Sadovayas mining output falls 1/4 mom in February

Sadovaya Group (SGR PW) decreased monthly coal mining volumes in February by 26% mom to 27 kt, as data from the Energy Ministry published yesterday imply. Coal extraction at subsidiary Sadovaya Mine plunged more than 2x mom to 7.2 kt, while output at the Rassvet-1 Mine decreased 7% mom to 20.0 kt.
 
Roman Topolyuk: Though a decline in output at the Sadovaya Mine was anticipated (due to repairs at the mine in January-February), the magnitude of the drop is a negative surprise. We expect output at the Sadovaya Mine to rebound in March, as repairs should have been finished in late February. We also expect Sadovaya to improve its coal mining output statistics in 2Q12, after the commissioning of a fourth longwall at Rassvet-1.