288 replies to this topic

[Mr_SA]

110c today... there just doesnt seem to be a bottom for this share.

They better release a good SENS soon, else we will be looking 70 - 80c for this share

[soutie]

Today's SENS should give Mr Market clarity on what's going on now ......can do some calcs soon enough to determine if we satisfy Eskom regulations.

 

P.S. This could have been a well orchestrated plan to transfer as much as possible to Simeka unfortunately at shareholders expense who came late to this bus....

 

Again why buy at R1.32 when you can buy today in the  R1.20's

Edited by soutie, 05 November 2015 - 03:55 PM.

[soutie]

@ Mr SA

I'm not sure of a drop in the share price post rights issue.....so your reasoning would be insightful...Thanks in advance....

 

Since the SENS announcement of said capital raise +/- 4.2mil shares have traded, there's 193mil in issue. Shares being issued @ R1.38 so on volume traded since SENS it would appear most holders are either deep in the red or gonna follow through with their allocation. Either way Simeka will come out of this being another significant holder of WSL scrip, which is good as it gets us closer to 51% Black owned, which in turn releases cheap funding & guarantees Eskom off-take for life of mine at Elandspruit.

 

Uncertainty/Management is the only drag on this counter remember Eskom contracts are cost plus.

[Mr_SA]

My 2c

The R40mil from Simeka didn't materialize....Hence the delay in the corporate activity.....Hence trading at these new reduced levels.....

Again Mr Market hates uncertainty.....Buy more I'm stocked up.....Bids of 50,0000 at the 118/9 seem to be attracting sellers frustrated or otherwise.

Personally 118/9 is bargain territory IMO

Cheers.

 

But the rights issue will probably end up dropping the share price more...?

[soutie]

My 2c

The R40mil from Simeka didn't materialize....Hence the delay in the corporate activity.....Hence trading at these new reduced levels.....

Again Mr Market hates uncertainty.....Buy more I'm stocked up.....Bids of 50,0000 at the 118/9 seem to be attracting sellers frustrated or otherwise.

Personally 118/9 is bargain territory IMO

Cheers.

[Mr_SA]

Does anyone have any views on WSL? To Sell? Buy More?

I do think the share has potential... But the question is timing... WHEN will the market realise this?

[soutie]

Re: Today's SENS

Mixed bag...Totally hamstrung by Eskom....Last bit at the end is a positive generating c2.5 for September month so as communicated 2nd half should be much much better....Summer rains could be the only downer.

[Pugz]

the chairman on the charm offensive. I don't know why they couldn't do this BEFORE the Sens announcement on the claw-back and rights offer:

 

JOHANNESBURG (miningweekly.com) – Black-empowered coal mining and trading company Wescoal, which is raising R81-million equity capital to further develop its flagship Elandspruit colliery, is taking steps to be a key player in the consolidation of South Africa’s junior coal-mining arena. Print Send to Friend 0 0 Robinson Ramaite, chairperson of the Johannesburg Stock Exchange-listed company, told a media conference in which Creamer Media’s Mining Weekly Online participated that the company’s ability to operate and its black economic empowerment (BEE) credentials put it in a strong position in the area of mergers and acquisitions (M&A). “We want to be the first empowered coal junior to comply with Eskom’s 51% black-ownership and be an example to to the country,” Ramaite said. (Also watch attached Creamer Media video).

 

Wescoal currently produces 2.5-million tons of coal a year under acting CEO Waheed Sulaiman and is aspiring to reach four-million tons a year by April 2016 “In very simple terms, we’re looking at mergers with some of the existing juniors as well as acquisitions of others,” 46-year-old Ramaite said. Some opportunities, if executed, could increase the life of mine of the company’s existing Khanyisa and Intibane collieries, which are both close to Eskom’s Kendal and Kusile power stations. Black interests currently hold more than 30% of Wescoal and moves are afoot to increase that shareholding to 51% by December 2016. In the equity capital raising move, the Simeka Group, which Ramaite also chairs, will be following its rights to the tune of R40-million. “We’re very heavily involved in discussions and we’re hoping that, in the next few weeks, some of those will come out into the public domain,” he said, adding that the company was certainly not the only juniors active in M&A negotiations.

