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BWN - Bowen Energy

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

sam
 
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
 
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.
 
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/

 
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.

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

Attachments

  • complaints-management-lodgement.pdf
    25.2 KB · Views: 20
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.
 
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.
 
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]
 
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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