# BWN - Bowen Energy



## Wysiwyg (17 July 2007)

Information & my opinion ........ 

Well as a new stock listing (February 2007) Bowen Energy (http://www.bowenenergy.com.au/) is making some decent moves already.As a coal and uranium explorer with most of their assets in Queensland they are presently signing a deal with Bhushan Steel Ltd.(http://www.bhushan-group.org/index.htm) a steel manufacturing major of India.Together with a  cash/scrip take-over bid for Rocklands Richfield Ltd.(http://www.rocklandsrichfield.com.au/Home.htm) the company is showing promise already.

Early days for sure but if the present expansion of the coastal city coal loading facilities is for future demand then there may be some merit in this companies drive into the  Bowen Basin of Central Queensland.Certainly appear to be ambitious but as usual do your own research too.


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## jammin (17 July 2007)

Interesting opportunity from a T/A view point; the descending triangle indicating a likely surge on breakout, probably on the upside. As Dutchy has shown these triangles are a great opportunity to maximise position size by having a very tight stop.


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## mick2006 (28 April 2008)

for those interested in adding a junior coal explorer with significant upside potential it may prove a wise move taking the time to deep deeper into the BWN story.

with exploration currently underway at their tennements in the Bowen Basin in Queensland, hoping to uncover vast amounts of Coking/PCI/Thermal coal, so exploration news will be an ongoing for BWN over the short/medium term.

on top of the Bowen Basin exploration the company also holds a 50% interest in significant exploration ground in Indonesia (one of the worlds largest coal exporters)

but what really interested me in BWN was the speculated battle for control of the company, the following article was taken from the Australian today hinting at a possible takeover.


PURE SPECULATION: Robin Bromby | April 28, 2008 
THERE aren't many cheap entries into the coal sector remaining. The big producers are trading on pretty hefty valuations, which is not surprising given what is happening to prices and demand.

Just as copper theft around the world has been a sign of the value of that metal, coal smuggling from Vietnam to China is now big business and one involving criminal gangs, showing just how scarce the commodity is becoming. The Vietnamese are concerned because they want to conserve resources as they build new coal-fired power plants. 

But, while things are pricey at the producer end, there are a couple of juniors trading modestly. 

One is Bowen Energy (BWN) and this has come to our notice because a Mauritius investment company, which represents Indian clients Savni Holding, has bought 13.3 per cent of Bowen on-market. India's Bhushan Steel already holds 10.2 per cent of the junior, along with a swag of options. 

The timing is interesting because of the sense that a number of predators are circling the coal sector. Furthermore, Bowen is awaiting drill results from the South Blackwater coking coal project which neighbours the Blackwater mine operated by BHP Billiton (BHP). 

Is Savni part of some blocking bid, a positioning to extract the best possible price should an Indian or even South Korean buyer make an offer? If the drilling results are as good as Bowen must be hoping, such a move could be triggered earlier rather than later.



With coal likely to remain a significantly hot sector thanks to supply constraints and rising demand, BWN is certainly well positioned to reward shareholders.

Remember China has only around 12 days coal supply left, prompting the likelyhood of further price increases going forward.


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## mick2006 (28 April 2008)

some excellent price action going on in BWN today, probably associated with the article in the Australian today.

But with several major shareholders showing more than a passing interest in BWN, this could be just the beginning.

I for one are keenly awaiting the first lot of results from the coal exploration in the Bowen Basin, any positive news could certainly light a fire under the BWN shareprice given the current market conditions for coal.

certainly reminds me a lot of COK in the early days as the major institutions and steelmills started taking stakes, with large buy orders still appearing up the buy side, perhaps we will have another change in substantial holder notice shortly.