 

The company was excited about the prospects and optimistic that the M&A talk was about to be converted into action. The current poor state of commodities markets had prompted some companies to place their assets on the market and Wescoal saw itself as a major taker of such opportunities. To do that, it would have to be ready from a funding point of view. To date, it has self-funded growth projects from its own operating cash flows; however, internally funded growth had reached a point that now required alternative capital sources to allow for continued development. On top of that, long-term bank funding, which was dependent on the conclusion of long-term Eskom contracts, had been delayed, which had brought about the decision to pursue a combined claw-back and rights offer to shareholders at a subscription price of 138c a share on 58 890 389 new ordinary shares.

 

The company said its rights issue was aimed at securing funding for mining as a marking time measure ahead of bank funding once long-term Eskom contracts were finalised. It added that 80% of its coal reserves were of the resource-type that met the requirements of Eskom and the business was thus continuing to build itself around the State power utility. It said that its Elandspruit project was already feeding the company’s new processing plant, which had a throughput target of 170 000 run-of-mine tons a month by December 31. (Also watch attached Creamer Media video).

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[soutie]

Bought my last batch today, my cup runneth over.

Let the games begin.......

[Queen B]

Bleh

Trading at R1.15 now

[soutie]

Well after pondering yesterday's announcement me thinks the financial markets have taken a Nah...! towards WSL & it's chairman so left with no option to put more money where his mouth & intention is. Quick back of the nappy cacl if he didn't follow his rights along with a couple other significant holders an effective 12% of the enlarged share issue could be transferred to SImeka thus leaving the door open for him & others by others I mean previous Waterberg Properties & ProudAfrique parties to make up the 51% on the open market.

 

That block sale the other day could turn out to be significant indeed after all 6mil shares today is 3,2% of the shares in issue.

Any other views is MUCHO MUCHO apprecianado.....

Cheers 

[soutie]

Wow loud & clear QB.....Can you imagine if R.Ramite was given 20% of the exposure, support & financial backing that P. Motsepe received.....

[Queen B]

And they way things are going, especially in casual and contracted labour this past few weeks, government is making it harder and harder, if not impossible to trade as a company these days.

Most big corporates will now do away with temporary labour because of the new legislation. Most people wont travel to our shores anymore because of the new visa requirements. Most people wont buy shares in companies who aren't fully compliant with the new BEE laws.

Our government is making life too difficult to trade. Companies cannot grow. too much red tape. too much legislation.

Annyone in their right mind would think twice about investing here in SA

Very sad state of affairs

[soutie]

Yeah...! Lets hope its a bright red thingy in the wood pile & not a needle in a haystack.....

[Queen B]

the 51% thingy is the thingy in the woodpile

That's the make or break or WSL

[soutie]

The way I sees it from a price action perspective not sure how many holders are not already above the R1.38 subs price.....the ones that are below that will for sure take up their rights plus all of management will take up theirs.....The holders above R1.38 will have an opportunity to average down in an acceptable manner or like today sell at a loss & be pissed at WSL for however long they wish.

 

This is a reset exercise, well that's the way I'm looking at it, once the road map is clearly communicated & the R80mil is in the bank to complete Elandspruit there's virtually no debt on the balance sheet & we is cash generative.

 

Still the only glitch is the 51% thingy but the chairman with his other Simeka entity could circumvent that should no other BEE vehicle be available.

[Queen B]

On a side note and totally unrelated, picked up some more BSS at 37c today

That's another of my 5 or 10 baggers

[Queen B]

its going to be interesting next few weeks

[soutie]

Why pay R1.38 when peops are dumping at R1.21

[soutie]

Must admit I'm nervous why not unveil this at the AGM they is pushing it through literally days before....!

 

Obviously Investec will not release the promised funds of R75mil until the Eskom deal is completed to their satisfaction.

Still the chairman is stumping up some serious tom to keep that mine running as promised.