Ann: LINC ENERGY TAKES STRATEGIC STAKE IN FIRESTO, page-8

re: Ann: FSE: LINC ENERGY TAKES STRATEGIC STA... The market seldom gets it wrong on valuations. The market suggest that a market cap of $1 billion is too high for the risk profile. Notice that Austock recycled their previous Broker update that was doing the rounds 6 months ago. Lnc immediately attached it to the website hoping to arrest the sp decline. Not sure how anyone with a brain can attribute a valuation of appox 500 M to the Adani royalty, 1) Adani has pushed the project out from 2014 to now 2015 2)Adani may not even start the project before 2020 3) who would buy the royalty stream for 500 m with that sort of uncertaintly? 4) imagine trying to sell a rental royalty on house that has not been built yet with no definitive start date.Sure the adani royalty is worth something but the reality remains that the unknowns made a transactional price a long way short of a valuation price. 5) The whole coal world now knows that LNC is a forced seller of Teressa and the opportunity of achieving windfall gain has now past. Lnc recent and continued acquisitions together with exploration commitments has depleted their cash reserves. 6) The danger to LNC share price is PB reluctance to meet the market on Teressa It's fair to assume that bidders are at the 300 m mark and LNC asking price is in the 400 m 7) The market is still pricing in an announcement of a sale by mid October 8)If there is no sale by then LNC shareholders may well be facing a rights issue if LNC wants to continue it ambitious exploration program in Alaska and the like. 9)Markets are particularly unforgiving at the moment.