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New World cuts losses

By Robert Tyerman | Thursday 26 February 2015


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Czech coal miner New World Resources (NWR) has slashed its annual deficit from E914 million (£672 million) to E 21 million thanks to an advantageous capital restructuring and is ‘identifying new business opportunities’ while coal prices remain weak.  Formerly part of the Czech state-owned coal industry, the company, which is listed in London, Prague and Warsaw and operates through its Czech mining subsidiary OKD, increased output 2 % in 2014 to 8.6 million tonnes, with hard coking coal for the steel industry 3% ahead to 8.3 million tonnes and thermal coal for power generation down 30% to 3.5 million tonnes.


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