The reason I have not included anything else is because at this...

The reason I have not included anything else is because at this stage they are only MOUs, good intentions but nothing binding. Also, Dr Walker has indicated that the Victorian project has a low likleyhood of success. I have taken my lead from the broker valuation of LNC as it only values Chinchilla alone and not any of their other projects.

The reason I used 20 cents is because I am assuming the sp will be higher than it is now if LNC is successful with their (CTL using UCG) demonstration plant. How much higher I can't tell you, but I have not seen many instances where sophisticated investors will subscribe to a capital raising at a price that exceeds the current sp and they will be doing their own due diligence so they don't pay more than what the company is worth. Remember they are sophisticated and want to make a big profit. I have also used the figures given in their presentation last year, however I don't think this takes into account the need to purchase carbon permits under the new ETS or Carbon Pollution Reduction Scheme as it is now called. For arguments sake, lets keep the original revenue figure and try 40 cents as a sp for the capital raising. That would add another 113 million shares to the register to give a total of 860,368,417 shares. In the event that they are successful building a 400 MW CCGT power station using UCG, that would increase the value of the shares by 2 cents to 20 cents per share X number of years from now. However, after Direct Invest has done their Due Diligence I would be very surprised they would subsribe to a price of 40 cents when the project may only be worth 20 cents.

HMM,

I don’t value LNC. Professional brokers value LNC. CXY does not own the UCG IP, Ergo Exergy does. LNC owns its UCG IP through its controlling stake in Yerostigaz.
I would have thought that the trial burn would be required to satisfy the environmental authorities like the EPA and the other 26 goverment agenices these companies have to deal with.

GLXguy,

I don’t hate CXY, I have done a rudimentary fundamental analysis and thought I would share it with Suanna. If a professional broker were to present something different I would gladly stand corrected.

Suanna,

I am a Mechanical Engineer not an Accountant.