SinoCoking Coal and Coke Chemical Industries Announces 2011 Second Quarter Financial Results

Revenues increased by nearly $2.0 million or 13%, due to higher prices of coke and coal products largely driven by the coal supply shortage. Revenues from the sale of coke products increased by 12.6% to $9.5 million although total metric tons sold during the quarter decreased by 1.9%. Average selling prices for raw coal, washed coal and coke increased by 18.7%, 20.0% and 15.6%, respectively. Revenues from the sale of coal products increased by 14.6% to $7.2 million; total metric tons sold during the current quarter decreased by 39%. We have optimized our product mix to maximize results: We increased our washed coal sales significantly and took advantage of higher selling prices created by the tight coal supply.

Coke is the solid carbonaceous material derived from destructive distillation of low-ash, low-sulfur bituminous coal. Cokes from coal are grey, hard, and porous. While coke can be formed naturally, the commonly used form is man-made.