OREANDA-NEWS. August 26, 2010. New World Resources is slated to release its 2Q10 IFRS figures on Thursday, 26 August. Senior management will hold a presentation the same day for analysts and investors, at 10:00am London time. To take part in the conference call, dial: +44 (0)20 7806 1951, reported the press-centre of OTKRITIE Financial Corporation.  

View: We expect the company to post revenue at EUR413m (26% QoQ growth), primarily a result of higher selling prices. Our forecast for 2Q10 EBITDA is EUR130m, which implies a 31% EBITDA margin, 14ppt higher than in the previous quarter. As per an announcement on 22 June 2010, NWR has closed the sale of NWR Energy. Since the proceeds of the transaction should be booked in 2Q10, we expect net income for the quarter to be bolstered by a cEUR62m gain. Our forecast for 2Q10 net income is EUR119mn. Generally speaking, our 2Q10 estimates are slightly below Reuter’s consensus – by 1% in terms of revenue and by 3% in terms of EBITDA.

Valuation and Action: We reaffirm our BUY rating for NWR and a target price of GBp1000/share. The company trades on a 2011E EV/EBITDA of 4.4x, which implies a 24% discount to the average for coking coal producers and a 31% premium to energy coal producers.