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Linc Energy Limited
Australia, Vietnam, India and Now China….
LNC A$2.94
BUY
26 May 2008 26 May 2000 Jeremy Tobias
(02) 9226 0086
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Linc Energy Limited (LNC) today announced that it has executed an MOU with the Huadian Coal Industry Group from China (owned by both the China Huadian Corporation and Huadian Power International Corporation). This latest MOU reaffirms our view that LNC is fast becoming the partner of choice in the UCG/GTL sector, both domestically and internationally. We have also increased our 12 month price target to A$3.53/sh (prev A$2.95/sh), in line with our DCF valuation of A$3.53/sh (prev A$2.95/sh), primarily due to reducing our WACC to 13% (prev 14%) as we are now only weeks away from completing commissioning of the company’s pilot GTL facility in Chinchilla, QLD.

MOU with Huadian Coal