NEW YORK (AP) -- Shares of L&L Energy Inc., which mines and distributes coal in China, were up 14 percent Wednesday after the company it will provide a million tons of coal to Datang International Power Co.
THE SPARK: The Seattle company said it will supply the coal to a power plant in Guangixi. L&L said it signed a contract in October that called for it to supply 360,000 tons of coal over a 10-month period. Those shipments started in January. On Wednesday, a deal was signed to expand the supply to a million tons over a year.
THE BIG PICTURE: The company said it produced 675,000 tons over the last four fiscal quarters. In November it acquired two mines that are expected to produce 750,000 tons of coal per year. The purchase of the Luozhou and Lashu mines dramatically boosted its production, revenue and profits in the fiscal third quarter, which ended in January.
SHARE ACTION: L&L Energy stock rose 53 cents to $4.30 in afternoon trading. Based on Tuesday's closing price, the stock has climbed 79.5 percent since April 17.