West. Coal Share Discussion Threads

[eenyweeny] 06/4/2011 16:40

I have placed the CLOSED sign in the header.

Many thanks to all who have contributed here. I hope we meet in favourable circumstances again somewhere.

Fairwell

eeny

[ianbrewster] 05/4/2011 14:42

CANCELLATION OF ADMISSION OF SECURITIES TO TRADING ON AIM

WESTERN COAL CORPORATION

At the request of the company trading on AIM for the under-mentioned securities has been cancelled from 05/04/2011 7:00am.

[eenyweeny] 01/4/2011 12:01

Suspension - Western Coal Corporation

RNS Number : 0792E
AIM
01 April 2011

NOTICE
01/04/2011 7:30am
TEMPORARY SUSPENSION OF TRADING ON AIM

WESTERN COAL CORPORATION

At the request of the company trading on AIM for the under-mentioned securities has been temporarily suspended from 01/04/2011 7:30am.


Common Shares of No Par Value, fully paid (B012YS0) (CA95801T1075)

If you have any queries relating to the above, please contact the company's nominated adviser on 020 7397 8900.

This information is provided by RNS
The company news service from the London Stock Exchange

END
EXCJBMRTMBMJBFB
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It's nearly time for me to put the CLOSED sign in the header.

[ianbrewster] 01/4/2011 10:30

WTN suspended

Farewell Western Coal, Cambrian, Coal International, Energybuild (and any I have forgotten).

Hello Walter

[peterblok] 03/3/2011 11:38

Thanks very much Ian - that's really useful. She has just sold them - remains to be seen if that was right or not, but at least she's got the money for her property.

[ianbrewster] 03/3/2011 10:45

Peter, the main driver of the WTN price is the Walter share price.

if you hold on, you will get 70% of shares in cash @ CAD 11.50
and 30% WLT which you could sell for USD111.01

my calcs give a value of £7.49 per WTN share (less cost of selling WLT)

against a £7.38 (less costs) that you would get if she sells now.

What to do? exchange rates could move either way, WLT shares could move either way...

[peterblok] 03/3/2011 10:15

Can someone help me out please. Whilst I am no longer a shareholder, my ex wife still have 15k shares and will need the money during April to buy a property. She has asked for my advice!! Can anyone clarify what her 70% would give her in cash, and what the current sterling value of Walter shares are for her other 30% which she would then sell. Her alternative is to just sell them now on a falling s.p.

Any info received would be gratefully accepted. Thank you

[ianbrewster] 23/2/2011 21:15

I see that you are stuck with the 70/30 split unless you are a 'Qualified Investor'

however the Company has announced Restricted Shareholders will be deemed
to have elected to receive Cash Consideration in Sterling in respect of 70% of the Shares held and Share Consideration in respect
of 30% of the Shares held. Restricted Shareholders in this case are defined by those who are not 'qualified investors'

(page 4)

[knight176] 22/2/2011 07:30

i thought the deal has been done on wtn why has it not changed to us shares what left on this company it clear there are no real buyers left

[roundup] 21/2/2011 16:34

Would it be possible that there was not one buy in this stock?

[steve36] 18/2/2011 09:56

Effective date for tax is transaction date not date of cash payment unfortunately

[adda] 17/2/2011 11:06

I see the Telegraph has got an article on WTN in their Questor column recommending a sell(nothing to do with you then Edmond?! I am going to go for 100% Walter shares and expect to get reduced back to the 70:30% my only problem is how to treat the cash element? I need it to fall in next years CGT any ideas how this will be treated if the takeover finalises on the 01/04 but the cash is paid say after the 06/04? Tks

[steve36] 15/2/2011 19:06

Agreed, I did not mean to say that date of disposal is when cash is received.

[edmondj] 15/2/2011 14:59

I also initially reckoned on 'date of cash received' as regards CGT accounting, i.e. it might well slip over into 2011/12, although strictly speaking it is meant to be 'date of disposal'.

Hmm.

[steve36] 15/2/2011 14:55

CGT - yes, you should be able to split your existing cost of WTN shares between cash received and Walter shares (based on market value of each at the time of the deal) and only pay CGT on the cash element received (in 2010/11 if it happens before 6 April) until you sell the Walter shares. If you transferred WTN shares to your wife and she requested 100% Walter shares but was forced into cash through the scaling back mechanism, I don't see why that would be challenged. If she got shares from you and immediately sold them or requested cash on the disposal that might be considered a bit dodgy though.

[adda] 15/2/2011 14:37

Ian tks.........I'm not sure I understand why one can get CAD 11.86 now but CAD 8.05 if I hold on? Is that because WTNs UK price is slightly higher than the offer terms?

