New World Resources, the FTSE 250 coal and coke producer, has said its total unaudited coal production production in the final quarter of 2012 came in at 2,598 kt, while coke totalled 155 kt.
This currently puts the full year figures at 11,206 kt coal and 680 kt coke.
Fourth quarter sales saw 1,163 kt of coking coal sold, 1,354 kt of thermal coal, and 123 kt of coke, taking the preliminary full year figures to 4,998 kt, 4,727 kt, and 555 kt, respectively.
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The group warned that as a result of recent declines in energy demand and broader market conditions, thermal coal inventories have been above the historical average levels. These conditions are likely to create pricing volatility and continued downwards pressure on thermal coal prices in the near term, it said.
New World is currently in the process of negotiating the thermal coal pricing for the current period and expects to close the negotiations and announce the results of these negotiations in the coming weeks. The group said it currently expects that in 2013 its average agreed thermal coal prices will decline.
The coking coal market has been affected by global soft demand, which has had a negative impact on international realised prices for coking coal.
"The global market dynamics are contributing to the uncertainty surrounding the pricing environment for 2013 for New World's coking coal and coke products," the company said.
"Thus, New World expects pricing pressure in the coking coal market to continue in the near term, with improved international supply-demand balance driving a recovery in the medium to long term.
"Given the fact that both thermal coal and coking coal markets remain under pressure due to broader market conditions, New World will continue to focus, among other things, on management of capital and operating expenditures."
The group currently expects 2013 coal production in the region of 10-11m tonnes, coke production of around 800kt, and a significant reduction of total CAPEX of around 30-50% compared to 2012. Mining unit costs are expected to remain broadly flat at constant exchange rates compared to last year.
Launch of 275m euro senior notesThe company also announced Monday that it is offering 275m senior notes, due in 2021, the proceeds of which will be used to repay the outstanding amounts under its 258m euro principal amount of senior notes which are due in 2015. The funds will also be used to pay fees, expenses and for general corporate purposes.
The share price fell 2.17% to 310.40p by 08:45 Monday.
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