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## mick2006 (28 April 2008)

what an excellent day for BWN shareholders today with the heads up 20% and the options 44%, not really surprising though after the article in the Australian highlighting the ongoing coal exploration in the Bowen Basin where they are chasing the coal holy grail being hard coking coal, and also highlighting the speculation in regards a possible takeover.

with continued buying pressure all but wipping out the sell side by close, one would speculate buying was coming from the larger shareholders trying to obtain a bigger stake.

with the olympics in China not far away now expect to hear plenty of news coming out of the company in regards their coal/energy crisis.  With a lot of money already invested in the bigger coal plays expect to see money filtering down the sector to companies such as COK/CDS and BWN all likely to benefit.

keep an eye on the open tomorrow if more large buy orders appear it could be on for young and old.


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## michael_selway (28 April 2008)

mick2006 said:


> what an excellent day for BWN shareholders today with the heads up 20% and the options 44%, not really surprising though after the article in the Australian highlighting the ongoing coal exploration in the Bowen Basin where they are chasing the coal holy grail being hard coking coal, and also highlighting the speculation in regards a possible takeover.
> 
> with continued buying pressure all but wipping out the sell side by close, one would speculate buying was coming from the larger shareholders trying to obtain a bigger stake.
> 
> ...




Hi do you know what the current Resource/Reserve status is for BWN and potential mine life?

Thanks

MS


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## mick2006 (28 April 2008)

Hey Michael, they are currently drilling the first of several projects in the Bowen Basin, with the drilling program designed to one by one release JORC resources on all their projects.

As for size its hard to gauge, given previous oil drilling/nearology to other major coal mines they know there is coal there they are just waiting to see how much.  I would suggest watching the recent interview BWN released on their website, the company seems extremely confident of moving from explorer to producer.  

And as a measure of what the rest of the world thinks of their projects they have managed to attract Bhushan Steel the 3rd biggest Indian Steelmaker which is also in the top 25 listed Indian companies as a JV partner.  And also has significant interest from the Savni Holdings Group another Indian investment arm.

With momentum certainly flowing towards both coal and BWN it will be interesting to see how far it runs.  

As the Australian article stated this morning, global companies are stalking our Australian Coal Juniors and it will be interesting how the battle for BWN ends up.


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## mick2006 (29 April 2008)

excellent news just released by BWN in the first round of drilling at the Shotover Project at South Blackwater in the Bowen Basin, the company has intersected several coal seams. 

this is truely exceptional news given that the company was targeting hard coking coal the most desired of all forms of coals. 

with excellent drilling results just released, the lure of a takeover battle (as highlighted by the Australian yesterday) and several large Indian Shareholders adding to their holdings recently, everything is looking extremely positive for BWN at the moment.


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## mick2006 (29 April 2008)

looks like things could get very interesting very shortly, on top of the takeover speculation and excellent coal results this morning, we now have a 1million buy order sitting right at the top of the depth, with only 400k available on the sell side.


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## mick2006 (2 May 2008)

healthy accumulation going on at the moment for BWN, has consolidated the early week breakout well and is looking to push higher, likely to be aided by more positive news out of South Blackwater, and further coal price hikes.


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## agro (28 May 2008)

did well today with the announcment - up 27%

anyone herd of RCI?

apparently Bowen is in a JV with this company but there does not seem to be much sell side liquidity

thoughts


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## Reefer (28 May 2008)

RCI are in joint venture with BWN on one of their Queensland tenements.  BWN tried to take them over 12 months ago and failed. RCI has performed miserably since then although their Chinese Coke mill is operating cash flow positive now.  RCI may be undervalued but their Qld drilling is at a standstill.  Chief coal man at RCI is an ex felix Resources director Ugo Cario, so hopefully they have some expertise on the board.  RCI up strongly today but on crossed sales which seems suspicious.


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## arguls (15 June 2008)

Something new with this? Drilling results expected soon?
================================================


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## bart (2 July 2008)

So what are ppl thinking about BWN at the moment, charts looking good, also latest announ says their up to 5 drill riggs on blackwater now. They must be quite confident to do that.


