"Importantly, Audley Capital believes there is substantial value in Walter Energy that is not reflected by the current share price. Walter Energy has high-quality metallurgical coal assets in established mining jurisdictions with scope for significant growth, with a market position that should enable it to generate substantial free cash flow going forward... Despite Audley Capital's confidence in the value of the metallurgical coal assets, we have been dismayed by the way the business has been run in recent years and the loss of stockholder value. For example, the share price has underperformed major mining indices, with the share price of Walter Energy falling 79% since its peak in April 2011 vs. only a 38% fall in the MSCI World Metals and Mining Index in the same period. This share price weakness as compared to the met coal average price decline reflects the uninspiring management of the Company."