OTCPK:LLEN - Post Discussion
Post by
Cool_Scirocco on Mar 13, 2013 1:27pm
Transcript of March 12, 2013 Conference Call
Excerpt, with link at end: Quote:
Clayton Fong - Vice President, U.S. Operations
Well, Ian, $0.42 earnings per share last quarter that’s really great. Thank you again for the terrific numbers. We are really well positioned today. The business is growing well and the future is bright. Spring of 2011 when Guizhou Provincial Consolidation was announced, we projected that we would see short-term pain, but long-term gain. The following three quarters were more challenging than expected but this quarter’s results caps five consecutive quarters of growth in production, revenues, earning and EPS. It demonstrates that L&L has weathered the tough times and is poised to become a consolidator.
In Guizhou we have successfully acquired three new mines which produce over 143,000 tons just this last quarter. These three mines are well ahead of schedule which would get them collectively to 1.2 million tons of capacity well ahead of the 2015 deadline. This is an important milestone because executing the organic growth plans of these three mines would allow L&L to exceed the minimum requirement of 800,000 to 1 million tons for a holding company in Guizhou Province. It would also double, I repeat, double our current production at these three mines. DaPuAn and SuTsong Yunnan Province continue to operate steadily at or moderately above approved rates. Consolidation in Yunnan Province will likely occur in the next five year plan beginning in 2016. We will in the meantime continue to improve and expand those mines toward the 300,000 ton capacity each.
Last quarter, the five mines we currently own produced in an annualized rate of 900,000 tons, that’s a new record for us. Organically, they are target to grow collectively 100% between now and 2015. We also expect significant growth in our wholesale and washing operations in the next few years. That growth would increase even higher with a few additional acquisitions. We continue to look at opportunities in Guizhou Province and have begun looking at even bigger mines in Shaanxi Province in here Mongolia. As I said before, the business is going well and the future is bright.
With that, I will turn things over to the operator and open the call up for questions. Thank you very much.
https://seekingalpha.com/article/1268871-l-amp-l-energy-s-management-discusses-f3q-2013-results-earnings-call-transcript?part=single
Be the first to comment on this post