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## anthracite (7 June 2009)

the bowen energy chart is certainly looking pretty impressive, and good gains of late if you got more or entered at 10 cents a few weeks ago.

it really looks like a lot of shareholders are going to vote bhushan out. i recieved some paper work last week and will be voting for all the resolutions to change the board as well . if it passes one of the things i like is new options will replace the old ones.


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## anthracite (11 July 2009)

it just shows how much shareholders are *not* been told . there must be some good ammount of coal we are not been told about , bhushan are sly sneak and suspicious to say the least , no company in australia will ever deal with bhushan again , i hope qld government step in and block the bid.

asic need to pull there finger out and do something, there will be many complaints on monday i am sure .

*asic phone number : 07 3867 4700
asx 02 9338 0000 *

bhushan lost the votes at the june 22nd meeting that is why they called them invalid, why else would they call them invalid if they did not win? the lost. there is many things the board is not telling us. 

share holder had there say on paper and it was dismissed by bhushan and called invalid
bhushan steel have not stuck to there agreement and have made no commitment to any shareholders what so ever.


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## anthracite (11 July 2009)

when you all ring asic on monday

asic phone number : 07 3867 4700
asx 02 9338 0000 


note on page 10 and 25 

OUR COMPANY SECRETARY IS A DIRECTOR OF BHUSHAN STEEL !!!!!

GLENN THOMAS MERCHANT ,

WHY WAS THIS NOT DISCLOSED EARLIER ???????????????

THE BOARD LOOKS LIKE THIS


Mr. Nittin Johari (Managing Director)(BHUSHAN)
Mr. Anil Ahuja (Director))(BHUSHAN)
Mr Neeraj Singal (Director))(BHUSHAN)
Mr. Brij Bushan Singal (Non Exec. Director)(BHUSHAN)
Mr. Glenn Merchant ( Secretary ) (BHUSHAN)

Mr. Neil Stuart (Non Exec. Chairman)
Mr. Mark Sheppard (Executive Director)


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## anthracite (13 July 2009)

does anyone here hold or follow the stock still?  not much comment on it , bhushan have now launched a takeover.  very unfair at 14 cents considering bhushan say in the press about 1 billion ton of coal in indian newspapers
 it to be expected to be proved up , even if its half that and remember not all lease have had exploration work done on them yet. and results for ones that have are not been disclosed to shareholders. its still a very cheap and nasty offer not worth accepting i dont think, when the stock is worth well more than that even if the coal is still downunder  the surface

ill also complain to australian shareholders association as well.


National Office 
Level 7, 
North Tower
1-5 Railway Street
Chatswood NSW 2067  

Postal Address 
PO Box 519 
Chatswood NSW 2057  

Telephone 
1300 368 448
02 9411 1505  

Fax 
02 9411 6663 

Email 
 on there website


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## samgribbles (16 July 2009)

I can't locate that press report with the reference to 1 billion tonnes => can you please post a reference?

thanks


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## anthracite (16 July 2009)

http://in.reuters.com/article/businessNews/idINIndia-32351020080307


The mines are estimated to have reserves of 1 billion tonnes of thermal coal and coking coal, Johari said, adding they would start mining in about two months

*if this was the case 1 billion ton, BHUSHAN would have to pay the company about 100 million!! under the joint venture.  that would value the stock at about $1.20c  if you divide 100 million by the shares on issue , 500 mt coal about $0.60c*. 

_well below $0.14c_ in current offer

now can you see why they are trying very hard not to prove how much coal there is ? 

we already know there is lots of coal at middlemount with 5 metre seems either side at norton and rocklands leases.



have a good look in search engines,  

google the follow , bhushan deaths,bhushan saftey, bhushan protesters , bhushan villagers etc 


there is articles in the herald sun today , and fin review tuesday and wednesday


this har ramafications for the whole coal industry if they get away with this complain to all the authorities , asx, asic, australian shareholder association, qld government and mines dept and media. 

do you bit to help get true value



samgribbles said:


> I can't locate that press report with the reference to 1 billion tonnes => can you please post a reference?
> 
> thanks


