LNC - Linc Energy

http://www.businessspectator.com.au...-reserve-pd20100802-7WSHR?OpenDocument&src=mp

Interesting Basilio that Bondy mentions of another coal tenement that they have not mentioned before, going on the market as well!

basilio said:

Ok. We don't want to get too far ahead of ourselves but it will be very interesting to see the path laid out by Peter Bond and Linc if/when the coal sales are finalised. We would hope they were imaginative, hard driving, inspirational and of course profitable.

One would assume that these plans are being worked out on the basis of various results of the sale but one expect a minimum $1billion over 1-2 years.

So we would have a picture of a company with a well proven disruptive technology, a range of resource opportunities to put them into play, a skilled workforce (hopefully) and plenty of cash. A very potent force and hopefully one that is recognized with more respect and share support than companies that don't tick all the boxes.

Just the small matter of ticking the last boxes on this sale and clearing the cheques...

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Hello All
great returns for linc energy holders
i am looking further ahead and riding this runaway train.
So we have a company about to cash up , a technology proven to produce liquid gold. locked in intellectual property to protect their rights most likely globally. Whats the future - hmmm do we see this company being as smart as i think they can be by taking their product straight to the market.
This would be achieved by a whole new chain of LINC petrol staions.
benifits
1 no refining requirements
2 small overheads at first with a bowser at the front gate of any GTL plant
3 ability to produce multiple fuel types and gasses
4 technology system can be deployed globally on scales to suit coal reserves/market

these thoughts a far ahead and is one possible direction to take cutting out all the middle men in fuel supply chain and retail market value returns means big$$$$$$$$$$$$$$$

COAL SALES UPDATE
Linc Energy Ltd (ASX: LNC) (OTCQX: LNCGY) has become aware of further media and
market speculation this morning as a consequence of articles published in today’s
Australian, The Age and Sydney Morning Herald newspapers regarding an impending sale
of one of Linc Energy’s non-core assets in Queensland to Adani Enterprises.
As previously announced, Linc Energy remains in detailed negotiations with a number of
parties in relation to the sale of its non-core Queensland coal tenements. We confirm that
Adani Enterprises is one of those parties. These negotiations remain commercial in
confidence and, whilst very well advanced, no concluded contract terms have been agreed
with any party as at the time of this announcement.
Linc Energy will immediately advise the market should this position change.

Based on the above info, and the continued surge in the SP and trading volumes, how come no speeding ticket from the folk from ASX?

Looks like we're hitting some radars on wall street!

http://www.marketwatch.com/story/madison-williams-and-company-announces-principal-american-liaison-sponsorship-of-asx-listed-linc-energy-on-otcqx-international-2010-08-02?reflink=MW_news_stmp


LNCGY up 18% on overnight trade.

dogeatdog said:

I would also be intersted in your perception of Peter Bond. Indian nationals are known for their tough negotiating skills. Do you think PB drives a hard bargain? This is of course related to the folk hopefully purchasing at least one of the coal tenaments.

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My view is that P Bond is holding out for more than $1B for the Galilee tenement and that is why there is no done deal yet. He declined to confirm $1B or more was the sale price yesterday-
"Linc was working on the sale process for Galilee and an agreement had not yet been reached on the contract terms, Mr Bond said, declining to say whether the sale would fetch more than the $1 billion, as reported in newspapers."

http://www.businessspectator.com.au/...ocument&src=mp

If he can extract more than $1B for Galilee the market would view it favourably and he will have demonstrated that he is a tough negotiator. This would be good news for future sales.

Re contract details for Galilee.

Thee are many ways to extract best value from a deal. Up front price can be one such way. Trailing royalties, contra deals, very good terms whatever.

What does surprise me is that given the size of the deal there seems very little speculation in the financial papers on what it could mean for LNC. It seems to be a straight cash in the bank deal with little extra costs. That is some result and yet no analysis of the consequences ?

Let's see the money !!

Trading halt-
"pending announcement regarding the sale of one of its non core coal assets in Qld. Trading halt to remain until the earlier of time of announcement or opening of trading on 5th August"

The question is HOW MUCH ?????

http://www.asx.com.au/asxpdf/20100803/pdf/31rpwy01l5mn6t.pdf

About time!!

(This better not be another one of "we're still having talks" announcments. )

Just read this article

Linc Energy inks $3bn deal with Indias Adan

Figures are in

Linc Energy says inks $3bn deal with India's Adani

Published 4:58 PM, 3 Aug 2010


Australia's Linc Energy has agreed to sell its Galilee coal tenement to India's Adani Enterprises in a deal worth $3 billion, Linc's chief executive has told Reuters on Tuesday.

Under the deal, Linc, whose primary business is underground coal gasification, will receive $500 million in cash and $2 per tonne in royalty for the first 20 years of coal production, Linc's chief executive officer Peter Bond said.

Full story...

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http://www.businessspectator.com.au...l-with-Indias-Adan-7YA2L?OpenDocument&src=hp1

Full story on SMH

Extra details are that the $2 tonne royalty will be indexed (naturally). Will start in 2014 and expect around $100-120 million a year.

Worth about 20-22 c a share earnings on current share numbers.

