Puda Coal - Fueling the Fire of China's Infrastructure Development
Corporate Headquarters in Taiyuan City, Shanxi Province
Puda Coal, Inc., through its operating subsidiary, Shanxi Puda Coal Group Co., Ltd., specializes in providing premium grade cleaned coking coal to the steel manufacturing industry for the use in making coke in China. Headquartered in Taiyuan City in the Shanxi Province, the Company currently has three coal washing facilities with annual coal washing capacity of 3.5 million metric tons. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.
There are two coal cleaning processes predominate in the industry: dense medium (DM) separation and JIG washing. Currently, 56% of the raw coal washed in China is processed by JIG washers, 26% by DM separation, 14% by froth flotation and 4% by other processes.
Puda Coal utilizes JIG washing, which is widely perceived to be a simpler and lower-cost option than DM separation. JIG washing is a water-based process that relies on the pulsation of water through the particle bed to stratify particles of different density. However, JIG washing requires consistent water supply which restricted its usage in China. Puda Coal's cleaned coal is of a higher quality than its peers, containing less than 0.6% sulfur compared to 0.8% - 1.0% sulfur for other cleaned coked coal on the market.
Puda Coal sells its cleaned coal through a direct sales force that markets directly to its customers. Puda Coal's primary customers are coking companies that supply steel mills and steel mills with their own coking facilities. Primary geographic markets include:Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, all of which are accessible by rail lines, which is the most cost effective method for coal transport.
Shares Outstanding: 15.3M
Recent Corporate News
Puda Coal Signs Coal Mining Right and Mining Assets Transfer Agreements with Two Coal Mines (December 18, 2009)
Puda Coal Closes Jianhe Coal Mine Acquisition (December 7, 2009)
Puda Coal Provides Update on Shanxi Province Coal Mine Consolidation (November 12, 2009)
Puda Coal to Begin Trading on NYSE Amex on September 22, 2009 (September 18, 2009)
Puda Coal Announces Second Quarter 2009 Results (August 13, 2009)
Puda Coal Announces First Quarter 2009 Results (May 14, 2009)
Puda Coal Receives Local Government Approval to Restructure Six Coal Mines in Shanxi Province (April 21, 2009)
Puda Coal Announces Fourth Quarter and Full Year 2008 Results (March 16, 2009)
Puda Coal Signs Letter of Intent to Restructure Six Coal Mines and Construct a Coal Gangue Power Plant in Shanxi Province (February 3, 2009)
Puda Coal Announces Strong Third Quarter Results (November 10, 2008)
Recent Blog/Investment Publication News
China Micro-Cap Picks for 2010 (The Street.com December 2, 2009)
Fired Up About Chinese Coal (The Street.com September 21, 2009)
Catch China's Uplisting Wave (TheStreet.com July 14, 2009)
Invest in China by Starting Small (TheStreet.com, May 18, 2009)
Is Puda Coal a Red Hot Investment? (May 15, 2009)
Puda Coal Set to Benefit from Stimulus, Consolidation (May 4, 2009)
Puda Coal Website
Puda Coal Investor Presentation (May, 18 2009)
Puda Coal Corporate Profile/Fact Sheet (As of May 15, 2009)
NOTE: OLD SHARE DATA and eps are in the May 15 profile! eps needs to be multiplied by 7 as Shares Outstanding now 15.3M.
Puda Coal – Fueling the Fire of China's Infrastructure Development
The Chinese economy is booming, and with it new construction. Construction means steel, but there can be no steel without coal – the material at the foundation of the new economy. Puda Coal, Inc. specializes in providing China's highest-grade cleaned coking coal primarily for steelmaking purposes. Steel is the backbone of the New China. Puda Coal is perfectly positioned to satisfy the intense demand for the metal both now and as Chinese Miracle continues to gain momentum.
All Coal is NOT Created Equal – the Puda Difference
Meeting Intense Customer Specifications. To produce consistent quality clean coking coal meeting steel makers’ specifications (less than 9.5% external ash content and 0.6% maximum sulfur content), Puda mixes approximately 55% to 60% of high quality raw coking coal by weight with 40% to 45% lower quality raw coking coal by weight.
The Best Raw Material in the Industry. The supply of high quality raw coking coal is limited even in Shanxi Province, but Puda has direct access to an abundance of the high quality raw coking coal through Jucai Coal, two related party mines and two non-related party mines.
Savings through Experience. Lower quality raw coking coal is available in more abundance and less difficult to source. With Puda’s extensive experience in sourcing and mixing different quality raw coals to achieve customer specifications, we can produce the optimum raw coal blend which typically results in the lowest effective cost per metric ton of raw coal blend input.
Maximizing Input Efficiency. An optimum raw coal blend input also is a primary determinate in achieving high processing yield. Processing yield is measured by the metric tons of cleaned coking coal produced per metric ton of raw coal blend inputs. A lower quality raw coal blend input will generally reduce the yield. Puda is typically able to achieve an astonishing yield of approximately .70 MT of cleaned coal per 1 MT of raw coal, and this is expected to increase as a result of new cleaning facilities now online.