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LNC, LINC ENERGY LTD
nipper
post Posted: Apr 15 2016, 01:02 PM
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QUOTE
.. unconventional gas firm Linc Energy has gone into voluntary administration, two weeks after the Brisbane-based company entered a trading halt amid revelations that a significant portion of former boss Peter Bond's stake in the company was used as collateral for loans.

Linc — which is listed on the Singapore Exchange — has seen its one-time value of $2 billion whittled down to little more than $10 million as it attempts to commercialise underground coal gasification technology amid ongoing oil price weakness.

Today, the company announced it had entered voluntary administration, appointing Stephen Longley, Grant Sparks and Martin Ford of Melbourne-based PPB Advisory.

"The administrators are working with the company's management team to fully understand the options available to the company, which may potentially include a restructure of the company at an appropriate time," Linc said.

Ahead of last month's suspension, the firm had raised $S6.4m ($6m) via a share placement to two hedge funds BFAM and Taconic, which have since reduced their stake.

Reports last month said the vast majority of Mr Bond's loans were made by the controversial securities loan firm, Equities First Holdings, with the notes due this month. The reports said some Linc insiders and several investors were convinced shares used as collateral by Mr Bond were loaned by EFH to short-sellers.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
diana
post Posted: Feb 25 2016, 10:20 AM
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In Reply To: nipper's post @ Feb 24 2016, 03:36 PM

Hard to believe that LINC is on the brink!

So much promise early on and Peter Bond was looking invincible ... it's almost like having a favourite uncle overwhelmed by the "demon drink". Such promise in everything he was doing has turned into a nightmare.

I left LNC, with some reluctance, when the move to Singapore was first mooted. Mostly because I prefer to focus on one market, since I am just a dabbler.

Very sad.

R/Di






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"Adversity does not build character; adversity reveals character."
Sandy Dahl
 
early birds
post Posted: Feb 24 2016, 06:16 PM
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In Reply To: nipper's post @ Feb 24 2016, 03:36 PM

and when he was at school, the dog ate his homework
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lmaosmiley.gif nipper, seems you are on a mood to crack jokes today.
i laughed from your other post { on idex thread} as well. didn't know you have that in you!! lmaosmiley.gif .......

i traded LNC when it was in our market, i did made some money back then.



 
nipper
post Posted: Feb 24 2016, 03:36 PM
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In Reply To: Cato's post @ Feb 23 2016, 07:57 PM

Linc investors' $700m dilemma: hang on or cast it aside
  • Kylar Loussikian
  • The Australian
QUOTE
Linc Energy investors this week face a tough choice: consign the one-time oil and gas market darling to the annals of history alongside the wreckage of many similarly promising ventures, or keep the struggling firm afloat by delivering it into the hands of a small number of shadowy hedge funds.

Just four years ago, things were very different. Thousands of mums and dads and more sophisticated investors were encouraged by Linc's founder, Brisbane business identity Peter Bond, into investing in Linc by its promises of turning hard-to-extract coal deposits into a lucrative supply of fuel.

Despite bold claims and rapid expansion, the company has yet to produce any large quantity of fuel, and the business once worth $2 billion is now barely valued at $40m. Instead of delivering rich returns, the company owes its financiers more than $700m. At the beginning of this year, it had just $5m in the bank.

But while many of Linc's investors struggle to come to terms with the hundreds of thousands of dollars they have lost, Mr Bond, 53, continues to live it up with multi-million-dollar properties in Brisbane, a luxury island hotel development in the Great Barrier Reef, and an investment portfolio.

It's a long way from Wollongong, where Mr Bond began his career at BHP's Port Kembla plant, later driving trucks and making his first million sorting discarded coal. Mr Bond oversaw an aggressive expansion of Linc's mining operations, with the promise that a largely untested technology known as underground coal gasification would allow the company to make money from reserves left untouched by larger firms.

As Linc chief executive in 2008, Mr Bond heralded a $1.5bn deal to sell the company's Queensland coal exploration permits to a Chinese mining giant. Despite repeated assurances the deal would be signed within week, it never was.

Two years later, Mr Bond announced the sale of coal deposits in the Galilee Basin to Indian billionaire Gautam Adani for what was claimed could be up to $3bn. Since then, Linc has cashed out of its royalty arrangement, taking home just $655m in total.

Richard Shepherd was one investor who was attracted by the sales pitch — Australian innovation, proven technology, "and that commercial opportunities were imminent". Instead, Mr Shepherd lost $60,000 as the company's fortunes dived.

"For three years I had the investment but nothing was commercialised, (and) the company was just moving from one unfinished opportunity to another, all of which involved expenditure which it couldn't afford," he said.

Evan Lucas, an analyst for IG Group, said the speculative nature and compelling story behind the technology made it "very much loved" by his clients.

"Oil prices were substantially higher and the idea was to use this convoluted and complex process to convert oil to jet fuel and coal to liquid energy, it was an incredible story and at the time it made absolute sense in a high priced oil market," Mr Lucas said. "The question is whether we were actually listening to a story of the science being too good to be true and whether this was something that could actually be brought into fruition."

During the boom years, Linc made numerous claims about developing fields in Australia — where it said it could produce a million barrels a day of oil for a generation — Asia, Europe and in the US including Alaska, which it described in 2010 as a "short-term revenue opportunity".

To date, Linc has been unable to commercialise UCG technology, with its use limited to a Khrushchev-era former Soviet facility near the small Uzbek town of Angren.

Worse, oil prices have collapsed 70 per cent since reaching $US107 a barrel in 2014, leaving hundreds of resource firms heavily indebted and with no way into the black.

