coal to liquid plays in afr, page-24

BLK midnight pegged WES's tenements and it was heading for an ugly brawl till they reached a compromise. I agree lignite is the magnetite of the coal family and I agree a CTL will cost a horrendous amount of money so we need huge dilution or a big brother....but for the current market cap it's worth a bet.

Just the way some magnetite projects will get up, so too will some lignite resources get exploited..unlike iron ore there isn't ample supply of oil which can come online down the track, the economics should be more robust in the long term for oil / coal (iron ore outlook beyond medium term is more doubtful imo with so many big projects coming online, therefore in IO I prefer to stick to high grade haematite, not magnetite).

Obviously better quality coal is the safer bet but we're talking about value here, it's a large JORC'ed resource and a rock bottom market cap.

They don't have $40m in the bank that was for the failed Russian auction. But I do believe these guys are smart enough to unlock some of the value in the lignite.

CTL is a long shot the capital costs are huge. But....the world is facing an energy crisis and the economics are moving in BLK's favour.