Capital raising, page-16

Yes mate. I was being sarcastic.

My first point was made on the basis of existing shareholders participating in the capital raising and with extra cash in the business to repay debt creating a stronger balance sheet, the share price may rise as it is currently very undervalued compared to a book value.

I originially assumed that a capital raising could be done closer to the current share price without considering the existing shareholders that would not participate and therefore have a dilutionary impact according to the amount of extra shares issued.

While i dont believe that the management would do a capital raising anyway, the low share price has certainly eliminated any chance.

Also, i sold my shares at a loss after further research into their contract with Middlemount Coal. Yancoal is a pubically listed company and looking through their reports it shows that Middlemount has been and still is losing money. Yancoal balance sheet also looks quite bad. I dont think that the contract extension to 2020 will be completed but only time will tell.

Also i dont like the fact the ANZ bank, being the major secured creditor has a large amount of control over the companies future. If any of the debt covenants are breached, ANZ could call the company into receivership and look into similar excavators, trucks, graders, dozers and water carts are selling well below their book value indicating that both ANZ and NWH shareholders will lose.

I did not want to sell NWH for a loss but the future prospects dont look good and their balance sheet is in trouble.