White Energy plunges on project warning

Company News

White Energy Company Limited (ASX:WEC) fell to the worst performer of the S&P/ASX200 index yesterday, shedding almost half of its value. 

The fall came after the company exited a trading halt and detailed a project warning from its Indonesian joint venture partner, PT Bayan Resources.

Bayan says based on current coal export prices it no longer believes upgrading their joint venture coal mine project will generate an acceptable economic return.

Bayan believes a more economic option is to sell the coal mine. A decision on the project expected before December 31, 2011.

Yesterday shares in White Energy Company plunged 46.69 per cent, closing at $0.805. 

In the 12 months to June 30, 2011 White Energy Company booked a net loss of $18.8 million.