NWR's mining profits rise

Czech mining group New World Resources (NWR) reported higher profits reaching EUR 69.7 (zł.233) million in the second quarter compared with a mere EUR 14.4 (zł.48.2) million last year citing that profits have risen due to the rising coal prices.

"Overall costs were high due to one-off personnel costs linked with the company's IPO plus the fast appreciating crown also hit the operating level," said Jan Tomanik, an analyst at Wood&Co. brokerage.

However, Reuters polling seven analysts predicted profits to nearly double the reported amount to EUR 124.4 (zł.416) million. Meanwhile, revenue at NWR surged almost 60 percent to EUR 1.4 billion from EUR 647.8 million in the same period last year.

The Netherlands-based New World Resources (NWR), which controls the Czech Republic's largest hard coal mining company OKD and is investing EUR600-800 million in reopening Poland's Dębiensko mine, cites increasing coal prices as contributing to the company's prices.

Coking coal generates two thirds of NWR's business and prices in that segment rose by around a half in the second quarter. "Prices were pretty much along the lines that we anticipated, and our expectation is that we'll continue to see a very significant growth there, so I would say that the results were reasonable," NWR executive chairman Mike Salamon told Reuters in a phone interview.

Sources: Reuters, Forbes