WEC - White Energy Company

There's a solid lesson here to be learnt...
Not sure if WEC has anything going for it now?

Anyone brave/courageous enough to believe WEC is oversold and buy in for a quick partial rebound ?

Not me for certain but any other thoughts ?

As Frugal questioned, has it got anything going for it.

Last Q fin shows 1.5 Q's of funding and bugger all income.

Down to 0.025 now.

Thinking it will need a rabbit out of the hat.

@noirua is going to fall out of bed, when he wakes up.

Austwide said:

Last Q fin shows 1.5 Q's of funding and bugger all income.

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Is that enough to cover the other side's costs ?

basilio said:

Anyone brave/courageous enough to believe WEC is oversold and buy in for a quick partial rebound ?

Not me for certain but any other thoughts ?

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gave up on WEC years back , has had too many ( legal ) battles and not enough wins for me ( i bought in November 2011 @ 52.5 cents )

just another 'green' technology train-wreck

a damn shame ASIC clamped down on reverse take-overs

Austwide said:

As Frugal questioned, has it got anything going for it.

Last Q fin shows 1.5 Q's of funding and bugger all income.

Down to 0.025 now.

Thinking it will need a rabbit out of the hat.

Click to expand...

lighting the coal dust in the boardroom might work better

Crikey!

Now what: I purchased shares from zero to $2.50 in White Energy WEC. The zero shares were awarded in 2010 when WEC bought out the private company South Australian Coal SACL previously itself hived off from Felix Resources. I still hold 16,212 WEC shares 'Issuer Sponsored' - once worth $68k and now worth $2,590. As I bought and sold WEC many times over the years it's difficult to work out the total paper loss but probably $250k. A bit frightening. Don't feel sorry for me as I live off the profits from St Barbara Mines in 1994 - the amount you would not believe. Felix Resources rose 67 times from 2003 to its peak in 2008 so again I remain silent on profits. Good luck everyone!

WEC now has problems in South Africa with its coal fines project 51% owned. They have long term liabilities on that of not far south of $50 million. If they are stuck then it could all be dropped probably meaning losing everything. However, information provided is rather sparse so it's easy to be wrong on that.
Directors Travis Duncan and Brian Flannery own 20.5% and 19.7% of WEC's shares so would probably be reluctant to chuck in the towel. M&G has 13.23% and H-J Mende 4.22%.

I have put WEC forward for the March competition. No other reason why you should all buy the share with open arms.

WEC have notified they are to appeal against the second part of the third tranche decision by SICC in the case against TB Bayan Tbk. The market was unimpressed: Probably because the result of this decision will probably arrive in late 2022 or early 2023 and Bayan might then appeal against that decision taking us into 2024.

Indonesia doesn't accept decisions by SICC and wont implement them - so I understand. That means taking the case further to International courts if Bayan wont pay up. If the case is similar to Oxus Gold Limited v Uzbekistan it could rage on to 2029 or even further. Oxus Gold finally lost in seeking to revive the case in 2019 and went bust. The lawyers who paid for the appeal applied to Americas tribunal and lost the case in 2021. They are now appealing and expect a decision in 2023 - the case will have then continued for 14 years. WEC v Bayan is now 10 years.

The share price of White Energy appears to be slipping further due to the company's need to raise more funds - probably in a placing. Some also feel that PT Bayan tbk will not pay up even if WEC receive a judgement in the appeal in their favour. It is difficult to see where a floor lies for the share price IMHO.

noirua said:

The share price of White Energy appears to be slipping further due to the company's need to raise more funds - probably in a placing. Some also feel that PT Bayan tbk will not pay up even if WEC receive a judgement in the appeal in their favour. It is difficult to see where a floor lies for the share price IMHO.

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has been a dumpster fire for me

hopefully others have done better

noirua said:

The share price of White Energy appears to be slipping further due to the company's need to raise more funds - probably in a placing. Some also feel that PT Bayan tbk will not pay up even if WEC receive a judgement in the appeal in their favour. It is difficult to see where a floor lies for the share price IMHO.

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The shares had a 1 for 30 consolidation and await the result of the Appeal against the original decision by SICC.
White Energy Company Limited filed its Annual Report on Sep 28, 2022, for the period ending Jun 30, 2022. In this report, its auditor, Pannell Kerr Forster - PKF, gave an unqualified opinion expressing doubt that the company can continue as a going concern.

noirua said:

The shares had a 1 for 30 consolidation and await the result of the Appeal against the original decision by SICC.
White Energy Company Limited filed its Annual Report on Sep 28, 2022, for the period ending Jun 30, 2022. In this report, its auditor, Pannell Kerr Forster - PKF, gave an unqualified opinion expressing doubt that the company can continue as a going concern.