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## anthracite (20 July 2009)

to keep upto date with the 'pro active shareholder group' to help get value back into bowen energy. 

http://supportbowenenergy.blogspot.com/


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## samgribbles (23 July 2009)

thanks.  FYI the blog pages don't load properly, comes up with "cannot open page operation aborted" messages

sam


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## anthracite (24 July 2009)

not sure why its does that sam , maybe its a browser thing? it does that to me some times too. but open the page again and it should be fine. and can read the links and information.

very interesting that bowen should make a statement about a indian press article denying the statement, did it not also declare target tonnages that they hope to prove up in the prospectus? page 23 & 26 is 2 examples of a coal exploration target.

should not that annoucment have a signature on it?

http://www.bowenenergy.com.au/prospectus.php


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## AussiePaul72 (26 July 2009)

BWN has been on my watch list for a while but i only look at it once every week or so. Looked at the market depth today and noticed the following:

Has anyone noticed the buyer sitting at the head of the buy queue at present ............ buy order of almost 65,000,000 shares @ 14c (approx $9.1 Million) 
There is only just under 82 million BWN shares in total on offer.

Can anyone comment on this and speculate who this buyer might be and what they are trying to achieve? 

I guess it might disappear before trading opens on Monday. However, if it stays the only thing i can see it doing is putting a floor in the share price.


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## anthracite (26 July 2009)

bhushan steel is trying to taken them over for 14 cents per share. is what that order is.


the recent share volume says we no better that the company is worth more.
the majority of shareholder did vote for a new board and to kick the current one out. on june 22nd

bhushan called them illegal , why because there were delivered by a 3rd party was there argument. they also said even if they  counted it would not matter, sound suspicious? does to me sound like they actually lost! why was there a need to call them invalid if if the outcome of the results was what bhushan wanted anyway?


the vast majority of shareholders are extremely unhappy about it . and have been complaining to asx and asx and other departments, see links in previous posts. 

there is also a egm meeting scheduled for september 8th . but THIS IS A LISITING RULE BREACH

the 249d documents were lodged with bowen on june 23 .

the listing rules say the meeting *MUST BE HELD NO LATER THAN 2 MONTHS AFTER THE DOCUMENT WAS LODGED*. that date been *AUGUST 23RD *.  IS WHEN THE MEETING SHOULD BE HELD. OR BEEN ON A WEEKEND A WEEKDAY EARLIER THAN THAT DATE. *not sept 8th* 



for that reason why would any shareholder sell to bhushan? especially before the meeting !!!

 dont forget
SHAREHOLDERS HAVE THE RIGHT, THEY OWN A SHARE OF THE COMPANY 
TO VOTE TO KICK THE ENTIRE BOARD OF AND REPLACE IT WITH A NEW ONE.


http://stockmarketinvesting.com.au/Takeover-Strategies.html

http://supportbowenenergy.blogspot.com/



AussiePaul72 said:


> BWN has been on my watch list for a while but i only look at it once every week or so. Looked at the market depth today and noticed the following:
> 
> Has anyone noticed the buyer sitting at the head of the buy queue at present ............ buy order of almost 65,000,000 shares @ 14c (approx $9.1 Million)
> There is only just under 82 million BWN shares in total on offer.
> ...


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## AussiePaul72 (26 July 2009)

Thanks Anthracite for explaining a little of what is going on with BWN ..... sounds like things could get a bit messy and nasty in the near future! Not sure things are going to progress too much from a share price view point with this happening behind the scenes. Good luck to all current shareholders and i hope things are cleared up sooner rather than later.



anthracite said:


> bhushan steel is trying to taken them over for 14 cents per share. is what that order is.
> 
> 
> the recent share volume says we no better that the company is worth more.
> ...


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## AussiePaul72 (27 July 2009)

Wow ...... nothing like a slightly bigger volume day today for BWN. 

