New World Resources Gains Most in Two Weeks on Polish Coal FindLadka Bauerova
New World Resources Plc, the central European miner which has undergone debt restructuring, rose the most in more than two weeks after an initial study at a Polish coal mine showed reserves of coal.
The stock rose 7.1 percent to 0.45 koruna, the biggest jump since Jan. 7, by 1:29 p.m. in Prague, making it the biggest gainer on the PX index, which rose 1.1 percent. The Amsterdam-based company has lost more than 90 percent of its market value in the past year.
The study shows the Debiensko site, located in the Upper Silesia Coal Basin in southern Poland, has a net reserve of 186 million tons of coking coal, the company said in a statement after the end of trade on Thursday. NWR is seeking ways to finance the final feasibility study for one of the largest undeveloped hard coking coal deposits in Europe, it said.
“This is a slightly positive news, but NWR doesn’t currently have the funds to develop this project,” Petr Bartek, an analyst at Erste Group Bank AG’s Ceska Sporitelna unit, wrote in a note.
The company, some of whose creditors became shareholders in its restructuring last year, had enough funds to operate for a year in a “worst-case scenario,” Chief Financial Officer Marek Jelinek said in November.