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LNC is getting creamed at the moment. Currently $1.04 and down with a bullet.
Certainly no vote of confidence from current shareholders. Perhaps also a last hit from short sellers as well ?
I think at $1 it has to be very underpriced - but I have been burnt too many times to want to play again.
Mickel what are your thoughts ?
Hi Bas
I'm dirty on PB for taking this step at this critical time. I still believe in the LINC STORY and consider we are only now moving into the really exciting time
I agree that there seems to be many valuable opportunities in the company. Hell the royalties on the Teresa coal deal alone are worth $100m + in a couple of years! But somehow it hasn't managed to kick a proper goal yet.
I'm undecided with the merits of the move from ASX to SGX. It appears SGX have minimum buy orders of 1,000 shares which would severely restrict HF traders (a big plus) Also, I have heard reports that short selling is restricted on the SGX (another plus). There are reports that SGX rules are not as strict as the ASX and that the SGX is not as liquid as ASX but these are not "cut and dried".
Why "heard reports" when you can google the facts for yourself?
http://www.sgx.com/wps/portal/sgxweb/home/faqs#Marking_of_SellOrders
Bas, For clarification I mention that the royalties will come from Adani's Carmichael tenement, not LNC's own Teresa tenement. The royalties are expected to start in 2017 and are projected to be $120M pa from 2023. Refer page 20 of 2013 Annual Report.
The current discounted value of the royalty stream has variously been estimated to be from around $300M to $1B (ie almost twice the current Market Cap of LNC). Whatever the current value, it is increasing monthly as Adani continue to meet their targets.
Alaska is world's laboratory for climate change research
Published: October 5, 2013
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y JOHN LIPPERT ”” Bloomberg News
When Jerry Otto started hunting for Alaska oil in 1980, his tractor-trailers barreled along ice roads that were up to 10 feet thick for 180 days every year.
Last winter, when he set out to drill for Australia's Linc Energy, regulators opened the roads for 126 days. The rest of the time, warm weather left the routes too mushy for vehicles, according to Bloomberg Markets magazine.
Then, in January, in a twist that embodies the perplexing reality of life and commerce amid a changing global climate, the temperature dropped suddenly to minus 40 degrees Fahrenheit, encasing drilling rig components in ice as Otto waited for roads to solidify to ship the gear to Linc sites.
After thawing the equipment with blowtorches, he discovered that the cold was reducing oil flowing into Linc's well. With 200 workers standing by, the company lost $300,000 a day with each delay, ending 2012 with a $61 million deficit.
Otto plans to try again in December, this time drilling sideways into a hill to get underneath 1,000 feet of permafrost and up into reservoirs he says hold 1.2 billion barrels of light, sweet crude.
"It's getting more unpredictable," said Otto, 59, who runs Linc's drilling rig in Umiat, 80 miles south of the Arctic Ocean, which is within the National Petroleum Reserve that President Warren G. Harding created in 1923 to guarantee oil for the Navy.
"We're in a race against Mother Nature. If we don't get cold weather early enough, or if it gets too warm too fast in the spring, it could stall the project."
FORCED ADAPTATION
Otto and others already braving such extremes are experiencing a new phenomenon: daily life navigating the risks and opportunities of climate change.
The Arctic has heated up twice as fast as the rest of the planet in the past three decades. By August 2013, sea ice had lost 76 percent of its volume compared to 1979, according to the University of Washington's Polar Ice Center.
And the three main gases blamed for global warming -- carbon dioxide, methane and nitrous oxide -- are at their highest level in at least 800,000 years, the Intergovernmental Panel on Climate Change reported Sept. 27. The United Nations group cited core samples taken from ice sheets.
On Alaska's Arctic coast, 30-foot-high cliffs that haven't budged since the last ice age are tumbling into the ocean overnight and village coastlines are eroding. Lightning-sparked forest fires have charred more than 1 million acres in five of the past 10 years. By midcentury, the average area burned by wildfires each year is likely to double, the EPA says.
Read more here: http://www.adn.com/2013/10/05/3111739/alaska-worlds-laboratory-for-climate.html#storylink=cpy
S/P currently $1.505 and should rise significantly.
I really want to enter lnc at 90cents and ride until 1.60 and dump it.
Hi Guys,
Apologies for the noob question, but so what happens if you hold existing shares in LNC after Dec 6 (when they move to SGX)
Does it now mean that you will need to trade in Global Shares to sell / buy LNC?
Thanks!
Bump, i also would appropriate if someone could tell me what will happen to my shares, i am a very amateur investor and im currently using CommSec to buy and sell, will i have to do anything to still buy and sell this stock? Thankyou
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