L&L Energy, Inc. LLEN

Tai Fung coal washing more info

[farstar]

Here is more info regarding Tai Fung and coal washing........
Far

https://www.prnewswire.com/news-releases/ll-energy-to-operate-a-new-coal-washing-facility-161944785.html

L&L Energy to Operate a New Coal Washing Facility

SEATTLE, July 10, 2012 /PRNewswire/ -- L&L Energy, Inc. ("L&L"), a U.S.-based company with a five-year track record of profitable coal operations in China, has reached an agreement with HunTai Coal Ltd. ("HunTai") in Yunnan Province to operate and manage HunTai's newly built 600,000-ton-capacity washing plant. L&L will receive a management fee for operating the plant and can earn revenues from wholesaling the washed coal.

L&L's TaiFung Coal Ltd. ("TaiFung") subsidiary and HunTai entered into the agreement on July 10. HunTai, currently in trial operation, will expand L&L's coal washing operation in the region, providing the Company with further recognition as an industry leader. The agreement is expected to generate approximately $63 million of additional wholesale revenue and $5.9 million in net income, based on coal pricing of $160 per ton. Additionally, L&L will earn a management fee of $0.5 million for the next 12 months of operation.

The HunTai coal washing plant is built near its targeted customer, Yunnan Coal Energy Inc., which requires approximately 3 million tons of washed coking coal each year.

Ed Moy, L&L Vice President and Director, commented, "L&L is recognized as a leader in the coal washing industry. Through management innovation, the Company is able to synergize its expertise with other entities to produce more revenue and profit."

Forward Looking Statements

The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and that involve a number uncertainties. Actual results of the future events described in this document could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contacts:

L&L Energy, Inc.
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SOURCE L&L Energy, Inc.

[Tjpsimone]

HI Far- I think this just adds to the confusion. I have read this, and it clearly states that this would bring in 63 million in wholesale revenues.... The 10K in the corporate structure breakout clearly states that TaiFung is a wholesaling operation. Later in the 10K "We own TWO washing facilities with an aggregate annual coal-washing capacity of approximately 480,000 tons. The facility at

[calmgripper]

A possible explanation is that LLEN manages and operates the HunTei facility but doesn't own it, but can claim revenue off the distribution.  Since this is under the TaiFung business unit where the HongXing facility sits, maybe they run this wholesale revenue through HongXing since it's not coming from an asset.  Agree with you all, once this is explained away it will be a big

[farstar]

Calm, Good theory! I gave you the highest rating I could mainly for two reasons. 1. Logical reasoning. LLEN must have known there would be some confusion & questions concerning Tai Fung coal washing in their last PR and maybe they did it on purpose to get us mentally prepared for the next PR from them. Like you said, maybe an accounting error, but definitely not Fraud or maybe another logical

[Tjpsimone]

I guess the 10K is completely wrong then. Maybe my suggesstion that they get a big 4 auditor is more valid.

[farstar]

TJ, Rather than LLEN using one of the Big 4 accounting firms which are very costly, what about using Ruihua Certified Public Accountants? They are the third largest firm in China, ahead of Ernst & Young. KPMG has dropped to sixth. I bet Ruihua is not as costly as compared to KPMG.....but I really have no idea for sure. I also have no idea where Kabini is on the scope of things, but I

[farstar]

TJ You were on the money regarding the Tai Fung coal washing & the other two (?) Washing facilities 10Q missing income clarity. Do you think this is related tothe T12 halt? Could LLEN do an amendment to their 10k to clear up & satisfy Nasdaq? Or could the request for more info be based upon the Phoenician and or the Ironbridge deals where LLEN did not disclose all the details? Again could