At the end of December WHC held US$1.1b in cash and had already...

At the end of December WHC held US$1.1b in cash and had already paid a deposit of US$100m. So they have another quarter to go before the completion, and already have a 5 year credit facility of US1.1bn. So they will be fine to make the initial payment of US$2b on completion.

After that there are annual payments of US$500m for three years. plus the earn out component which is capped at US350m pa (or US$900m total) and is contingent on coal prices at a certain threshold. So the way the deal is structured is favourable and achievable for WHC.

Add in the expected proceeds from 20% divestment of Blackwater and please tell us again how the prices of thermal coal will affect a company with 70% of revenue coming from metallurgical coal post completion.