West. Coal Share Discussion Threads

[mcmather] 18/11/2010 08:24

"Western also announced that it was informed today by its largest shareholder, Audley European Opportunities Master Fund Limited ("Audley"), that Audley has signed an agreement to sell approximately 54.5 million common shares of Western (representing approximately 19.8% of Western's 276.1 million basic common shares outstanding, excluding common shares held by wholly-owned subsidiaries of the Company) to Walter at a price of $11.50 per share"

[topinfo] 18/11/2010 08:23

Yep £6.75p per share but you cant buy them.

[alchemy30] 18/11/2010 08:23

Works out @ £7.09 according to my calcs

[mcmather] 18/11/2010 08:21

55% premium to yesterday's closing price - £6.75 ish??

[mcmather] 18/11/2010 08:20

Crikey. Nice.

[topinfo] 18/11/2010 08:17

DJ Western Coal Corp Business Combination

TIDMWTN

RNS Number : 4036W

Western Coal Corporation

18 November 2010

?

+-----------------------+-------------------------+-------------------------+
| | 1000 - 885 Dunsmuir |
| | Street |
| | Vancouver, B.C. V6C |
| | 1N5 |
| | Phone |
| | 604-608-2692 |
| | [e-mail] |
| | www.westerncoal.com |
| | |
+-------------------------------------------------+ +
| | | |
+-----------------------+-------------------------+-------------------------+
| | | |
+-----------------------+-------------------------+-------------------------+
News ReleaseWTN 10-28

Western Coal Enters Into Exclusive Negotiations For Potential Business Combination With Walter Energy

Western Also Announces Sale of Shares by Audley to Walter Vancouver, BC, November 18, 2010 - Western Coal Corp. (TSX: WTN, WTN.WT and AIM: WTN) (the "Company" or "Western") announced today that it has entered into an exclusivity agreement with, and received a proposal regarding a strategic business combination (the "Combination") from Walter Energy, Inc. (NYSE: WLT) ("Walter"), a leading US producer and exporter of hard coking coal for the global steel industry.

If concluded, the Combination proposal contemplates a plan of arrangement transaction whereby Western shareholders would receive a mixture of cash and Walter shares valued at $11.50 per Western share. The proposed value represents a premium of 55.8% to Western's closing price yesterday of $7.38 on the Toronto Stock Exchange. The proposal values Western's equity at $3.3 billion, based on Western's 291.1 million common shares outstanding on a fully diluted basis (excluding common shares held by wholly-owned subsidiaries of the Company). The Combination would create one of the world's largest pure-play publicly-traded producers of metallurgical coal with geographically diversified assets in Canada, the US and the UK and with strong market positions in Asia, South America, North America and Europe. The combined company would have synergistic technical expertise in both open- pit and underground coal mining. The combined company's market capitalization and enhanced financial strength would position it well to execute on strategic growth plans. Western expects to produce 6.1 million tonnes of coal for the fiscal year ending March 31, 2011, growing to 10 million tonnes for fiscal 2013. Walter, based in Tampa, FL, has stated that it expects to produce 6.6 million tonnes of coal in the calendar year 2010, growing to 8.6 million tonnes in the calendar year 2012. The vast majority of production for both companies is metallurgical coal. Due Diligence Period

Walter's proposal is subject to due diligence and negotiation of definitive agreements. During the due diligence period, Western has agreed to work exclusively with Walter for a period of up to 14 days expiring December 1, 2010. If a definitive agreement is not reached, no penalties will be incurred by either party. The Combination would be subject to approval by shareholders of Western and regulatory authorities.

Walter's proposal is not binding on either party, except with respect to the exclusivity obligations. Western cautions that no definitive agreement has been entered into and accordingly no assurance can be given that the negotiations between Western and Walter will lead to a transaction that is consistent with Walter's proposal or to any transaction at all.

Western does not intend to make any further announcements or communications regarding this potential transaction until either a definitive agreement has been reached or discussions are terminated without such an agreement being reached.

Western has retained RBC Capital Markets as its financial advisor, Goodmans LLP as its Canadian legal advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its US legal advisor. Western's UK advisors are Trowers & Hamlins LLP (legal) and Cenkos Securities plc (Nominated Advisor).