Seems as though a fairly big volume day over recent times has been in the order of 300-400,000 shares. Last week saw a total of less 600,000 traded over the whole week.

Today close to 22 million shares (of the total ~82 million shares on offer) were traded. Thats over 25% of shares traded in a single day. Seems to me that a big holder(s) were happy to unload into the 65 million share buy order at 14c. Will be interesting to see whether this total order is filled?

Interesting to see how this plays out. I've never seen an on market buy order of this size.


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## samgribbles (27 July 2009)

Bowen directors talk down the company 



Monday, 27 July 2009
Blair Price
IN a target’s statement in response to Bhushan Steel’s cash takeover offer priced at A14c a share, Bowen Energy has supported an “independent” report that its shares are valued at 3-5c.
The explorer’s two independent directors have recommended shareholders accept the offer.

The four non-independent directors of Bowen declined to make a recommendation “given their association with Bhushan”.

Bowen cited an independent report, undertaken by WHK Horwath Corporate Finance, which valued Bowen’s shares at between 3.53c and 5.51c and concluded that the Bhushan offer was both fair and reasonable.

This value is between about one-fifth or almost one-third of the current trading price.

Bhushan holds about 22.23% or 18.16 million shares of Bowen Energy, which is estimated to have about 81.68 million shares on issue. 

In September last year, the Indian steelmaker agreed to purchase 1.75 million shares of the company at 32c per share.

Various press reports indicate some Bowen shareholders are not satisfied with the takeover offer. 

An Australian Securities Exchange spokesperson has told MiningNews.net sister publication International Longwall News the bourse referred shareholder complaints about Bowen to the Australian Securities and Investments Commission due to matters relating to corporations law. 

“Where we have cause, we refer potential serious breaches of our rules or the law to ASIC,” the spokesperson said.

ASIC has declined to make a comment on whether it will investigate the company due to legal reasons. 

Bowen has not yet declared a maiden JORC resource for any of its coal projects.

But the explorer does hold some Queensland permits adjacent to areas held by key coal companies, including BHP Billiton, Anglo Coal and Macarthur Coal.

Bowen also made an announcement on Friday in response to a shareholder enquiry relating to a Reuters report in March.

The report suggested that Bhushan’s chief financial officer, Nittin Johari, who is also a Bowen director, viewed some of Bowen’s acreage as holding 1 billion tonnes of thermal coal and coking coal. 

Bowen said Bhushan denied the comments were made as quoted in the news report. 

Bowen wholly owns coal permits EPC 1084 and EPC 1085 and has a 40% stake in EPC 930.

The company has a full stake in permit applications EPCA 1197, EPCA 1083 and EPCA 1259.

Bowen also has minor stakes of 10-15% in four other coal permits in Queensland. 

The takeover offer period starts July 27 and ends August 26, with UBS Securities appointed as the broker. 

Payment will be made on a standard T + 3 basis, where the settlement date occurs three days after the trade date.

Bowen shares closed down 1c to 14c on Friday.


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## samgribbles (27 July 2009)

I don't understand why shareholders are selling into the T/O offer??

Its an unconditional on-market offer.  By law it MUST stay on the table for a month.  It cannot be withdrawn.  Bhushan have until 1 week prior to the closing date of the offer to extend it or raise it.

=> shareholders should wait until the last week of the offer period before selling at $0.14.  To sell now means you miss out on a potentially higher offer.

A higher offer is possible.  ASIC may force BWN to bring forward the GM in line with Corps Act requirements.  A higher offer from Bhushan may eventuate.

There is no risk to hang on until the last week of the T/O offer.

If you hold BWN shares, hang on to them, wait to see what happens with ASIC, let the game play out another couple of weeks before selling.


