Sadovaya increases coal mining 16% yoy in 1H12
5 July 2012
Sadovaya Group’s (SGR PW) mines produced 227.8 kt of coal in 1H12 (+16% yoy), according to an Energy Ministry report yesterday. The data suggest the company mined 38.2 kt of coal in June 2012, down 13% mom (-2% yoy).
Roman Topolyuk: To reach the company’s full-year mining plan of 532 kt, Sadovaya has to increase monthly output in 2H12 to 50.7 kt (up from 38.0 kt in 1H12). The plan looks reachable only if the company commissions two new longwalls at Rassvet-1 mine in time. Earlier, the company revealed plans to commission one of the new longwalls in 2Q12, which does not appear to have happened. So far, we look forward to the company’s update on new longwalls as well as the commissioning of a waste enrichment facility, the main expected bottom line driver for 2012.
