A positive decision from the Qld Govt would take all of the worry out of this stock. No sign yet that one is on its way however.
Comparing today's ann from Linc to the 2 deals CNX have is kind of interesting.
LNC appear to have written a larger deal but all in all it establishes the ballpark numbers. CNX [with its SP @~3 cents] has written quite comparable deals to the one from LNC [SP @~1.60].
Realistically it is probably 12+ months before either Co is 'pumping gas' but, when they are, potential customers will have live projects to assess and fact check. [The first deal LNC ann'd was a monster, with Golden Concord, but over time it came to nothing.]
I am keen on UCG and initially I chose LNC as the leading CO in the field. Although technically that remains the case [IMO] ..... there is a world of difference between the 2 Co's in the way they handle money. In the absence of a useful decision from Qld it is going to boil down to a drawn out waiting game. Reliable, recurring revenue from UCG is possibly 24 months away for both Co's. CNX can go the distance because they have a much, much smaller cashburn. I am seriously concerned that LNC is financially over-extended .... which is why I have jumped over to CNX.
If the Qld Govt allows commercial scale UCG that will give CNX access to some revenue and enough cushion to comfortably make it through, where-as LNC's cashburn is so high the revenue increase would be proportionally less useful.
CNX Price at posting:
2.9¢ Sentiment: LT Buy Disclosure: Held
