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WEC - White Energy Company (1 Viewer)

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Howdy,

"White Energy Company Limited (WEC, formerly Amerod Resources Limited) aims to create a diversified resource group with unique mining technology capabilities. WECs existing asset base includes Coal Technology Assets and Mineral Exploration Assets."

Have only just heard about this small cap, Nutshell on another thread had mentioned them too, appears they have a worldwide patent for coal processing technology which could reduce emissions & improve efficiency during the energy production cycle. Appears they received a government grant a few weeks back to fast-track productions of a demonstration facility, they also have an understanding with BHP too, so some big players are starting to take notice.

Unsure about the financial situation, as I read it they may be some way off of profitability. Has anyone been following this one or have any further sources of information?

Cheers
 
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Cheers Santoro, with both a government grant & a BHP announced to market, WEC at least warrants some follow up research.
 
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Chart looks very promising here, and we all know, all that matters is sentiment. Large flag formed from strong move up, and another strong move up looks on the cards. I am in.
 
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A very interesting company this in the new technology for cleaner coal and the 10 plants planned, 1mtpa each, looks like a promising start. Also has interests in coal production at Tabang in Indonesia and the Adaro mines. Director Mr Travers Duncan is also Chairman of Felix Resources that have massive sub-bitumous coal interests in South Australia.

An interview with MD, Mr John Atkinson: http://www.brr.com.au/event/36888/wec-highlights-of-2007-annual-general-meeting-mr-john-atkinson-md
http://www.whiteenergyco.com.au

Has a US quote that may add the similar lift that Linc Energy got with their quotation, at some stage. Looking to add a quote on the UK AIM market.
 
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Hasn't been a post in this thread for quite some time now.

Check out the latest announcement from WEC

What are your thoughts on this annoucnement, possible share price boom perhaps?
 
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Hasn't been a post in this thread for quite some time now.

Check out the latest announcement from WEC

What are your thoughts on this annoucnement, possible share price boom perhaps?

Spot on lemontree and I hope you filled your boots with stock.
Even though WEC reached $3.60 on Wednesday it wasn't at a high point as this old information nearly 2 years back shows: http://www.compareshares.com.au/wise67.php
 
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Hi Noirua, Nice to be back after my European winter hibernation. Have been busy counting Felix acorns!!
I have a feeling this site will now spring to life as our old friend Mr Flannery comes aboard.
I seems pretty certain that the reserves figure at Phillipson of 1.5mt will be easly surpassed, as it was said to be probably in excess of 4bn tonnes, when it was owned in Felix's previous incarnation as Meekatharra.
I received a shock from Bill Lyne of SACL, in which he suggested the coming Rights Isssue may not be open to overseas holders on the SAC Register.:banghead:
My response below addressed to WEC was copied to SACL.This is for the benefit of any other overseas holders of SACL who might receive any similar misleading suggestions from SACL.

The Company Secretary,White Energy Ltd.
Dear David,
I wrote to SAC about timing details for this proposed offer. Having been a shareholder of Felix as far back as when it was Meekatharra, 20 years ago, It seems it would be most unfair if someone who supported FLX to the tune of xx,000 shares, was to be denied the opportunity of subscribing to the Rights Offer, as an overseas holder.
I am well aware there was a large number of overseas holders on the FLX Register, which is of course now the SAC Register.
I have received the proposed Offer details dated 19th April. This makes it clear that 100% of SAC shareholders were entitled to the Performance Shares to be converted into WEC Ordinary shares.
It then goes on to state that "SAC shareholders who elect to receive WEC Performance Shares, will also be entitled to subscribe for 0.2034 WEC Fully paid ordinary shares per SACL share at a price of $2.50 per WEC Share under the SACL Subscription Offer
This seems water-tight to me with no suggestion of exclusions of any group of shareholders which would hardly be democratic anyway.
I wonder therefore on what authority the Company Secretary of SAC replied to me suggesting overseas holders could be excluded. It would suggest that Bill Lyne hadn't understood the terms of the document he sent out.
Looking at the existing and new list of WEC shareholders when this offer is completed, makes any suggestion of excluding overseas registered shareholders from participating in future Right Issues a preposterous idea.
WEC is already an international coal company. What is Bill Lyne talking about?

Best wishes,
xxxx xxxxx aka Quillan..
 
