Hi Mrjjw, I too hold BWNRe your comment/question: “ive been...

Hi Mrjjw, I too hold BWN

Re your comment/question: “ive been told,theres a fomula in the agreement with bushan that for them to buy out the shareholders the formula would dictate a price of over a $1 a share, does anyone know about this calculation and how it works?”

Based on a resource which is approximately the size being quoted by bhushan directors (around 1bt), the VALUE of the deal works out to be more than $1.10 for every share. I’m assuming 1bt is comprised of approx 1 third PCI and 2 thirds thermal. This value does NOT take into account the value of other tenements/mines or Indonesian assets (which have been said by previous MD to be near-term production assets)

However, just because the VALUE of the shares under this agreement is $1.10 per share, does not necessarily mean that we, the shareholders, will REALISE this value - main reason being that if Bhushan (or anyone) own the majority of the capital, they have control. And if they have control, then they don’t need to take us over. Also, no one else could take us over. They could use this control to manoeuvre the put-and-call to their advantage.

How then will we realise a profit in this scenario? We’d have to wait til the mines are producing, which brings me to the second point – the deal/MOU is founded on a CAPPED system. Some see this as a safety-net. But in the longer term, this cap limits the potential financial reward we can ever realise from our resources.

My friend, $1+ might sound good now because the shares are 10c, but if you look at the figures being paid for coal in neighbouring tenements NOW, you’ll want your $3 worth! And when I talk of deals being done next door, I ain’t comparing apples and oranges. This is the same coal, from the same seem.

I for one am happy to see a steel co and end-user on board. But I would like to see a more balanced deal – one which would look after shareholders and bhushan alike. We need to see some sort of agreement which guarantees bhsuhan will support the shares on market. And, given we are so behind schedule, a re-issue of the options would also be justified. I’d also like to see some sort of announcement declaring bhushan’s intentions – sure, directors have come and gone, but the names on the registry are unchanged. We are still here. The Bhushan deal is with us. Such an announcement would at least let us know what to expect in the coming months, years, and build trust and rapport with our business partner


We were all hoping for some coal in our stocking before Christmas last year, and here we are still here waiting… so we must continue to be patient, take it one day at a time, and keep thinking of all the positives – there’s plenty of positives there, not just the black sooty kind that lives 300m below surface ;)

All the best

PS – for more info on coal in surrounding tenements you should really visit seuss’ blog (as a part of your own due diligence and research) – I’ve never met anyone that does as much research as this bloke and if we all did as much, we’d all make more money and less tears