Wescoal (WSL)
#161
Posted 07 October 2015 - 03:52 PM
#162
Posted 07 October 2015 - 03:48 PM
I bought 75000 of my rights @ R1.21 just now
Anyone need a heads up...!
#163
Posted 07 October 2015 - 03:13 PM
Trading at R1.22 now
Who would have thought
#164
Posted 07 October 2015 - 02:43 PM
I checked
Makes sense for the BEE ratings needed to secure Eskom deal
This one will tank or shoot the lights out
Nothing quite like a juicy plot
#165
Posted 07 October 2015 - 02:18 PM
Google Simeka the plot thickens.....!
Anyone need a heads up...!
#166
Posted 07 October 2015 - 12:58 PM
CAPITAL RAISING BY WAY OF A RENOUNCEABLE COMBINED CLAW-BACK AND RIGHTS OFFER
1. Introduction
Wescoal shareholders (“Shareholders”) are advised that Wescoal intends to raise a maximum of
R81 million equity capital by way of a renounceable combined claw-back and rights offer through the
issue of up to 58 890 389 new ordinary shares of no par value to Wescoal shareholders at a subscription
price of 138 cents per combined claw-back and rights offer share in the ratio of 29.99999 combined
claw-back and rights offer shares for every 100 Wescoal shares held at the close of trade on Friday, 23
October 2015 (“Record Date”) (“Combined claw-back and rights offer”).
2. Rationale for the Combined claw-back and rights offer
The Combined claw-back and rights offer to Shareholders has been initiated to raise capital for the
further development of Wescoal’s flagship project, Elandspruit Colliery (refer to the SENS
announcements dated 9 July 2015, 29 July 2015, 10 September 2015 and 16 September 2015,
respectively) and to take advantage of inorganic and organic growth options. The Company commenced
processing coal at its beneficiation plant close to Elandspruit and delivered ‘first coal’ to customers
during the month of July 2015.
To date, the Company has funded growth projects for the group from operating cash flows, and as a
consequence has recently experienced some strain on its free cash flow position which inhibits further
growth potential. The decision to pursue a Combined claw-back and rights offer has further been
brought about by delays in the release of long-term bank funding which depends on long-term contracts
with Eskom being concluded.
3. Terms of the Combined claw-back and rights offer
In terms of the Combined claw-back and rights offer, 58 890 389 new ordinary shares of no par value
will be offered to Shareholders on the Record Date (“Qualifying Shareholders”) at a price of 138 cents
per Combined claw-back and rights offer share (“Subscription Price”), representing a maximum
Combined claw-back and rights offer equity capital raise of R81 million.
The Subscription Price represents a discount of 5% to the 30-day volume weighted average price of
Wescoal shares over the 30-day period ended on Tuesday, 29 September 2015. The Combined claw-
back and rights offer will be offered to Qualifying Shareholders in the ratio of 29.99999 Combined claw-
back and rights offer shares for every 100 Wescoal ordinary shares held on the Record Date.
Simeka Capital Holdings Proprietary Limited (“Simeka” or the “Subscriber”) has committed to fully
subscribe for a maximum of 28 985 507 new ordinary shares of no par value which shall not have been
subscribed for by Qualifying Shareholders pursuant to the Combined claw-back and rights offer (“Claw-
back shares”) for a subscription consideration of R40 million (“Subscription Amount”) at the
Subscription Price in accordance with the subscription agreement entered into between the Subscriber
and the Company on 30 September 2015 (“Subscription Agreement”).
To the extent that Qualifying Shareholders do not follow their rights in terms of the Combined claw-
back and rights offer, the Subscriber will be issued with the Claw-back shares. To the extent that all
Qualifying Shareholders follow their rights in terms of the Combined claw-back and rights offer, the
Subscriber will not be issued with any Claw-back shares and will be refunded the Subscription Amount.
In terms of the Subscription Agreement, the Subscription Amount is payable to the Company in advance
on Monday, 19 October 2015 and Wescoal shall allot the Claw-back shares to the Subscriber on this
date, upon receipt of the Subscription Amount. The Subscriber has agreed to allow Wescoal, upon
receipt of the Subscription Amount, immediate access to such funds for the purposes of further
developing Elandspruit project and to take advantage of the inorganic and organic growth options.
