why unloved, page-8

theInquisitor,
Thanks for your correction.

My apologies for some wrong assumption.

I missed the paragraph in 2011 annual report:
"In accordance with “The Principals of Consolidation” as outlined in note 1(b), total current liabilities of $42,209,000 includes 100% of the external liabilities of PT Kaltim Supacoal (KSC), the Company’s 51% owned Indonesian subsidiary."

CORRECTED NET CASH BACKING:

1. Convertible note $25m - maturing in Oct 2012
2. Creditors - $9m (51%x$18m)
3. Other payable - contingent consideration (SAC) performance share - $22m (currently will be only $5m as sp from $1.825 to $0.39)- this should be non-cash item,
and this will increase net profit by around $17m
4. KSC working capital - Standard Chartered Bank US$10m - $10m - $5m attributable to WEC
(as AUD falling, it creases slightly)
5. Loan from shareholders – Bayan Resource - $20m (51%x$40m)
6. Loan from shareholders – Black River - $4.5m (51%x$9m)

Total future cash outflows (1+2+4+5+6)= $63.5m

Cash on hand as announced on 29 Nov 2011 - $160m

Current net cash position is $96.5m - 30.5c per share.

Creditors and shareholder loans might be not payable or demanding, the following Citigroup analyst report showing debt ONLY $34m, that gives net cash backing around $126m, implied 39.8c per share, and they value WEC minimum at 88c per share.

Thanks again for correcting me.J


Citigroup Global Markets
http://www.whiteenergyco.com/documents/supply_issue_clouds_tabangs_future_attachment_1.pdf
BARE BONES VALUE (Quoted from Citigroup analyst report)
"If we were to strip out all of the technology from WEC, we would value the company at ~A$277m (A$0.88/share). This assumes that the company completely discards its briquetting business and is left only with the SA Coal resource in South Australia, cash and debt. This does not represent a price target but merely a reflection of WEC’s remaining assets and liabilities.
We think it is likely that SA Coal will increase its resource to 1,500Mt and apply a low A$0.10/t multiple to reflect the quality and nature of the resource. Cash is
currently A$162m and debt is A$34m and therefore our stripped down equity value is ~A$277m. Alternatively, stripping out the plant and intangibles from the balance
sheet would result in an NAB of ~A$220m."