Sadovaya cuts coal mining 13x mom in November

Sadovaya Group (SGR PW) mined 2,340 tons of coal in November 2012, a 13x decline compared to October, based on preliminary data from the Energy Ministry. The company’s Sadovaya mine produced no coal in November.

Roman Topolyuk: The preliminary output data is in line with the Group’s mid-November statement that indicated full stoppage of the Sadovaya mine. At the same time, the Rassvet-1 mine, the Group’s other subsidiary, seems to have restarted its production in late November after repair works. Nevertheless, we expect the company will face a challenging market environment at least until mid-December. It will show only a minor increase in coal mining this month and will post losses for 4Q12.