New World Resources Plc (NWR) fell to its lowest in almost three months as Citigroup Inc. followed Deutsche Bank AG in worsening its forecasts for the Czech mining company because of lower coal prices.
The stock slid as much as 2 percent to 79.50 koruna in Prague after Citigroup changed its projection for NWR’s 2013 loss per share to 0.52 euro from 0.25 euro in a report from London-based analyst Thomas O’Hara. Europe’s benchmark coal slid 0.4 percent to $98.40 a metric ton in the Netherlands, the least for the contract in two months on a closing basis.
NWR posted a wider-than-expected loss for the fourth quarter on Feb. 21, citing a drop in demand for thermal coal and the more profitable coking coal amid Europe’s debt and economic crisis. The stock slid the most in 17 months that day and Deutsche Bank cut its price estimate for the shares by 16 percent to 80 koruna.
“We assume a slow recovery in thermal coal pricing,” O’Hara said in the Citigroup report today. “NWR will need to focus heavily on controlling costs, allocating capital efficiently and maximizing the coking-thermal sales mix.”
NWR traded down 1.7 percent to 79.75 koruna by 2:57 p.m. in Prague, with turnover so far today more than double the daily average over the past three months. The stock was the most traded in the PX (PX) index today and the second-worst performer.
To contact the reporter on this story: Krystof Chamonikolas in Prague at email@example.com
To contact the editor responsible for this story: Wojciech Moskwa at firstname.lastname@example.org