Interview on the Australian Energy Report 10th February. Really good reading i suggest people who own LNC sign up and read the full report. (it is a free report)
-snip on coal sale i thought was interesting.
AER: Are you actively involved in seeking buyers for the Emerald Coal asset, and do you think that last years indicative price of around $1.5 billion is still achievable?
PB: Absolutely and its a good question. Its not just Emerald Coal but also Galilee - its a combination of assets and from that perspective yeah the combination of those still attract something in that value range. How you get there whether its all cash or part cash part participation where we still retain a share, theres a couple of ways you can cut that cake but certainly in hard value back to our shareholders I strongly believe that it has a cash value of around that sort of number.
I mean those two assets in Galilee at 7.8 billion tonnes is bigger than Clive Palmers announcement of his combined assets north and south which are two distinct mine areas. We have 1 mine area 7.8 billion tonnes of which over 2 billion tonnes will be open cuttable. Its an outstanding resource. Weve just finished the mine plan on Emerald which is just outside of Emerald which is 15 km literally just out of town and literally our neighbors are Rio Tinton and BHP. We just finished the mine plan through a 3rd party and just completed that work on top of some initial modeling that weve done and its outstanding I mean its come out better than what I even I believed and Im obviously fairly exuberant about it. And Galilee its turning out to be a very good asset and I am more that confident that 1.5 billion is a reasonably attained number.
Now that said, we need to nail it and get the cash in the bank. Now we would have 2 or 3 parties that we are actively negotiating with and we could have probably have come out with a couple of announcements by now but I dont want to come out with any false starts. I want to come out with this as the deal - this is exactly how its structured. Is the money in the bank? This is the deposit. And you dont want to come out with anything too early. And that would be a mistake. We want something ready in a box, ready to go with the cash and everyone knows exactly where we stand.
We are very firm in how we are negotiating the asset that said we have a lot of people interested and the more people look at it the more they realize what a good asset it is.
-PB states there is possibly two announcements which could be made but he did not want to jump the gun.
and
"Weve just finished the mine plan on Emerald which is just outside of Emerald which is 15 km literally just out of town and literally our neighbors are Rio Tinton and BHP. We just finished the mine plan through a 3rd party and just completed that work on top of some initial modeling that weve done and its outstanding I mean its come out better than what I even I believed and Im obviously fairly exuberant about it"
Have this been announced yet?
Thanks
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Interview on the Australian Energy Report 10th February. Really...
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