a fire sale price might be OK if the alternative was big dilution or insolvency...selling assets or issuing stock at the bottom of the market cycle when you have limited alternative cashflow options puts the price negotiation advantage well and truly into a potential buyers hands as we saw with Genting. The Adani royalty stream can't come soon enough. I am still not clear on the current status of the "game changing" Galverston bay. Is it going to be making lots of oil/cash? Can the wax issues be dealt with economically? Has Linc given up on that idea?
Linc could shed all miscellaneous assets that are not cashflow positive and retreat to UCG and bide its time for another decade if necessary once adani royalty stream kicks in but the timing for selling not yet operational coal mines and unproven shale tenements is not great at the moment. Umiat is almost there, maybe another couple of years of drilling and some better results from another two or three wells and someone might be tempted to farm in with a few billion required to exploit it commercially if the Alaskan government is willing to put in a road or pipe....A lucky strike of conventional oil at Arckaringa would fit the bill nicely.
LNC Price at posting:
99.5¢ Sentiment: None Disclosure: Not Held