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## aussiemozzie (29 July 2009)

This is the first time I have made a comment on the Aussie Stock Forum, for the main and only reason being that I have no idea what I am doing except experimenting in the ASX share market. (trying to learn anyway).
And what a learning curve. I purchased BWN shares in June 08 for 0.46cents a share.
Now, one of my very first companies that I have become a shareholder in is doing this recommended sale thingy for 0.14 cents. 
I don't intend to sell, however I am concerned about loosing even more money if I become a minority shareholder.
My question is and I understand that a suggestion is all that I can best accept.
How can a company just squish you out from being a shareholder and what course of action do I have?


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## samgribbles (29 July 2009)

aussiemozzie.  What is happening with BWN is very unusual and unfortunate for shareholders.  They are one of those companies that may end up in course notes for study with respect to compliance with COrps Act, ASX Rules and fiduciary director duties.

In a nutshell. BWN let itself become too close to an Indian based shareholder.  Relied on Bhushan too much for financial support, let too many Bhushan employees get seats on the Board.  Shareholders had the right to exercise their voice to prevent what is happening now, just too little too late.

Bhushan directors, including those not Bhushan employees, have acted very questionably and may be subject to scrutiny from ASIC.  ASIC/ASX issues aside, with respect to value it would appear that Bhushan have influenced the the value of the company (held it down) by preventing BWN from reporting a resource (they're in the Bowen Basin, there IS coking coal there) and influencing "Independent Expert" reports.

They've got 50% acceptances now unfortunately, so they now control BWN.  When the T/O offer expires:
- if they have >90% they will compulsorily acquire your shares (you have to sell)
- if they have <90% the share price will likely drop, there will be very little neswsflow, they have to wait a year until making another bid for the rest of th shares.  They may be happy to sit on 50-90% for years.  Bhushan may see BWN as a landbank opportunity and not want to define resources for some time.

Personally, I will hang on until the last week of the offer as I think they will raise the price to grab a few more shares (in the last week they are not allowed to extend the offer or raise the price) and then sell into the offer at $0.14.

Its a shame.  If you read the experts report and know a bit about coal, you can see that there is potential for them to identify say 200 Mt in the Bowen tenements.  At $0.50/t that's theoretically a value of $100 million, based on historical transaction multiples (conservatively).  Whats the T/O for?  $14 million or similar?  Terrible outcome.   Terrible performance by the Board.

FYI, if you want exposure to junior coal look at BND.  High quality tenements and high quality Board.

And given you're new to trading, some unrelated advice:  stay away from leverage (margin loans, CFDs) for a few years.

PS. The Corporations Act clearly outlines how takeovers are managed, is easy to understand and is downloadable.


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## anthracite (1 August 2009)

good stuff sam , bhushan should not get away with this and its not too late for anyone to keep pressing the issue


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## anthracite (1 August 2009)

contact all qld government parties , not just the one in power

and qld news papers, let the general public know the story
people power , let the mining towns know what the current government is letting bhushan get away with it.

MANY HANDS MAKE LIGHT WORK.  WE CAN GET A BETTER PRICE!! 
DO YOU BIT TO HELP AND MAKE THIS ISSUE KNOWN, WE WANT FRONT PAGE HEADLINES IN A QLD NEWSPAPER!!  

http://www.ecq.qld.gov.au/data/portal/00000005/content/00015001152770377906.pdf


http://www.lnp.org.au/contact-us/298.html

president@lnp.org.au

http://barnabyjoyce.com.au/ContactSenatorJoyce/tabid/100/Default.aspx

http://www.onenationqld.com.au/

http://www.qld-familyfirst.org.au/QLD.htm

http://www.johnston-independent.com/independent_candidates.html

http://www.newspapers.com.au/QLD/

http://www.brisbanetimes.com.au/
http://apnap.com.au/contact/


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## aussiemozzie (2 August 2009)

Thank you very much Sam for taking the time to explain the sad decline and process of BWN.  I seemed to have hit paydirt for one of my very first companies.
Well it is a learning curve this share market, but I did not figure on loosing money this way.
Thank you also for your advice for purchasing. I only intend to spend my cash money, and only amounts that I am prepared to loose, if that makes sence.
I will certainly consider your suggestion to watch BWN and maybe sell closer to the closing date, but I am also curious to keep my shares and just wait and see. 
The way I figure, I have already lost that much money (I bought at .46cents), considering the .14cent buy back is not worth the hassle and broker fees.
As you noted and also with my research prior to purchasing BWN shares, BWN potentially has the resources to make some money. 
Just as a side note, I have shares in LNC too, but this company is currently in Trading Halt, will have to wait until Monday to see the outcome from this. Hopefully I can make up my losses - or go back to playing Lotto.


