Revenue down at New World Resources

Central European coal miner New World Resources (NWR) was hit by falling revenues from thermal coal and coke in the first quarter.

Revenues fell 10% to €347m at the start of 2012 as coal production in during the period dropped 7% compared to 2011.

Operating profit for the period fell 71% to €11m, while net debt increased 26% to €385m compared to the year before.

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External coal sales were 13% lower year-on-year mainly due to lower volumes of thermal coal, the firm said.

But decreased revenues from thermal coal, driven by lower sales volumes, had been partly offset by higher prices, it said.

Falling revenues from coke were driven by both lower sales volumes and prices.

"We reiterate our full year 2012 guidance that NWR expects to extract between 10.8Mt and 11Mt of coal and produce 700kt of coke this year," said Executive Chairman Mike Salamon.

"External sales of coal are projected to reach between 10.25Mt and 10.5Mt of coal, split approximately 52 per cent thermal coal and 48 per cent coking coal."