LNC - Linc Energy

[basilio]

Some good solid UPWARD movement on LNC this morning. Nice to see after the butchery of the past week. Currently 9 cents up to $1.64. (Of course this could just put the mozz on them) Surely the current value of the shares has to be flashing neon.

And some stage soon there should be conversations about the next tranche of coal sales. In the current economic climate the sooner the better.

 

[dogeatdog]

Some good solid UPWARD movement on LNC this morning. Nice to see after the butchery of the past week. Currently 9 cents up to $1.64. (Of course this could just put the mozz on them) Surely the current value of the shares has to be flashing neon.

I'm sure most of us were expecting an upward movement following semi positive news out of the US at close on Friday.
If there is a conclusive political outcome down under, sooner rather than later, then surely the lnc sp will rise further.
As many have commented on this thread recently, Linc needs to prove the technology they have been developing, works on a commercial scale.
Get a fully functional module up and running. Either with a partner, "Vale" etc, or go it alone.
Unload the non core assets, for a good price, and hopefully in cash.

Fingers crossed for a positive weeks trading :walker:
Lnc holder.

 

[basilio]

Some interesting news on LNC, B9 coal and the commercialisation of the AFC fuel cell over the weekend.

Apparently B9 coal is developing a consortium in England to use UCG to provide the fuel for a AFC fuel cell 500 megawatt power station. LNC is part of the consortium. LNC would certainly want to prove the technology in South Australia as quickly as possible.

Perhaps this is behind some of the keener interest in LNC today ?

Teesside bids to be an energy pioneer

Aug 26 2010 by Kelley Price, Evening Gazette

A WORLD-FIRST coal project announced today could make Teesside a clean energy front runner - and revolutionise the UK’s energy security.

B9 Coal at Wilton will combine underground coal gasification (UCG) with leading-edge fuel cell technology to power a massive 500 megawatt station.

.... UCG also produces pure hydrogen, which can be passed through a fuel cell, converting to electricity at 60% efficiency, with a projected cost per kilowatt hour as low as 4p.

B9 Coal is planning to submit its project for a Government CCS UK demonstration competition, which will lever billions of pounds of funding for four schemes.

B9 Coal is bringing together a major consortium, including Australian-based Linc Energy- the world’s largest UCG specialist, WSP Group, AFC Energy and a major industrial gas supplier.

http://www.nebusiness.co.uk/busines...-bids-to-be-an-energy-pioneer-51140-27141987/

 

[kash]

ASX ANNOUNCEMENT

31 August 2010

LINC DECLARES DIVIDEND OF $0.10 PER SHARE

Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to advise their intention to declare
a fully franked dividend of $0.10 cents per share on 8 October 2010.

The Company’s ability to pay the dividend arises from the recent sale of its 100% interest in
the Galilee coal tenement (EPC 1690).

It is the Directors opinion that the Company meets the tests of Section 254T of the
Corporations Act and that the payment is fair and reasonable.

The Board has moved to declare a dividend at this time to recognise both the loyalty of the
Company’s shareholders and the confidence of the Board in the Linc Energy’s future
business plan. It remains the philosophy of the Board to continue to share significant
financial milestones with our shareholders as appropriate going forward.

The dates for the final dividend are:

Ex-Dividend date 6 September 2010

Record date 10 September 2010

Payment date 8 October 2010

Now they pay divvies

 

[nikemi]

Wouldn't like to speculate, but logic tells me that if LNC is paying dividend, they probably have another sale inevitably coming, otherwise they would keep the money for development?!

ASX ANNOUNCEMENT

31 August 2010

LINC DECLARES DIVIDEND OF $0.10 PER SHARE

Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to advise their intention to declare
a fully franked dividend of $0.10 cents per share on 8 October 2010.

The Company’s ability to pay the dividend arises from the recent sale of its 100% interest in
the Galilee coal tenement (EPC 1690).

It is the Directors opinion that the Company meets the tests of Section 254T of the
Corporations Act and that the payment is fair and reasonable.

The Board has moved to declare a dividend at this time to recognise both the loyalty of the
Company’s shareholders and the confidence of the Board in the Linc Energy’s future
business plan. It remains the philosophy of the Board to continue to share significant
financial milestones with our shareholders as appropriate going forward.