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Hi Quillan, Normally a rights issue is only open to Australian and New Zealand investors. [it is illegal to send information concerning a rights issue to a citizen of the United States]
I understand from a Chairman of another ASX company that costs involved are not worth including UK investors. In his companies rights issue they included an issue of shares to 'sophisticated investors' which included several UK investors, in a form of a placing. In theory, this could include smaller holders but again would be costly as many may not be broker sponsored and therefore the company would have to write to everyone individually.
He pointed out that CSR Limited did allocate shares in their rights issue but they had to be sold into the market and the proceeds sent to shareholders - so this appears to be the way out of the problem.

I'm told that WEC is not an International Company as they would have to be listed in another country (BHP Billiton for instance), ie The United States or UK etc., In that case shares could be issued, in a rights issue, to persons in the country the quotation takes part and to those people in other countries where that country's laws allow it, such as, the European Common Market.
 
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Hi Noirua,
Perhaps I didn't make myself clear.
My main point is that the SACL has many overseas holders on its Register.
The Offer appears to have gone out to everyone on that Register, and contains no provisos about where they are located.
I regard a Company as International, if it has an International Register.
There are many large holders on the SACL Register who are I am sure, registered overseas. Do you think they might intend to exclude them?
My Rights entitlement will cost me close on AUD30,000. Is it possible that they could think it is not worth the extra cost of a stamp to include me and others like me in the Offer?
I am CHESS Sponsored and deal only via an Austalian Broker and an Australian Bank account.
I believe the document sent out is an offer to me which is not conditional upon where I live. If it was, it must say so.
It talks of "if 100% of SACL shareholders accept" not "qualified shareholders".
The mathematics of an extra 15.7m shares in para of the Offer on Page 2, proves it is open to all on the SACL Registry if you multiply 0.07985 shares by the number of shares on the SACL Registry.[197m]
There would have to be a qualification if it was not open to all. If I don't qualify, why send me the document? These are rhetorical questions. Certainly the Laws of the European Union permit its subjects to subscribe to shares in any Company anywhere, but I think your suggestion was that maybe the Issuing Company might not think it worth the extra cost of the stamp?
 
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Hi Quillan, There are a lot of shareholders in SACL who are registered abroad but the number of shares they hold are very small.
I'm 100% certain that WEC will sell the shares allocated to those not living in Australia and send them a cheque for the proceeds - probably in Aussie dollars. [unless WEC shares go below $2.50]
Having an Aussie bank account or/and even a registered address in Australia does not make you eligible for the rights issue.

I can't see WEC getting an AIM quote at a time when anything Aussie and involved in mining isn't likely to sell well. Anyway, the UK market still uses old fashioned market makers and the wide spread between buy and sell reduces interest.

I read the letter from WEC and SACL and you are correct in what you say. They infer that you should be included in the rights issue. Unfortunately they're wrong.

As you are in contact with WEC: If they do not know how to write their letter to SACL shareholders then I'm sure I could write it for them.

Such is life I suppose.

***

The offer for WEC stock looks good enough now the Henry Proposed Reforms have arrived.

Hope to hear from you on the ASF WEC thread from time to time. All the very best noi
 
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Hi Noirua and other SACL shareholders. I notice in the 19th April pdf something has slipped in, in paras ii and iii which wasn't in the posted document of the same date.
It is in reference to the extra shares to be issued if drilling upgrades reserves above 500mt and up to 1.500 mt. I understand the meaning of the sliding scale, I think. It means if the reserves turn out to be 1,250 mt, we are entitled to the full tranche under ii and half the tranche under iii in new shares.

But then they come up with a White share price of $2.80 in ii and $3.10 in iii. No mention of this in the posted document.What does it mean? It makes no sense to me. At first I thought they were asking us to subscribe to these additional shares at these prices, which of course is not the case. They are bonus Issues based on the additional reserves beyond 500mt.

If it has any meaning or alters the terms of the posted document, they should have followed it up with an amendment. I realise the official Offer Document is the binding agreement, but it may not arrive for a month, and any Shareholder may not wish to consider the new terms if these $2.80 and $3.10 figures materially affect the offer.

Noirua, I must contest your assertion that the $2.50 Rights Issue, will only be open to Australian and NZ Residents. The pdf document states quite clearly it is open to all shareholders.

If you were correct, and as you suggest, they might be happy for people like me to subscribe but would then sell my shares, hopefully at a premium in the Market, then no doubt the Offer Document will make this clear. I can then immediately buy my sold entitlement back from the Market, hopefully at the same price, so what's the point?

It would be a pretty shabby way to treat investors who had put up their money.Suppose the share price slips back to $2.50 in the meantime?
That will remove all shareholders who only intended to subscribe for the premium established in the market. QED ---WEC will not get the money they had hoped for.

