Australian (ASX) Stock Market Forum

LNC - Linc Energy

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Bit of interest being shown in LNC again atm after another solid consolidation period ............ Increasing volume .............. Very interesting technology, and these guys appear to be in the box seat. Cheers.
 
After the election result it's best to look forward and not back. Linc Energy, are amongst several stocks that look like they're worth a good look, maybe even a good bit more than that in the present environment.
 
Linc's presentation today is impressive...claims the position as Oz's most advanced Clean-coal technology company. In particular, its CTL technology - producing very clean diesel from coal at low cost, underlines why this is process is favoured by the US & Oz. The US military recently said that they were aiming to power the entire military fleet using liquids from coal (diesel,kero,naptha) within the next decade.
LNC's complementary projects also have huge potential- "bioreactors" to convert Co2 to o2 via algae; & powerstations fed via UCG (underground coal gasification).
Linc also announced yesterday an imminent US listing to meet "latent demand" in the US by investors for exposure to LNC
http://www.asx.com.au/asxpdf/20071129/pdf/3164x4vjb2x0zw.pdf
 
Great news today, future is looking bright! Still a bit of electrical and instro work to be completed once the pilot plant is on line, so I would say there would be alot of extension leads and temp air lines running around the place.
Really looking forward to Feb.
Be interesting to see what announcements come out of this, once plant is producing:D
 
noirua said:
This link shows how America, through Peabody Energy Corp, is also looking for new coal-to-gas plants and LNC in a similar sector is the one to watch out for, in the future: http://www.cnbc.com/id/22847906/for/cnbc
Click to expand...


Thankyou. I hold these too. I have some things in my diary 18/2/08 (structure complete) and 22/2/08 (commission pilot plant GTL). Should be an exciting month for February!
 
There was also an announcement in Nov that Linc was to upgrade their resources . That should change the SP also
 
PRESS RELEASE ? FOR IMMEDIATE RELEASE
Research Coverage Initiation: Linc Energy, Ltd. (LNCGY, US$6.72)
SAN FRANCISCO ? January 9, 2008 ? Merriman Curhan Ford & Co., an investment bank and securities
broker-dealer, and subsidiary of MCF Corporation (AMEX: MEM, Member: FINRA/SIPC), initiated coverage of
Linc Energy, Ltd. (LNCGY) at Buy.
Equity research analyst Jesse T. Herrick highlighted these themes in the research report issued today:
? Linc Energy is a development stage company deploying proprietary, low-cost Underground
Coal Gasification (UCG) and Gas To Liquids (GTL) technology to produce ultra-clean diesel
fuel. Linc is currently constructing a 10 barrel-per-day (bpd) facility at its coal reserve site in
Chinchilla, Australia, with a 20,000 bpd facility in the engineering stages. We believe Linc is wellpositioned
to become a large producer of ultra-clean, high quality diesel fuel, at extremely high
margins. We are initiating coverage with a Buy rating.
? Combining UCG and GTL. Linc Energy combines Underground Coal Gasification (UCG), the
process of producing syngas underground at the site of a coal reserve, and Gas To Liquids (GTL)
technology, the refining of syngas into liquid diesel vis-୶is the Fischer-Tropsch process. The
combination of these technologies provides for a much more cost-effective approach to processing
coal into liquid fuels. With Linc?s coal ownership and current market trends for oil pricing, we
believe margins should prove to be extremely high.
? Demonstration to commercial scale. Linc Energy plans to use the UCG and GTL processes in a
demonstration project in Chinchilla, Queensland, targeted to produce 10 barrels of diesel fuel per
day (bpd) and build out a 20,000 bpd facility over the next few years. The demonstration plant
should be commissioned and operational beginning in C1Q08, with a planned commissioning of the
commercial unit expected during 2010.
? Estimates and valuation. Assuming a discount rate of 14-16% and an exit multiple of 6.0-7.0x (oil
and gas comps) once the plant reaches a full production run-rate (2015), we arrive at an NPV of
A$1.1-1.5B or A$2.0-2.6 per share. This would translate to a present value of the ADR at US$17-
23 per share from its current US$6.72 value. Alternately applying a 10.8x P/E multiple into 2015
EPS of A$0.51 gives us a 2014 stock price just shy of US$50.
600 California Street, 9th Floor
San Francisco, CA 94108
(415) 248-5600 Main
(415) 248-5690 Fax
(800) 909-7897 Trading
www.mcfco.com
IMPORTANT DISCLOSURES ON LAST PAGE
Members of the media can obtain a copy of this Merriman Curhan Ford & Co. research report by e-mailing
Michael Mandelbaum at michael@mandelbaummorgan.com
For More Information Contact:
Jesse T. Herrick
Vice President
415-568-3924
jherrick@mcfco.com
Michael Mandelbaum
Mandelbaum & Morgan
310-785-0810
michael@mandelbaummorgan.com
 