The dates for the final dividend are:

Ex-Dividend date 6 September 2010

Record date 10 September 2010

Payment date 8 October 2010

Now they pay divvies

 

[snowking]

My initial thought when I read the announcement was I'd like to see Linc hold on to the money and use it for further development. But your comment about another sale pending makes sense, hopefully you're on the money.

 

[noie]

Wouldn't like to speculate, but logic tells me that if LNC is paying dividend, they probably have another sale inevitably coming, otherwise they would keep the money for development?!

Yeah, Similar to another post just recently on SOO, a divy now tells us they are not so worried about their cash flow.. and they know they cant give us a better return then a small div right now.

Their plan requires a lot of cash for development, can they do it on what is left after this Payout?

 

[basilio]

Dividend payout is $50 m. I think this is an astute exercise. Good politics in terms of supporting the staff who have shares and long term shareholders who are probably still underwater if they bought anytime since Sept 2008.

Doesn't hurt Bondy that much either does it ?

It should also make potential investors sit up and take notice of the company and hopefully strengthen the SP. Again good value for all shareholders.

I agree that declaring the dividend suggests the next tranche of coal sales is very likely. It probably also suggests that the company is taking the future dividends from the Gailee sale very seriously.
______________________________________________

I think that LNC is absurdly underpriced at the moment. It will be interesting to see if this announcement starts some fundamental reappraisal of it's value and a subsequent increase in share value. Ask yourself which other mining or industrial companies are sitting on 6% fully franked dividends?

Great day .

 

[Mickel]

Dividend payout is $50 m. I think this is an astute exercise. Good politics in terms of supporting the staff who have shares and long term shareholders who are probably still underwater if they bought anytime since Sept 2008.

Doesn't hurt Bondy that much either does it ?

It should also make potential investors sit up and take notice of the company and hopefully strengthen the SP. Again good value for all shareholders.

I agree that declaring the dividend suggests the next tranche of coal sales is very likely. It probably also suggests that the company is taking the future dividends from the Gailee sale very seriously.
______________________________________________

I think that LNC is absurdly underpriced at the moment. It will be interesting to see if this announcement starts some fundamental reappraisal of it's value and a subsequent increase in share value. Ask yourself which other mining or industrial companies are sitting on 6% fully franked dividends?

Great day .

Agree 100% on all points. Great day indeed!! The last sentence in the announcement- "It remains the philosophy of the Board to continue to share significant financial milestones with our shareholders as appropriate going forward." suggests that it isn't a one off dividend and therefore SHOULD demand a re-rating.


A reminder to anyone who hasn't completed their TFN/ABN and direct credit details, you can download the forms from Link Market Services website-
http://www.linkmarketservices.com.au/public/forms/change-details.html

 

[basilio]

Good story in The Australian on Peter Bond a few weeks back. Shed some light on how he got into LNC in the first place and the divergence of fortunes between himself and Len Walker (ex LNC director current CEO of Couger Energy (cough, cough..)

http://www.theaustralian.com.au/bus.../story-e6frg8zx-1225902296719?from=public_rss

 

[Mickel]

The news release on LNC website advising the 10c dividend states -
"The Linc CEO is putting the finishing touches on the company’s upcoming overseas road show with a focus on Linc’s coal opportunities and its range of exciting value-added opportunities as well as a new cornerstone business for UCG, which will be revealed on the road show.
“The key focus of the company will still centre on the pursuit of our commercial goals of underground coal gasification (UCG) to gas to liquids (GTL) and UCG to Power, in a focused manner from a unique and proven technical base, with projects already underway within Australia and in other parts of the world,” Mr Bond said."

Very interesting. Can't wait to find out ! Any ideas ???

http://www.lincenergy.com.au/pdf/release-27.pdf

 

[basilio]

The news release on LNC website advising the 10c dividend states -
"The Linc CEO is putting the finishing touches on the company’s upcoming overseas road show with a focus on Linc’s coal opportunities and its range of exciting value-added opportunities as well as a new cornerstone business for UCG, which will be revealed on the road show.
“The key focus of the company will still centre on the pursuit of our commercial goals of underground coal gasification (UCG) to gas to liquids (GTL) and UCG to Power, in a focused manner from a unique and proven technical base, with projects already underway within Australia and in other parts of the world,” Mr Bond said."

Very interesting. Can't wait to find out ! Any ideas ???

http://www.lincenergy.com.au/pdf/release-27.pdf

Maybe this ? There was an announcement late last week from AFC of a joint venture which include LNC.

