Ann: Appendix 4D and Half Year Financial Report, page-332

I have read quiet a lot of drivel on these forums lately regarding managements buy back actions recently.

In reality, commodity prices are almost completely unpredictable, and hindsight makes it all seem so obvious. WHC was cheap at $11 with the coal price, it is also fairly cheap now given the current coal price. Futures are unpredictable and we cannot blame the BOD for it. It is nice to whine as a form of stress release, I sure had mine with the disappointing dividend. But recently, its like a ritualistic chant of disgust against the BOD.

Let's pretend they had complete foresight in coal price action. Imagine if they distributed no funds to shareholders and did no buybacks over the last 12 months knowing that the share price would fall back to $7 and allow them to buy back cheaper. Can you imagine this? shareholders would be livid! There would be armed mobs with pitchforks at every WHC office. ASIC would be inundated with requests for the death penalty! Lawsuits would be filed and parasitic public behaviour would ensue. No matter what they do, people will find something to be unhappy about.

Management has done the reasonable thing and will average the buyback price over the years. It removes the bulk of the risk. They have done the best of the situation they are dealt with for long term holders, which includes themselves!