I guess I must have too much time on my hands as I just had a go at calculating the P&L and Balance sheet for 2013 assuming the following:
Linc did not buy SAPEX 2008 for $104M Linc did not buy Alaska oil field for 50M in 2011 Linc did not buy US Oil fields Linc did not do share buyback Linc did not pay 10 cent dividend in 2010 Linc did not do any additional CR (bonds or shares)
If they had not done any of that then this is where I see things would be now:
2013 Full Year P&L:
Interest from Bonds $48M Less Costs Admin Costs $18M site operating costs $16M Development/Other $5M Finance $0M Profit/(loss) before tax $9M
Balance Sheet 30 Jun 2013 Current Assets $667M Non Current Liabilities $138M Current Liabilities $31M Net Assets $774M
They would have a strong balance sheet (with NO debt) which would help negotiate UCG deals, they would still have Teresa and they would still have the royalty. They would also be cashflow positive ! There would also be less shares 490M compared to the current 518M.
A couple of other interesting things I noticed going through the old announcements was Admin Costs back in 2010 were approx $3.7M per quarter which just goes to show how much all these new projects really cost in extra Admin expenses.
Also noticed that Linc first signed a MOU with Exxaro way back on 25th November 2011, so why is it still taking so long to complete a deal.
As I only did this out of curiosity please don't hammer me too much.
LNC Price at posting:
$1.53 Sentiment: Sell Disclosure: Not Held
