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Wescoal (WSL)


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#1 soutie

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Posted Yesterday, 12:37 PM

Yip solid results & all on track...potential downside is rainfall over the next couple months...upside is the recent announcement of the Universal buyout my guess it will go ahead as Simeka are 30% equity partners in Universal's Kangala & have been for quite some time, so previous attempts at takeover of Universal were always going to be scuppered by Simeka.

As mentioned trading arm is pumping albeit at slightly reduced margins but huge increases in volume & transport is a volume business...due to Eskom planning that won't abate until about March next year so another 6mths of the same.

Moabsvelden offers nice opportunity to increase production with very low risk or capex.

I would like to see WSL transition to more owner mining operational model & looks as though they moving in that direction.

Only about 1/2 the R20m buy back concluded to date.

Don't know when this share will re-rate & take off....& yeah been saying that for some yrs now..... :rolleyes:  


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#2 soutie

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Posted 28 September 2018 - 09:50 AM

WESCOAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number 2005/006913/06) Share code: WSL ISIN: ZAE000069639 (“Wescoal” or the “Company”)

 

VOLUNTARY ANNOUNCEMENT REGARDING THE PROPOSED REPURCHASE OF SHARES

 

Wescoal shareholders are advised that the board of directors of Wescoal (the “Board”) has resolved to repurchase a maximum of R20 million worth of its own shares in terms of the general approval granted by shareholders of the Company at the annual general meeting held on 14 November 2017 (the "Share Repurchase").

 

Some methodical buying going on here...making sure they hoover up 97% of all sellers as the price ticks up. Even if it's all WSL purchases they not half way through R20m yet.

Next set of results will be good also due to Mpumalanga coal shortages plus transport thereof.

Won't shoot the lights out but steady & very cash generative....possible interim divi.....?


Edited by soutie, 28 September 2018 - 09:52 AM.

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#3 soutie

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Posted 19 September 2018 - 09:55 AM

Sorry Bull my copy paste skills bit off this morning
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#4 soutie

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Posted 19 September 2018 - 09:53 AM

Senior Member PipPipPipPipPip 980 posts LocationNorthcliff Posted Yesterday, 11:38 AM Wescoal: An exception in a struggling sector Steely nerved punters might do well to have a closer look at Wescoal — even though ‘smaller’ coal mining operations have fared fairly dismally on the JSE 07 SEPTEMBER 2018 - 13:55 MARC HASENFUSS SA resource ventures are hardly coveted by investors these days — probably for good reason. But let’s assume there are long-term punters who can look past the regulatory minefield, political curve balls, labour hitches and a tricky operating environment. Such steely nerved punters might do well to have a closer look at Wescoal — even though "smaller" coal mining operations have fared fairly dismally on the JSE. There’s quite a lot in Wescoal’s annual report that a rational market should find encouraging. The acquisition-bolstered revenue line looks robust, and operating margins (there are sizeable coal merchant functions) are close to 10%. There are strong cash flows: R359m from operating activities and a net R213m (equal to 82c or 48c a share respectively.) This underpins Wescoal’s determined dividend policy. The company also has a solid track record of delivering on its promises. In all, there is little to support the market rating on Wescoal — a dismissive earnings multiple usually reserved for counters where growth prospects are about to hit the wall. In this regard, there is much comfort to be taken from the annual report’s overview of operations. Most importantly, the recent acquisition of Keaton Energy for R525m has boosted Wescoal’s resources to more than 300Mt through four operating mines and processing plants, as well as ongoing participation in the coal supply chain infrastructure. Keaton brings aboard the Vanggatfontein mine — roughly the same size as Wescoal’s flagship Elandspruit mine. The synergies realised from the deal are tangible, with the annual report disclosing savings of more than R40m a year. The annual report gives a commitment to further improve operational cost savings and efficiencies by eliminating duplication in contract services and assessing which services to in-and out-source. Middelburg-based Elandspruit — which can produce up to 3Mt run-of-mine coal a year and has a life of about seven years — should underpin profitability in the medium term. The mine currently produces 220,000t a month from the opencast area and about 30,000t a month from the underground operation. In his annual review, CEO Waheed Sulaiman says Wescoal wants to optimise existing businesses and assets, and "pay particular attention to the group’s capital structure with a view to increasing value to shareholders". Perhaps more intriguingly, he says Wescoal will continue to look for external growth opportunities and participate in the consolidation of the coal sector. Though there is a clear focus on maximising value from existing assets, he believes more acquisition opportunities exist for coal and related strategic infrastructure assets. In this regard, IM believes a deal between Wescoal and the profitable coal mining operations of Hosken Consolidated Investments could create an empowered mining company with scale and the ability to execute more acquisitions. Though acquisitions or mergers would likely bring Wescoal to the attention of more investors, the company is not neglecting its current structure. In August it proposed the sale of its opencast Leeuw Braakfontein Colliery in KwaZulu-Natal for R103m. The proceeds will be mobilised to cull short-term borrowings and fund strategic growth options. The proposed deal follows hard on the heels of the sale of its Intibane collieries in Mpumalanga for R57m. The overall sense at Wescoal is that executives are working hard at sweating existing assets and looking for deals to secure operational sustainability. Junior mining ventures come with extra risk and high failure rates — but gut feel is that Wescoal could be a notable exception. At current levels any spare cash might be well spent on a few Wescoal shares. Edited by Bullhunter, Yesterday, 11:39 AM. 0 Opportunities are made up easier than losses.
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#5 Bullhunter

