Did a whole bunch of NPV calcs today on LNC, MEE and CXY.
Based on my calcs with 15% discount rate, 15% WACC, 80 $/bbl selling price the LNC should produce diesel at a cost of 26 $US/bbl. So there's a huge margin in this process if it works. This gives NPV of $4 a share.
Of course numbers are dependent on range of assumptions but I think they are reasonable. In line with BBY estimates (who assume a more conservative 50 $/bbl diesel selling price).
So lets hope it works!!!!!!
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