Energybuild Share Discussion Threads

[kinbasket] 22/12/2009 09:02

I decided last week it was worth having a few at this price. The placing has settled the debate about WTNs intentions in the short term at least. It's also cleared the loan which was at a crippling rate. If they are happy to pay 15p then I'm happy if I can get in close to that.

Could be a nice little earner from these depressed levels.

[lasata] 21/12/2009 14:06

A most encouraging article - that fund raising seems to have put a floor under the sp

[daicaprice] 18/12/2009 14:29

ENERGYBUILD (EBG):

Energybuild is raising £14.5m through a placing of new shares at 15p. With this funding, it plans to increase underground coal production from its Aberpergwm mine in South Wales from the current 114,000 tonnes per year to 750,000 tonnes per annum by 2013.

In addition Energybuild is targeting annual production of 105,000 tonnes from its open cast operations by 2011. With RWE's Aberthaw Power Station just down the valley, Energybuild does not anticipate any problem selling this. The shares have been a dull performer this year but the global price of coal is now recovering. If Energybuild can deliver its ambitious production targets, this should be a good entry point into the shares. I am adjusting my buy limit to a more realistic 20p, but retain a long term target of 60p. BUY UP TO 20p.


Got it. Seems to have done something anyway.
3 points for Aber tonight an I'll be happy.

[daicaprice] 18/12/2009 14:12

My eldest due back from school any minute, will get him to post link.

[lasata] 18/12/2009 12:45

Daica: How in depth was the article? On what grounds do they give 60p target?

[daicaprice] 18/12/2009 09:10

slap, I've been in here since 28p and it has been a rocky ride but I do believe we have now turned the corner and that a return to 30p is very likely.

[slapdash] 18/12/2009 09:01

ur really... stockholders have been diluted to hell and management have no credibility..... great...

[daicaprice] 18/12/2009 09:00

Hi guys, RHPS midweek update has us as a buy up to 20p with a 60p target price, not clever enough to post the link I'm afraid. We're in for a solid 2010 I believe, good company, good management and the coal price rising.
Heres hoping from Aberystwyth.

Full ramping intended.

[septimus quaid] 17/12/2009 08:21

I remember having a discussion with yourself about what % holding would trigger a formal takeover bid but there seemed to be some cloudiness due to the issue of various groups forming a "Concert Party".

As you say, we will have to wait and see (I will tone down my original message).

[pbracken] 17/12/2009 08:20

Yes, jon - but as you say, the issue price is decent enough. I can't believe we'll stay down here for long...

[jonwig] 17/12/2009 08:12

That was my fear (we had a bit of discussion recently here) but the terms of the placing suggest that it's not WTN's immediate grand plan. I suppose the scenario could change.

[septimus quaid] 17/12/2009 08:09

Jonwig do you not think that this could be one of those long, drawn out, back door, takeovers that results in small shareholders gradually being marginalised before being snuffed out altogether?

I have seen this happen so many times before.

[jonwig] 17/12/2009 07:53

Placing details;



Good news: 15p and WTN not taking the lot - in fact their stake hardly increases.

PB - you appear to have been told a porkie about it being an open offer. But since the price was 15p that doesn't really matter.

[septimus quaid] 17/12/2009 07:51

RNS



Regulatory Story
Go to market news section View chart Print
Company Western Coal Corporation
TIDM WTN
Headline Participation in Energybuild Fundraise
Released 07:00 17-Dec-2009
Number 2788E07

RNS Number : 2788E
Western Coal Corporation
17 December 2009

Western Coal Participates in the Energybuild Group Plc Equity Issue

Vancouver, B.C. December 17, 2009 - Western Coal Corp (TSX: WTN, WTN.WT and WTN.DB and AIM: WTN) ("Western" or the "Company") announced today that it has agreed to subscribe for approximately 58.2 million ordinary common shares at 15 pence each in Energybuild Group Plc's (AIM: EBG) ("Energybuild") recent £14.5M share placement (the "Placing").

Approximately 29.8 million of the shares subscribed by Western were from the conversion of £4.5 million in loans previously made by Western to Energybuild. As part of the Placing, an additional 28.4 million shares were acquired for cash. In total, this brings Western's participation to 58.2 million shares.

