I agree with you MrMc in that the Capital Raising is not needed for day to day operations. However, I do think it will be more substancial than $30 M.
I interpret "material Capital Raising" as a minimum 10% of issued capital so that would be a minimum of 50M shares. As to the issue price, I disagree with Big Al and think it will be more likely in the $3.50 - $4.00 range. PB never sells the Company short.
I consider the CR is for GTL purposes. MrMc has previously drawn attention to Oxford Catalysts stating that Companies using their technology CAN'T have debt and with OCG releasing their report last night (refer MrMc's post today), the time is ripe to proceed and cease the secrecy of their trial OCG 25bopd GTL plant. The debt for the US Oil business is quaranteed to the US company and so will not be a problem.
I'm more inclined to think that it will be around 100M shares issued. This would raise $350M to $400M which would be needed for a 2000 BOPD plant. If LNC can show detailed costings and revenues for such a plant, they should have no difficulty in getting $3.50 to $4.00 for 100M shares from instos, which may include the Russian, BP, and Marubeni (all who have relationships with LNC).
Given the 18 month lead times for ordering GTL plants of this size, it could well be for RA's proposed eastern Russian mine or more likely for a Chinchilla GTL plant if the Qld Govt approve commercial UCG operations in the very NEAR future.
Very exciting times !!!!
LNC Price at posting:
$2.67 Sentiment: LT Buy Disclosure: Held
