Metinvest subsidiary Pokrovske Coal boosted output 28% m/m in October

Pokrovske Coal, Ukraine’s largest coking coal miner
and a subsidiary of Metinvest (METINV), produced 5.09 mmt of raw coking coal
(16.7 kt per day) in 10M21, a 4.1% yoy rise, according to Concorde Capital’s
analysis of Ukraine’s Energy Ministry data.

The daily coal production rate at Pokrovske Coal
jumped 28.1% m/m to 16.3 kt in October.

Recall, Pokrovske Coal plans to launch a new longwall in November, and
Svyato-Varvarynska enrichment plant plans to be ready to process 28.8 kt of raw coal per day.
Svyato-Varvarynska processes almost exclusively the raw coal mined by Pokrovske
Coal.

Dmytro Khoroshun: October’s
jump in Pokrovske Coal’s production rate is positive for Metinvest, and further
increases are possible in the coming months.

For now, we are maintaining our estimate for Pokrovske
Coal’s 2021 output at 5.8-6.1 mmt (15.8-16.8 kt per day), or a decrease of up
to 6% yoy.

We maintain our neutral view on METINV bonds.