New World Resources on track after decent second quarter

Hard coal and coke producer New World Resources has said remains on track to hit its full-year production and sales targets after production increased in the second quarter.

The firm produced 3,390kt of coking coal and thermal coal in the second quarter, up from 2,389kt in the first three months of the year. Meanwhile, coke production was steady at 174kt. While sales volumes were broadly higher, average realised prices slipped quarter-on-quarter.

New World said it remains on track to produce 10.8-11Mt of coal and 700kt of coke.

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After having reached agreements with its customers for sales for the third quarter, the group said that that the average agreed price for coking coal is €129 per tonne, up 2% on the second quarter. Meanwhile, the average price agreed for coke sales fell 1% to €294 per tonne and the average thermal coal is €74, up 11% from the 2011 average realised price.

"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 realised prices,"the firm said.

BC