L&L Energy, Inc. (Nasdaq: LLEN) ("L&L" or the "Company"), a U.S. based company since 1995 with coal mining and distribution businesses in southwest China, announced today that it has entered into a long term joint sales agreement with strategic partner Tianjin Fuhao Industrial Co. Ltd. ("Tianjin Fuhao") to jointly market/sell one-million tons of coal in China during calendar 2012, starting in February. This agreement is a result of the strategic partnership entered by both companies in August of 2011.
Tianjin Fuhao is a major coal wholesale company based in Tianjin City, China with extensive resources in trade and logistics. Their parent company, Tianjim Materials and Equipment Co. ("TMEC"), ranks 57th among China's Top 500 Enterprises and has significant operations in coal and steel. TMEC has a large presence in the critical Bo Hai Bay region, which is the major coal consolidation port in China's national coal market. Recently TMEC recorded revenues in excess of $US 16 billion.
L&L and its China subsidiaries will work together with Tianjin Fuhao to source and sell/market one million tons of coal (both coking and thermal coal), in calendar 2012. This is the second one-million ton agreement to market/sell coal throughout China that L&L has secured. Earlier this week, L&L's DaXing subsidiary entered into a similar agreement with China Chengtong Metal Tianjin Company. If fully executed the two the sales agreements together would generate approximately $US 300 million in revenues, using a $US 150 per ton coal price.
Clayton Fong, Executive Vice President of L&L commented, "Our newly established wholesale operations have hit the ground running by securing two sales contracts representing an aggregate of two-million tons in calendar 2012. If fully executed, the agreements would significantly increase revenues and expand our coal markets on a national level. The wholesale operation is a good compliment to future acquisitions and partnerships. We look forward to working with CCMC and Tianjin Fuhao for many years to come, the synergies and the shared resources will continue to stimulate growth for all three companies."
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 involve a number of risks and uncertainties. Actual results of the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
