China Growth Stocks

[GorillaGorilla]

LLEN - US Operations - Do the math (Yahoo post)

If anyone knows the coal business this port cooperation is huge. Just spoke to my coal colleague and here is his explanation why....

Bowie historically produces 5.0 million tons of coal. Contracts with TVA for 3.5 million tons.

Leave 1.5 million tons. If they get 1.0 million of super compliance coal to sell to china here is my estimates to how it breaks out.

Mining Costs: $35.0 per ton. (his high end estimates with long wall mining)
Transportation Costs: $30.0 per ton. (his high end estimates)
Blending Cost $5.0 per ton. (his high end estimates)
Total Costs: $70.0 per ton.

Blend it with 1.0 million tons of Chinese lower quality coal that they acquire in China (can't be sold unless blended with really good coal to bring it up to standard) for $50.0 per ton.

You then have 2.0 million tons of coal in china with average costs of $60.0 per ton.

Transportation to customer $10.0 per ton on rail (high end estimate).

Total costs $70.0 per ton.

His estimate of current coal prices in China $120 per ton.

Just off current opportunities that would translate to $100 million in pretax profit a year.........

Not a bad focus for the company. Given its bilingual and global management team and board members. Nice being involved with people that have vision and drive to execute on being a value added business.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=106842&tid=13643&mid=13643&tof=2&frt=2