L and L Energy (fka LLEN)

[GorillaGorilla]

LLEN - facility Scandalously cheap in my books.

Current Washing Facilities (think)
L&L Coal Partners 300,000
Hon Shen Coal 300,000
Total 600,000

Dirty approximation of Gross profits into Net Income: 0.43
(Net Income / Gross Profits) (9,957,243/22,991,922).

According to spreadsheet

Current Washing Revenue
Price Per Tonne $68.25
Tonnes 600,000
Washing revenue: 40,950,000
Gross Margin 12%
Gross Profit 4,914,000
Net at 0.43 2,113,020

New Facility
Price Per Tonne $130
Tonnes 150,000
Washing revenue: 19,500,000
Assuming Gross Margin 12%
Gross Profit 2,340,000
Net at 0.43 1,006,200

So, my estimate is that they are going to return in profits the cost in 1 year. Put that into you ROI

They are also talking about upgrading it to 600,000 so, that would be 4 times as much or $4,024,800 net income per year. In FY 10 ending in April they are gunning for in the 30 Million net income region so *if/when* the new facility runs at 600,000 it will add on 10% to income.

The only disparity I can see is the price per tonne between new $130 and old (estimated) $68facilities - I am assuming the new facility is washing coking coal and the old one mainly thermal.

rich