Some interesting news on LNC, B9 coal and the commercialisation of the AFC fuel cell over the weekend.

Apparently B9 coal is developing a consortium in England to use UCG to provide the fuel for a AFC fuel cell 500 megawatt power station. LNC is part of the consortium. LNC would certainly want to prove the technology in South Australia as quickly as possible.

 

[Mickel]

Maybe this ? There was an announcement late last week from AFC of a joint venture which include LNC.

Perhaps, Basilio. However I read it as something apart from the key focus of Power Generation and GTL.
Whatever it is I hope it grabs the market's attention and translates to a price surge.

 

[ColB]

Originally Posted by [Mickel

"Perhaps, Basilio. However I read it as something apart from the key focus of Power Generation and GTL.

Whatever it is I hope it grabs the market's attention and translates to a price surge."

Maybe it's the diversification of their current plans to drill for natural gas in Alaska! Let's hope if they get their permit they make a huge find.

See: [http://www.petroleumnews.com/pntruncate/346083372.shtml]

 

[Mickel]

Maybe it's the diversification of their current plans to drill for natural gas in Alaska! Let's hope if they get their permit they make a huge find.

See: [http://www.petroleumnews.com/pntruncate/346083372.shtml]

Couldn't access your reference, Col. But you could well be right and a huge find should cause the S/P to surge.

Market is up .6% at 2.30 pm but LNC is up 4.73% ($0.08) to $1.77. Looking hopeful, at least to the ex div date.

 

[basilio]

LNC has had to put out a notice clarifying the 10c a share dividend as a "special dividend" . Obviously they want to pay a few more "special dividends" but I think because the money is not coming from day to day operations but sales of mines it is being seen as a one off item by the ASX and they wanted that noted.

 

[Mickel]

LNC hasn't been able to break out over $1.80 for the last month.

Perhaps everyone is waiting for "new information" on Bondy's road show as foreshadowed with LNC's news release on their website regarding the 10c dividend.

Any T/A with a view ?

 

[basilio]

Re: LNC - Linc Energy
LNC hasn't been able to break out over $1.80 for the last month.

Perhaps everyone is waiting for "new information" on Bondy's road show as foreshadowed with LNC's news release on their website regarding the 10c dividend.

Any T/A with a view ? Mickel

Well it has recovered from $1.50 a share a few weeks ago. The 10c/share dividend announcement saw the SPP spike to $1.80 + then return to $1.69 and it has now returned to $1.80. Pretty handy result in less than 2 weeks.

Perhaps it will be a case of steady small increments as it is revalued by analysts. At some stage in the next 2 months the question of the next coal sale should arise and that would have to give the SP a shove.

 

[dogeatdog]

LNC hasn't been able to break out over $1.80 for the last month.

Perhaps everyone is waiting for "new information" on Bondy's road show as foreshadowed with LNC's news release on their website regarding the 10c dividend.

Any T/A with a view ?

I'm no technical analyst, but I agree with Basilio, regarding the recent sp.

Now that the election is over, investment deals may start happening, hopefully in Lincs favour.

Still plenty of general uncertainty in the markets, so I guess we need to hope
PB can orchestrate further coal tenement sales, find gas in Alaska, and get the GTL plant up and running a.s.a.p :sleeping:

I continue to hold LNC

 

[luckypaul]

Maybe this is the reason for Linc not announcing the expected coal sales yet:-

09/14/2010 06:23:32 - =FOCUSolitical Uncertainty Continues To Weigh On Australian Takeovers

By David Fickling
Of DOW JONES NEWSWIRES
SYDNEY (Dow Jones)--With a new government now in place, Australia's foreign investment regulator is expected to see a surge in applications as the backlog caused by months of political uncertainty starts moving through the system.

But lack of clarity on the minority government's views on foreign investment and its plans to tax the mining sector with its booming profits that are driving a recent wave of foreign acquisitions, will continue to loom over the system, according to lawyers and industry experts familiar with the process.

"There's a lot of pent-up resource sector activity which has been held (back) by the resources tax and the election," said John Elliott, a partner at Clayton Utz in Sydney.

Any logjam at the Foreign Investment Review Board, the government body that evaluates major foreign takeovers, risks delaying billions of dollars in deals.

