Jan. 28 (Bloomberg) -- New World Resources Plc tumbled as Bank of America Corp. said falling thermal-coal prices charged by the Czech mining company may hurt earnings.
The stock declined 2.8 percent to 88 koruna by the close in Prague, the second-worst performer in the PX index today. In U.K. trading, NWR slid 6 percent to 294 pence by 4:15 p.m. in London, the steepest drop in two weeks.
While customers agreed to buy coking coal for an average 103 euros a metric ton in the first quarter, up 3 percent from the last three months of 2012, the price of thermal coal for 2013 fell 19 percent to 60 euros, Amsterdam-registered NWR said today. The result will probably prompt analysts to worsen earnings forecasts, BofA’s Jason Fairclough in London, who has an underperform rating on NWR, said in a report.
“The announcement is pretty weak, especially due to the fall in thermal-coal prices,” Petr Bartek, a stock analyst at Ceska Sporitelna AS in Prague, wrote in an e-mail to clients today. NWR stock “looks a bit expensive compared to its weak outlook for 2013.”
Bartek has a hold recommendation for NWR with a 94 koruna price estimate, according to the report.
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