Linc Energy is looking at other assets, believed to include ASX-listed Cuesta Coal, to consolidate with Queensland coalmine Blair Athol which it has acquired from Rio Tinto.
Rio confirmed the sale of its interests in Blair Athol to Linc Energy subsidiary, New Emerald Coal, on Thursday.
The global resources company said that the transaction with New Emerald Coal is expected to be completed in six months.
Cuesta’s flagship project is Moorlands, which has 150 tonnes of thermal coal and is the consolidation of two deposits.
Linc and Cuesta are not strangers to each other. Cuesta’s chairman, Brian Johnson, used to be the chairman of Linc Energy. Pat Elliott, a non-executive director of Cuesta, sold an oil and gas company called Sapex to Linc in 2008 for $104 million....
....... This is going to be a spectacular implosion or a breathtaking act of foresight...either way, not a stock for a faint heart . And then he complains about volatility ..!
LNC Price at posting:
$1.24 Sentiment: LT Buy Disclosure: Held
