Underground coal gasification company Linc Energy Ltd
(ASX:LNC) is to share some of the proceeds made from its recent asset sale with shareholders, yesterday declaring a special dividend of 10 cents a share.
The announcement comes after Linc recently completed the sale of its Galilee coal tenement to India’s Adani and Banks for $500 million.
The dividend is equal to around $50 million of the proceeds from the sale.
Linc says its decision to pay the special dividend at this time recognised both the loyalty of the company’s shareholders and the confidence it has in Linc Energy’s future business plan.
Linc will also benefit from an ongoing royalty of $2 per tonne over 20 production years from the coal tenement, estimated at around $2.5 billion in revenue.
Linc Energy reported a loss of $42.18 million for the 2009 fiscal year.
