Libra Natural Resources Share Discussion Threads

[biggerbil] 03/4/2008 07:53

About 11% dilution for woodchip expansion approaching 100% is a nice deal.

Is the £2.68M for the demerged assets including the PEC deal announced previously or in addition to that deal?

[chris1981] 03/4/2008 07:44

The share price has been much higher without developments as positive as this.

[someuwin] 03/4/2008 07:40

All this and a market cap of only £11m. This surely has a very strong chance of 10 bagging from here!

[barryrog] 03/4/2008 07:29

At last NEWS!!!!!!!!!!!!!!!!
i'm pleasantly surprised to see that we are now the 6th largest wood pellet producer in the world and up to no 2 in the U.S.
the China JV makes the goal of being the world's number 1 within 2 years very achievable.
no news on Russia yet but i guess this is more than enough to be going on with.
please,please now keep the newsflow/updates coming out on a regular basis.

[someuwin] 03/4/2008 07:29

Wow...

"The Company is now 2nd largest producer in North America, 6th largest in the world."

[chris1981] 03/4/2008 07:25

Reading the announcement again can't see any negatives.

Any ideas what this will do to the share price?

[the shuffle man] 03/4/2008 07:20

great stuff, with results to come and then regular news flow this is the start of the re-rating we have all been patiently waiting for, well done LNR :-)

[turbotrader2] 03/4/2008 07:19

Coeur d'Alene Fiber Fuels acquisition ;
Paying 2 times historic EBITDA
To require full payment of the deferred payout, (i.e. for the deal to cost the full U$9m), would still mean the co would pay under 3 times EBITDA
Doubles the size. Makes lnr a serious North American and global player.
What AIM listed renewables company (a) has any EARNINGS at all and (b) trades and/or acquires assets at

[someuwin] 03/4/2008 07:19

On first reading this looks like very excellent news - well worth the wait!

[chris1981] 03/4/2008 07:13

We should go up a fair bit today. This is good news isn;t it?

[turbotrader2] 03/4/2008 07:09

happy now guys

I am

[chris1981] 03/4/2008 07:06

Operational Update

RNS Number:4902R
Libra Natural Resources PLC
03 April 2008


Press Release 3
April 2008



Libra Natural Resources plc

("LNR" or "the Company")



Acquisition of leading North American wood pellet company

Expansion into Chinese biomass market

De-merger of remaining non-wood pellet assets

Proposed name change to FibreGen plc



Libra Natural Resources plc, the international waste-to-energy company, today
announces a series of major strategic moves which create a focused
biomass-to-energy business, and provide the platform for the accelerated
development of a significant force in the international renewable energy
marketplace.



Highlights


* Acquisition of Coeur d'Alene Fiber Fuels Inc ("CAFF"), a leading, profitable US producer
of wood
pellets, for U$3million, rising to U$9million on profitability milestone achievements
between 2009 and
2014.
* This acquisition approximately doubles LNR's wood pellet capacity, revenues and EBITDA,
and brings
modern, state-of-the-art pellet facilities with in-situ scale up potential. The Company
is now 2nd
largest producer in North America, 6th largest in the world.
* Heads of Agreement signed with leading Chinese and Canadian partners, creating a joint
venture vehicle
to provide biomass pellets to the Chinese power station market.
* De-merger of all remaining non-wood pellet operations to Evergreen Securities plc,
completing the
transformation of the Company into a pure biomass-to-energy entity, as previously
outlined.
* The Company proposes to change its name to FibreGen plc, reflecting the creation of a
major, focused
force in the biomass-to-energy sector.



Glenn Smith, Chief Executive Officer of Libra Natural Resources plc, said: "With
today's announcement, the Company completes its promised transformation into a
focused international biomass-to-energy business. The acquisition of Coeur
d'Alene Fiber Fuels Inc, which almost doubles the size of our core business,
represents a powerful statement of intent to become the world's leading producer
of wood pellets for bio-energy generation. The proposed formation of our Chinese
joint venture, with strong in-country and experienced partners, emphasises the
Company's commitment to prudently grow our business internationally, where the
right opportunities present themselves.



