Wescoal (WSL)

Could explain why the chairman transacted his BEE vehicle in November...Maybe simplify the corporate environment. Which in turn may give reason to an interested buyer who is not aware of the web BEE weaves these days.

I for one am not OK with selling out...As mentioned most of the recent asset buying activity hasn't even kicked off yet. These deals are company transforming & will push revenue enormously. Put that alongside Medupi & further out Kusile...well ALL of their product will end up with Eskom. 

With that said management are the major shareholders & can swing most votes as is their want. 

At the moment the recognition for a job well done needs to be acknowledged as this interest no doubt proves. So it's calm heads going forward boys & girls lets hope management aren't like deer in the headlights when a wall of money & promises of senior positions with a major international group are in the offering.

This stake I have in WSL forms part of my pension to myself & I'm still 15yrs away from retirement... Not ready to part with my potential 10 bagger just yet     Your thoughts / comments most appreciated.  

I hope its at a ***HUGE*** premium to the current share price.

Still feel the share price is cheap.  Especially considering that some of the potential drivers for the share price hasn't been finalized - Eskom's finishing of their new coal power stations and Wescoal brining all their production online.  (The "thematic" reasons I bought the share, not yet realised...)

More news today -

Cautionary withdrawn and intent of a major international group to acquire all the issued shares...

Company : Wescoal Holdings Ltd.
News Type : Official Announcement

Wescoal -- withdrawal of and new cautionary

Shareholders are referred to the cautionary announcement dated 27 November 2014. As those discussions had been terminated, that cautionary announcement is hereby withdrawn. Shareholders are however advised that the board of directors of Wescoal ("the board") has received a letter of intent from a major international Group ("the Group") to acquire all the issued shares of Wescoal. The board has entered into discussions with the Group. Accordingly, shareholders are advised to exercise caution when dealing in the company's securities until a full announcement is made.

 

A cautionary out today ->

Shareholders are advised that Wescoal has entered into discussions, which if successfully concluded, may have an effect on the price of the company's securities. Accordingly, shareholders are advised to exercise caution when dealing in the company's securities until a full announcement is made.

Damn these guys are busy!!

I also see Blue Gem released an update: [link] and that Wescoal is now the largest coal trader in South Africa.

Edited by vlam-hobbyist, 27 November 2014 - 09:44 AM.

Got an E-mailed response to the Water Use License hold up.

Apparently the delay is at the Dept. of Water Affairs & Forestry....could mean anything..still they are confident their submission is all present & correct.

Also they have managed to participate in the burden easing at Majuba by trucking in the much needed coal    

Will post more as it becomes available.

Cheers. 

Me thinks everything is still on track & will get much better.

There's just the Minoscape overhang that needs to wash through there was after all 16mil shares issued.

This guy is limited to selling maximum 500,000 per month so it's gonna take a while for them to be absorbed he was issued them at 200c

Plus Mr market may think they took their eye off the ball with their water licence application, too much going on at once & they overlooked some or other box ticking legislation required by the DMR.

As for the weather well......& Eskom didn't take as much last year as they were contracted to, when Medupi finally comes on stream volumes to Eskom will jump.

Thinking of E-mailing them for clarification on the water use licence hold up. Will post reply if & when.  

http://www.moneyweb....he-week-wescoal

At last getting some mainstream coverage.

The pieces are falling into place now as today's results show....

Next is the water licence for Elandspruit should see another + 10% in SP

Then commencement of operations coupled with 1st production before year end results.

They need to look at better margins in the trading arm by trimming the fat & becoming more efficient with the price of petrol dipping as it is.

I have a feeling they will manage as the McPhail is still in it's infancy savings will present themselves along the way.

They have a very good & solid foundation, lets hope operational expenses (read salaries ) don't escalate beyond reason.

Looking forward I'm very comfortable to hold on & wish I'd had spare cash to mop up the muppets selling in the R1.50's

If they can avoid last years bad rains to an extent & Eskom gets some of Medupi on line finals next year will indeed be worth the wait. 

As always I is very biased in my views on this ticker.

Good news! Saw some positive trading activity leading up to this announcement too.

FINANCIAL AND OTHER HIGHLIGHTS
- Revenue up 92,8% to R897,8 million (2013: R465,7 million)
- HEPS up 33,3% to 15,2 cents (2013: 11,4 cents)
- Operational EBITDA up 73,2% to R84,3 million (2013: R48,7 million)
- Muhanga coal processing plant acquisition unconditional
- Acquired mining right for Intibane phase 2
- Funding secured for the Elandspruit project

See the spotlight on small caps of 3 weeks back on 412. Keith looked at both of them and his view was if he had to own one of them it will be WSL

Bossie

I agree. WSL's financials look much better than KEH's

(I don't own either at present but have owned both in the past)

Edited by yusufm1, 03 September 2014 - 08:32 PM.

Should I invest in WSL or KEH? I also see WCC doing quite well.

Should I invest in WSL or KEH? I also see WCC doing quite well.

Edited by Trader1, 03 September 2014 - 02:53 PM.

Learned Friends,<br /><br />If govt was to declare coal a strategic mineral, and thus be charged gate prices than shipping prices, what would the prospects be for companies like Wescoal and Keaton (and other smaller players)?

Learned Friends,<br /><br />If govt was to declare coal a strategic mineral, and thus be charged gate prices than shipping prices, what would the prospects be for companies like Wescoal and Keaton (and other smaller players)?

With the spot price of coal where it is some producers are on very thin margins already.

No matter how intense the sabre rattling gets cast your mind back to the Billiton smelters debate...well nothing happened that I can recall...

I'm sure that kind of arrangement would be the place to address Eskom's costs initially.

Plus the big guys Exxaro/Anglo coal/Glencore et al would have lots to say.

As far as WSL goes "flea on a dogs back" is the phrase I would use.

My 2c

Well Guys & Gals today's very positive SENS didn't flutter the price in any way.

This acquisition of mining rights effectively adds another 2mil tons with low capex costs.

All for R8mil

Hope this translates into larger volumes thus reducing Minoscapes "time" in the market.