"Through Coal Group, we produced and sold 62,216 tons and 706,990 tons of coal in the three and nine-month periods ended August 31, 2012, respectively, at our Laiyegou coal mine, representing a 82% and 23% decrease, respectively, over the same periods in 2011. For the three-month period ended August 31, 2012, our coal trading volume was 284,627 tons, a 53% decrease compared to the same period in 2011. However, for the nine-month period ended August 31, 2012, we traded 1,761,799 tons of coal, representing a 73% increase over the same period in 2011. The dramatic drops in our coal production and coal trading in the three-month period ended August 31, 2012 were due to a rapid decline in the demand for our coal and a dramatic deterioration of the overall coal market in China during the months of June and July. Due to market conditions, we closed our Laiyegou coal mine for most of June and July and only partially resumed production in August."
"The dramatic decline in our coal sales and coal trading business during the third quarter was primarily caused by (i) increased competition from imported coal, (ii) a slowing Chinese domestic economy resulting in a decrease in electricity demand, and (iii) increased competition from other coal mines in the Inner Mongolia area which were able to increase their production as a result of, among other things, an improvement in coal mining exploration technologies."
What do you think, Brodband? Do you see the situation improving next quarter and next fiscal year? Bear in mind that the company managed to make about $.65 over the last nine months, even though it did little better than break even over the last three. Were you impressed by the raises the company gave all its employees? That's a good sign.