In consideration for the Subscriber providing the Subscription Amount to Wescoal in advance, prior to
the opening of the Combined claw-back and rights offer, Wescoal shall pay to the Subscriber a liquidity
fee equal to 2.5% (two and half percent) of the Subscription Amount.
The Combined claw-back and rights offer shares will, upon allotment and issue, rank pari passu with the
existing issued Wescoal shares in terms of both voting and distribution rights.
The entitlement of each Qualifying Shareholder holding certificated shares (“Qualifying Certificated
Shareholder”) will be reflected in the appropriate block in the form of instruction, to be enclosed in the
circular to be issued.
Qualifying Shareholders holding dematerialised shares (“Qualifying Dematerialised Shareholders) will
not receive a printed form of instruction. Their central securities depository participant (“CSDP”) or
broker accounts will automatically be credited with their entitlements.
Fractional entitlements to shares resulting from the Combined claw-back and rights offer will be
rounded down to the nearest whole number if they are less than 0.5, and will be rounded up to the
nearest whole number if they are equal to or greater than 0.5.
Qualifying Shareholders not holding a multiple of 100 shares will receive entitlements in accordance
with a table of entitlements contained in the circular to be issued.
Applications for additional Combined claw-back and rights offer shares will not be permitted.
4. Directors
The implementation of the Combined claw-back and rights offer is occurring during a closed period as
defined in the JSE Listings Requirements due to the Company’s interim financial period which ended on
30 September 2015. Some of the directors have indicated that they would like to follow their rights
during the closed period subject to the approval of a dispensation request submitted to the JSE.
5. Salient dates and times
The salient dates and times in respect of the Combined claw-back and rights offer are set out below:
2015
Finalisation announcement released on SENS on Tuesday, 13 October
Last day to trade in Wescoal shares on the JSE in order to be entitled to
Friday, 16 October
participate in the Combined claw-back and rights offer on
Listing and trading on the JSE of the letters of allocation with the JSE Monday, 19 October
Code WSLN and ISIN ZAE000210399 from the commencement of trade
on
Wescoal shares commence trading ex-Combined claw-back and rights Monday, 19 October
offer entitlement on the JSE from
Subscription Amount paid to Wescoal by the Subscriber in accordance Monday, 19 October
with the Subscription Agreement on
Allotment of Claw-back shares to the Subscriber on Monday, 19 October
Circular, including form of instruction (where applicable), mailed to Tuesday, 20 October
Qualifying Certificated Shareholders on
Record date in order to be entitled to participate in the Combined claw- Friday, 23 October
back and rights offer on
Combined claw-back and rights offer opens on Monday, 26 October
Letters of allocation credited to an electronic account held at the Monday, 26 October
transfer secretaries in respect of Qualifying Certificated Shareholders on
CSDP or broker accounts credited with entitlements in respect of Monday, 26 October
Qualifying Dematerialised Shareholders on
Combined claw-back and rights offer circular mailed to Qualifying Tuesday, 27 October
Dematerialised Shareholders (where applicable) on
Last day to trade in the letters of allocation on the JSE on Friday, 30 October
Listing and trading on the JSE of the Combined claw-back and rights Monday, 2 November
offer shares commences at 09h00 on
Payment to be made, and form of instruction to be lodged, with the Friday, 6 November
transfer secretaries by Qualifying Certificated Shareholders by 12h00 on
Combined claw-back and rights offer closes at 12h00 on Friday, 6 November
Record date for the letters of allocation on Friday, 6 November
Combined claw-back and rights offer shares issued on Monday, 9 November
Claw-back shares not accepted in terms of the Combined claw-back and Monday, 9 November
rights offer, issued to the Subscriber on
CSDP or broker accounts of Qualifying Dematerialised Shareholders Monday, 9 November
debited and updated with entitlements to the Combined claw-back and
rights offer shares on
Share certificates posted to Qualifying Certificated Shareholders in Monday, 9 November
respect of entitlements to the Combined claw-back and rights offer on
Results of the Combined claw-back and rights offer announcement Monday, 9 November
released on SENS on
Refund to the Subscriber in terms of Claw-back shares taken up by Tuesday, 10 November
Qualifying Shareholders on
Notes:
1. All times indicated above are South African times.
2. Qualifying Dematerialised Shareholders are required to notify their appointed CSDP or broker of
their acceptance or otherwise of the Combined claw-back and rights offer in the manner and time
stipulated in the agreement governing the relationship between such shareholder and their CSDP or
broker.
