Q2 2010 settlements is approximately EUR 135 per tonne, which are mostly for semi-soft coking coal.
The actual average realised price and volume for Q2 2010 will be a blend of JFY
2010 and Q2 2010 settlements.
The Company has also agreed terms for the sale of 338kt of coke during the
second calendar quarter of 2010 for an average price of EUR 255 per tonne, which is 31% higher than the EUR 195 average price for Q1 2010 and 71% higher than 2009 average prices. NWR expects to continue pricing coke on a quarterly basis for the rest of the calendar year 2010 in line with previous practice.
Thermal coal price agreements have not significantly changed and the majority of the settlements continue to follow the calendar year. NWR expects to sell
approximately 5.0Mt of its thermal coal to external customers in 2010. Thermal
coal sales are priced at an average of EUR 65 per tonne for the calendar year
2010.
"The coking coal and coke price increases of 87% and 71% over 2009 prices we
have announced today are very pleasing and provide strong evidence of a
sustainable improvement in demand for New World Resources' products," commented
Mike Salamon, Executive Chairman of NWR's Board. "Our shift to pricing
arrangements more closely aligned with the broader international trade in our
products is also a significant positive, as it allows NWR to also benefit from
the positive pricing trends attributable to the global supply and demand
imbalance for coking coal, driven by demand in the emerging world. We are
committed to working with our customers to continue this new arrangement in
future," added Salamon.
Other developments
NWR, along with its coal mining subsidiary OKD, a.s. ("OKD"), has decided to
increase coal production for 2010 to 11.5Mt from the 11.0Mt as previously
announced, reflecting stronger customer demand. The Company's coke production
target of 1Mt for 2010 remains unchanged.
NWR announced earlier in the year that it expected total personnel expenses for
the Company in 2010 to remain stable, on a constant currency basis, when
compared to 2009. However, as market conditions have improved, the Company's
production target has been raised and, conditional on NWR and its subsidiaries
achieving their financial and operational performance targets, the Company will
consider paying performance-related bonuses to its employees, which would
consequently increase its total personnel costs for the year.
NWR has updated its internal reserve base calculations and its total reserves as
at 1 January 2010 were 407Mt.
+-------------------------------+-------------------------------+
| Mine |Reserves as at 1 January 2010 |
| | (kt) |
+-------------------------------+-------------------------------+
| Karvina | 97,069 |
+-------------------------------+-------------------------------+
| Darkov | 44,207 |
+-------------------------------+-------------------------------+
| Paskov | 26,085 |
+-------------------------------+-------------------------------+
| CSM | 50,137 |
+-------------------------------+-------------------------------+
| Debiensko | 189,858 |
+-------------------------------+-------------------------------+
| Total | 407,356 |
+-------------------------------+-------------------------------+

NWR will publish its first quarter 2010 results on 19 May 2010, at which further
details of the Company's performance will be announced.
Mike Salamon, Executive Chairman of the Board and Marek Jelinek, Executive
Director and Chief Financial Officer, will host a conference call today,
Wednesday, 14 April 2010, at 10:00 CET (09:00 BST). A live webcast of the
conference call will also be made available on NWR's website at
www.newworldresources.eu.
Dial-in details:
The Netherlands [phone]
Czech Republic (Toll free) 800 900 226
Poland (Toll free) 00 800 121 2695
UK & rest of Europe [phone]
USA +1 646 843
4608
- Ends -

For further information please contact:
New World Resources N.V.
Investor Relations
Corporate Communications
Tel: [phone] Tel: +420
225 282 163
Email: [e-mail] Email:
[e-mail]

Website: www.newworldresources.eu

[rafieh] 12/4/2010 08:16

Charging towards £9.5

[mustau] 01/4/2010 19:24

Yes, underperformance!!

[seible] 01/4/2010 11:30

Any views on performance? Does anyone know what is causing the current rise? Or is it a general market trend? Any info on the current prices for coal and coke appreciated. Thanks

[dizzylizzy2] 30/3/2010 14:03

sounds about right but will depend on what the mkt does over that couple of months

[rafieh] 29/3/2010 20:55

£9.50 is my initial target, and can be achieved in less than a couple of months.

[dizzylizzy2] 29/3/2010 09:56

£16 would be nice but that's pushing it a bit. well, it depends on timinig of course.

[cat] 26/3/2010 22:56

not much resistance until £16
just look at the chart at the top.