LCK 6.06% 17.5¢ leigh creek energy limited

I might be wrong here, but...( I read about this here...

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    I might be wrong here, but...

    ( I read about this here https://www.investopedia.com/terms/1/3p.asp )

    This isn't my area of expertise but I learnt to read...

    3P is more speculative than 2P but better than 2C.
    2P is the usual standard = Proven and Probable (the upcoming report will indicate the mix).
    3P includes some Proven and Probable, Some Possible (the upcoming report will indicate the mix)

    Proved reserves = 90% certainty of being produced (P90).
    Probable reserves = 50% certainty (P50),
    Possible reserves = 10% certainty (P10) of actually being produced.

    3P is a rosy estimate of what could be coming in the future.

    As I understand it, LCK said they would be re-rating some of the 2C (3,000 Pjoules) to 2P
    And, the remaining 2C (the rest that isn't validated because it hasn't been demonstrated with a ISG test) would be re-rated.

    They also indicated a revised JORC was possible with the 2P announcement.

    So I am expecting...
    a 2P headline number on some of the resource (I am guessing between 500 and 800 P joules)
    a 3P re-rating on the whole resource (inclusive of the 2P) - so a much bigger, but less certain number.
    and probably a revised 2C rating on the rest (an unreliable but indicative bonus).

    I am guessing the total resource (however it is rated) will be larger than the previous 2C estimate.

    I could be wrong, but that's how I am reading it.

    We might have the answers sooner than we think.

    IMO
    DYOR




    Last edited by MarketingMan: 19/03/19
 
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