In the short term, I believe that the sp will continue to rise as Peter Bond continues his US roadshows. The next big presentation that I know of will be Cleantech on 13th of May that provides for meetings with institutional investors:
I think that the first production of diesel will be followed by a media frenzy as the PM or someone else officially opens the plant leading to a surge in demand for what little shares there are on offer and causing the sp to go ballistic. Not long to go now for that first major milestone.
Long term, the broker rates them at up to $9.45 for Chinchilla alone with a WACC of 10%, oil at $50 per barrel and a cap raising at $2 per share for the production facility. However, I don’t think they will have to raise that much. I believe that the Federal Governement will provide a huge grant from the $1.5 Billion clean coal fund. Afterall, this is the first time this has been done in the world and an Australian company is leading the industry. Goverments like Australian companies leading the world and like to be seen supporting them. In addition, whether you believe in peak oil or not, one thing is for sure. Oil is very expensive and is contributing to inflation and financial pressure on working families. The Government will feel obliged to help get the production facility built quickly.
A sp of $9.45 for Chinchilla alone. How much when you take into account oil at over $100 per barrel, the JV with Maurebeni in Vietnam, India and all the other 6868 square km of tenements?
LNC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
