in love, page-8

Hi daly,

I'm not going to give a price prediction but I will try to outline the value of Linc as I see it (very basic).

Assets:

$400m in the bank
$600m minimum coming from sale of Teresa (my thoughts)

$100m investment in Sapex for Arckaringa PEL's (historical cost)
$17m investment in AFC (historical cost $4.77m)
$200m value on Pentland deposit (my recollection)
$???m value on other Australian coal EPC's/ML's/MLA's
$???m value on coal, gas, oil leases in United States
$15m investment in further PDR Basin oil fields (Rancher) at a liquidation sale price.

So without going into any further depth one can see that LNC is currently trading well below it's NTA backing and above doesn't even include a value on their UCG assets, intangibles, technologies etc. Of course these are not tangible so to speak.

Earnings:

Furthermore, future earnings have been secured by way of royalties for Galilee/Carmichael. Details already known. I would hope that a Teresa sale will include royalties on top of my anticipated $600m in cash. Nevertheless, income is secured from around 2014 onwards and increasing each year as coal production by the purchaser(s) increases

Linc has an MOU with BP to take at least 5 million barrels a year of synthetic diesel fuel. I'm not sure but would the margin be say at least $30? Total cost to BP would be then around $60 per barrel? So we have possible future profit (not revenue) just from this source of $150m

Possible income streams to come from United States from coal, gas and oil.

Drilling programs underway in the Arckaringa Basin where it's a known fact that there is coal, oil and gas. One of only a few under explored Basins in Australia. Oil could be the big surprise/prize here.

Enough said. It can be seen that there is no value currently attached to the future income stream in LNC's share price. Brokers, sponsoring brokers can say what they like $3.50, $5.00 and even $6.00. The facts of the matter is that at today's price you are buying a bargain and I haven't really touched on the UCG/GTL plans worldwide.

2011 here we come. It's not going to be in a straight line either, especially in the short term. Will probably go down hard from here but she will come back.

C'mon Insto's, Funds, LIC's, can't you see the current and future value? Come and join me for a ride into the future. LOL

;)
Nic