But it was in early 2013 that Linc arguably made its biggest misstep. The company issued $200m in convertible notes to a number of investment funds — which can be exchanged for shares — and which are due to be paid in April.

With no cash, Linc's new chief executive Craig Ricato has suggested a change: delay the due date until 2018, but slash the cost of converting the notes to shares, once $1.33 a share, to just 10c a share.

It is unclear who the ultimate holders of the convertible notes are, but it's expected a significant proportion are held by just two hedge funds. One is the Hong Kong-based BFAM Partners, led by former Lehman Brothers managing director Benjamin Fuchs; the other Taconic Capital Partners.

If the hedge funds choose, they could for little cost convert their notes into the largest block of shares in Linc, effectively taking control of the struggling miner.

"The amendments to the convertible notes are specifically designed to encourage conversion into equity," a Linc spokesman said.

The only reason for shareholders to vote in favour of the amendment is because a vote against it will "finish the company", according to Mark Harrison, another investor.

"The only good thing is that Peter Bond won't own 40 per cent of the company any more," he said. "It's been $300,000 down the drain now based on all the promises of what was going to happen, all the good times that were coming."

Mr Bond told The Australian that like other oil and gas companies, it was global resources prices that pushed Linc into the parlous state it finds itself.

"The odds are stacked against you; at $US100 (a barrel) you can make it work, we're all disappointed because we haven't quite been able to kick it home in the time frame we wanted, but we didn't have a straight run at it, nobody did with the global financial crisis, a government telling us there would be a mines tax, the euro crisis, oil prices going up and down," he said.

Mr Bond is scathing about advice he was given to shift the company's listing from Australia to the Singapore Stock Exchange, which Linc said would help attract long-term investors and raise capital.

Instead, Linc shares crumbled, falling from around $S1.20 in 2013 to close around S6c last week.

"You as a leader either reject or accept the advice, you try to be a strong leader and the definition is not just accepting everything, it's running with your own game plan and your own vision," Mr Bond said. "If you accept the advice, you can't blame the genius giving you the advice, (but) mate, all bankers and advisers are essentially various versions of real estate agents. "A large portion of what they're telling you is based on their own agenda and their own relevant bonuses, and you have to weigh that in context and sometimes you become a victim of that."

But while drama continues to engulf Linc, Mr Bond has moved on.

The Bond family lives in adjoining mansions in the affluent Brisbane suburb of Fig Tree Pocket. The first was purchased in 2008 for $9.5m, and has a seven-car garage and a 12-seat cinema, while a second house was added in 2010 for $3.75m.

Mr Bond has also sunk $20m to convert a cyclone-damaged ­resort on Dunk Island off the coast of far north Queensland into a luxury spa retreat after buying it for $7m in 2011.

Through his private holding company ISNY, Mr Bond also controlled development land in the Newcastle suburb of Jesmond, and recently sold the Redfern Post Office building in inner Sydney for $2.6m. Another luxury waterfront property, in Sydney's Watsons Bay, was reportedly sold by Mr Bond for $4.7m in 2014. There are also investments in listed companies, including London-based PowerHouse Energy, in which Linc also has a sizeable holding.

Despite the bearish outlook, Mr Bond said Linc's technology and deposits could still be monetised once oil and gas prices begin to rise.

And some shareholders have made good returns from Linc, he said. "The company has been floated for 10 years, what investment cycle do most people work on? If people sold out at a reasonable investment cycle you would have done extremely well."


(and when he was at school, the dog ate his homework)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
Cato
post Posted: Feb 23 2016, 07:57 PM
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In Reply To: nipper's post @ Feb 22 2016, 02:34 PM

Absolute nightmare of a company unfortunately.

I was very impressed with it initially. It almost seemed like the holy grail. Turn useless underground coal into syn gas into clean diesel. Leave the CO2 in the ground.

Turns out they absolutely fudged it with the Chinchilla project. Never clean; never safe; an environmental nightmare. I'm amazed they are still solvent.

 
nipper
post Posted: Feb 22 2016, 02:34 PM
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Was reading somewhere AFR? that Peter Bond regrets moving to Singapore exchange.

Bet there are a few punters regretting listening to his over-promise and under-deliver (more accurately, non- deliver) spiels.

Derisory market cap and big debts ..... convertible note holders circling



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 


nifty49
post Posted: Nov 13 2013, 11:40 AM
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In Reply To: rosskend's post @ Nov 13 2013, 10:34 AM

G'day Ross Was not in this one, But SXY and NEN going Ok.

Bit quieter here these days? All is well.

Regards

 
rosskend
post Posted: Nov 13 2013, 10:34 AM
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Hi LNCers - The shareholders approved the de-listing but the market has disapproved it?!?!? wink.gif Though about doing what you suggest behrenspeed but in the end it was just too much hassle. Glad I sold and the SP as tanked since. Good luck to all who stayed - and best wishes for you SGX trading experience (filling out the all the forms etc.) I thought this one could do a 10X from .60 - good resources and great potential, but as pointed out - a lose for small Australian shareholders. angry.gif

R/Ross

 
behrenspeed
post Posted: Nov 8 2013, 08:18 PM
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In Reply To: rosskend's post @ Nov 8 2013, 11:26 AM

also the cost to trade seems much higher and allowing for dollar fluctuations, I will hold them and see what the price does but after I sell them I will probably cancel the overseas account.
I think they will lose a lot of their small investors from AUS, hoping to replace them with bigger ones from Singapore. Sad to lose them from the asx IMO3



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Time will tell!
 
rosskend
post Posted: Nov 8 2013, 11:26 AM
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Checked out the brokers offering overseas trading and the requirements to do so and decided it wasn't worth the effort - LNC has great potential, but with this one they shot themselves in the foot IMHO.

R/Ross

 
 


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