Coal Energy increases October coal production

Coal Energy (CLE PW) increased its total coal production 6% m/m in October to 68 kt, mainly through elevating monthly coking coal output 21% m/m to 10.8 kt and coal production from waste reprocessing 19% m/m to 11.5 kt, while thermal coal mining remained flat m/m at 46 kt, the company reported on November 15.

The company reiterated that its previous production target for FY2014 coal production at 2.9 mmt (+81% yoy) might not be achievable in current market conditions and it’s reviewing viable operating plans.

Roman Topolyuk: The provided data implies Coal Energy’s coal output sharply decreased in all segments in the first four months of its 2014 fiscal year (beginning in July). Its 4MFY14 underground mining fell 65% yoy to 219 kt and waste reprocessing fell 64% yoy to 45 kt, bringing total coal output for the period to 264 kt (-65% yoy).