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Wescoal (WSL)


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#121 Rulz3

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Posted 19 March 2016 - 09:30 PM

Up 13% today on relatively little volume. Can't pick up any sens. Anyone know what's happening?


Little volumes answers your question.

Edited by Rulz3, 19 March 2016 - 09:31 PM.

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#122 Sugafoot

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Posted 18 March 2016 - 08:49 PM

Up 13% today on relatively little volume. Can't pick up any sens. Anyone know what's happening?
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#123 soutie

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Posted 11 March 2016 - 03:24 PM

There's a whole Investor update on their website for those interested.


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#124 soutie

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Posted 01 February 2016 - 05:35 PM

Today's volume indicates that some entity of long standing is exiting...I say this because there's not many holders can sell on this scale at break-even or possible small profit.... :rolleyes: I've said it before we may have ourselves a holding in a value trap.

 

While the Chairman has every right to do things his way after pumping in considerable amounts of his hard earned cash, realizing the inherent value that is in Wescoal & unlocking it are seemingly lost on Mr Market as today's volume suggests.

 

Results are still some way off in June (finals) apart from another poorly accepted operational update I doubt we can expect a jump in share price any time soon.... :(

The newly appointed strategy guru/spin doctor needs to earn his salary & as soon as the Eskom deal is finalized shout it out loud, whenever that happens...?

 

It's been a very long time since my holding has dipped into the negative maybe that's what is fueling this level of frustration...

Rant over.

Cheers.


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#125 Queen B

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Posted 28 January 2016 - 04:35 PM

Back to 76 cents

No catching a break with this one :angry:


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#126 soutie

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Posted 25 January 2016 - 02:22 PM

Today's SENS is good news all on track it appears...The fact it's being sold into is not however... :(


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#127 Mr_SA

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Posted 20 January 2016 - 01:18 PM

I topped up AT 76 cents

hoping I wont regret this

 

I am really getting worried about this share. 71c now... Surely some news has to be announced soon that will help the share?


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#128 Queen B

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Posted 19 January 2016 - 07:20 PM

I topped up AT 76 cents

hoping I wont regret this


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#129 Sugafoot

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Posted 19 January 2016 - 04:59 PM

76c. This is 2012 stuff
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#130 Pugz

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Posted 13 January 2016 - 06:27 PM

at 90c Im not worried about its prospects but what I am worried about (and will be in the moeren for should it materialise) is that its share price opens the door to take-over or significant holder bids.

 

Anyway, some shallow research: seems Simeka has under gone some restructuring to its (impressive) team. No doubt its going to be a busy year ahead at a group level for WSL.

 

Future (most likely) pipeline:

http://simekacapital.com/portfolio/

 

Opgoedenhoop

ANNOUNCEMENT


27 March 2014


COAL OF AFRICA GRANTED OPGOEDENHOOP SECTION 11 APPROVAL


Coal of Africa Limited (the “Company’ or ‘CoAL’) is pleased to announce that Section 11 approval has

been granted by the Department of Minerals Resources (“DMR”) for the disposal of the Opgoedenhoop

mineral right. The consideration for the sale is R20.4 million and the deposit of R5 million has been

received by the company. The balance of the consideration will become payable within 12 months.


David Brown, Chief Executive Officer stated: “The successful completion of the sale of Opgoedenhoop

concludes another aspect of the five-point turnaround strategy.”

 

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#131 soutie

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Posted 11 December 2015 - 02:11 PM

What can we possibly do??????

 

Hold the line guys & gals...Let the panic'ers panic....Just re-read the SENS below... :)

 

 

 

Shareholders are reminded that the earnings per share attributable to the immediately preceding six month period

of 1 October 2014 to 31 March 2015 as published on 23 June 2015, indicates 0.50 cents per share (15.7 cents per

share for full year to 31 March 2015 less 15.2 cents per share for the period ranging from 1 April 2014 to

30 September 2014). The earnings per share attributable to the Period represents an increase of 800% at the

bottom end and an increase of 1020% at the top end to this number. Earnings per share attributable to the month

of September 2015 are expected to be between 2.30 and 2.80 cents per share, mainly on the back of the

Elandspruit Eskom contract.

 

We is going along at 2-3c/month that's without this latest cash injection to de-bottleneck Elandspruit ( CEO's words ) Granted that was with 193mil shares in issue so when the Eskom deal goes through & I'm sure the chairman is going for a life of mine cost plus deal, after all he has MAJOR skin in the game here, so then we release El Cheapo funding based on earnings from Elandspruit plus the trading arm will pump as we is compliant there also. Massive tonnage marked up & transported nationally not just Witbank & Mpumalanga.

 

Yip it is not nice looking at sub R1 when we all remember the heady days of R2+ but I've mentioned before we now have a much larger animal than what was targeted in that buyout namely Elandspruit producing 200k plus monthly.

Cheers.

Soutie


Edited by soutie, 11 December 2015 - 02:14 PM.

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#132 Mr_SA

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Posted 11 December 2015 - 11:55 AM

What can we possibly do??????


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#133 Queen B

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Posted 10 December 2015 - 03:42 PM

91c :angry:


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#134 soutie

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Posted 07 December 2015 - 03:18 PM

Well seems they only raised R41.5mil from the targeted R64mil.....It's a 1 man band now for sure....Viva Simeka...Viva Ramite....


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#135 Mr_SA

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Posted 23 November 2015 - 10:53 AM

I see the WSLN shares have been listed, but noone bidding, so i dont see anything that can be dome with these shares.


