Higher prices put New World back into profit

New World Resources NV has announced a €233 million (US$322 million) profit for the full year to end-December as higher coal prices helped lift revenues by 42% from a year earlier.

In 2009 the Czech coal miner reported a net loss of €61.56 million.

During the course of the financial year the company also reinstated its dividend policy and paid down debt, again reflecting the better market conditions.

Overall coal revenues were up by 30% in the year at €1.36 billion with coke sales up 161% at €343 million.

The company’s cash costs were up 4% at €71/t. Chief executive, Mike Salamon said: “Our continuous focus on cost control has enabled us to limit the increase in our mining unit cash costs. Containment of our mining unit costs remains a major focus as we mine deeper into more difficult environments.”

The company produced 11.44Mt of coal in the year, selling 5.26Mt of coking coal and 5.46Mt of thermal coal.

The company recently secured price increases for its product including a 13% increase in thermal coal to €71/t for calendar 2011. 80% of coking coal is sold on the Japanese fiscal year starting in the beginning of April, but a price of €165/t for semi-soft coking coal has been agreed for the first three months of 2011, a 7% increase from the previous quarter. The average price agreed for coke in the first calendar quarter of 2011 is €339/t, a 1% increase on the realised price in the December quarter.