Sept. 30 (Bloomberg) -- New World Resources Plc shares and bonds rallied after the unprofitable Czech miner of coking coal announced a sale of assets designed to shore up its finances.
The stock rose 4.7 percent to 28.80 koruna by the close in Prague, extending third-quarter gains to 60 percent. The number of shares traded was 1.6 times the three-month average. Yields on NWR’s euro-denominated notes due January 2021 tumbled 163 basis points, or 1.63 percentage points, to 20.97 percent.
NWR agreed to sell its OKK coking plant, including some inventories, to Metalimex AS for 95 million euros ($128 million) by year-end, the Amsterdam-registered company said late on Sept. 27 in a regulatory statement. The deal is subject to approval from shareholders, regulators and banks. The company reported a record 315.4 million-euro loss for the second quarter as coal prices tumbled amid shrinking demand from steelmakers.
“The sale is positive for NWR shares as it will provide the company with additional liquidity,” Petr Bartek, an analyst at the Prague-based unit of Erste Group Bank AG, wrote in a report to clients today. “We have also observed positive changes on the coking-coal market lately.”
The commodity traded at $149.5 a metric ton, up from a low of $129 reached on July 16, according to the benchmark spot prices for coking coal delivered in China.
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