Metinvest affiliate Pokrovske Coal output jumps 17% m/m in July

Private joint stock company Pokrovske Coal produced
15.9 kt of raw coking coal per day in July, a 17.3% m/m jump, according to
Concorde Capital’s analysis of Energy Ministry data, as reported by
Interfax-Ukraine on Aug. 20.

In 7M19, Pokrovske Coal produced 2.66 mmt of coal, a
10.6% yoy gain.

Recall, Pokrovske Coal said in its 2018 annual report
that it plans to boost coal production 42% yoy
to 5.63 mmt in 2019. Metinvest (METINV), Ukraine’s largest steelmaker, owns
24.99% in Pokrovske Coal assets.

Dmytro Khoroshun: Finally, we
see a real acceleration at Pokrovske Coal. July’s 15.9 kt per day rate
corresponds to 5.8 mmt per year, and if the company maintains this rate for the
remainder of the year, it will boost its production 28% yoy to 5.1 mmt in 2019.

We maintain our bullish view on METINV bonds.