Jan. 15 (Bloomberg) -- New World Resources Plc had the biggest two-day drop in almost 16 months after the Czech mining company missed its sales target for last year and said coal prices will probably decline this year.
The stock was the worst performer and the most-traded in the PX index today, dropping 5.9 percent to 89 koruna by close in Prague. Its 11 percent back-to-back slump is the steepest since September 2011.
NWR sold 9.7 megatons of thermal and coking coal last year, less than its 10.3 megatons target, as demand from steelmakers plunged, the Amsterdam-registered company said yesterday. The miner will cut investment this year by 30 percent to 50 percent to lower costs as the price of thermal coal, also known as steam coal, is likely to decline, NWR said.
“Sales volumes were disappointing,” Bohumil Trampota, an analyst at J&T Banka AS in Prague, wrote in a report to clients today. Coal prices in 2013 “are expected to be under a lot of pressure and the price of steam coal should be down,” he said.
Europe’s benchmark price for thermal coal fell 16 percent last year amid the continent’s economic crisis and China’s manufacturing slowdown. The futures contract has retreated 1.3 percent this week to $100.10 a metric ton in the Netherlands.
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