Czech coal firm NWR hit by impairment charge, cuts reserves

* Q4 net loss 466.1 mln euros, revenue down as expected

* Cuts saleable coal reserves by 65 pct because of weak market

* Capital structure review still at early stage

* Shares touch record low

By Jason Hovet

PRAGUE, Feb 13 (Reuters) - Troubled Czech coalminer New World Resources (NWR) posted a record 466.1 million-euro ($633 million) net loss from continuing operations in the fourth quarter, due to a big impairment charge in the face of still falling coal prices.

The miner, which is undergoing a restructuring including a major review of its capital structure that should be completed in the coming months, cut its saleable coal reserves by around 65 percent to 64 million tonnes.

NWR operates four hard coal mines in the northeast of the Czech Republic and has fallen into deep losses in the past year because of falling coal prices and slack demand from steel sector customers like ArcelorMittal and United States Steel Corp.

A deteriorating market pushed NWR to announce the review of its capital structure in January, despite already being on target to meet 2013 cost savings goals and selling its coking business for 95 million euros in December.

"We have done a lot to try to counter the negative impact of the declining market but all this combined saves about 200 million euros and that doesn't fully outweigh the pricing development," Chief Financial Officer Marek Jelinek said.

"The market is still not in a good place."

NWR said last month that first-quarter coking coal prices were down 7 percent and 2014 prices for thermal coal were down 4 percent. The company aims for production of 9-9.5 million tonnes in 2014 after 8.8 million tonnes in 2013.

NWR booked a 497.3 million-euro non-cash impairment in the fourth quarter, contributing to a fifth straight quarterly loss and bringing its total charge for 2013 to 807 million euros.

Revenue fell 18 percent to 216.1 million euros, in line with expectations in a Reuters poll.

NWR's shares fell 9 percent in Prague to hit a record low of 15.80 crowns and are down 81 percent in the past year.

Jelinek said the capital review process was still at an early stage. NWR has met with shareholders and bondholders, who hold two bonds due in 2018 and 2021 worth 775 million euros.

"So far we have a constructive process," he said. "I don't think it is a question of whether a deal can be reached, I think a deal has to be reached."

Jelinek declined to say what form any deal could look like. Analysts have said a debt-to-equity swap could be part of the process. Majority shareholder BXR has already said it is ready to invest new equity into a revamped capital structure.

NWR ended 2013 with net debt of 625 million euros and cash of 184 million, down 31 percent on the year.

Jelinek said the cash position was a buffer for this year. "(This) obviously gives us a buffer so there is no discussion about the company operating as a going concern," he said.

"Even if the market stays where it is, this year is not a problem ... But clearly the market is not supportive at the moment and that is one of the reasons why the capital structure review is in progress."