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WEC - White Energy Company

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Well, many expected a result of the award by SIPP in Singapore by the end of March and now we march towards the end of August. The dispute started in November 2011 and went to the SIPP in May 2015 as the first case dealt with by them. The dispute has run 9 years and 9 months and is the longest for an Australian company in history.

The dispute is versus PT. Bayan Tbk. of Indonesia a coal exporter mainly to China.

At 11c per share the market cap is A$85.2 million. The watered down claim by WEC is US$153m A$215 million. In the past claims awarded are about half plus costs. Interest is usually only added from the start of the case being presented to SIPP and usually in US$s at about 3.5%: This is guesswork of course.

Australia-based White Energy Co. Ltd. is seeking about US$153 million from Indonesia's PT Bayan Resources Tbk. in a dispute over the KSC coal joint venture in Indonesia.
In July 2017, the Singapore International Commercial Court sided with White Energy units BCBC Singapore Pte. Ltd. and Binderless Coal Briquetting Co. Pty. Ltd. in the case, after ruling that Bayan Resources had violated its coal supply obligation and further repudiated the joint venture by wrongfully issuing a termination notice.
Bayan Resources filed an appeal in August 2017, but it was dismissed.
White Energy said that its claim for damages comprises about US$99 million in wasted expenditure related to Bayan Resources' breach and about US$54 million in projected revenue losses from the cancellation of a plan to boost the venture's capacity to at least 3 million tonnes per annum, plus interest and costs.
 
yes it has been a long sad saga

i hold WEC , ( probably deeply under water , but only guessing i gave up looking at the SP years ago )

good luck in the comp. though
 
divs4ever said:
yes it has been a long sad saga

i hold WEC , ( probably deeply under water , but only guessing i gave up looking at the SP years ago )

good luck in the comp. though
Click to expand...
The award here could end up disappointing or Bayan may appeal for years to come and all the other interests held by WEC may falter badly.
On the other hand the award may be about half plus costs and Bayan may pay up in cash or in kind and the South African coal fines could work out well together with the Chinese coal pelleting plans.
The former Chairman Travers Duncan and present MD Brian Flannery are worrying factors. The former is very elderly and MD an old coal mining exporter may have just had enough of all this. Both I think care about themselves first and other trail way back. As to the present Chairman Graham Cubbins, chair since March 2021, I'm unsure.
I have my own views though we have to consider this to be a gamble to nothing. The share price could fall back to 3c or move on for years ahead and eventually hit 50c - could it reach $4.20 again though? - miracles have happened but White Energy is no Sirius Resources. However, prepare for a cash raising if Bayan fail to pay up or even worse.
 
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to be honest i am surprised WEC hadn't failed already

so , it is the reverse for me

a possible crystallized loss , or a miracle recovery ( maybe even profit )

HOWEVER there might be a chance over a take-over , i think NHC has a rival 'clean coal technology so probably they won't be interested

S32 has some cash/credit in the piggy-bank and WHC might be a possible predator

sorry but am unlikely to put any more cash in this ,
 
Once upon a time three of the WEC directors were hailed as the most successful in the business selling coal from Queensland and NSW. Felix Resources was hailed as a bank by MD Brian Flannery as so much cash piled in they did not know what to do with it. At the low point in 2003 the shares had a market cap. of just $10 million and at the peak in 2008 a market cap. of $4.3 billion.

At the takeover point in 2009 shareholders received cash and shares in South Australian Coal Limited SAS. In 2010 SAS became part of WEC and SAS shareholders including MD Brian Flannery and Chairman Travers Duncan ( now retired as Chairman due to age) took positions on the board. WEC shares reach $4.20 valuing SAS shares at 50c each - 'the glory days were here'?

Unfortunately near everything went pear shaped and Brian Flannery lost his magic touch to see the shares hit a low point in 2019 of 2.6c intraday. 2008 was one of the best performances with Felix Resources ever seen in Australia but by 2019 with White Energy one of the worse.

Without going further into the demise and low coal prices we must now see if there is likely to be a return to the good-old-days.

Well maybe surprisingly there is. The new Binderless Coal Briquetting technology BCC - well it was new in 2009 when great things were expected at Tabang in Indonesia with partner PT Bayan TBK. This all fell apart leaving a legal battle covering 9 years and eleven months and good news, maybe, when an award is made by SICC in Singapore. Maybe because it is not known whether Bayan will pay up or continue with an appeal if allowed.
The briquetting technology is at an early stage of development in China where a small plant is built but held up by the coronavirus situation. A major build is planned so just maybe success at last.
Over 1 billion tonnes of coal fines in South Africa where the new coal technology is planned but no plant built as yet, so maybe.
Gas from the far north Phillipson tenement where there is 4.3 billion tonnes of coal. A new plant maybe built in the future.

