LNC 0.00% 99.5¢ linc energy ltd

linc guidance appendix 5 b, page-34

  1. 7,573 Posts.
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    Hi Lighthouse

    The raw numbers are not the whole picture. The business has grown a lot bigger over the 18 months. The cash burn is not just 'expenses'.

    The Gulf oil asset has more than doubled in value, Umiat has been given some ball park value, the Arckaringa Basin has had some money spent on it and last, but definitely not least, the CTL pilot in Chinchilla has produced further advances [without which I doubt Linc would now be in the position to attempt commercialization]. Equipment has been bought, drilling has been done etc. etc.

    Now if you were able to show me that the expenses occurred but the company had stood still for 18 months I would sell out now while I could still salvage some of my money.

    In fact, the expenses have been reigned in. Most of the cashburn is investment ... admittedly $500 mill that was in the bank and now $250 mill on credit. But that is what is required to advance this business. If Linc does not aggressively invest in itself at this time, then its growth will be painfully slow.

    The rhetoric has to be realized, I agree. But I cannot see how it could be realized without Linc putting money where its mouth is.

 
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