As I see it, in the past the majority of cash was going into upgrading mines. The newer mines are said to be immediately accretive and less capital intensive. Ping Yi was one requiring much more capital and was hence sold. Also in the past, we saw our mines shut down for long periods in a blanketed fashion due to mine accidents in the greater area with other companies (I've not seen this recently and am thinking the newer mine safety administration that replaced the prior, due to ineptness and probably corruption, has been much more focused with closely looking for and closing down illegal and substandard mines).
Our business has learned and has greatly more professionalized in the past year with the addition of highly regarded coal professionals. I believe we are much more stable now and am seeing our income as being much more stable while at the same time seeing us not spending as much on mine upgrades. I'm betting heavily that we will be seeing strong positve cash flow and with enough to allow a large portion to be place aside for aquisitions.
They stated this in their last 10Q:
We will need to raise additional capital to expand our operations, both to fund additional investments in capital equipment and technology to increase production and improve safety at our existing facilities and to acquire additional profit making operations.
The uncertainty here is how they are going to raise the money. Unless the CEO has unlimited cash resources, and can loan the company money, it sounds like dilution to me. I'm concerned that the price will of LLEN will take a hit.