Metinvest affiliate Pokrovske Coal output rises 23% in 2020

Private joint stock company Pokrovske Coal produced
6.13 mmt of raw coking coal (16.8 kt per day) in 2020, a 22.6% yoy rise,
according to Concorde Capital’s analysis of Ukraine’s Energy Ministry data.

In 2019, Pokrovske Coal produced 5.0 mmt of coal (13.7
kt per day), a 25.8% yoy jump.

Metinvest (METINV), Ukraine’s largest steelmaker, owns
25% of Pokrovske Coal assets, and recently received permission
from the Antimonopoly Committee of Ukraine to acquire the remaining 75%.

Dmytro Khoroshun: Pokrovske
Coal’s 2020 production volume exceeded our expectations of 5.5-5.8 mmt.
The reason was a jump in the production rate to 20.1 kt per day in 4Q20, 29%
more than 15.6 kt per day in 9M20.

If Pokrovske Coal maintains its production rate in 2021
at 19-21 kt per day, its annual production volume will amount to 6.9-7.7 mmt,
or 13-25% more yoy.

We maintain our neutral view on METINV bonds.