New World Resources N.V. (NWR), a leading Central European hard coal and coke producer, has announced pricing agreements for coking coal and coke sales for Q3 of 2010.
Quarterly priced coking coal, which represents 20% of the total expected sales volume for 2010, amounts to about 300,000 t for delivery in Q3 and comprises mostly semi-soft coking coal. The average price agreed for these deliveries was EUR 158/t, 17% higher than the average price for Q2 of 2010.
The average price agreed for coke sales during Q3 of 2010 was EUR 362/t, an increase of 42% on Q2 prices and 143% higher than the 2009 average price. The expected sales volume for the period is 250,000 t.
As previously announced, 80% of NWR’s coking coal in terms of tonnage is sold on a Japanese Fiscal Year (JFY) basis, all coke is sold on a quarterly basis and all thermal coal prices are agreed for the calendar year. The price for JFY 2010 coking coal sales and thermal coal prices for the calendar year 2010 remain unchanged at an average of EUR 163/t and EUR 65/t, respectively.
During 2010, NWR expects to sell a total of approximately 5.5 million t of coking coal, 5 million t of thermal coal and 1.1 million t of coke. Production targets for 2010 remain unchanged at 11.5 million t of coal and 1 million t of coke.
All of the prices stated in euros are based on an exchange rate of CZK/EUR of 24.50. Prices are expressed as blended averages between the different qualities both for coal and coke and are ex works (EXW). NWR further notes that the average prices announced are indicative prices, as these can be influenced by a range of factors including, but not limited to, exchange rate fluctuations, quality mix, timing of the deliveries and flexible provisions in the individual.
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