Feb. 25 (Bloomberg) -- New World Resources Plc fell to its lowest in almost three months as Citigroup Inc. followed Deutsche Bank AG in worsening its forecasts for the Czech mining company because of lower coal prices.
The stock slid 2 percent to 79.50 koruna today in Prague after Citigroup changed its projection for NWR’s 2013 loss per share to 0.52 euro from 0.25 euro in a report from London-based analyst Thomas O’Hara. Europe’s benchmark coal slid 0.5 percent to a two-month low of $98.30 a metric ton in the Netherlands.
NWR posted a wider-than-expected loss for the fourth quarter on Feb. 21, citing a drop in demand for thermal coal and the more profitable coking coal amid Europe’s debt and economic crisis. The stock slid the most in 17 months that day and Deutsche Bank cut its price estimate for the shares by 16 percent to 80 koruna.
“We assume a slow recovery in thermal coal pricing,” O’Hara said in the Citigroup report today. “NWR will need to focus heavily on controlling costs, allocating capital efficiently and maximizing the coking-thermal sales mix.”
NWR today fell for a fourth straight day to the lowest close since Nov. 26, with turnover more than double the daily average over the past three months. The stock was the most traded in the PX index today and the second-worst performer.
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