3. Share certificates may not be dematerialised or re-materialised between Monday, 19 October 2015
and Friday, 23 October 2015, both days inclusive.
4. The CSDP or broker accounts of Qualifying Dematerialised Shareholders will be automatically
credited with new Wescoal shares to the extent to which they have accepted the Combined claw-
back and rights offer. Wescoal share certificates will be posted, by registered post at the
shareholders’ risk, to Qualifying Certificated Shareholders in respect of the Combined claw-back and
rights offer shares which have been accepted.
5. CSDPs effect payment in respect of Qualifying Dematerialised Shareholders on a delivery-versus-
payment method.
6. Conditions precedent
The Combined claw-back and rights offer remains conditional upon, inter alia, approval by the JSE of:
– the Combined claw-back and rights offer circular and ancillary documents thereto (“the Circular”);
and
– the listing of the Combined claw-back and rights offer shares.
7. Further notices
It is anticipated that the finalisation announcement for the Combined claw-back and rights offer,
including the final terms of the Combined claw-back and rights offer, will be released on SENS on or
about Tuesday, 13 October 2015 and in the South African press on or about Wednesday, 14 October
2015.
The Circular and a form of instruction in respect of a letter of allocation, where applicable, will be
posted to Qualifying Certificated Shareholders on or about Tuesday, 20 October 2015. The Circular will
be posted to Qualifying Dematerialised Shareholders on or about Tuesday, 27 October 2015.
8. Jurisdiction
The Combined claw-back and rights offer does not constitute an offer in any jurisdiction in which it is
illegal to make such an offer.
The Combined claw-back and rights offer shares have not been, and will not be, registered under the
Securities Act of the United States. Accordingly, the Combined claw-back and rights offer shares may
not be offered, sold, resold, delivered or transferred, directly or indirectly, in or into the United States
or to, or for the account or benefit of, United States persons, except pursuant to exemptions from the
Securities Act of the United States.
The Combined claw-back and rights offer does not constitute an offer in the District of Columbia, the
United States, the Dominion of Canada, the Commonwealth of Australia, Japan or in any other
jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer.
Shareholders resident outside the Common Monetary Area should consult their professional advisors to
determine whether any governmental or other consents are required or other formalities need to be
observed to allow them to take up the Combined claw-back and rights offer, or trade their entitlement.
Shareholders holding Wescoal shares on behalf of persons who are resident outside the Common
Monetary Area are responsible for ensuring that taking up the Combined claw-back and rights offer, or
trading in their entitlements under that offer, do not breach regulations in the relevant overseas
jurisdictions.
#167
Posted 05 October 2015 - 08:44 AM
Morning Pugz.
We is all frustrated with what has gone on past year so I was not undermining your comment ..... The reality on the ground is we will only know if it was him when next years IRA is sent out, still could be him & proof was already at the printers....! What did strike me in the IRA was T. Van Galans F- generous directors fee increase...WOW check it out..... that is one decision that needs some more clarity.....
Boje yes built the company to mostly what it resembles today but he was also retiring next year.....curve ball I know but he was quite comfortable selling to the French consortium without giving his baby an opportunity to really bear fruit in a meaningful way....WSL product is ONLY Eskom grade it makes no sense not to go the route of the chairman & become 51% compliant....Then when all around is struggling to sell to Eskom WSL has a trading arm....10% mark up after costs on millions of tons of coal is good business.
Agreed we need some strong messages to be heard not just voiced at the AGM further down this thread is a E-mail of where to send your questions.
Or even we as holders on this thread can collectively come up with a list ourselves & submit them or we contact one of the Institutions who hold & give them our proxy provided we is on the same page.