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Posted 29 August 2018 - 04:11 PM

https://www.sharenet...0&seq=23&scode=

 

If this is not the catalyst to get above R2 & stay above I don't know what will....?

By every measure I use, this share is underpriced. Must be the sector it's in that is keeping it down. As a result, this is one of the few occasions where I agree with a share buy back.


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#6 soutie

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Posted 29 August 2018 - 10:17 AM

https://www.sharenet...0&seq=23&scode=

 

If this is not the catalyst to get above R2 & stay above I don't know what will....?


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#7 soutie

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Posted 31 May 2018 - 01:53 PM

 I'm implying that the recipient of the shares was not in favour of the decisions taken at the time & sued he was then settled mainly in shares as WSL didn't have cash in those amounts lying around. The share price has never gone above R2 for any reasonable amount of time where the  market feels comfortable to buy in the say c220-240 area. My calcs are mainly from an armchair perspective but the share price does not reflect anywhere near what is evident now & what is possible in the mid term.

WSL NAV is around R2.17.... :rolleyes:


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#8 Bullhunter

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Posted 31 May 2018 - 11:06 AM

 

For the acquisition of the 30% [source]

Quote

So except if I'm missing something those shares are freely tradeable?

 

The secondary acquisition (pending) has some limits, but it doesn't seem so bad:

Quote

 

This is the overhang that needs to wash through...

 

Are you saying that the vendors are offloading or will off load their total of 16 million shares?


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#9 soutie

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Posted 31 May 2018 - 09:37 AM

SENS 2014/06/24

 

On 26 November 2013 Wescoal Mining acquired 30% of the total issued share capital of Proudafrique from
Minoscape for R18 million.

A circular was issued to Wescoal shareholders on 9 June 2014 in respect of the acquisition by Wescoal Mining
of the remaining 70% of the total issued share capital of Proudafrique from Minoscape for R25.6 million and a
royalty fee of R3.50 per ton of saleable coal mined at the Elandspruit Mining area. The circular contained a
notice of meeting to take place on 14 July 2014, at which shareholders will be requested to approve the
transaction.

 

For the acquisition of the 30% [source]

Quote

Terms and conditions of the First Minoscape acquisition
On 26 November 2013, Wescoal Mining agreed to acquire 30% of the total issued share capital of 
and all its claims against Proudafrique from Minoscape for R18 million. The purchase price paid 
was as follows:
4.2.1 R13 million by the issue of 6 500 000 Wescoal ordinary shares at 200 cents per share, within 
30 days of the First Minoscape effective date;
4.2.2 R3 million in cash payable within three days of delivery of the seller’s share certificates in 
respect of the sale shares;
4.2.3 R1 million payable on 1 February 2014;
4.2.4 R1 million payable on 1 March 2014; and
4.2.5 the seller gave certain warranties that are customary in a transaction of this nature.
All conditions precedent to the First Minoscape acquisition have been fulfilled, it became effective 
at the end of November 2013.

So except if I'm missing something those shares are freely tradeable?

