Coalhardcash - Appreciate your detailed deal summary and...

Coalhardcash - Appreciate your detailed deal summary and breakdown for the Daunia/Blackwater acquisition now scheduled to close in two weeks.

One comment. The deal numbers do not include something in the order of US$300 million for the deal costs (legal costs, approvals costs, financing costs, etc), and Stamp Duty payable. The Stamp Duty will not be paid immediately but will likely be paid out within 6 months (my assessment from the year end conference call Q&A). There is also the possibility there will be substantial "adjustments" payable on closing. These would be for things like acquired inventory, prepaid expenses, working capital adjustments, etc. The deal is an asset acquisition deal not buying a corporate entity which would come with working capital (receivables, payables, etc.). The working capital requirements will be substantial (my guesstimate A$400 - 500 million). None of the deal information provided indicates whether the asset acquisitions include any level of coal inventory, payables or receivables, etc. Since WHC have never indicated any amounts required for working capital requirements I am keeping my fingers crossed that much of the requirement will be covered within the "asset acqusitions".

All will be revealed in two weeks!