Tuesday, 22 Nov 2011
Sadovaya Group reported on November 15 a 23% MoM increase in monthly coal sales in October to 136200 tonnes. The company increased underground mining in October by 7% MoM to 45700 tonnes, coal production from waste recovery remained almost unchanged at 5800 tonnes. With such monthly performance, Sadovaya increased January to September 2011 coal sales by 20% YoY to 1 million tonnes including 370,000 tonnes of underground mining which advanced by 61% YoY.
According to Phoenix Capital “The news is marginally positive for SGR. Even though the of volume coal sales in October suggests a 3% Y-o-Y decline, the company operating performance is clearly on track for growth on YoY basis. A new long wall at Sadovaya Mine subsidiary, nearing full capacity in October 2011 is making its contribution to this augment in mining. The growth in coal production by the year end may be fueled by the announced and expected launch of two long walls at Rassvet-1 Mine, once this event materializes. Nevertheless, SGR currently appears to fall short of reaching its 2011 target volumes of 501,000 tonnes of coal production from underground mining and 141,000 tonnes from waste recovery though 1.2 million tonnes of coal sales seems achievable through more selling of purchased and reprocessed coal. The latter suppositions cut to our projections for 2011 EBITDA at USD 25 million which yielded a 39% premium over peers on the forward 2011F EV/EBITDA multiple as of November 15.”
(sourced Phoenix-capital.ua)
Sadovaya Group reported on November 15 a 23% MoM increase in monthly coal sales in October to 136200 tonnes. The company increased underground mining in October by 7% MoM to 45700 tonnes, coal production from waste recovery remained almost unchanged at 5800 tonnes. With such monthly performance, Sadovaya increased January to September 2011 coal sales by 20% YoY to 1 million tonnes including 370,000 tonnes of underground mining which advanced by 61% YoY.
According to Phoenix Capital “The news is marginally positive for SGR. Even though the of volume coal sales in October suggests a 3% Y-o-Y decline, the company operating performance is clearly on track for growth on YoY basis. A new long wall at Sadovaya Mine subsidiary, nearing full capacity in October 2011 is making its contribution to this augment in mining. The growth in coal production by the year end may be fueled by the announced and expected launch of two long walls at Rassvet-1 Mine, once this event materializes. Nevertheless, SGR currently appears to fall short of reaching its 2011 target volumes of 501,000 tonnes of coal production from underground mining and 141,000 tonnes from waste recovery though 1.2 million tonnes of coal sales seems achievable through more selling of purchased and reprocessed coal. The latter suppositions cut to our projections for 2011 EBITDA at USD 25 million which yielded a 39% premium over peers on the forward 2011F EV/EBITDA multiple as of November 15.”
(sourced Phoenix-capital.ua)
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