There are too many large overseas shareholders I would imagine to treat in this manner. Maybe even Peabody is building a stake, before they are entitled to subscribe to 15% of the equity?

I have written to the ASX on this point referring to the fact there is no mention of it in the Posted Document, and no provisos or "subject to" wordings in the Document.. It is stated quite clearly there and in the pdf, that all Shareholders are included in all the Offer Terms.
 
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If you do not have a registered residential address in Australia or New Zealand you cannot be issued with shares in the forthcoming rights issue by WEC.

Some people have a subsidiary company in Australia or have a pension fund "Arosa for instance" which they use to purchase shares and in rights issues. Then you can take part in the rights issue.

Anyway, WECs stock price is falling and the UK footsie is sliding fast (fear is the most damaging thing for shares). So I think WEC shares may test the $2.50 level.
 
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WEC stock has recovered well as investors bought back into the company over their confidence in the takeover bid for South Australian Coal (SACL). Their interests in Phillipson at 4 billion tonnes of sub-bituminous coal, to be upgraded by a unique process into briquettes, and sold into the thermal coal markets.

The Arckaringa region being mined by UKs Altona Resources AIM:ANR will be for an oil from coal process. So WEC and ANR will not be in competition - though the areas look good for South Australia going forward.

I hold WEC, SACL and ANR stock.
 
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Noirua. I have seen Australian thermal coal in the ground, undeveloped, valued at 30cents/tonne.
Although Phllipson is sub-bituminius coal, if WEC technology brings it up to practically thermal values, and being open cast, wouldn't this justify a similar valuation? It will still cost less to mine and treat than most/all thermal deposits.
Say 3 bn tonnes at 30cents, would value the deposit at more than the WEC Mkt Cap !!
Bought for $39m !!
The fact that it has an export facility at Darwin with no queues, linked by an underused Railway line, and is also suitable to feed the State Power Generator, ought to be part of the valuation.
I remember 5 years ago, the coal supplied was dirty and said to be well past its sell-by date as the mine went ever deeper.
 
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Noirua. I have seen Australian thermal coal in the ground, undeveloped, valued at 30cents/tonne.
Although Phllipson is sub-bituminius coal, if WEC technology brings it up to practically thermal values, and being open cast, wouldn't this justify a similar valuation? It will still cost less to mine and treat than most/all thermal deposits.
Say 3 bn tonnes at 30cents, would value the deposit at more than the WEC Mkt Cap !!
Bought for $39m !!
The fact that it has an export facility at Darwin with no queues, linked by an underused Railway line, and is also suitable to feed the State Power Generator, ought to be part of the valuation.
I remember 5 years ago, the coal supplied was dirty and said to be well past its sell-by date as the mine went ever deeper.

You've got me a bit here as I only know about the coal evaluation at the Ingomar trial pit area. About 150 thousand tonnes was excavated in 2001 and as far as I know is still piled up there. Flinders Power Partnership had options on this part of Phillipson up to May 2010 and there has been no comment so far on this.
Flinders are considering using the coal as Leigh Creek coal runs down: Flinders are also under pressure to stop running the longest trains in the world from Leigh Creek to Port Augusta.

WEC are more interested in coal from further north in multiple seams at 'Corner Gate Deposit' to upgrade.
As to profits I think its too difficult to evaluate.

SACL are also exploring for gold in the Northern part of Phillipson, near Coober Pedy, not in the Woomera protection zone in which 75% of Phillipson is.
 
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The bid for SAC shares by WEC is worth $1,996 for 10,000 shares in SAC, paid in cash.

Alternative, 798 shares in WEC for 10,000 shares in SAC. Plus Performance shares issued of 864 2010 shares plus 864 2011 shares for every 10,000 shares in SAC.
Subscription Shares (SS): 2,034 SS WEC shares for 10,000 shares in SAC held. Subscription $5,085 to be paid to take up subscription.
 
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At a stock price of $3.68 the offer for SAC (South Australian Coal - floated off to former Felix Resources shareholders and presently a private unquoted company with tenements in South Australia and $10 million in cash) shares stands at 19.96c cash.

Offer below varies on the market price of White Energy (WEC) presently at $3.68

Alternative 29.36c with WEC at $3.68 a share.
with 2010 performance shares = 61.14c a share
with 2010 and 2011 performance shares = 92.92c a share
with 2010 + 2011 performance shares and subscription shares = $1.16 a share
with subscription shares (if bought cost $2.50 a share) and no performance shares = 52c a share
 

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