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$7.84 whitehaven coal limited

Frankly methinks the potential of you underestimating the...

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lilac

3,542 Posts.

324

03/04/24

22:27

Post #: 73176959
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Originally posted by jace.h: ↑

Last post for today before I get accused of downramping.

"Talks are already underway with potential partners and proceeds are estimated at US$1bn."

There is little chance they sell 20% of Blackwater for US$1.0b. That would be equivalent to US$5.0b for 100% of Blackwater. WHC is paying US$3.2b to US$4.1b for 100% of Blackwater and Daunia. I would eat my hat if they received a price equivalent to US$5b for 100% of Blackwater.

"If Whitehaven achieves a sales price in this vicinity, they’ll have the flexibility to pay-out the newly acquired debt and soon be back in a net cash position. That means the cash flow generated from the larger business can flow straight to shareholders."

The author suggests they go net cash and then the floodgates open. Even if a bidder pays US$1.0b for 20%, they still have deferred consideration and contingent payments of US$2.0b. The cash generated from the larger business goes to that US$2.0b first, and then later to shareholders.

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Frankly methinks the potential of you underestimating the strength of suitors' desire, their driving need to participate in the opportunity, leaves your HAT at considerable risk.

Have you a few?

WHC Price at posting: $7.13 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $7.84		Change 0.140(1.82%)		Mkt cap ! $6.558B

Open	High	Low	Value	Volume
$7.70	$7.91	$7.69	$32.80M	4.171M

Buyers (Bids)

No.	Vol.	Price($)
1	9995	$7.84

Sellers (Offers)

Price($)	Vol.	No.
$7.85	8800	1

View Market Depth

No.	Vol.	Price($)
1	635	8.230
1	245	7.900
1	305	7.890
3	1321	7.880
2	3131	7.860

Price($)	Vol.	No.
7.640	831	1
7.840	6495	6
7.850	655	1
7.860	6000	1
7.880	3400	1

Last trade - 16.10pm 02/05/2024 (20 minute delay)


Last $7.87			Change 0.140 ( 2.63 %)
Open	High		Low	Volume
$7.70	$7.91		$7.69	934157
Last updated 15.59pm 02/05/2024 ?

WHC (ASX) Chart