Good deal. Let's break out the champers !

http://www.smh.com.au/business/linc...le-to-indias-adani-mining-20100803-11572.html

Am I being nit picky here but should the official announcement have been made through the ASX tomorrow morning? Is there a protocol on this ?

Obviously the American markets will start will full knowledge of the deal and we can see what the response there is.

From here I think it has great legs. Sufficient initial cash to give all operations a swift kick remembering there is more to come with the other tenements. An indexed income stream of at least $100m a year from 2014. That is at least 20c a share with no operating costs. How else does one make $100m a year these days ?

Will be interesting to see how the analysts read it.

Yes . Good news at last !!

You were right Basilio ! most of the value as a royalty.

Hopefully the Teresa tenement can be sold soon to provide a booty of over $1B

I am astonished.

Finally we have the number.

3 BILLION FREAKING DOLLARS!

I like it a lot.

It's a company maker.

For a pile of coal LNC didn't want.

LOL

Congratulations PB on a deal well done.

Good fortune and congratulations to all shareholders!

http://www.bseindia.com/xml-data/corpfiling/announcement/Adani_Enterprises_Ltd_030810.pdf

Adani stock exchange announcement

Jonathan111 said:

http://www.bseindia.com/xml-data/corpfiling/announcement/Adani_Enterprises_Ltd_030810.pdf

Adani stock exchange announcement

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Presumably LNC will release the same pre open tomorrow?

Hopefully that will clear the way for a good days trading.

The instos will be taking out a few lines tomorrow on those long term royalty streams.

As it went into a Halt today is is likely to resume at 10?

Some exchanges carry halts too long , im kinda new to ASX (unsure even what system they use)

Will be interesting to see what the SP will open at.
Did the punter's expect $1 Billion now and are going to be disappointed with $500 million cash and $2.5 Billion in royalties over 20 years!
Time will tell!

LINC SELLS GALILEE COAL TENEMENT FOR $3 BILLION

ASX ANNOUNCEMENT
3 August 2010
LINC SELLS GALILEE COAL TENEMENT FOR $3 BILLION
• Linc Energy sells its 100% interest in the Galilee coal tenement (EPC 1690)
to Adani Mining Pty Ltd, a wholly owned subsidiary of Adani Enterprises
Ltd
• Sale price of $500 million in cash up-front, plus a royalty of $2 per tonne
(indexed to CPI) over 20 production years
• Total estimated revenue from the sale of approximately $3 billion over the
life of the royalty
• The sale to Adani represents the largest single investment by an Indian
company into Australia
Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to announce the sale of its noncore
coal tenement in the Galilee Basin, EPC 1690, to Adani Mining Pty Ltd (“Adani”), a
subsidiary of Adani Enterprises Ltd (ADEL:BO), for $500 million in cash and a $2 per tonne
royalty (indexed for C.P.I) for the first twenty years of coal production, creating a total
estimated revenue stream of approximately $3 billion to be paid to Linc Energy.
Adani has already obtained approval from the Foreign Investment Review Board (FIRB) for
the acquisition, as well as indicative approval for the transfer of the Galilee tenement from
the Queensland State Government.
The $500 million upfront payment has today been deposited into escrow and will be
released to Linc Energy immediately upon receipt of the final Galilee tenement transfer
approval from the Queensland State Government.
As previously announced, the Galilee tenement has a resource statement of 7.8 billion
tonnes of coal in accordance with the JORC code (7.3 billion tonnes Inferred resource status
and 500 million tonnes Indicated resource status). The Galilee tenement is capable of
producing up to 60 million tonnes of coal per year once fully operational.
Linc Energy has also secured the exclusive right to negotiate with Adani on the joint
development of any proposed future Underground Coal Gasification (UCG) operations
within the Galilee tenement.
ASX ANNOUNCEMENT / MEDIA RELEASE
CONTINUED…
Page 2 of 3
Linc Energy’s CEO, Mr Peter Bond, said today, "This is an exciting day for Linc Energy and
its shareholders. We have worked tirelessly over many months to maximise the outcome of
this first coal sale for our shareholders”.
“The royalty agreement gives Linc Energy the flexibility to monetise the royalty now or hold it
and receive the full benefit of twenty years of cash flow,” he said.
“This transaction provides shareholders with a Net Present Value (NPV) of approximately
$1.5 billion, with the opportunity to earn over $3 billion in revenue over the life of the royalty.
This is undoubtedly a great result for the Company,” the Linc Energy CEO said.
“The value of the Galilee tenement and the strong interest in the other coal tenements held
by the Company are just indicators of the depth, quality and potential of Linc Energy. This
sale becomes a springboard from which the Company can now aggressively pursue its
commercial aspirations within Australia and other parts of the world,” Bond said.
Peter Bond
Chief Executive Officer

mexican said:

Will be interesting to see what the SP will open at.
Did the punter's expect $1 Billion now and are going to be disappointed with $500 million cash and $2.5 Billion in royalties over 20 years!
Time will tell!

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Traders will be dumping for profit and the instos will be buying.

Purchasing power is the equation.

I'm in no great hurry to reweight out of LNC at this stage.

This story is starting to get really interesting now.