* Says recovery pace slowed in Q4, cautiously optimistic
* Debiensko decision could come this year
* Shares up 0.8 percent in Prague
(Adds CEO comment, Debiensko, shares)
By Jan Korselt and Jason Hovet
PRAGUE, Feb 24 (Reuters) - Higher coal sales and cost
savings pushed Czech coal miner New World Resources <NWRS.L> to
a surprise fourth-quarter net profit, ending a string of three
quarterly losses.
NWR, owner of the Czech Republic's largest hard coal mines,
earned 7.5 million euros ($10.2 mln) in the quarter, while a
Reuters poll had found a forecast for a 6.9 million euro loss
after a 92.3 million profit in the 2008 period. []
NWR said a recovery in demand started in the second half of
2009 and continued into 2010, but the pace slowed in the fourth
quarter. The economic downturn crushed demand from NWR's main
customers in the central European steel sector.
October-December revenue fell 21 percent year-on-year to 341
million euros on lower demand and prices, but was up 17 percent
on the third quarter and above analyst expectations.
"NWR had good results, mainly on the strict cost management,
which did not allow the costs to rise on the back of rising
sales revenues," ING analysts said in a note.
NWR's Prague shares <NWRSsp.PR> rose 0.8 percent.
The miner remained cautious on coming quarters. Earlier this
month, NWR said it aimed for steady 2010 production after mining
11 million tonnes last year.
Czech economic recovery stalled with an unexpected quarterly
decline at the end of last year. The economy is expected to
rebound around 1.5 percent this year after a 4.3 percent
contraction last year. []
NWR also secured price rises in quarterly contracts for
coking coal and coke, although the increases were not as high as
some analysts had expected. The price of coking coal, the
compan's main revenue driver, rose to 103 euros per tonne.
"Regarding the future, coking coal market is still hot. We
could easily imagine an upside surprise in both coking coal and
coke prices for 2010 on the back of the Far East development."
ING said.
NWR said it would not pay a final dividend for 2009, but
would assess a return to regular payments this year.
It could also make a decision on going ahead with its
Debiensko site in Poland this year. Planned investment in the
mine would be 350-400 million euros, down from more than 600
million estimated before, NWR said.
Executive chairman Mike Salamon said reserves at Debiensko
could reach 300 million tonnes after finding new, shallower
deposits. Earlier estimates had put reserves at around 190
million tonnes. []
NWR shares have shed almost 12 percent since it announced
its 2010 outlook on Feb. 3, but are 155 percent higher than a
year ago, double the rise in Prague's index <>.
(Writing by Jason Hovet; Editing by Will Waterman and Dan
Lalor)
($1=.7361 Euro)
