The market has things topsy turvee methinks re valuing the emerging ucg companies.
Shares on issue >>> CXY with the current cap raising and spp might have something like 800 mill shares compared to CNX having just under 600 mill shares and LNC having something like 500 mill shares ... hardly a great point of difference.
Ucg technology >>> CXY with the western world's most successful, acclaimed and published trial burn a decade ago at Chinchilla by Walker and Blinderman and Mineral F approval just granted for a pre production (yes, pre production, not trial) burn at Kingaroy. CNX have had some success with the recent Bloodwood Crk burn which didnt include the CRIPS manoeuvre which is basic to the CRIPS system and about which little has been announced and published. LNC are already onto their 4th gasifier with next to no explanation, announcements and nothing published.
Commercialisation >>> CXY determindly and confidently ticking boxes to bring a ucg fuelled Stage 1 200MW turbine power station online at Kingaroy within about three yrs, whilst advancing further projects at Wandoan in the Surat basin and in the Gippsland brown coal fields in Victoria and having locked in the ucg potential of Cockatoo Coal's (COK) tenaments in Qld for future expansion. CNX seem to have sidelined for now their ambitious ucg fertiliser plans with Incitec and are now cautiously "feeling their way" with 5MW demo power plant using reciprocating rather than turbine technology. LNC seem to have sidelined for a year now their much publicised ucg to diesel plans in preference to selling surplus coal assets in Qld and buying up ucg coal opportunities in South Australia and in numerous locations overseas and are now considering power stations.
Funding >>> CXY need $0.4-0.5bill to complete Stage 1 and 2 Kingaroy to 400MW capacity. CNX need something like $0.75bill or more for their fertiliser plant. LNC need $1.5bill or more for their 20,000 bpd diesel plant ... none of them have secured anything like the above funding ... so not a lot of difference there.
The market seems to be punishing/ignoring CXY for confidently focussing on commercialisation with proven ucg technology and rewarding CNX and LNC for undertaking trials and investigations as they acquire ucg technology.
Analysts covering this industry should go stand in the corner imo.
Cheers Dex
CXY Price at posting:
8.7¢ Sentiment: Hold Disclosure: Held