If all can give some thought & feedback then we can at least get some clear answers on whether or not this is a 10 bagger..! Me thinks it most defo can be....
Cheers
Soutie
Anyone need a heads up...!
#168
Posted 04 October 2015 - 09:10 PM
Why...? He can't alter the course anymore...Better to have a harmonious company all pulling in the same direction & agreement with where the chairman wants to take it....or sell & get off the bus.
With all the negativity surrounding Eskom , BEE, spot coal etc etc... Having a well connected individual could be our saving grace...I still think he had the water use license held back to....? So while the above sounds like support I'm not comfortable like I was....Next AGM plus interim results is where it's at now...
yes he cant influence decisions anymore, but if he divested or reduced his holdings then what does that say about how he perceives the future direction and therefore probability of achieving shareholder value? Afterall, he was THE guy that built WSL to what it is today. Ya it wasnt mere coincidence that the water license was granted a few weeks after his resignation
Having said that, Ive looked at the shareholder analysis in the 2015 IAR and I now doubt that it was him that made that huge trade. Still, the question remains..who????
Which brings to my next question, especially with regards to governance: how are the rest of us going to vote in the AGM? ie: should we not form a voting block?
#169
Posted 29 September 2015 - 09:14 AM
Why...? He can't alter the course anymore...Better to have a harmonious company all pulling in the same direction & agreement with where the chairman wants to take it....or sell & get off the bus.
With all the negativity surrounding Eskom , BEE, spot coal etc etc... Having a well connected individual could be our saving grace...I still think he had the water use license held back to....? So while the above sounds like support I'm not comfortable like I was....Next AGM plus interim results is where it's at now...
Anyone need a heads up...!
#170
Posted 28 September 2015 - 10:14 PM
Rather large trade at 1pm......to be continued....
Im praying that isnt Boje offloading his stake.
#171
Posted 28 September 2015 - 07:28 PM
Rather large trade at 1pm......to be continued....
Anyone need a heads up...!
#172
Posted 10 September 2015 - 09:29 AM
Well that's the one we wanted....4mil tons per year all going to Eskom...Short Term Though...! Still foot in the door stuff time to break out the Oros...Cheers.
Champagne shall flow once the Long Term deal goes through.
Anyone need a heads up...!
#173
Posted 10 September 2015 - 09:18 AM
WESCOAL REPORTS FIRST COAL CONTRACTED TO ESKOM FROM ITS
FLAGSHIP ELANDSPRUIT PROJECT
Further to SENS announcements released on 9th July and 29th
July 2015, Wescoal the mining and trading group wishes to
update shareholders regarding developments at its flagship
Elandspruit project in Mpumalanga.
The Company is pleased to report that it has signed a short
term contract [STC] with Eskom to supply a total of 221 000
tons of coal from its Elandspruit operations which comprise of
the Elandspruit colliery and nearby Wescoal Processing Plant.
This follows on STCs signed in the last week of May 2015 for
the supply of 190 000 tons of coal from its Khanyisa and
Intibane mines.
The conclusion of an Eskom contract for Elandspruit heralds an
upturn in mining activity and revenues going forward after
delays in finalising Eskom coal supply agreements.
Management’s strategy of operating the Wescoal Processing
Plant on a marginal profit basis, with feed sourced from other
producers has meant that the plant is primed and ready to
operate at its current capacity of more than 150 000 feed tons
per month. Elandspruit’s run of mine will be trucked 20km to
the processing plant where it will be beneficiated to meet
Eskom’s quality requirements.
Acting CEO Waheed Sulaiman said; “Getting to this point is a
major milestone and has been achieved through hard work and
perseverance. Longer than expected delays earlier this year,
resulted in us having to enter into sub-optimal coal sale
arrangements with other customers while we engaged with Eskom.
Signing the long-term Eskom contract for Elandspruit is now at
the top of our priority list, after which we will focus on
Intibane and Khanyisa.”
Sulaiman concluded; “Wescoal has traditionally delivered
stronger results in the first half of its financial year, but
this year will see a reversal of that trend as we close out
our current Eskom negotiations and continue to grow the
business.”
