we checked with China Coal and they told us the reserve number of China Coal Import and Export Company was NOT 70 million tonnes but should be around 700 million. Clearly, Founder Securities got this number wrong in October 2010 (likely a typo). And

the Goldman a nalyst j ust copied the wrong number as is 2 months later

. So where is the due diligence which should be the basis of sell side research report? Buy side clients are paying millions of dollars to Goldman Sachs just to read a table hand-made by an unknown Chinese broker! (2) In the attached "GS Dec 2010 report", Exhibit 139: Jiangxi Copper mine expansion schedule (Page 72), is plagiarized from Table 9 on Page 24 of a report written by Orient Securities on Sep 27, 2011. Look at the column of "Expansion plan", they were exactly copied from the Orient Securities report.

Orient Securities had no input for "Dongxiang Copper Mine" in September, so did t he Goldman report in December. Coincidence? We don't think so. We checked Jiangxi Copper's record of analyst visi ts in 20 10 and found NO RECORD of Julian Zhu's visit or meeting with management, which should be part of the due diligence.