For the period ended October 31, the Seattle-headquartered company reported 211,000 short tons of coal production, a 60% spike over the same period last year. This was primarily due to the acquisitions of the LaShu and LuoZhou mines last November and a continued ramping up of operations at the Weishe operation.
Revenue was down 6% to $US43 ($A48) million.
Officials, who called the reduction modest, attributed it to the temporary idling of its Hong Xing washing facility and noted that its primary driver, mining, grew substantially year-over-year.
Net revenue was $24.3 million, up 76% from $13.8 million in 2012’s same quarter, and coal wholesale revenue was $12.8 million, up 27% from $10.1 million in the same quarter of last year on its growing market share and increases in long-term sales contracts.
Coal washing revenue was down 68% to $7 million from $21.6 million in the comparable period, and the company said the decrease stemmed mostly from the idling of the Hong Xing washing plant.
Gross profit rose a notable 45.2% to $17.2 million during the second quarter, and L&L’s gross margin rose 40.1% compared with 26.1% year-on-year.
“The second quarter of fiscal 2014 was challenging, as we responded to inaccurate and defamatory attacks on our company and reputation,” chief financial officer Ian Robinson said.
“We formed a special committee of independent board members to review the allegations and have provided them with detailed documentation to refute the claims.”
On November 18, NASDAQ placed a T-12 temporary trading halt on its stock, and officials said the company was responding to the request and said it continued to be in steady communication with its officials.
L&L shares will remain halted until NASDAQ completes its review.
“In spite of our challenges, we continued strong execution of our coal operations and expansion of our clean energy initiatives,” Robinson said.
“During the second half of fiscal 2014, we remain committed to our growth plans, which include acquiring additional mining operations, expanding our wholesaling business, pursuing new clean energy projects, and completing our TDR listing."