Western has established a committee of its independent directors to consider the Walter proposal. Deloitte & Touche LLP is acting as independent financial advisor to the special committee.

Walter's agreement with Audley

Western also announced that it was informed today by its largest shareholder, Audley European Opportunities Master Fund Limited ("Audley"), that Audley has signed an agreement to sell approximately 54.5 million common shares of Western (representing approximately 19.8% of Western's 276.1 million basic common shares outstanding, excluding common shares held by wholly-owned subsidiaries of the Company) to Walter at a price of $11.50 per share, or total consideration of approximately $630 million, subject to adjustment in certain circumstances. Western is not a party to the share purchase agreement. Under the share purchase agreement, the Western shares would be sold in two instalments. Upon the satisfaction of certain closing conditions, Walter would acquire approximately 25.3 million common shares for cash, with the balance to be acquired for cash or Walter stock immediately upon the combination of Western and Walter or, in any event, no later than April 30, 2011. The sale by Audley to Walter of 54.5 million common shares of Western is subject to the expiration or termination of the applicable waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act and compliance with any other applicable competition laws.

Western has been advised that a copy of the share purchase agreement will be filed by Audley on SEDAR (www.sedar.com) and by Walter on EDGAR (www.sec.gov). About Western Coal

Western Coal is a producer of high quality metallurgical coal from three mines in northeast British Columbia (Canada), high quality metallurgical coal and compliant thermal coal from four mines located in West Virginia (USA), and high quality anthracite and metallurgical coal in South Wales (UK). Other interests owned include a 24% interest in Mandalay Resources Corporation (MND: TSX), 40% interest in Xtract Energy (XTR: AIM), and a 20% interest in NEMI Northern Energy & Mining (NNE.A: TSX). The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol "WTN". More information can be found at www.westerncoal.com

Forward-Looking Information

This release may contain forward-looking statements that may involve risks and uncertainties. Such statements relate to the Company's expectations, intentions, plans and beliefs including, in particular, statements relating to a potential strategic business combination between the Company and Walter and the terms of any such transaction. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to: the Company's ability to negotiate a potential strategic business combination with Walter; the price, terms and conditions of any such transaction; the benefits of any such transaction and its impact on the Company's business;, changes in commodity prices; strengths of various economies; the effects of competition and pricing pressures; the oversupply of, or lack of demand for, the Company's products; currency and interest rate fluctuations; various events which could disrupt the Company's construction schedule or operations; the Company's ability to obtain additional funding on favourable terms, if at all; and the Company's ability to anticipate and manage the foregoing factors and risks. Additionally, statements related to the quantity or magnitude of coal deposits are deemed to be forward looking statements. The reliability of such information is affected by, among other things, uncertainties involving geology of coal deposits; uncertainties of estimates of their size or composition; uncertainties of projections related to costs of production; the possibilities in delays in mining activities; changes in plans with respect to exploration, development projects or capital expenditures; and various other risks including those related to health, safety and environmental matters. Readers are referred to the documents filed by the Company on SEDAR.

-30-

For further information:

+---------------------------+------------------------+------------------+
| Western Coal Corp. | Buchanan | Cenkos |
| David Jan | Communications | Securities |
| Head of Investor | Bobby Morse / | Nominated |
| Relations | Katharine Sutton | Advisor and |
| [phone] | [phone] | Broker |
| [e-mail] | [e-mail] | Nick Wells/ |
| | | Ivonne Cantu / |
| | | [phone] |
+---------------------------+------------------------+------------------+

This information is provided by RNS

The company news service from the London Stock Exchange

MSCGMMMMRRKGGZG

[fidra] 18/11/2010 07:42

In Questor column in he Daily Telegraph as a buy.

[fidra] 17/11/2010 20:41

I listened to the conference call on the website.

Still on target for london listing later this calendar year.
Some production figures and talk and figures for next year.
I need to listen again and take a few notes.

Earnings could have been better by about 3c per share but they have some coal stockpiled for sale that is not sold.Expecting an increase in coal price for next financial year.

