Metinvest affiliate Pokrovske Coal output jumps 18% in 8M19

Private joint stock company Pokrovske Coal produced
15.7 kt of raw coking coal per day in August, a 0.8% m/m drop, according to
Concorde Capital’s analysis of Energy Ministry data, as reported by
Interfax-Ukraine on Sept. 11.

In 8M19, Pokrovske Coal produced 3.15 mmt of coal, a
17.8% yoy jump.

Recall, Pokrovske Coal said in its 2018 annual report
that it plans to boost coal production 42% yoy to 5.63 mmt in 2019. Metinvest (METINV), Ukraine’s largest steelmaker, owns
24.99% in Pokrovske Coal assets.

Dmytro Khoroshun: Production
at Pokrovske Coal continued at an accelerated pace in August after the jump in July. If the
company maintains its July-August production rate for the remainder of the
year, it will boost its production 26-28% yoy to 5.0-5.1 mmt in 2019.

We maintain our bullish view on METINV bonds.