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## samgribbles (5 August 2009)

The Independent Expert's Report is lacking in that it does not employ learned comment on the likelihood of resources being present at BWN's properties.  I provide below an alternative valuation that does not stretch the bounds of reasonableness but rather uses best estimates of the resources that BWN would eventually define over the next year or so.

I calculate ~$1.50 per share as say a 1-2 yr price target should BWN continue drilling and release JORC resources.

*South Blackwater Project*
BWN have 15% of EPC1045&1206 and 100% of EPCA1259

From the "Independent" Expert's Report:
- prospective for extensive but deep soft to hard coking coals (higher value coals)
- an area of around 68 km² has been identified in EPC1045 as having good hard coking coal potential
- serious drilling has really only just started
- present indications are that two coal seams are present below 370m from surface on the western side, increasing to in excess of 520m in the east and south (about the limit of economical underground coal mining).  Both seams appear to vary from 0.9 -2.5m thickness
- potential soft coking coal, beneficiated soft-hard coking coal product may be achievable 
- appears to be an area of sufficient size for the development of a longwall mining operation
[it would be my guess that a significant resource has already been defined at South Blackwater but we do not know about it because BWN only hold 15% and Bhushan are unlikely to feed that information to BWN as a minority JV holder]

Back-of envelope valuation (no less scientific than that employed by the expert):
- say avg seam thickness = 1.7m, 2 seams
- say 80% of the seam area can be mined => 0.8 x 68km² = 54km²
- say density of coal = 1.4 t/m3
=> weight of coal mineable = 54km² x 2 seams x 1.7m x 1.4t/m3 = 257 Mt coal resource
based on historical transactions, value of coal in the ground is ~$0.50 per t
=> value = 257 Mt x $0.50 = $128m
*15% BWN => $19m*

(assume EPCA1259 has zero value - coal too deep there)

*East Middlemount Project*
BWN have 40% of EPC940 and 100% of EPC1014&1085

From the "Independent" Expert's Report:
- well located, nearby operating mines include: Norwich Park, Foxleigh, German Creek, Oaky Creek and the BHP Picardy Coal Deposit at the boundary
- 10 holes drilled, showed that two economic coal seams run through EPC1014&1085
- Lecihardt Seam (4-5m thick) and Upper Vermont Seam (2-3m thick) - at 200-400m depth
- coal is of PCI quality (in between thermal and soft coking coal) similar to that mined on adjacent leases
- there may be structural complexity in the area that will affect seam continuity
- results have been "encouraging", suggesting potentially mineable PCI coal
- serious work has really only just started
- on EPC930 Rocklands interesect the 4.6m thick Leichardt seam - high quality PCI coal - near BWN's boundary
[** there is good coal at East Middlemount - this is why BWN tried to takeover Rocklands previously]

Back-of envelope valuation:
- two seams for total thickness of 4.5 + 2.5m = 7.0m
- say 30km => 294Mt
- say 20% on EP930, 80% on EPC1014/1085
=> value = $0.50/t x (80%x294Mt + 40%x20%x294Mt)
*= $129m*

*West Rolleston Project*
BWN have 100% of EPC1001, 1002, 1084 and EPCA1187

From the "Independent" Expert's Report:
- in the adjacent Frietag Deposit, Macarthur Coal have four seams from 1-4m thick with a high quality open-cut thermal coal resource of 80Mt
- mapping in EPC1001 identified a 2m thick coal seam that may be a continuation of that in the adjacent Frietag Deposit
- there are up to four coal seams with continuit throughout the EPCs

Lets use the Expert's valuation of $2m

Similar for Tarong Project, use Expert's valuation of $1m.

