I was having a quick look over the last few quarterly's matching some numbers and I come across this quote - which got a little lost in the Dec' report because most of the talk was about production exit rates:
"The Clean Energy division entered into its first funded Screening Study during the Quarter with a confidential Asian company assessing coal resources in Mongolia for potential UCG exploitation. This study is continuing and presents a significant opportunity to move into UCG to Energy and subsequently GTL production over the short to medium term. The terms of this arrangement are confidential at this stage and the process remains in the resource assessment phase".
Now, Exxaro 'paid' the Company, and LLC Yakut Minerals is a 'funded' screen. Subtle differences aside these are essentially the same thing - so it might be right to assume that this "confidential" company is well along the way to making a decision about the viability of their project site. Bear in mind that both Exxaro and LLC YM started conversing with Linc in the Dec' reporting period, so although we haven't had any official word about this discussions are at least as old as those that became recent positive progressions towards commercialization.
The most recent quarterly states this:
"Linc Energy hosted in the second Quarter of this year several delegations from Asia to the Chinchilla UCG – GTL demonstration facility." Can we assume these delegations are connected to commercial in confidence negotiations? I'd say so.
LNC Price at posting:
$1.81 Sentiment: None Disclosure: Held
