A lot of projects on the go with Lnc & in turn activity to fund. Debt markets tight & selective, overall existing income streams not growing as hoped & further spend / time expected for new income streams to come on line. As cash balance reduces with time , one of following circuit breakers needed fairly soon IMO:-
1.Sell coal assets @ low end of market cycle
2.Review & Sell other non core assets
3.Review & prioritise identified project developments- defer higher spend ,longer term projects
2.Source debt (depending on rate & serviceability) and / or equity (share dilution)
3.Farm in one or more partners for selected projects (funding & skills).
4.Oil project output increase
5.M&A .... just to mention a few.
Although Lnc is asset rich with potential , its current cash generation does not support its activity schedule & weakens its go in position for future negotiation. It now also faces doing deals at low end of market cycle.
Hope something happens soon.
LNC Price at posting:
99.5¢ Sentiment: None Disclosure: Held