A Chinese major might become interested in BCC technology such as Shenua Energy WEC may hope: https://en.wikipedia.org/wiki/China_Shenhua_Energy

More likely is Yanzhou Coal Limited as MD Brian Flannery worked as a director with Vincent O'Rourke for one year at their Australian subsidiary in 2010. https://www.miningmonthly.com/markets/international-coal-news/1294411/retirement-flannery https://www.smh.com.au/business/35bn-bid-for-felix-resources-20090810-eflj.html
www.afr.com

Rich Lister Brian Flannery thinks small with new investment

Best known for coal mines and power stations, the Flannery family office has doubled down on an orthopaedic surgery tool just 1.5 millimetres long.
www.afr.com www.afr.com
 
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WEC expected the final award from Singapore's SICC by March 2021. Soon we will be in November and that will make 10 years since the dispute between White Energy and PT Bayan TBK started.

Away from the dispute WEC might get their pelleting technology of low grade coal underway in China and South Africa. If that works out well then WEC are cheap, if not... Of course WEC has land the size of England in far north South Australia where coal is suitable for gasification - will it workout? - no idea.

The share is a big gamble at 13.5c and is it worth a punt - well hmmm no idea. Have I invested in WEC? - well yes.
Should I have invested? - no idea. Was I stupid to buy WEC? - yes probably. Will I make a fortune? - time as usual will tell.
 
WEC is now at $0.14 though the share rarely trades and 14c was the last trade at $900. This last announcement sums up as it is by MD Brian Flannery who has waved the flag in the dispute with PT Bayan TBK for exactly 10 years now. England once had a 100 years war with France and the WEC v Bayan is getting to seem like that.

As a guide the shares have traded between 2.6c and $4.20 since 2010.
 
have i completely lost my money in this yet ??

i suspect i have

thank goodness i have 'dirty coal' stocks ( like S32 , NHC , and WHC to keep the income coming in )

i suspect the ongoing problem will be the lost momentum for WEC

i suppose the positive part is at least they haven't had a consolidation in the last 10 years i have held then ( i bought in @ 52.5 cents )
 
divs4ever said:
have i completely lost my money in this yet ??

i suspect i have

thank goodness i have 'dirty coal' stocks ( like S32 , NHC , and WHC to keep the income coming in )

i suspect the ongoing problem will be the lost momentum for WEC

i suppose the positive part is at least they haven't had a consolidation in the last 10 years i have held then ( i bought in @ 52.5 cents )
Click to expand...
Never mind I bought some shares in a Rights Issue at $2.50 about 10 years back.

Your money might well be returned in the years to come with the new pelleting technology in China and South Africa.

Put in your bottom drawer but do not lock it as the shares might make it to A$1.00 in the years to come.

There is an idea, no more than that, that PT Bayan Tbk may still be up for a deal at this very late stage to save face. Suggested to me that Bayan may make an offer covering any SICC award or even before it is made. That would be a sum to take a large stake in White Energy together with 100% rights to the BCB Technology in Indonesia and testing at Cessnock. The sum shown to be paid for the SICC award would be low but the offer for new shares in WEC and BCB Technology seen as rather generous.
 
well good luck

but i am not betting i will be alive in another 10 years

but you never know it still might come good ( but probably without extra cash for me )
 
WEC shares are still holding up at 15.5c in fairly light trading. The high point was about 18c in recent years before dropping back to 6c. Just hopefully Bayan can see that China will need pelleting technology to be used in Indonesia to reduce their pollution. China had 1,092 coal fired power stations at the end of 2020 though the target is near 1,300 by 2026.
 
noirua said:
White Energy awaits the decision of the Singapore Arbitration court on the amount of any award, interest, and costs in their dispute with PT Bayan TBK of Indonesia. The final oaths were sworn on 9 January 2021.
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It is now one year since Singapore's SICC sat to decide the award to be made to White Energy in their case against TB Bayan Tbk. It is also 10 years and two months since the dispute began and 6 years and 8 months since the Singapore Arbitration started.

Singapore set itself up to be the quickest and most efficient. Chances are they will win the wooden spoon as the slowest and least efficient.
 
It still looks to be a wait and see situation as Singapore's SICC decide the award to WEC against PT Bayan Tbk of Indonesia. Dispute started November 2011 and then went to Arbitration at SICC in May 2015. The last stage 'The Award' has been with SICC for 13 months. Said to be Australia's longest running legal dispute between two companies.
 
Trading Halt.
The trading halt is requested pending an announcement by the Company to the market regarding the legal proceedings in the Singapore International Commercial Court (“SICC”) initiated by subsidiaries of White Energy, BCBC Singapore Pte Ltd ("BCBCS") and Binderless Coal Briquetting Company Pty Limited, against PT Bayan Resources Tbk and Bayan International Pte Ltd (collectively, “Bayan") in connection with the KSC joint venture (the Purpose).

Decision will be at: https://www.elitigation.sg/gd/sic
 
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IN THE SINGAPORE INTERNATIONAL COMMERCIAL COURT

OF THE REPUBLIC OF SINGAPORE
[2022] SGHC(I) 2
Suit No 1 of 2015
Between
(1)BCBC Singapore Pte Ltd
(2)Binderless Coal Briquetting Company Pty Limited
… Plaintiffs
And
(1)PT Bayan Resources TBK
(2)Bayan International Pte Ltd
… Defendants
JUDGMENT

 

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