White Energy Announces Update on KSC Legal Dispute

  • Jan 18, 2019 AEDT
  • Team Kalkine
White Energy Announces Update on KSC Legal Dispute

White Energy Company Ltd. (ASX: WEC) develops and commercializes coal technologies used for processing poor quality coal into higher quality and environmentally friendly coal.

The company has through the latest release on ASX stated about the developments in relation to the proceedings brought by its subsidiaries, BCBC Singapore Pte Ltd (“BCBCS”) and Binderless Coal Briquetting Company Pty Limited (“BCBC”) against PT Bayan Resources Tbk (“BR”) and Bayan International Pte Ltd in connection with the KSC joint venture.

As previously advised to shareholders, on 9 January 2018 the Singapore International Commercial Court (“SICC”) unanimously ruled in favour of BCBCS in relation to the remitted issue of whether BCBCS had the ability to fund KSC by itself.

On 16 January 2018, BR filed a notice of appeal against the whole of the decision of the SICC. The Company will provide an update on appeal timelines as available.

Since the commencement of proceedings in both the SICC and the Supreme Court of Western Australia, the judgments and appeals have been substantially in favour of BCBCS. The Company believes that the appeal is made by BR as an attempt to further delay proceedings. The Company is confident that BR’s appeal will be dismissed and that the proceedings will continue to the third tranche where damages and loss arising from BR’s breaches and repudiation of the joint venture will be determined.

The company has registered an EBITDA loss of the FY 2008 at $11.70 Mn which was more than the $ 9.90 Mn recorded for the last fiscal year. This increase in the EBITDA loss was due to the flattening of revenues, despite the cost reduction initiatives which were implemented by the management across the organization. The group had cash reserves of $1.10 Mn which specifically excludes the amount of $4.40 Mn which has been recorded as the restricted cash. The company had assets balance of $46.40 Mn in FY18 vis-à-vis $55.20 Mn which was recorded for the year ended 30 June 2017. This depletion in asset was a result of the losses incurred by the Company and its subsidiaries. However, the company’s rose from $80.30 Mn for FY 2017 to $ 92.20 Mn for the FY ended 30 June 2018, predominantly on account of the weaker Australian dollar, additional loans provided by the Group’s minority shareholders and loans from two of the Company’s directors.

Now let us quickly look at the company’s stock performance over the last few months. Currently, it is trading at a price of $0.070, down by 1.408 % during the day’s trade, with a market capitalization of circa $35.24 Mn as on 18 Jan. 2019. The stock opened at $0.07 which is also the day high for the stock. The company has yielded a YTD return of 4.41% and also posted returns of 39.40 %, 4.41 % and 5.97 % over the last six months, three months and one-month period respectively as on 16 January 2019. It has a 52-week high price of $0.097 and a 52-week low of $0.028, with an average volume of 77,724 approximately.


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