[ET Net News Agency, 20 March 2014] Winsway Coking Coal (01733) said it expects to
record a materially increased consolidated loss for the financial year ended 31 December
2013 as compared to the loss in the previous financial year.
Such loss is primarily attributable to on 1 January 2013, the Group adopted the new
IFRIC interpretation - IFRIC 20, Stripping costs in the production phase of a surface
mine. This change in accounting policy has resulted in profit and loss figures for the
year ended 31 December 2012 having been restated, which has also led to lower comparative
figures for the year ended 31 December 2013; the price of coking coal falling to and
remaining at recent historical lows in Winsway's principal market, the People's Republic
of China, resulting from continuous weakness in demand for coking coal from steel mills
and coke plants in the PRC under sluggish economic conditions; and the one-off impairment
charges in respect of the company's interest in its material asset, its 60% owned
subsidiary, Grande Cache Coal Corporation.
Although there was a further fall in the price of coking coal in Winsway's major market
during 2013, it has made very significant progress in effecting cost reductions in both
the GCC sector and commodity logistical and trading business sector. (HL)