New World Resources Plc (NWR) slumped the most in six weeks on investor expectations the biggest Czech producer of coking coal will post a third-quarter loss tomorrow and as miners threaten to strike.
The stock dropped as much as 14 percent before paring its decline to 6.8 percent at 26 koruna by 12:44 p.m. in Prague, extending its retreat this year to 73 percent. The number of shares traded was 11 percent above its three-month daily average volume, according to data compiled by Bloomberg.
NWR incurred a loss of 59.3 million euros ($80 million) in the three months through September, according to the median estimate of eight analysts in a Bloomberg survey. It would be the fourth quarterly loss in a row as the company battles lower coking-coal prices and a fall in demand from customers such as ArcelorMittal (MT), the world’s biggest steelmaker.
“The third quarter will be again weak,” Bohumil Trampota, an analyst at J&T Banka, said in an e-mailed note. “The deterioration is due to a slump in coal and coke prices.”
Miners at NWR are considering going on strike as early as next week after unions failed to reach an agreement with the management on wages and other conditions for the next four years, according to a note from Erste Group Bank AG analyst Petr Bartek. The workers are also challenging the company’s decision to close its unprofitable Paskov mine at the end of next year.