Central Europe-based miner New World Resources Plc (NWR) has announced its financial results for 2015.
In 2015, New World Resources registered a net loss of €223 million, increasing from a net loss of €21 million in the previous year. NWR's sales revenues decreased by seven percent year on year to €630 million, mainly attributable to lower sales volumes of coking coal and to lower realized prices of thermal coal, while the company posted an operating loss of €248 million, narrowing down from an operating loss of €258 million in 2014.
During 2015, NWR's total coal output decreased by seven percent to 8.02 million mt, while external coal sales declined by four percent to 7.95 million mt, both compared to the previous year.
NWR stated that it has commenced a detailed strategic review of its operations and its preliminary conclusion is that, in the absence of a significant and near-term increase in coal prices, it will need to reduce costs yet further across its entire portfolio and to secure substantial additional liquidity. Also, while a number of NWR’s mines clearly have potential, some do not, and therefore, as part of the strategic review process, the company is evaluating its options for those low-potential mines. In parallel with this strategic review, NWR has commenced discussions with certain key stakeholders as to an appropriate way forward, including its noteholders and shareholders and the Czech government. These discussions, which are ongoing, are focused on securing a viable business for the company, with a sustainable portfolio of cash-generative mines; a capital structure appropriate to allow that portfolio to operate as a going concern through the anticipated extended period of low coal prices; and clarity for employees.