SinoCoking Coal and Coke Chem Ind Inc. Syngas Plant Hits Full Capacity.

SinoCoking Coal and Coke Chem Ind, Inc.

gained more than 30 percent Tuesday morning on news that its above-ground synthesis gas plant in China has hit full capacity at 25,000 cubic meters per hour. http://www.irdirect.net/pr/release/id/1016415 SinoCoking traded recently at $3.79 a share, up $0.96 cents. In the year to date, shares are up more than 225 percent. SinoCoking Chief Executive Jianhua Lv said the company will expand its production capacity at the above-ground plant to an additional 25,000 cubic meters per hour by the end of the first quarter of 2015. The company, which primarily produces coke and coal, said the plant is generating daily gross revenue of $83,280 at current syngas prices. Gross profit margin is expected to be between 45 percent and 50 percent. The plant had been running at 60 percent capacity as of Oct. 20, according to an earlier company news release. http://www.irdirect.net/pr/release/id/941474 Construction began last month on a separate, below-ground syngas plant expected to produce 60,000 cubic meters of syngas per hour when completed in March 2015. http://www.irdirect.net/pr/release/id/954744 Synthesis gas, or syngas, is produced from recycled carbon dioxide resulting from coal gasification. It's named for its role in creating synthetic natural gas, made from coal or oil shale. SinCoking said its initial customers for the above-ground plant, located in northern China's Henan Province, are Zhongshi Energy Co. Ltd., Henan Zhonghong Coal Chemical Industry Co., Ltd. and Baofeng County Bourui Technology Co., Ltd. The company recently swung to a fiscal first-quarter loss of $2.6 million from net earnings of $2 million a year earlier. Revenue fell 22 percent to $13.6 million. The company blamed lower revenue on "continued softness in the Chinese construction market." But SinCoking said it expected improved results from its syngas projects. In September, SinCoking raised $13.1 million in a private placement of common shares with two institutional investors it didn't name. http://www.irdirect.net/pr/release/id/904760