The other headache (albeit a nice one to have!) is CGT liability. I guess I can opt for a higher % of Walter shares and just pay CGT on the balance I receive in cash?? I guess its to late to transfer some to the Wife to use up her CGT allowance?

[ianbrewster] 15/2/2011 13:52

The Dec RNS ( says:

Under the terms of the agreement, Western Coal shareholders will be permitted to exchange each of their Western Coal shares for, at their election, CAD$11.50 in cash or 0.114 of a Walter Energy share (the "merger consideration"), or for some combination thereof. All elections will be subject to proration if total cash elections exceed 70 percent of the total merger consideration to be paid or total share elections exceed 30 percent of the total merger consideration.

So overall they will pay 70% cash & 30% shares. You can ask for 90/10 or any other split you like, but for you to get more cash, someone else will have to ask for more shares.

If you do want the cash, you will be better selling in the market and getting approx CAD 11.86 rather than the CAD 8.05 you will get if you hold on.

70/30 is currently worth about CAD 12.25, if you are happy holding the US shares. If you are happy to hold Walter, then you may as well ask for 100% shares, but expect to be scaled back to close to 70/30

[coachsailor] 15/2/2011 12:18

I was also `hanging in` so that the gain on the 70% sold would fall in the 11/12 tax year.

I take it that 1 April (an omoinous date) in the current tax year, is now the settlement for tax purposes??

[adda] 15/2/2011 12:00

Just got the pack through the post today. To make sure I am reading this right WTN holders are allowed to take up 70% in cash & 30% if you want in Walter Energy shares? Does anybody have a view which is best obviously dont want to pay more than necessary in CGT !!

[jzd] 11/2/2011 12:32

Yes Steve
The takeover has been totally without consideration for ex Cambrian UK shareholders: No LSE share quote, bond alternative or Q2 completion.

[steve36] 11/2/2011 12:05

I held on to take the gain in 2011/12 tax year based on the stated likely completion in Q2, so disappointed that it has now been clarified that completion is expected on or around 1 April. Meanwhile the share price has fallen 50p. Can't complain overall though, its been a hell of a rollercoaster ride but I did top up in Cambrian at around 12p - almost a 50x gain in 2 years. Doubt I'll ever achieve that again.

[bushtuckaman] 21/1/2011 11:10

Hello folks, its been a long while since I have been in this one, well done to those who rode it to the end!

The met coal situation has caught my eye again since the takeover and even more so since the Oz floods. With a sharp spike in met coal caused by this supply constaint it looks a very similar situation to that which occured in the first half 2008. That was a v profitable period which would be nice to repeat if possible!

As I remember the met coal stocks had a similarly very delayed response to the tight supply situation. It needed high benchmark supply contracts to be signed for the sector to really start to motor and even then it took the market a while to cotton on to the increased profitability!

On this theme I've been looking at Grand Cache (TSE:GCE), who's corelation to WTN has been strong for many years.

A pure met coal plays in western Canada, with an increasing production profile going forward

Fiscal 2011 guidance of 1.5 - 1.6 mt (this is a reduction on previous guidance) at cost of C$125-130/tonne
Q3 11 met contract sale price was US$189, for Q4 11 (starting Jan 1st 2011) US$225 is anticipated. The following qtrs should be significantly higher!

Cash C$55m at end Sept 10, working capital of c. C$100

230-40mt of resource
55mt reserves

Fiscal 2012 expects production of 2.4 - 2.6 mt
Longer term costs of around C$100/t are anticipated by management

Capital expansion of C$225m to expand production for 1.7mt to 3.5mt pa funded from cash on hand, cash flow and capital leases of mining equipment. Work on raw coal handling facuilities is being engineered to handle to 5mtpa. Rail network is thought to be able to handle this 4.5-5 mtpa with longer trains
Historically the processing plant has produced over 3mt clean coal tonnes clean coal

Webcast 1st Dec 10


The figures are quite compelling IMO for a company with an Mcap of C$1085m

I have only done some preliminary research but was wondering if the folk here have any holding or opinions of GCE?
regards
BTM

[eenyweeny] 20/1/2011 20:29

Hi folks.

It's actually nice to see this thread so quiet now, as to me that means that everyone has sold up and taken profits, which is the whole idea of this turbulent pursuit we all enjoy.
I'm glad this and the previous thread have been of some use. We have all certainly found some friendly and insightful usernames that we will be glad to see involved on other threads I'm sure.

As for my other investments. . . sorry but I haven't got much to share. I have a holding in Fiberweb which is getting close to my first target level and the rest has been in simple Index tracking ETF type funds which I am also closing now to take profits. I've not really had as much time to study other stocks in the detail required, as I had hoped for.

I will be back somewhere on advfn at some point to share(inflict) my TA for other stock.

Meanwhile, I offer my best wishes to one and all and my thanks for the company here.

Signing off.
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