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For the period ended January 31, the company reported record revenue of $US65.9 million, a 74% spike year-on-year from $38 million on sustained demand and growth.
Net income, which was $14.5 million in the quarter, was also a record for the producer, and gross profit increased 33% to $21.4 million versus $16 million in the same period in 2010.
L&L’s gross margin slightly declined from 33.5% in the previous quarter to 32.5% due to increased levels of coal washing at the company’s expanded Hong Xing washing facility.
Operating expenses were steady year-on-year at about $4.9 million, and operating margin increased to 77% from 75% on increased sales.
"Demand for coal in our operating region of southwest China remains robust," L&L chairman and chief executive officer Dickson Lee said in the operator’s outlook.
"We are encouraged by our strong results, our partnership with Bowie Resources in Colorado, and ongoing discussions with the Zhanjiang Port in China. We anticipate sustained demand for our fiscal fourth quarter, driven by ongoing overall economic growth."
Last month, L&L announced it had signed an exclusive rights agreement to market coal from the Bowie underground mine in Colorado for export to China, Japan, Korea and Taiwan.
The deal for the longwall operation’s super-compliant coal was made February 4 and gives L&L rights in the region for 18 months. Should sales targets be achieved, the operator will have the option to extend the agreement.
L&L projects about 500,000 tons of coal will be available this year and at least that much in 2012. The tonnage should be shipped to the Zhanjiang Port in China’s Guangdong Province as well as other Asian port facilities.
The company also said in January that it and the port facility would perform a feasibility study that would establish a blending and distribution center at the harbor; shipments are expected to commence in about four to five months.
L&L provided a secured bridge loan to Bowie Resources for the operation of the western Colorado longwall mine in December 2010. The mine was idled last year pending financing.
