UPDATE 2-Czech miner NWR posts much bigger Q2 loss than forecast
* Reports biggest quarterly loss since 2008 listing
* Net result hit by one-off mining asset writedown
* CEO expects to break even on cashflow level in Q4
* Company confirms full-year output and sales guidance
By Jan Korselt and Jana Mlcochova
PRAGUE, Aug 22 (Reuters) - New World Resources (NWR) reported a much deeper-than-expected net loss in the second quarter as weak coal prices made the Czech coal miner book a large writedown on its assets.
However, its chief executive told Reuters on Thursday he forecast losses to stop at the cashflow level in the fourth quarter and in 2014 after cost cuts and an expected stabilisation in coal prices.
NWR shares rose as much as 12 percent following the CEO's comments and were up 10.4 percent by 0754 GMT at 24.50 crowns.
"It looks like there could be a turnaround (in the company's performance)," said Tomas Otahal, a trader at brokerage Patria.
"It is hard to assess that from the long-term perspective but in the short term we see it as positive for the stock."
NWR reported a net loss of 315.4 million euros ($421.9 million) in the second quarter, after coal price weakness led the company to register a non-cash writedown of 307 million euros on its mining assets.
It was the miner's biggest quarterly loss by far since its debut on the London, Prague and Warsaw stock exchanges in 2008, missing the average loss estimate of 69.2 million euros in a Reuters poll.
NWR, which counts ArcelorMittal SA and U.S. Steel Corp as customers, is looking to sell assets and make cost cuts worth 100 million euros this year to ride out falling prices and a slump in demand from steelmakers.
The company has already taken retrenchment measures worth 60 million euros, and Chief Executive Gareth Penny told Reuters he was confident the miner would find an additional 40 million euros in the rest of the year to meet the target.
NWR is considering shutting temporarily or permanently its "high-cost" Paskov mine, its smallest mine with production of 950,000 tonnes in 2012 and reserves of 23.1 million tonnes, with 9.2 million of that proven.
But Penny said a final decision had not yet been made and that NWR would not close the pit in 2014.
The miner has also been looking to offload its OKK coking plant. Penny said there were several potential buyers and reiterated that the sale should be concluded by the year-end.
Polish coal miner JSW said on Aug. 12 it had conducted due diligence of some assets put up for sale by NWR and was awaiting answers on future risks before deciding whether to buy them. Its chief executive said it was interested in OKK.
NWR reiterated its full-year plan to produce 9-10 million tones of coal and 700,000 tonnes of coke. External sales should reach 8.5-9.5 million tonnes of coal, equally split between coking and thermal coal.
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