* Proposes semiannual dividend of 0.22 euro/share
* Expects coking coal demand to remain robust
* Sees upside to 2011 production target of 11 mln tonnes
* Shares down 0.3 percent, in line with market
(Adds shares, quotes, details)
PRAGUE, Feb 24 (Reuters) - New World Resources (NWR)
<NWRS.L> <NWRSsp.PR> forecast robust coking coal demand in 2011
after higher prices and demand helped lift fourth-quarter net
profit 44 percent from the previous quarter, in line with
estimates.
NWR, owner of the Czech Republic's largest hard coal mines,
said demand would stay strong and that there was an upside
potential to its 2011 production outlook.
Fourth-quarter net profit rose to 70 million euros ($96.29
million), a touch above the average estimate in a Reuters
analyst poll of 68.4 million euros.
Revenue rose 14 percent to 466 million euros, near an
average estimate of 470 million in the poll.
The group warned last month that lower production of the
more profitable coking coal slowed the revenue rise and that it
only expected an increase in volumes towards the end of 2011.
NWR Executive Chairman Mike Salamon said on Thursday that
demand would stay strong in central and eastern Europe.
"We expect demand for coking coal in the CEE region to
remain robust, driven by a continuing recovery in the automotive
and construction sectors," he said.
"Recovery in Central Europe's industrial sectors will also
underpin demand for thermal coal, where we have already seen
prices rise."
NWR, listed in London, Prague, and Warsaw, proposed a
semi-annual dividend of 0.22 euros per share.
The group produced 11.4 million tonnes of coal in 2010, and
has said it expects production of 11 million tonnes in 2011.
That figure could rise to 11.4 million, Salamon said, due to
technical reasons, and that 2012 would be higher and count more
on coking coal.
The miner's Chief Financial Officer Marek Jelinek said he
expected a further significant growth in coking coal as well as
coke prices. Sales should gradually grow each quarter, he said.
Mining costs should rise by 10 percent this year, he added.
Sales this year should be split evenly between coking and
thermal coal, NWR said. NWR also plans to switch to quarterly
pricing on most coking coal sales starting in the second
quarter.
NWR shares were down 0.34 percent on the day at 1119 GMT, in
line with a slightly weak main PX index <>. They fell as much
as 2.6 percent after the opening and dealers said some investors
had expected higher earnings.
($1=.7270 Euro)
(Reporting by Jason Hovet, additional reporting by Jana
Mlcochova; editing by David Hulmes and Hans Peters)
