simple valuation, page-8

The SP makes sense in this market even if it isn't logical.

Cash in bank is always discounted ,by the market, in current circumstances without regard to the the ability of management to adjust operations to suit a range of market curcumstances.

In all likeliood LNC will be the junior partner, possibly on license, for the implementation of GTL technology. The other partner will be a major with SIGNIFICANT downstream capacity and infrastructure. So there is no cash risk here.

On the UCG side, all the coal lease purchases @1c per tonne aren't disappearing either. Undoubtedly, exploration units will be formed to secure the totality of these leases as required. If POO dips, invariably so does exploration so an equalibrium is reached. The risk here is not major.

Also management has made hints at diversification. If the world economy remains OK well and good. If not, assets and supporting company resources can be picked up at fire sale prices.

I'm very happy to stay put and would accumulate more LNC if I had spare cash.