New World Resources expects a decline in its average agreed thermal coal price in 2013, and pricing pressure to persist in the coking coal market in the near term, the Amsterdam-based coal producer said Monday in an updated company outlook.
NWR said it would give a more detailed outlook next month when it releases its 2012 results.
Overall, NWR forecast a slight drop in 2013 coal production to 10 million-11 million mt, but an 18% year-on-year rise in coke production to 800,000 mt.
Mining unit costs are expected to stay flat to 2012, assuming constant exchange rates, NWR said. The company is also expecting to cut total capital expenditure by 30-50%, year-on-year.
Detailed plans and guidance for 2013 will be finalized and released next month with the announcement of 2012 financial results.
In its outlook, the company also said it produced 2.6 million mt of thermal and coking coal in the fourth quarter of 2012, down from 2.83 million mt in the previous quarter.
NWR's Q4 coke production was 155,000 mt, down from 176,000 mt in Q3.
NWR's Q4 coking coal sales volumes were flat at 1.16 million mt, while thermal coal sales volumes for the quarter were 1.35 million mt, up from 1.22 million mt in the previous quarter.
The miner's Q4 coke sale volumes dipped to 123,000 mt, down from 129,000 mt in Q3.
In the Central European thermal market, recent declines in energy demand and broader market conditions have led to higher-than-average inventory levels, increasing price volatility and downward pressure on thermal coal prices, NWR said.
In the coking coal market, Central Europe continues to be impacted by soft demand, NWR said.
The company is in the process of negotiating the coking coal price for the current period and expects to close the negotiations and announce the results in the coming weeks.
In 2012, the company produced 11.2 million mt of coking and thermal coal, and coke production of 555,000 mt. NWR sold 5 million mt of coking coal in and 4.7 million mt of thermal coal in 2012.
