Coal Energy raises coal production 1.1x mom and yoy in April

Coal Energy (CLE PW) increased coal production 11% mom to 170 kt in April on the back of waste reprocessing output doubling mom, while mining remained flat mom. The increase in its waste recovery segment was caused by volatile middlings reprocessing. The company increased total coal production 10% yoy to 1.5 mmt in 10M FY12 (July 2011-April 2012), though coal recovery from waste went down 65% yoy to 192 kt. Despite the increase in total operations, Coal Energy said it sees a worsening in 3Q FY12 earnings, compared to consensus expectations and to its own internal forecasts due to slackening demand and declining coal prices, but it anticipates a rebound in prices starting from July 2012. The company plans to report financials for 9M FY12 on May 23, 2012.