Yes, I covered most of those points in the last week or so. You are largely correct. Teresa is very poorly drilled in comparison to most deposits of this size, which is why it is only at the lowest grade of JORC compliance - inferred resource, for which they only need to drill on a 2km spacing.
Teresa is worth buying if coking coal is $300/ton but not so much if it's $150/ton.
A strip ratio of 8 is still fine for coking coal though. Depending on how deep the weathering profile goes it might still even be profitable at 15:1 strip ratio.
Linc are suggesting that Xinwen is having problems obtaining the funding. I think the imment collapse of the coal price has more to do with them dragging their heels.
LNC Price at posting:
$1.68 Sentiment: LT Buy Disclosure: Held