In a sign that the stalled process may be breathing again, a A$2.7 billion offer from private equity groups TPG and the Carlyle Group for Australia's Healthscope Ltd. (HSP.AU) finally received FIRB approval Tuesday, just days ahead of a meeting expected to finalise the deal next week. The application has been with the Board for nearly two months.

But Banpu PCL's (BANPU.TH) A$2.5 billion bid for Centennial Coal Co. Ltd. (CEY.AU) has been extended twice from an original closing date of August 23 as the company awaits a decision by the new government.

Wilmar International Ltd.'s (F34.SG) A$1.75 billion purchase of CSR Ltd.'s (CSR.AU) sugar business, announced in early July and originally scheduled for completion in early October, had its FIRB approval period extended to November 9, after the national election was announced on July 17.

Several factors have been contributing to the delays. After loosing a simple majority in parliament, Labor Prime Minister Julia Gillard took weeks to cobble together a minority government with the support of three independents and a fourth legislator representing the Greens.

That has caused an unusually long hiatus on larger FIRB applications, which are typically put on hold during election periods as final approvals for prominent deals need to come from the Treasurer.

Nearly three months of uncertainty over the country's mining tax regime, as the government first introduced and then revised a plan to impose additional taxes on resource industry profits, is also likely to have prompted companies to delay submitting FIRB applications, lawyers said.

Lawyers familiar with the FIRB process said the system has been operating smoothly so far but may slow after the new government is sworn in Tuesday.

"We understand there isn't much of a logjam yet but that may well be because parties haven't been lodging applications," said Justin Shmith, a partner at Blake Dawson. "With that caretaker period ending, we may get a backlog."

But none of that has kept potential suitors away, as Australia's outsized position in the supply of key commodities such as iron ore, coal, zinc, nickel and gold, has made its mining companies prime acquisition targets in recent years.

Asian companies, such as Thailand's Banpu and India's Adani Power Ltd. (533096.BY), whose A$3 billion acquisition of Linc Energy Ltd.'s (LNC.AU) coal mines has already received FIRB approval, have vied to lock in future supply through acquiring or investing in Australian resources companies.

Most lawyers expect to see a sarp increase in takeover activity this year after M&A activity slowed in 2009 amid the global financial crisis.

Mining applications to FIRB reached 156 last year-down from 168 in 2008 but above 2007's 141-but the size of deals has risen consistently to an average A$451.4 million in 2009, from A$375.5 million in 2008 and A$137.8 million in 2007, according to FIRB's annual reports.

This M&A boom has not come without hiccups, particularly regarding investments by Chinese state-owned companies. Following stern resistance from some opposition senators, state-owned Aluminum Corp. of China Ltd. (ACH) last June abandoned a A$25 billion attempt to raise its 9% stake in Rio Tinto Ltd. (RIO.AU) to 18%.

FIRB's only significant criterion is safeguarding Australia's ill-defined "national interest", and the need for final approval from the Treasurer may further complicate matters as the country experiments with its first minority government in seven decades.

The views of the four non-Labor MPs on foreign investment and the extent of their influence on the government are unclear, said Elliot, adding that deals in more controversial commodities such as uranium, may have a tougher time.

"The government is already treading a fine line between welcoming Chinese investment and demanding proper commercial running of our businesses," Elliott said. "I can't see them ignoring the fact that they're in government with the help of these four" MPs.

-By David Fickling, Dow Jones Newswires; +61 2 8272 4689; david.fickling@dowjones.com

Although having said that another news release raises some possibilities:-

09/15/2010 02:35:05 - MARKET TALK: India Companies Eye Aussie Coal Asset -Report

0035 GMT [Dow Jones] Australian coal sector on notice after India's Business Times report, citing unnamed sources, says Reliance Power (532939.BY), Adani Power (533096.BY) and GMR are among 31 companies interested in a coal mine asset in Australia valued at almost US$1 billion. Report says sources reckon mine "may have reserves of 280-300 million metric tons" and "comes with an operating power plant of 500 megawatts". Bids are due Sept. 20 and there are rival bidders from Japanese and Chinese companies, report says. Linc Energy (LNC.AU) recently sold a coal property to Adani and is trying to sell two more, but they are both undeveloped, with no operating power plant. (Ross.Kelly@dowjones.com)

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I still HOLD LNC, waiting patiently for the pubic to notice how undervalued this stock is.