"The Board intends to make FibreGen plc a major force in one of the most
exciting sectors of the international renewable energy marketplace. We will
continue to focus on developing a global presence in the wood pellet and
biomass-to-energy market, and to offer shareholders a company which delivers
environmentally friendly profitability and growth. Today's news represents the
start of the development of the Company into a major global force in the
international renewable energy sector, and the Board looks forward with real
confidence to the future."



- Ends -



For further information:


Libra Natural Resources plc
Glenn Smith
Mark Campanale


Landsbanki Securities (UK) Ltd

Nominated Advisor
Gareth Price/Simon Brown, Corporate Finance Tel: [phone]
9000
Liberum Capital - Broker
Ellen Francis / Simon Atkinson, Corporate Finance Tel: [phone]
2000





Media enquiries:
Abchurch Tel: +44 (0)
20 7398 7700
Joanne Shears / Justin Heath Tel: +44 (0)
20 7398 7709
[e-mail]
www.abchurch-group.com






Existing business

The Company already operates three profitable wood biomass fuel businesses in
North America with a current total capacity of 131,500 tons of wood pellets and
100,000 tons of wood chips:
* a plant at Princeton, British Columbia, Canada which has capacity of 74,000 tons of wood
pellets and
which was acquired in March 2006;
* a plant at West Bank, British Columbia, Canada, which has a capacity of 57,500 tons (of
which 80% is
wood pellets and 20% is wood shavings) and which was acquired in December 2006;
* a wood chip production facility in Louisa County, Virginia in the US which currently has
a 100,000 ton
annual wood chip capacity, and which was acquired in October 2007. As announced in
December 2007, key
equipment has been ordered and is currently being manufactured for delivery later this
year. Wood
pellet operations are due to begin at the beginning of 2009 with a capacity of
approximately 70,000
tons.



The Company also owns the development rights for a wood pellet production
facility at West Kootenay, British Columbia, Canada which was acquired in August
2007.



Following the transactions below the Company is expected to have a total
capacity by the end of 2008 of 321,500 tons of wood pellets and 100,000 tons of
wood chips



Acquisition of Coeur d'Alene Fiber Fuels Inc



Background to, and reasons for, the Acquisition



It is the stated intention of the Board to position LNR as the leading producer
of wood pellets by the end of 2010. To achieve such an ambitious objective
requires carefully targeted, synergistic acquisitions and greenfield
developments where the appropriate long-term feedstock and off-take agreements
are in place. The acquisition of CAFF represents an important next step in the
achievement of this goal, bringing with it a major increase in LNR's overall
market presence, significant potential synergistic benefits and enhanced
operational and management expertise.


* CAFF's forecast 2008 production of over 95,000 tons will almost double the size of LNR's
existing wood
pellet operations, moving the Company from being the 9th to the 6th largest producer in
the world;
* The proximity of CAFF's plants to LNR's existing British Columbia-based facilities will
potentially
provide significant feedstock supply, customer and management synergies. CAFF's Omak,
Hauser and
Shelton plants are all within two to three hundred miles of LNR's existing Princeton and
Westbank
facilities and less than 100 miles from LNR's proposed West Kootenay project in British
Columbia;
* CAFF plants have traditionally been very strong in the important bagged fuel market along
the west
coast of the United States, and area where LNR has historically had to rely on indirect,
third-party
distributors;
* CAFF, although active in the animal bedding and baled shavings markets, does not have the
market
presence of LNR in either market, and may benefit from utilising the Company's
significant presence in
both of these high margin, niche-sectors.
* LNR has reached agreement with Mr Eric Hanson, CAFF's majority owner and CEO, for Mr
Hanson to assume
a senior management role within the enlarged LNR.





Information on Coeur d'Alene Fiber Fuels Inc



Coeur d'Alene Fiber Fuels Inc ("CAFF") was established in 1986 and conducts
business under the trade names of Atlas Pellets and Atlas Industrial. CAFF
operates 2 wood pellet production facilities located in Omak, Washington (which
has a capacity of 25,000+ tons per annum) and Hauser, Idaho (which has a
capacity of 40,000 tons per annum), with a third facility under construction in
Shelton, Washington of 55,000 tons (N.B. already fully financed and due to
become operational in late Q3 2008). The business is family owned and managed,
employs 45 staff, and is an S -Corporation registered in Idaho.



