Hmmm... Not good for some.LINC Energy's dream run in 2008 as the...

Hmmm... Not good for some.


LINC Energy's dream run in 2008 as the top-performer on the ASX is starting to crumble as its $1.5 billion deal to sell assets to China stalls.

The gas-to-liquids hopeful was on a winning streak with the market when it announced in September it had sold its Emerald (Teresa) coal exploration permits to Xinwen Mining Group of China for $1.5 billion.

Its shares soared 42 per cent to $4.35 at the time of the announcement, which chief executive Peter Bond described as a "company-maker".

The stock closed at $1.23 yesterday, down 41 per cent for the year. This is a long way from the highs it experienced last year, which pushed its stock up 162.5 per cent to rank it as the best performer in a market.

As resources companies began to fall out of favour on the stock market because tighter credit and plunging commodity prices scared investors, the buzz surrounding the Chinese sale came under scrutiny.

In December, Linc moved to silence rumours about the Chinese sale falling over, confirming it was confident of completing the sale of its coal tenements, but flagged that it also had strong interest from non-Chinese groups for the asset.

Chief executive Peter Bond said yesterday Xinwen no longer had exclusivity over the permits and the company had been in talks with other interested parties, domestic and international.

A few possible expressions of interest were expected in the next couple of weeks, when Mr Bond would again update the market, but he hinted it was unlikely the previous $1.5 billion Chinese offer would be met.

"We want to bring this to a head as quickly as possible," Mr Bond said.

Atom Funds Management fund manager David Shearwood said markets had declined since the Chinese announcement, making it unlikely Linc would get $1.5 billion, although he was confident the permits would be taken by another buyer.

"There are massive power utilities out there trying to get a hold on coal deposits," he said.