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and yet you tip it ( hoping for a miraculous survival ??? .. AGAIN )

( i hold WEC , very deeply underwater )

one has to wonder how this company finds so many unreliable partners
have we a super salesman with a marginal product ( if it was that good someone like NHC or WHC or S32 would have taken them over as a bolt-on )

divs4ever said:

and yet you tip it ( hoping for a miraculous survival ??? .. AGAIN )

( i hold WEC , very deeply underwater )

one has to wonder how this company finds so many unreliable partners
have we a super salesman with a marginal product ( if it was that good someone like NHC or WHC or S32 would have taken them over as a bolt-on )

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Four of the directors were also on the board of Felix Resources Limited FLX. https://www.whiteenergyco.com/asx-announcement/exfelix_resources_directors_fo_1/
FLX reached $23.20 in 2008 and were taken over for $16.95 plus shares in South Australian Coal in 2009 plus cash dividends of $1.00 a share. The shares were at a low of 35c in 2003 - the market cap was $10 million in 2003 and $2.6 billion in 2009. There was a cash raising in 2005 at $2.90 a share.

i bought my holding in November 2011 and what seems wise in hindsight , avoided adding more shares later

to get close to breaking even on WEC i would need a share price of $16.22

and quite obviously i will be reluctant to partake in any future capital raising

and it is just another reason i remain extremely cynical of companies touting 'green'/'clean' technologies ( there are several other companies that have been train-wrecks as well as this one .)

cheers

ARCKARINGA BASIN - SOUTH AUSTRALIA. Taken from Felix Resources Limited's records in 2004. This is presently an asset of White Energy Limited.
The Arckaringa Coalfield of over 11 billion tonnes of low ash sub-bitumous coal was discovered by the company in 1980. Numerous exploration programmes and mining studies have been completed. Within the vast Arckaringa Coalfield ( 2,759 square kilometres ), four separate deposits have been identified, namely Wintinna, East Wintinna, Westfield and Murloocoppie. Most of the investigations carried out have been on the WINTINNA ( open cast ) and Westfield ( underground ) deposits.

The coals are largely uniform in properties and have been laid down in thick flat seams. Typical WINTINNA coal has been proven to be superior to all undeveloped mineable coals for power generation in South Australia in respect of ash, sulphur, chlorine, sodium, moisture and most importantly heat content.

The deposit is situated in South Australia and is adjacent to the older existing standard gauge rail line connecting Alice Springs ( about 500 km North ) with the major standard guage network to Tarcoola, Port Augusta and Whyalla. The so called " missing link " from Alice Springs to the East Arm Port at Darwin was completed in January 04.

The WINTINNA deposit is a good quality sub-bitumous black steaming coal within the larger Arckaringa Coalfield in South Australia.

The coal is suitable for conventional power stations using proven technology and is also for advanced power station technologies such as integrated Gasification Combined Cycle ( IGCC ), for advanced metallurgical processes and the production of petroleum replacement fuels by liquefaction and gasification.

WINTINNA coal has similar combustion charcteristics to both Muja coal ( Collie ) in Western Australia and Blair Athol in Queensland. Muja coal is successfully used for base load power generation in Western Australia while Blair Athol produces 8 million tonnes per year mainly for export. It is technically feasible to produce WINTINNA export coal products by selective mining or other means ( without washing ), with low sulphur and low ash contents similar in quality to a mumber of Queensland and USA coals presently sold in Japan and Europe. These products would be suitable for export markets via Whyalla and the new rail connection to Darwin.

The potential of the WINTINNA / Arckaringa deposits is very substantial. A mine study begun in 1990 by the South Australian Governments Coal Review Group ( officers from the Electricity Trust of South Australia ( ETSA ) and South Australian Department of Minies ( DME ) in conjunction with the company was completed in September 1991. The study indicated that the WINTINNA Deposit was competitive with alternate local coal options for large South Australian Power Station developments. It is understood that the determined cost is competitive ( on a per GJ basis ) with the fully absorbed current cost of Leigh Creek coal ( now diminishing in quantity ) now used in Northern Power Stations.

Company discussions previously made showed that an initial supply of 1 million tonnes per year rising to 2 or 3 million tonnes per year of WINTINNA export product coal, would be purchased by Power Station and Port Development consortiums with New South Wales and South Australiand governments providing strong support.
The present Felix Board have chosen not to progress this position at present and to concentrate on Yarrabee Coal Fields.

White Energy has been my biggest embarrassment. Well and truly collapsed and the Chairman/CEO was once one of Australia's richest mining people. Shows how great success at Felix Resources a 65 bagger from 2003 to its high point in 2008: Can turn into a share that falls from $4.20, including a 1 for 30 consolidation, to 0.13c - a fall of 99.69%.
Am I phased by all this? Certainly, I am. Have I given up? Certainly not!
So I have in the last 6 months gradually added about 100 times the number of shares I formerly held. This worked very well four times before but failed on three occasions.
Sometimes it is foolhardiness combined with outrageous risk-taking and partial insanity that is the order of the day.