challenges facing the sale of teresa, page-11

Comparing Teresa to mines in the Galilee Basin is akin to comparing apples to watermelons in terms of needing infrastructure capital expenditure.

Teresa is approx 30km from existing rail lines whereas proposed mines in the Galilee Basin have to BUILD A 500KM RAIL LINE.

Teresa has all the infrastructure of Emerald about 30 KM away whereas it will have to be built in the Galilee Basin.

Additionally Teresa has approx 200M tonnes of coking coal (out of approx 800M tonnes)where Galilee has no mention of coking coal to my knowledge, and so Teresa coal has a higher value.

So the Teresa tenement is an excellent mine that could be up and running in a short timeframe. This is enhanced by LNC's continuing work on site and with rail/port details.

My view is that potential buyers are trying to screw LNC down on price because of the continuing GFC and PB is holding out for a fair price in a market where the coal price is continuing to rise.