Please note that this broker coverage above is on the LNCGY that trade in the US, so you need to divide by 10 to get back to ordinary shares, and convert to AUS$!
 
grace said:
Please note that this broker coverage above is on the LNCGY that trade in the US, so you need to divide by 10 to get back to ordinary shares, and convert to AUS$!
Click to expand...

Even more interesting Grace.
Thanks.
It would be very nice if the price does go in that direction, very nice indeed.
 
grace said:
Thankyou. I hold these too. I have some things in my diary 18/2/08 (structure complete) and 22/2/08 (commission pilot plant GTL). Should be an exciting month for February!
Click to expand...

Nice volume coming into LNC this morning 600000 (ahead of activity this month). Note that the date seemed to change for commissioning to Thursday 28/2/08.
 
Fantastic news for Linc today, not only is the GTL plant on time, but they have found enough coal to run the larger scale GTL plant for

60 YEARS! at 20 000 barrels of liquid per day (diesel and jet fuel - clean) to produce 600 million barrels (and that's only from drilling to date!)

A resource of 400 million tonnes of coal (only needed 300mill for the GTL plant).

Watch out for commissioning on Friday 29th Feb!

I wanted to paste a couple of paras from the ann but don't know how, but the announcement is worth a good read!
 
ABC TV 7.30 report tonight had a story on Australia running out of oil. One solution suggested was turning our coal seam gas reserves to clean fuel and crossed to Linc Energy video describing what is happening there. Very good exposure for this one out of the report. Mentioned commissioning this month.
 
grace said:
ABC TV 7.30 report tonight had a story on Australia running out of oil. One solution suggested was turning our coal seam gas reserves to clean fuel and crossed to Linc Energy video describing what is happening there. Very good exposure for this one out of the report. Mentioned commissioning this month.
Click to expand...

Thanks for bringing this to our attention Grace!

I've found the clip your talking about under the headline 'Supply fears as oil surges' on the abc's website..

http://www.abc.net.au/7.30/content/2007/s2169087.htm
 
Not sure if you all know this but...
SASOL in South Africa operates the world's only coal-based synthetic fuel facility. They report that 36% of South Africa's fuel is from this process. I investigated this after it was mentioned in the Courier Mail story on Coal Seam Gas a couple of weeks ago.

Here is the link and go down to "synthetic fuels, oil & gas". The courier mail mentioned it was being done by SASOL....does anyone have any comments in this regard? To my understanding Linc's process is already being done in Africa as the Courier Mail alluded to.

http://www.southafrica.info/doing_business/economy/infrastructure/energy.htm
 
Grace, go to LNC web site and click on Production process (CTL). From what I understand LNC does not need to process Syngas as other companies (SASOL) usually mixed with natural gas. The UCG is a ready made mix of hydrogen and carbon monoxide.
LNC are the leaders in this type of CTL.
 
mexican said:
Grace, go to LNC web site and click on Production process (CTL). From what I understand LNC does not need to process Syngas as other companies (SASOL) usually mixed with natural gas. The UCG is a ready made mix of hydrogen and carbon monoxide.
LNC are the leaders in this type of CTL.
Click to expand...

Is it that other processes are done at the surface, whereas linc intend to convert underground (syngas), and then the liquid is formed at surface?
 

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