Energybuild Share Discussion Threads

[lasata] 29/5/2009 15:49

What valuation do Western Canadian put on EBG?

[jonwig] 29/5/2009 08:05

Slapdash - we've actually discussed these points (around post #300), where their business model assumed cash costs averaging £38/t and they were receiving £65-70/t.
Net margins will improve tremendously if they get close to 440,000t next year and 770,000t in 2011.
The GBP is pretty strong, so that will have an adverse effect.

The negative gross margin at an early stage was, IIRC, because they lumped all costs into "cost of sales".

Expect a trading update at the end of June.

[slapdash] 29/5/2009 00:03

Anyone got the costs for this company and the sales price for their coal???

Gross margins appear okish but are not eye-watering...

Rev 9.5m and cogs £7.9m.... about 17%..... Gross Margin.... (their gross maring was negative for the comparable period last year).

Net margin about 8.8%... not amazing

I would of expected coal/electricity prices to have fallen off since the first half and international coal to have become more competitive....



Slap

[jonwig] 26/5/2009 17:58

Lasata - about 250 pages on EBG (not much new).
And statement that they will control at arms length:

...have undertaken to Energybuild and Seymour Pierce that they will exercise their voting power in relation to the ordinary shares they hold in Energybuild to ensure that, inter alia, Energybuild's group is capable of carrying on its business independently of Cambrian and Coal International and that all transactions and arrangements entered into between any member of Energybuild's group and Cambrian or Coal International are done so on an arm's length basis and on normal commercial terms.

Can't you open it?

[lasata] 26/5/2009 10:03

Any mention of EBG in that document and how merger may affect them?

[jonwig] 26/5/2009 09:22

I think this is the circular referred to in today's RNS:

[jonwig] 24/5/2009 09:33

Last week's Guardian:

[lasata] 21/5/2009 10:53

New management for EBG


Western Canadian Coal and Cambrian Mining to be combined
The Cambrian Coal acquisition will help Western Canadian Coal create a more diversified miner with operations in three nations.

Author: Dorothy Kosich
Posted: Thursday , 21 May 2009

RENO, NV -

Western Canadian Coal Corp. (AIM, TSX: WTN) and UK miner Cambrian Mining (AIM: CBM) Wednesday announced they are merging their operations in a Cdn$120 million deal to create a mid-tier coal company.

The acquisition will result in a 30% increase in coal reserves to 230 million tonnes and a 38% rise in coal resource base to 440 million tonnes.

The merged coal miner will have a combined coal production of 3.5 million tonnes annually with the potential to expand to 14 million tonnes.

The merger will generate greater trading liquidity for the combined company, releasing 72.1 million shares now own by Cambrian increasing the public float by 55%. Western is offering 0.75 Western shares for one Cambrian share.

Cambrian currently holds a 34% in Western Canadian Coal shares and owns $29 million of its convertible debentures.

During a conference call Wednesday Western Canadian Coal CEO John Hogg said the transaction "adds tremendous value for Western shareholders as it globally diversifies our operations, increases geographic diversification of our coal reserves, expands our product mix, regionally balances our sales, expands our reserves and resources, and increases our production profile both current and in the long-term."

The merged companies will have 72% of their operations in Canada, 23% in the U.S. and 5% in the UK. The combined product mix will include both thermal and met coal.

Western's coal contracts are based on an April to March coal contract year for hard coking and low-volume PCI coals. Cambrian's coal contract calendar year offsets Western's sales cycle "With the pace of economic recovery in each region usually at different rates, I am also pleased to have a more balanced sales program for 2009 into the different markets," Hogg told analysts.

"The mines we are acquiring have high quality coal reserves and require very little capital at this point," he stressed.

Hogg estimated administrative savings of $6 million, and achieving market synergies by offering an expanded product line to customers.

Western board member Bob Chase said that after the combination the existing board of Western will remain with John Hogg staying on as president and CEO. Western will continue to trade on the AIM and TSX and be headquartered in Vancouver.

[jonwig] 05/5/2009 07:46

It might, Golspie, it might!

Telegraph interview yesterday - very positive on coal in the UK (and especially on UK Coal, naturally!):

Profile of Jon Lloyd, chief executive of UK Coal, who has shown that coal has a bright future when Britain's 21st century energy needs are analysed.

[golspie] 04/5/2009 22:55

I am on the watch here too, I invested long before AIM in the expectation of a 40p list--but that never happened of course.

[lasata] 01/5/2009 15:40

Recommended in "Aim and Plus" Newsletter yesterday if anyone can put article on here

[lasata] 01/5/2009 14:01

Well good to see few more posters - we could be off to the races here!

[jonwig] 01/5/2009 13:58

Just that there are a few occasional posters here ... "behind the bushes" as it were.

[lasata] 01/5/2009 13:46

And what does that mean JW?

[pbracken] 01/5/2009 12:36

lasata - this has the making of a great relationship - a BB all our own!

[lasata] 01/5/2009 12:34

From the same stable as CBM/WTN who have done well recently - EBG made clear break on charts now

[lasata] 28/4/2009 14:33

PB: I agree and last week was pivotal for all UK producers as per DT article above

[pbracken] 28/4/2009 11:34

Fab little company.

[lasata] 28/4/2009 10:46

Talking to myself i know but chart breakout confirmed and 25p next target and then on to 2008 highs

[lasata] 27/4/2009 14:43

EBG could be about to perk up - break of 20p would look most constructive technically

[jonwig] 23/4/2009 09:02

A big increase in support for equipment to capture and store pollution from coal and gas power plants was announced in today's budget (pdf), although many details are yet to be decided.

The chancellor pledged up to four demonstration projects for carbon capture and storage (CCS), far more than the current policy of just one.

But the government also has a policy of building up to eight new coal plants , and CCS demonstration projects only trap a fraction of emissions.

[lasata] 25/3/2009 11:40

From the CBM threaD:

I wonder if CBM will sell off EBG - any thoughts?

lefrene - 25 Mar'09 - 10:57 - 14988 of 14989


Perhaps if the WTN merger doesn't happen they will need to raise money to meet short term obligations, but otherwise why sell a good reliable earner that is all sorted? EBG have good long term contracts with a local power station, in an suddenly uncertain world, it's about as safe as it currently (ho, ho) gets.

papillon - 25 Mar'09 - 11:29 - 14989 of 14989


I think the rise in the CBM share price again today lefrene (much, much higher than the rise in LSE:WTN) indicates that the merger is almost definitely certain to go ahead. Who knows what the merged group will do with its holding in EBG? Might go for 100%!!