*VALUATION*
$ million
Cash			0
Receivables		0
South Blackwater	            19
East Middlemount	            129
West Rolleston		2
Tarong			1
Other properties	             1
less exploration		(20) that would be required to defined the resources assumed
less liabilities		(2)
*NET ASSETS		$130 million*

shares on issue		81.68 m

*value per share		$1.59 per share*

Personally I will be hanging in there.  The more shareholders that wait it out the better the chance of a higher price being offered by Bhushan to mop up the remaining shareholders.  By law, Bhushan have until Wednesday 19 Auguist to raise or extend their T/O offer (one week before expiry).;  SHould they not raise or extend you will have one week until expiry to decide whetehr to accept the offer or hang on to your shares.  Note that the offer cannot be withdrawn.  There is no risk to hold until after 19 August.

I consent to this post being re-posted elsewhere or distributed.

Cheers,

Disappointed BWN holder.


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## anthracite (6 August 2009)

excellent post ! sam . i agree its worth well over a dollar a share. 

i had 2 mines department guys call me this week from qld. 

attached is mines department complaint form , for all shareholders  and people who want to stop this happening , this could happen to other companies if they get away with this.


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## samgribbles (13 August 2009)

BWN holders.  I intend to lodge an Application to the Takeovers Panel seeking a declaration of Unacceptable Circumstances and orders to obtain additional Independent Experts reports.  I think the application will have a good chance of success.

While I am not licensed to give financial advice, I would stronghly urge all shareholders NOT TO SELL INTO THE T/O BID.  Regardless of the outcome of my application, you still have a couple of weeks to sell into the bid.  There is no rush.  Wait it out and see what comes of the Takeovers Panel.


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## aussiemozzie (13 August 2009)

Hey there Sam.
Your suggestion has been considered regarding sale of BWN shares. I have not sold my few.
If there is anything that I can do such as lodging another complaint, I would be happy to, would like to help. Any suggestions or I will just stay posted to this thread.


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## samgribbles (13 August 2009)

No worries aussie.

Facts:
- last day for Bhushan to extend or raise their bid is 19 Aug
- last day for you to sell your shares on market is 26 Aug
- Bhushan absolutely cannot, by law, withdraw their offer before 26 Aug

Thanks for the offer for help but I think I've got the TO Panel complaint sorted.  Also costs $2000 to lodge an Application.

I don't own a lot of shares in BWN and did not buy at a high price of $0.46 like you, and my holding size does not warrant the effort and $2k but I hate to see investors taken advantage of.  I'm honestly surprised that the bid has received as many acceptances that it has and that the parties seeking to oust the Board havent managed to thwart the bid somehow.  So bugger it, I've got the right background to articulate an argument for those shareholders left, so I'm lodging a complaint (after which I won't be able to discuss BWN anymore).

If you want your voice to be heard, of all the contacts posted by Anthracite, go to ASIC, attention Sharon Higgins.  ASIC have a strong interest in reviewing Independent Experts reports currently.  Thats my main issue, and the actions that caused it to be so ordinary.

Lets see how this saga pans out...

[I consent to all my posts on BWN being reposted elsewhere]


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## springhill (27 July 2010)

Revisiting BWN, and seeing how share price predictions can go wrong!
Exploring for coal in Qld atm and have found 1-2 seams between *480-600m *depth. Seams are *only 2.5m thick *at best. Seriously guys?

Current price 5.3cps
MC approx $4m
Shares on Issue 81.6m
High/Low 16c/4c
Cash on Hand $300k
Expenses this quarter $1m

Not enough money to fund this quarters activities, will have to cap raise.
Oppies on 8th all left to expire.
Good luck with getting that coal out of the ground.


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