CAFF produces several brands of high quality wood pellets for the bagged fuel
market, which are sold in the western half of the USA to several hundred long
term customers who buy on an annual basis. CAFF also produces small quantities
of animal bedding, and baled shavings.



In its unaudited results for the year ended 31 December 2007, CAFF generated
turnover of U$8.9m and EBITDA of U$1.5m. Net assets were U$3.34m at that date.
These results cover a full 12 months of production for CAFF's Omak facility, and
approximately 6 months for the recently commissioned Hauser plant (N.B as
stated, CAFF's Shelton plant is under construction, and is due to come on stream
during 2008).



Principal terms and conditions of the Acquisition



The maximum total purchase price is $9million, $3million of which will be
immediately satisfied by the issue of 23,566,379 new Ordinary Shares (the "CAFF
Consideration Shares") in LNR. The number of New Ordinary Shares to be issued
was determined on the basis of the volume weighted average price ('VWAP') of LNR
shares over the ten business days prior to today's announcement. The vendors of
CAFF have agreed to certain orderly market restrictions on the sale of the CAFF
Consideration Shares for the first six months after issuance.



In addition to this initial U$3million, a conditional deferred consideration of
up to a maximum of U$6million will become payable if CAFF meets certain
increased trading and profitability targets for the twelve month periods ending
31 December 2009 to 30 December 2014 (the "earn-out years"). Such conditional
deferred consideration will be payable, in tranches of U$1million per annum, in
each of the earn-out years in the form of additional New Ordinary Shares. The
issue price for any such deferred New Ordinary Shares issued will be determined
by reference to the VWAP over the 90 consecutive trading days prior to December
31st of the relevant earn-out year.



Expansion into Chinese biomass market



LNR has reached heads of agreement for the formation of a joint venture company
with Heilongjiang SY Renewable Energy Co. Ltd ("SY Energy") of Heilongjiang
Province, China and SBC International ("SBC") of British Columbia, Canada



The purpose of the Chinese joint venture is:
* initially in the Jiangsu Province of China , to construct, commission and own a series of
facilities
for the production of biofuels from corn residues, rice husks, rice stalk, agricultural
straw-based
biofuels and other woody biomass products;
* to market and sell the output for use in the generation of energy or ancillary services
from
biomass-fired and coal-fired power plants, initially in the Jiangsu Province of China
and
* to market and sell any and all environmental attributes (principally carbon) resulting
from the
production, sale and use of products produced.





Key operational and strategic details
* LNR will own approximately 25% of the equity of the joint venture;
* LNR will provide marketing and sales services to the joint venture, relating to all
carbon related
credits or attributes ascribed to the operations of the joint venture. SY Energy and SBC
will provide
operational management, logistics and administrative services to the joint venture and
each of its
operational facilities;
* To reflect the relative ongoing management and operational contributions, and the
capital
contributions to date, made by its proposed partners, LNR will provide up to 34.8% of the
future
capital requirements of the joint venture;
* SBC has constructed and commissioned a 50,000 tons per annum demonstration facility (the
"
demonstration facility"), on land owned by the proposed off-taking power utility, in the
city of
Baoying, Jiangsu Province, China. The demonstration facility, ownership of which will be
assumed by
the joint venture, commenced operations on March 1, 2008, with development costs provided
by SY Energy
and SBC;
* It is the intention of the joint venture to further develop this demonstration facility
into a 100,000
tons per annum operational plant, with full production in place by the end of 2008;
* The estimated total initial investment (including development costs to date) for this
first 100,000
ton operational plant is 8,500,000 Chinese Yuan (U$1.15m);
* Off-take, 'take-or-pay' contracts for an initial 100,0000 tons output are under detailed
negotiations
with a local power company and owner of 22 power generation plants in Jiangsu Province,
17 of which
are 100% biomass fuelled;
* Full terms of any off-take agreement will remain commercially sensitive, but initial
indications
suggest potential for very attractive profitability and ROI and scale-up
* The strategy of the joint venture is to produce 1 million tons of biofuels by 2010,
moving to 5
million tons by 2012.