[ianbrewster] 16/11/2010 16:53

I guess not.

[eenyweeny] 16/11/2010 16:23

eeeeeek. It looks like I may get my gap fill on London market after all?

[ianbrewster] 16/11/2010 14:04

will we see another bounce off the 21 day MA?

[high park] 16/11/2010 13:22

20% of what, cottlet?

£5 to £4.50 = 10%

[cottlet] 16/11/2010 10:58

I am out. It's dropped 20% since the high

[fidra] 15/11/2010 14:39

Thanks RS2000.

I find your updates very helpful.Although I dashed in a bit quick last week at $7.70.i still have some running from $6.60
it appears to have fallen back almost to the possible support line on Friday.
I would be interested in your footsie and dow calls as well,if you did not mind sharing them .

Has anybody listened to the webcast?

[rs2ooo] 14/11/2010 18:43

Further update.

My system is:

Short on the 5 min time frame from 499p.

Remains Long on all other time frames.

Daily time frame, if we go down tomorrow will be a sell from long positions (close longs).

Daily time frame needs a break of 441p to switch short. That is based on my system rules, however, personally I wouldn't want to be short until a daily close below 425p.

Note that the system is still in development, but I just chose WTN as one of the few stocks to test it on. My main use of the system is on DOW and FTSE.

[mcmather] 11/11/2010 07:49

Sorry fidra, cannot recall the precise figures for next year / fiscal 2012. Your figures might well be close though re WTN looking to increase production to "1.7 million tonnes per year by late 2011" at willow creek which only re-opened earlier this year (June).

[mcmather] 11/11/2010 07:29

A mixed bag? Perhaps, a fall from here - did someone previously mention WTN historically performing poorly in November? - before continuing the rise to new heights as the year closes and prices firm??

Fiscal Q2 2011 operations highlights, compared with Fiscal Q2 2010
� Cash cost of sales per tonne:
o Consolidated - $91, down 4% from $95
o Canada - $102, up 2% from $100
o US - $68, down 19% from $84
� Coal production 1.5 million tonnes, up 90% from 0.8 million tonnes

Benchmark hard coking coal down from Q1

Also down for low volatile pulverized injection coal (LV-PCI)

These events, in addition to weather forecasts indicating the looming Australian summer could be the wettest ever recorded for coal regions, have dramatically altered market sentiment and suggest firmer prices for Western's fiscal fourth quarter.

[fidra] 11/11/2010 07:22

Busy here for results day.
Result looks good and production increase in second half.
Appear on target for objectives.

Can anyone recall what the production is for next year? Do we expect around 8/9m tonnes? If we expect over 10m in fiscal 2013.

[fidra] 09/11/2010 20:22

I think we might start to see a rerating of this once the results come out tomorrow night.

[knight176] 09/11/2010 15:15

500p will soon be smashed not a problem still long on this 20 points

[lasata] 09/11/2010 12:30

Chinese are taking over CDN - will WTN be next in line...........??

[knight176] 09/11/2010 07:09

next support could be 540 ish any views

[waggle] 08/11/2010 17:19

many thanks eeny....will you be pressing the button on your joystick at the beginning or the end of the first week in jan??...lol you am de man!!

[fidra] 08/11/2010 17:16

I think this could be a $20 per share sometime next year.based upon increased mining capacity,no problems and a stable price.That would be about 3x cash flow (I think).

[eenyweeny] 08/11/2010 17:10

Afternoon folks.

I still feel uneasy about the lack of a successfull back gap fill on London chart. However I am adaptable and I will accept the outcome.
Therefore what upside targets do I have? Well they're pretty much as I posted previously.
Initial target is 518p somewhat easily. Next target is 573p at which I expect some serious profit taking and some heavy grade up/down shaking. Then upside target at 601p.
Also as I have not been granted my extra 12p which would have been generated by a successfull gap fill I feel I have to provide a 12p leeway at my target zones. Most annoying as I now feel that the gap was perhaps 'generated' just to peeve me!
Time scales. I have my 573p target being hit in first week of January 2011. If it comes earlier then I'll be a wee bit more baffled than usuall.

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