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#136 soutie

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Posted 21 November 2015 - 04:02 PM

Name:                                          R Ramaite
Designation:                                   Non-executive Chairman
Date of transaction:                           19 November 2015
Class of securities:                           Ordinary shares

Number of securities:                          150 000
Price per security:                            R1.20
Total value:                                   R180 000

Number of securities:                          50 000
Price per security:                            R1.15
Total value:                                   R57 500

Number of securities:                          85 000
Price per security:                            R1.10
Total value:                                   R93 500

Nature of transaction:                         Purchase on the open market
Extent of interest:                            Direct beneficial
Clearance to deal:                             Yes

285k closer to 50%+1.... :D


Edited by soutie, 21 November 2015 - 04:02 PM.

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#137 Pugz

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Posted 19 November 2015 - 07:58 PM

personally if the price is still below R1.20 at the end of this month then Ill buy on the open market but for large and very large buyers such as Kieth's fund it does make sense to take up his rights offer:

 

http://smallcaps.co....wescoal-rights/

 

Why I am taking up my Wescoal rights…

 

Wescoal (WSL) is a junior coal miner and a large domestic inland coal trader. For those who do not know it well, here is some background research on the company and my views thereon: Read my Initiation of Coverage here and my last published results note here. For a third party perspective, read this brief note on Wescoal too.

Now to update everyone on the latest (factual) events happening at the Wescoal:

  • Late last year, a potential takeover offer was table and then withdrawn.
  • Long-stand CEO, Andre Boje, left the company. Read this article for some background speculation.
  • Waheed Sulaiman was appointed the Group’s Temporary CEO. A permanent CEO appointment remains outstanding at the time of writing this and to the best of my knowledge.
  • The Group has signed a short-term supply contract with Eskom for its flagship Elandspruit mine (that is now up and running per expectations and doing well), but the long-term supply contract remains unsigned and appears dependent on a BEE deal at some time in the future.
  • Wescoal did an issue of shares in a private placement at 132cps issuing R13m worth of script to unnamed parties. I, personally, would love to know who these investors were, but at this point I have no idea.
  • Wescoal has issued a c.R65m rights offer, partially underwritten by Simeka Capital Holdings (Pty) Ltd to the tune of c.R40m. Simeka is apparently a company in which the Group’s Chairman, Muthanyi Robinson Ramaite, has a significant personal shareholding in. The rights issue was priced at 132cps, which is above the Group’s current share price of 115cps. Read some details here. This rights offer was put together and run at lightning speed and the share went ex-rights before the Company’s AGM occurred in November and, thus, shareholders never got a chance to vote specifically on it. Note that 132cp is well below Wescoal’s NAV of 158cps and only a bit above its Tangible NAV of 104cps.

Without delving into speculation, those are the facts of what has transpired at Wescoal over the last year or so. I have plenty of opinions about what has actually happened and why, but those I will keep out of the public domain.

What I will publish is my view of what to do now:

  • I view Wescoal’s underlying fair value as comfortably above 200cps. This involves plenty of assumptions and may well be wrong given the risks in junior miners, spot prices and where we are in the current resource cycle. Importantly, I donot forecast any real improvement in the resource and mining environment, hence I am comfortable in the valuation of this stock and continue to peg it as north of 200cps.
  • Hence, the margin of safety between 200+cps and the rights issue price of 132cps (over 50%!) is large enough that I am comfortable that I am on the right side of the fair value equation for Wescoal (i.e. paying for too little for its script).
  • The underwriting agreement may see Simeka Capital Holdings (Pty) Ltd subscribe for over 30m more Wescoal shares at 132cps. Firstly, per my argument above, this is an exceptionally cheap share at 132cps. Secondly, the ultimate beneficiary of this investment includes Wescoal’s Chairman, and as an insider that likely put this very rights offer together, he is obviously comfortable enough at the 132cps to put (lots of) his own money into it. And, finally, it is worth noting that your are unlikely to buy 30m Wescoal shares in the open market at this price (the share is not very liquid). If one were to do so in the open market, you would probably lift WSL’s share price substantially from its current price, hence this is an attractive entry method for a large investment.
  • And, therefore, not only does each right that I subscribe for appear to be a good investment on its own, but I (at least symbolically) voting against the underwriting agreement from which the Chairman indirectly stands to benefit (per my workings).

Therefore, not only have I been steadily buying Wescoal shares as they fell below 132cps, but I have sent instructions off that we will be taking up all of our assigned rights in Wescoal.

If investing into Wescoal at 132cps is good enough for an insider that already has significant capital invested into the company, then it is good enough for me.

Now, if Wescoal is worth buying at 132cps and the Chairman is really going for control, then at some point the 35% threshold will be passed and he may have to make an offer to the rest of us for our script… The added option of a future potential cash offer for WSL script is also a temporary floor on things.

Anyway, I’ve tried to stick to the facts here, but that is my thinking for why I will be taking up my Wescoal rights: it is a great company with a great future at a great price, and I’m not about to let someone else get my upside.


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#138 soutie

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Posted 18 November 2015 - 02:02 PM

I still don't see the point of taking up the rights at R1.30 when it's currently trading at R1.10

 

Maybe that was the plan all along.... :ph34r:  Check their website for the circular about the rights issue gives details of directors holdings both past & present.


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#139 Queen B

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Posted 18 November 2015 - 12:23 PM

I still don't see the point of taking up the rights at R1.30 when it's currently trading at R1.10
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#140 soutie

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Posted 18 November 2015 - 09:47 AM

I see that the rights are trading under WSLN....


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