De-merger of remaining non-pellet assets



Further to the announcement of 18 December 2008, LNR is pleased to announce that
it has signed binding Heads of Terms with the AiM-listed renewable energy
company, Ethanol Investments plc ("EI"), for the sale of LNR's entire 11.55%
stake in Prometheus Energy. In addition to this sale, LNR has agreed to sell EI
certain other minority stakes, comprising the remaining non-wood pellet
investments held by the Company. The sale of these stakes, which is subject to
EI shareholder approval, values LNR's non-core assets at £2.68 million, and
leaves LNR entirely focused on its core biomass-to-energy operations As
consideration, LNR will receive new EI plc shares, giving the Company an
estimated stake of approximately 24% in Evergreen Securities plc, the new name
for EI following its scheduled re-listing on AIM next month. LNR has undertaken
not to dispose, other than in certain specified circumstances, of the EI shares
to be issued to it as consideration for the sale of these assets, for a limited
period following their issue. It remains, however, the intention of LNR to
reduce this holding over time, as EI expands its operations and dependent upon
LNR's ongoing financing requirements.



Proposed name change



To reflect the completion of the re-positioning of the Company as a focused
biomass-to-energy company, it is proposed to seek shareholder approval at the
next Extraordinary General Meeting to change the name of the Company to '
FibreGen plc'.



Issue and Admission of New Shares



Further to completion of the acquisition of the West Kooteney development rights
and Virginia plants referred to in the description of the existing business
above, the Company has issued 450,451 new Ordinary Shares and 436,927 new
Ordinary Shares as share consideration in relation to each acquisition
respectively. The Company has also issued 1,076,588 new Ordinary Shares to an
ex-employee as part of a settlement contract upon leaving the Company.
Application has been made to AIM for the admission to trading of these 1,963,966
new Ordinary Shares as well as the 23,566,379 CAFF Consideration Shares. The
aggregate 25,530,345 new Ordinary Shares, which will all rank pari passu with
the existing Ordinary Shares, are expected to be admitted to trading on 9 April
2008. The total number of shares in issue will, following these issues, be
232,605,191.

[turbotrader2] 02/4/2008 23:41

Wirral

you are going to have egg on you face with those comments

[barryrog] 02/4/2008 14:19

well don't then.
however news releases are imminent and are always made prior to market open so you either anticipate or wait.
i've been griping like hell at the wait but have still been accumulating (you can often get them for less than the mid price) as i believe the upside potential to be far greater than the downside risk.
i haven't ruled out the possibility of a bid either.

[brando69] 02/4/2008 12:34

looking at the chart, i'd be no rush to get in here in the absence of news.

[someuwin] 02/4/2008 12:31

There's no great rush to get the results out - they've got til June.

Don't forget, this is a company going through major changes (both personnel and strategy) look back at the Trading Update on 18th December.

Personally, I don't think the results (up to 31st Dec 2007) will be relevent - whats important is the progress being made going forward, and reading between the lines I think we will be getting good news on that front soon.

[barryrog] 02/4/2008 12:20

i have to agree re results.
Woolies produced their's this am for y/e 2/2/2008.
thousands of outlets, numerous cos. to consolidate and catalogue sales.
as i said a while back, this is a microcap for christ sake - how long does it take?

[asparks] 02/4/2008 09:34

this is getting soooooo tedious.

where are the results!

LNR is my largest holding, so I'm getting anxious

[barryrog] 02/4/2008 08:32

post removed n/a.

[asparks] 01/4/2008 09:30

does not look like it

[the shuffle man] 01/4/2008 07:32

can we make it 3 up days in a row :-)

[barryrog] 31/3/2008 18:11

whats this block listing announcement made this evening.
looks like shares allotted to facilitate options to me - who's earnt these if thats what they are?