#174
Posted 07 September 2015 - 04:23 PM
Hey any time Mr SA we is innit together.....
Anyone need a heads up...!
#175
Posted 07 September 2015 - 11:32 AM
Afternoon Mr SA.
Totally get your frustrations with WSL lately but here goes for what its worth.... The road map planned by ex CEO Boje is still the plan going forward there's just different people doing the driving.... BUT....as we've found out over the last few months the Chairman is the one steering & WSL is HIS baby & he's gonna do it HIS way....Plus there's not that much us minions can do about it really.
I do believe that he will get to 50% + 1 it's just how that affects the rest of us....He owns 20+% of the company so he can't be too destructive or dilutive either.
I put it down to that.
1st half is always better than 2nd half usually so they'll be a bounce on results in November & like you mentioned the AGM will be either a success as they unveil their empowerment strategy or a rush for the exit. The new guy who was just appointed must have been waiting in the wings as he was available immediately so not too concerned there, could bring some much needed harmony to head office .
My avg is still in the green but agree could have done much better elsewhere.
Cheers.
Soutie.
Thanks for that valuable insight Soutie
Going to leave my money in this share and hope for the best.
#176
Posted 02 September 2015 - 03:18 PM
I am inclined to agree with Soutie. I am in the fortunate position of being well in the green but have lost a lot of value over the past months.
My feeling is that the Chairman is unlikely to change course and I have a feeling that he has access to the "right people" which could be a big positive going forward. He is highly unlikely to do anything to prejudice the Company as he stands to lose a lot more than you and I - a large portion of his shares were purchased on the open market around the 200 mark.
#177
Posted 02 September 2015 - 02:16 PM
Afternoon Mr SA.
Totally get your frustrations with WSL lately but here goes for what its worth.... The road map planned by ex CEO Boje is still the plan going forward there's just different people doing the driving.... BUT....as we've found out over the last few months the Chairman is the one steering & WSL is HIS baby & he's gonna do it HIS way....Plus there's not that much us minions can do about it really.
I do believe that he will get to 50% + 1 it's just how that affects the rest of us....He owns 20+% of the company so he can't be too destructive or dilutive either.
I put it down to that.
1st half is always better than 2nd half usually so they'll be a bounce on results in November & like you mentioned the AGM will be either a success as they unveil their empowerment strategy or a rush for the exit. The new guy who was just appointed must have been waiting in the wings as he was available immediately so not too concerned there, could bring some much needed harmony to head office .
My avg is still in the green but agree could have done much better elsewhere.
Cheers.
Soutie.
Anyone need a heads up...!
#178
Posted 02 September 2015 - 12:23 PM
The AGM is penciled in for 13th October.
www.kris.co.za This is where you can get your questions on the agenda.
Uncertainty around the 50% + 1 requirement for Eskom long term deal at Elandspruit is my guess.
Lack of confidence in new management team, grey area surrounding chairman's way of doing things....lagging spot coal price..
What's your avg buy in..?
I am in at 189c... So its not looking great for me at all.
Thinking of cutting my losees and putting the money elsewhere.
The AGM might give hope, else could also kill the share.
#179
Posted 01 September 2015 - 09:13 PM
Sneaking in another SENS after hours.....more bad news....CFO leaves with immediate effect.....
When will these guys start to understand.... confidence is currency for junior miners/small cap stocks....Eish
At this rate we'll be sub R1 soon.....
Johannesburg Area, South Africa Mining & Metals Previous Education
- South African Institude of Chartered Accountants
Got this off Linkedin basically a Billiton guy for the past decade, acting CEO surrounding himself with his mates...?
Wow I is starting to get mucho mucho worried....Hmmmmmm
Anyone need a heads up...!
#180
Posted 31 August 2015 - 03:32 PM
The AGM is penciled in for 13th October.
www.kris.co.za This is where you can get your questions on the agenda.
Uncertainty around the 50% + 1 requirement for Eskom long term deal at Elandspruit is my guess.
Lack of confidence in new management team, grey area surrounding chairman's way of doing things....lagging spot coal price..
What's your avg buy in..?
Anyone need a heads up...!