 

The secondary acquisition (pending) has some limits, but it doesn't seem so bad:

Quote

Terms and conditions of the Second Minoscape acquisition
On 26 November 2013, Wescoal Mining agreed to acquire the remaining 70% of the total issued 
share capital of and all its claims against Proudafrique from Minoscape for R25.6 million and a 
royalty fee of R3.50 per ton of saleable coal mined at the Elandspruit Mining Area, payable as 
follows:
5.2.1 R20.0 million of the purchase price will be paid by the issue of 10 000 000 Wescoal ordinary 
shares at 200 cents per share, within 30 days of the Second Minoscape effective date;
5.2.2 R5.6 million in cash, within three days of the Second Minoscape effective date, payable 
from existing cash resources;
5.2.3 in addition, Minoscape will be paid a royalty of R3.50 per ton of saleable coal mined at 
Elandspruit Mining Area, which royalty will escalate annually with the published producer 
price index, payable from existing cash resources, as long as mining takes place;
5.2.4 Minoscape shall not during the first 12 months following the issue of the 10 000 000 shares 
by Wescoal to Minoscape, directly or indirectly sell more than 200 000 shares during any 
calendar month;
5.2.5 Minoscape shall not during the second 12 months following the issue of the 10 000 000 
shares by Wescoal to Minoscape, directly or indirectly sell more than 500 000 shares during 
any calendar month; and
5.2.6 the seller gave certain warranties that are customary in a transaction of this nature.

 

This is the overhang that needs to wash through...


Edited by soutie, 31 May 2018 - 09:40 AM.

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#10 Bullhunter

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Posted 30 May 2018 - 07:11 PM

It'll get moving northwards only once 10-12million have changed hands around the R2mark in my estimations.....so far maybe 3million has...

That will require institutional support - in total they own 3.7% versus 4.8% of Exxaro.   To take them to par with Exxaro requires another 1.1% which is an additional 5 million shares. Hopefully the results will make them sit up and take notice. 

 

Been steady to rising on two bad market days which is a good sign.


Edited by Bullhunter, 30 May 2018 - 07:14 PM.

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#11 soutie

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Posted 30 May 2018 - 02:32 PM

What is the catalyst that gets this share moving ?

 

Earnings are impressive, valuation is extremely reasonable, coal prices have been favourable and with Moabsveld, there is opportunity to grow production with little capex.

 

Yet, share price meanders around the R2 mark.

It'll get moving northwards only once 10-12million have changed hands around the R2mark in my estimations.....so far maybe 3million has...


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#12 Bullhunter

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Posted 29 May 2018 - 12:02 PM

What is the catalyst that gets this share moving ?

 

Earnings are impressive, valuation is extremely reasonable, coal prices have been favourable and with Moabsveld, there is opportunity to grow production with little capex.

 

Yet, share price meanders around the R2 mark.

Read Keith McLachlan's opinion here:

 http://smallcaps.co....miner-grows-up/

 

I am accumulating at these levels.


Edited by Bullhunter, 29 May 2018 - 12:03 PM.

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#13 icassim

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Posted 26 May 2018 - 01:21 PM

What is the catalyst that gets this share moving ?

 

Earnings are impressive, valuation is extremely reasonable, coal prices have been favourable and with Moabsveld, there is opportunity to grow production with little capex.

 

Yet, share price meanders around the R2 mark.


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#14 soutie

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Posted 22 May 2018 - 04:16 PM

Posted 03 February 2017 - 08:32 AM

 

If Mr Market gets behind this Whoooooosh..................!

 

De-Ja Vue my side.


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#15 Bullhunter

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Posted 22 May 2018 - 11:55 AM

Worth looking at. You don’t get all too many profitable, growing shares on a 4x PE!

 

Fair value =R3.34

Following earnings update, fair value =R3.79


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#16 Bullhunter

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Posted 12 February 2018 - 12:49 PM

Worth looking at. You don’t get all too many profitable, growing shares on a 4x PE!

 

Fair value =R3.34


Edited by Bullhunter, 12 February 2018 - 12:49 PM.

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#17 purply

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Posted 08 February 2017 - 02:07 PM

What news are we talking about?
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#18 soutie

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Posted 08 February 2017 - 10:37 AM

Biggest news in ages fumpty 100's viewed no comment..... :unsure:......Bye Bye....


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#19 soutie

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Posted 06 February 2017 - 01:49 PM

Picked up 60,000 KEH at an av 162c  


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#20 soutie

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Posted 03 February 2017 - 12:49 PM

Are we overpaying...? Me thinks that we is.....But by how much....Conference call just confirmed power point presentation on their website. Can't get passed giving them our shares @ R2 & paying 30 day VWAP for theirs...... :wacko: 

 

They must really wants it like really wants it...! Me still thinks it's win win though..... :)  


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