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Linc Energy (ASX:LNC)

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Linc Energy (ASX:LNC) is due to produce the first diesel from its trial UCG (Underground Coal Gasification) to GTL (Gas To Liquids) plant in Queensland in about a week's time.


This is the first attempt to commercialise CTL (Coal To Liquids) technologies in the Western world outside South Africa, and it seems to be working. Linc now has a market cap well in excess of A$1bn, and has had no problems getting substantial funding. The projected production cost for a barrel of diesel is $35.




I think this is just the first of many many iniatives we will see going forward around the world. There a bunch of other ASX stocks following in the slipstream, most notable of which are Carbon Energy (ASX:CNX) and Cougar Energy (ASX:CXY). Then, if you want London exposure there are two companies, both with projects in Australia. Altona Resources (LSE:ANR) and Spitfire Oil (LSE:SRO).

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  • 2 weeks later...

On Friday Linc announced the sale of a "surplus" metallurgical coal deposit to the Chinese for A$1.5bn.


This will enable the company to fund all its activities for the forseeable future including the development of the initial 20,000 bpd Chinchilla UCG->GTL plant.




Updated broker research: http://www.lincenergy.com.au/pdf/analyst-17.pdf



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