Coal Energy ups coal mining 59% yoy in 11M FY12

Coal Energy (CLE PW) boosted coal mining to 158 kt (+17% mom) in May, and kept waste dump reprocessing high at 35 kt (flat mom). These results imply that in 11MFY12 the company mined 1.48 mmt of coal (+59% yoy) and recovered from waste 227 kt (-60% yoy), resulting in total coal production of 1.7 mmt. Additionally, the company announced that it launched two longwalls – one at Sergiya Radonezhskogo Mine and one at Svyato-Nikolaevskaya Mine in May, which will be brought to a combined production load of 11 kt by the end of June. Another two longwalls with similar capacities at these subsidiaries will be launched in August and November 2012.

Roman Topolyuk: Coal Energy’s production growth is approaching 1.9 mmt in FY2012 (+16% yoy), however, coal sales might be somewhat lower than production on still weak coal demand.