Yes and don't forget those royalties! For 20 years.
Linc could monetise the royalties at anytime if it needed/wanted hundreds of millions in a hurry. Companies like Franco Nevada and Anglo Pacific may well be very interested especially Anglo Pacific. Good read below.
Take note of where Anglo Pacific has royalty income coming from.
"Further drilling is planned for later this year, with particular emphasis on the areas to the north-east of the block adjacent to BHP's Crinum mine and Rio Tinto's Kestrel extended coal areas with the aim of developing more coal at depth."
"One of Queensland's new generation of underground mines, Crinum produced its first longwall coal in June 1997. Located 62km north east of the regional centre of Emerald, it was planned as replacement capacity for the Gregory opencast operation. Crinum's installed capacity is 4.25Mt/y of metallurgical coal, with the Gregory operation retaining some 1.25Mt/y of output.
Crinum is operated by the Gregory Joint Venture. Originally comprising BHP, QCT Resources and Mitsubishi Development, this is now a 50:50 venture between BHP Billiton and Mitsubishi. Capital investment totalled over A$350m, including over A$30m for the longwall. The mine employs around 200 people."
Didn't PB say in the video above "you would be surprised who is interested in Emerald"?
Could be a long shot? I'm probably reading way too much into it. Maybe it is Mitsu? BMA whatever?
:) Nic
LNC Price at posting:
$2.67 Sentiment: LT Buy Disclosure: Held
