A new coal mine will take a long time to deliver a return for the new owners, many, many years in fact. There is a shortage of rail and port capacity and a new entrant must take their turn in line for additional rail capacity.I can't see a speedy sale of the coal assets in the short term. Hancock Coal are heavily involved in their Alpha Coal Feasibility project in the Galilee Basin and Rio in the Surat Basin Rail project and their proposed Wandoan coal mine, so I can't see either of them being interested. BHP, Macarthur Coal, Felix all seem to have their hands full! I see the real upside in the SP being delived from their core business.
LNC Price at posting:
$1.60 Sentiment: LT Buy Disclosure: Held
