I don’t believe the sale of Teresa is the be all and end all to this company. To me, the money provides leverage for LNC to monetise the rest of their assets. I believe LNC will be around for many years after Teresa is sold, producing ultraclean diesel and jet fuel.
In the middle of a worldwide recession, oil is hovering around $50 per barrel. Imagine what the price of oil will be when the world gets moving again. $100 per barrel? $200 per barrel? Those Saudi oil fields are depleting and demand from India and China is increasing. This will be just in time for LNC to be producing the 1 million barrels of ultraclean diesel and jet fuel in SA and shareholders to be collecting huge fully franked dividends. I think the big fund managers realise this and will be investing heavily in LNC as the market starts to turn. LNC is in the ASX 200 and fund managers must buy ASX 200 stocks as part of their portfolio.
LNC Price at posting:
$1.77 Sentiment: Buy Disclosure: Held
