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Wescoal (WSL)


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#201 Trader1

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Posted 03 September 2014 - 02:53 PM

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


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

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#202 SB45

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Posted 14 August 2014 - 09:30 AM

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)?


Check comments by Xavier Prevost on miningweekly.com on this, should give you a view. Funny enough he says this Waterberg craze has no business case, not sure how credible this guy is though.
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#203 SB45

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Posted 14 August 2014 - 09:29 AM

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)?


Check comments by Xavier Prevost on miningweekly.com on this, should give you a view. Funny enough he says this Waterberg craze has no business case, not sure how credible this guy is though.
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#204 soutie

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Posted 14 August 2014 - 08:56 AM

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


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#205 Sugafoot

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Posted 14 August 2014 - 06:54 AM

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)?
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#206 soutie

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Posted 07 August 2014 - 06:51 PM

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. 


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#207 soutie

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Posted 30 July 2014 - 05:58 PM

Litigation statement
The company is not aware of any legal or arbitration proceedings (including any such proceedings 
which are pending or threatened), which may have or may have had, in the last 12 months, a 
material effect on the group’s financial position, save for :
An application was served on Wescoal, Wescoal Mining (Pty) Ltd, Wescoal Exploration (Pty) Ltd, 
Proudafrique Trading 147 (Pty) Ltd (40% shareholder in Wescoal Exploration), Minoscape (Pty) 
Ltd (majority shareholder in Proudafrique) and three other respondents by JC van der Westhuizen, 
the minority shareholder in Proudafrique to set aside agreements relating to the establishment of 
Wescoal Exploration and the sale of the Vlaklaagte Prospecting right by Wescoal Exploration to 
Wescoal Mining.
The application was opposed by Wescoal, Wescoal Exploration, Wescoal Mining and Minoscape.
The above legal proceedings were formally withdrawn by Van Der Westhuizen on 17 December 
2013.
 
This guy must have had a water-tight case (& a merry Xmas just looking at the date), I comment under correction but this objection goes back some years me thinks.

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#208 soutie

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Posted 30 July 2014 - 05:26 PM

This Minoscape entity certainly is the recipient of a very lucrative deal.

Problem is not whether Minoscape wants to hold or sell.

It's the knowledge that Mr Market knows there's an overhang in the market of almost 2yrs volume.

Surely you would like to reduce your exposure to WSL & buy some blue chips....? I would..!

Plus the R3.50/ton from Elandspruit .......Mahala. Lets hope there's not a similar agreement for Silverbank & Verblyden.

With you on the upside potential, however directors do like to muddy the waters, can't figure why though.


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#209 TheLittleGuy

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Posted 30 July 2014 - 12:59 PM

 

For the acquisition of the 30% [source]

 

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:

 

 

Thanks.

 

WSL has a current 30 day Ave volume traded of 166288 shrs per day. Assuming Minoscape wants to sell (lots of upside to WSL imo) is will take them 117 days to get ride of their first 6.5mln (assuming they want to be 1/3 of the vol) and more than 2 yrs to sell off the second tranche. 


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#210 vlam

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Posted 30 July 2014 - 12:27 PM

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]

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:

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.

 


Edited by vlam-hobbyist, 30 July 2014 - 12:28 PM.

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#211 TheLittleGuy

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Posted 30 July 2014 - 11:14 AM

WSL has great prospects it just depends on whether or not you have an appetite to invest in the small cap arena.

They managed to turnover R1 billion this financial year for the first time.

No doubt in my mind ATM there is some tension in the boardroom.

The previous CFO & CEO go back to the early 90's where they both worked together.

 

Pure speculation on my part for what's next, anyway here goes.

While the circular mentions numerous times the rationale for acquiring all of Proudafrique Trading 147 (pty) what is the reason for it now....?

Yes it's stated that the 2 farms Silverbank & Verblyden will now be 100% owned by WSL....so what....it's not as if there's money to exploit those assets now.

All excess cash & all available debt will be thrown at Elandspruit.

I'm still digging around & gathering pieces together to figure out why go this route & just what amount of leverage did a certain Mr Johannes Cornelius van der Westhuizen exert over this corporate activity. That said they have issued 16.5mil shares in November last year & well WSL does not trade at those volumes in a hurry. Seems they wanted rid of this guy no matter what....but why issue shares....should of been paid cash.

Mr market hates it when small caps toss around paper, gives the wrong impression... they could of easily upped their debt to buy out unwanted shareholders.

Couple that with the departure of the CFO & well this where we are now folks uncertainty when there should of been drinks all round on a job well done for the year.

 

Looking ahead when the water use licence is granted, some time around August according to the CEO at the AGM, lets hope there's not too much dumping into good news. With the water use granted they reckon 3-5mths later they'll be selling product from Elandspruit.

I still think it'll get cheaper as there's a lot of script to move & no institutions will touch it in a BIG way so it's mom & pop season for the next few months me thinks.

P.S Thanks for starting the thread Shi. 

Soutie, When does/did the lock-up for those 16.5mln WSL shares end?


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#212 Sugafoot

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Posted 30 July 2014 - 08:08 AM

Oh bloody hell.
And I recently upped my stake.
This company HAD been very good to me.

Hope the bounce doesn't take that long.
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#213 soutie

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Posted 29 July 2014 - 06:23 PM

WSL has great prospects it just depends on whether or not you have an appetite to invest in the small cap arena.

They managed to turnover R1 billion this financial year for the first time.

No doubt in my mind ATM there is some tension in the boardroom.

The previous CFO & CEO go back to the early 90's where they both worked together.

 

Pure speculation on my part for what's next, anyway here goes.

While the circular mentions numerous times the rationale for acquiring all of Proudafrique Trading 147 (pty) what is the reason for it now....?

Yes it's stated that the 2 farms Silverbank & Verblyden will now be 100% owned by WSL....so what....it's not as if there's money to exploit those assets now.

All excess cash & all available debt will be thrown at Elandspruit.

I'm still digging around & gathering pieces together to figure out why go this route & just what amount of leverage did a certain Mr Johannes Cornelius van der Westhuizen exert over this corporate activity. That said they have issued 16.5mil shares in November last year & well WSL does not trade at those volumes in a hurry. Seems they wanted rid of this guy no matter what....but why issue shares....should of been paid cash.

Mr market hates it when small caps toss around paper, gives the wrong impression... they could of easily upped their debt to buy out unwanted shareholders.

Couple that with the departure of the CFO & well this where we are now folks uncertainty when there should of been drinks all round on a job well done for the year.

 

Looking ahead when the water use licence is granted, some time around August according to the CEO at the AGM, lets hope there's not too much dumping into good news. With the water use granted they reckon 3-5mths later they'll be selling product from Elandspruit.

I still think it'll get cheaper as there's a lot of script to move & no institutions will touch it in a BIG way so it's mom & pop season for the next few months me thinks.

P.S Thanks for starting the thread Shi. 


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#214 HendrikB

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Posted 29 July 2014 - 02:10 PM

I still have to read a compelling argument for Wescoal.
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#215 Shi

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Posted 29 July 2014 - 01:44 PM

Lots of chatting in other threads, so thought it best to keep it all in one thread.

 

At 170c, I'm looking at adding some more. Keeping this one for the long term.


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