NWR - Unaudited Q1 2014 Results

Q1 2014 Financial summary

• Revenues from continuing operations of EUR 173 million, down 18%.
• Coking coal average realised price of EUR 91/t, down 12%; Thermal coal average realised price of EUR 60/t, down 6%.
• Cash mining unit costs of EUR 66/t, down 23% (18% on a constant currency basis) on 4% higher production.
• Selling and administrative expenses from continuing operations down 15% to EUR 36 million.
• EBITDA from continuing operations of EUR 10 million.
• Basic loss from continuing operations per A share of EUR (0.10).
• Net debt of EUR 651 million, including cash of EUR 159 million.
• Capital restructure negotiations continue with an expected resolution by the end of 2014.

Q1 2014 Operational summary

• Regrettably, two miners lost their lives this year. Safety metrics LTIFR of 7.27 in Q1 2014, improvement of 2% vs. FY 2013. Drive for a fatality-free operation continues.
• Coal production of 2.2Mt, up 4% and coal sales of 1.9Mt, down 12%.
• Coal sales mix of 65% coking coal and 35% thermal coal.
• CAPEX of EUR 12 million for continuing operations, down 80%.
• Coal Inventory of 694kt, down 45% year on year.
• Total headcount in continuing operations including contractors down 10%.
• Financial support for the closure of the Paskov Mine approved by the Czech government in April 2014. The agreement remains subject to notification and approval by the European Commission.

FY 2014 Prices and targets

• Coking coal Q2 2014 average price agreed at EUR 85/t, down 6% on previous quarter.
• Thermal coal FY 2014 average price for 80% of expected production locked in at EUR 54/t, down 4% on FY 2013.
• Production and sales volume targets of 9 - 9.5Mt.
• Target of 55% - 60% coking coal in the sales mix.
• CAPEX below EUR 100 million.
• Further improvement in LTIFR towards the 2015 target of below 5.
• Cash mining unit costs in the mid EUR 60's including the Paskov Mine.

Review of NWR's capital structure

• The Board initiated a review of NWR's capital structure on 22 January 2014.
• The Company has engaged in discussions with its stakeholders with a view to developing and implementing a capital structure that recognises and respects their interests.
• Discussions have included the Company's majority shareholder, BXR Mining B.V., who has indicated that it and its shareholders are prepared to invest new equity capital into a revised and satisfactory capital structure.
• The Company has also been in discussions with advisers to the Ad hoc committee of note holders, who represent holders of both the senior secured notes due 2018, senior unsecured notes due 2021 and cross-holders.

Press Release (ENG)