Proceeds from the Placing, along with internally generated cash flows from its operations, will be invested by Energybuild to grow production at its underground mine in Wales to a target of 750,000 tonnes per annum by 2013.

On completion of the Placing, Western will own approximately 124.0 million ordinary common shares, or approximately 54.7% of the share capital of Energybuild.

Western is a substantial shareholder of Energybuild and therefore, Western's subscription to the Placing is a related party transaction under AIM rules for Energybuild. The Board of Directors of Energybuild include Mr. Braam Jonker, Western's Chief Financial Officer, and Mr. John Hogg, senior consultant to Western and recently retired Chief Executive Officer.

About Western

Western is a producer of high quality metallurgical and thermal coal from mines located in northeast British Columbia (Canada) and West Virginia (USA). The mines have the capacity to produce 7 million tonnes per year and have over 20 years of coal reserves. Western also currently owns a 50.6% interest Energybuild (EBG: AIM) which produces high quality anthracite and thermal coal in South Wales (UK). 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

About Energybuild

Energybuild is a producer of Welsh anthracite and surface mined coal. The Company is presently developing the Aberpergwn underground mine and adjoining underground anthracite coal reserves and resources in South Wales (UK). Energybuild also operates a surface mine and reviewing further possible surface mine sites in the region. Energybuild is listed on the AIM as "EBG". Further information is available at www.energyubuild.co.uk.

For further information:

David Jan

Director, Investor Relations

604.608.2692

[e-mail]

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

END


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[lasata] 15/12/2009 09:49

AGM today...........

[jonwig] 04/12/2009 17:25

Kinbasket - an underwritten rights issue would indeed be prohibitively expensive, which is why I wrote "- essentially a rights issue -". There are precedents, Aminex I think did this sort of thing.

[pbracken] 04/12/2009 16:54

Well, the FD told me all shareholders will qualify for shares (and let's face it, there aren't many). He may have changed his mind, of course.

[kinbasket] 04/12/2009 15:14

A rights issue is never going to happen at a company this size it's too expensive. The waiver of pre-emption means they can issue to WTN without asking current shareholders. They will only find out after the ship has sailed. Not an ideal situation.

[jonwig] 04/12/2009 14:52

PB - the AGM resolution to disapply pre-emption rights gives the company (or rather WTN) the option of taking either route.

What you suggest - essentially a rights issue - would be a much better outcome for minority holders, of course.

[pbracken] 04/12/2009 12:49

The loan conversion aside, any placing would not necessarily see WTN's shareholding rise; WTN would simply acquire enough shares to ensure it's percentage holding remained the same, in order to avoid being diluted.

I gather all shareholders will be offered the chance to participate in the fundraising, thus avoiding dilution also.

[jonwig] 04/12/2009 12:30

Gingellenator. Are you confusing the existing £4.3m facility with the possible forthcoming fundraising of an issue of up to 130m new shares?

The £4.3m facility, if fully drawn, will cost EBG around £0.6m pa in interest, which will accrue. PBT last year was £1.9m and is forecast at £2m this year.

As at 30/10, only £0.9m had been drawn. So the size of the interest charge doesn't appear to be as material as you suggest.

The proposed 130m share issue would lead to WTN holding around 75% of the share capital (assuming they take it all), and conversion of the full £4.3m loan into equity would lead to them controlling about 78%.

None of this is particularly good news for 'outside' shareholders, which is no doubt why the share price had fallen back. But you don't need to spin a new yarn when things are as they are!!

[septimus quaid] 04/12/2009 12:09

It didn't Mr Gloomster

[gingellenator] 04/12/2009 12:03

how come previous posts got deleted?

[gingellenator] 04/12/2009 12:01

I sold up,cant see how they are going to be able to finance expansion

>£5 per tonne after admin expenses and loan interest means that WTN loan is just financing operational costs.

This will most likely be converted to equity - diluting shareholding further.

needs coal prices to rise to fund expansion and realise potential.

might revist later

[kinbasket] 03/12/2009 11:03

IIRC the directors at WTN haven't exactly showered themselves in glory in recent times in relation to share transactions either. I think this'll stay on the watchlist for now. Good little buisness but the shareholder issue is a hassle I can do without.