equity raising or not, page-55

Danhold,

I share your concern but I think a CR would make more sense if their cash outgoings were largely fixed which they are not and if they didn't have other more attractive and viable options.

The following is all my own opinion and yes I'm a shareholder.

Linc could if necessary further reduce costs by dramatically reducing exploration and development spending. Obviously, as shareholders, we would prefer they don't do this as long as that spend is adding, or trying to add value. For instance, they could freeze works on Teresa, in fact they could freeze or dramatically scale back work on any non-revenue items. Lets hope it doesn't come to that or at least nothing in addition to the steps already taken which we'll see the benefit of in the Sep quarter.

You must admit that Linc has several more attractive options to manage cash, if necessary, in the next 18 months.

First... continue to grow the cash generated from their oil operations. The results to date have been impressive although their ongoing targets also show high levels of confidence ;)... so assuming their oil growth slows... they could:

1. Use further debt. That is, use their existing facility as required and I'm sure Fortress will happilly do some more business with appropriate asset backing. (or getting additional oil production related debt... I'm sure they'll use this... I would).
2. The next obvious is asset sales, probably not Teresa but certainly some of their other non-core assets. (Teresa seems to have a team in place to add real value... which to me as a shareholder seems sensible... for now).
3. Monetising all or some of the Adani Royalty. Surely this would appeal to several funds. Would love to see more detail on this, or an independent valuation (Hint!). But maybe this is linked to the Fortress deal.
4. $ from the China deal late in the year.

Anyway, you may prove to be correct, but I very much doubt it.

I've done my own detailed numbers and I was comfortable with the June cashflow. The commentary is also more reasonable and I think this shows the new level of leadership in the business.

Regardless, in my view, they are certainly fine for the next 6 months and I'm sure they'll continue to reassess options as the months tick by. Managing market expectations should be very high on their agenda... lets hope so.

Fun Times.