Libra Natural Resources Share Discussion Threads

[biggerbil] 17/4/2008 15:36

With PEC now producing, ENT (whisper) may actually be a decent investment (whisper)...

[themajor7] 17/4/2008 11:42

p.e.c up and running its about time

[asparks] 17/4/2008 08:49

BigGerbil - I suggest you email the directors to suggest that. I will.

[biggerbil] 17/4/2008 07:57

A bit of director buying would go a long way too.

[someuwin] 17/4/2008 07:49

A broker's note could be just what we need here. Most people seem unaware of the excellent story developing here.

[biggerbil] 17/4/2008 07:47

Perhaps if one is planned to coincide with the relisting of ENT and completion of the transfer of the assets.

[barryrog] 17/4/2008 07:37

according to other bulletin boards, a Broker's note and Buy recommendation for LNR is to be issued within 10 days.
can anyone confirm this?

[barryrog] 15/4/2008 23:18

BG,
it may be out of date given the recent share issuance to purchase Couer d'Alene but they increase the assets at the same time so depending on their book value, the revised enterprise value could well exceed 12p.

[biggerbil] 15/4/2008 20:24

12p per share would value Libra in the region of £25M. The ADVFN stats are wrong. With the Coeur-related new shares, it would be raised to around £26M. 9p as Wirral suggests would be £18.8M valuation.

[barryrog] 15/4/2008 17:58

i too remain sceptical of the mgt until they say or do something that will demonstrate to the market that there is real value in investing in this Co.
ok hindsight,etc. etc. but the fact is that having fallen this far there ain't much downside left given that the assets are worth far more than the capitalisation.
the upside potential now looks far greater than the downside risk.
the enterprise value of the Co. i.e the likely take out price is now £18.25 mill i.e. 12p per share. (key 'Financials' at the top and read the stats).

[bonzophil] 15/4/2008 17:02

wirralfinance - are you a tad sceptical of the management? I was like yourself, but there are signs that things may be changing.
1 CAFF transaction concluded.
2 Committment to get all the dross off the books, and into EI.
3 MOU for China.
What will convince me is if the MOU for China gets turned into a working business.

We shall see.

[biggerbil] 15/4/2008 13:38

Bonzophil,

It is only 50% dilutive at the current mcap. If, as we hope, Libra start to recover then the payments over the next few years will not be as high a % of the mcap compared to current levels. Additionally, the other payments are dependent on performance targets, so would not be payable if Coeur underperforms. Quite a good deal I think.

I agree with your valuation of EI at zero until we have more information on that company.

We also cannot put a value on the Chinese assets until we get some kind of performance update from China in a few months time.

[bonzophil] 15/4/2008 12:39

No one seems to have commented on the purchase of Coeur d'Alene Fiber Fuels. I realise it is quite dilutive (50% increase in shares) but it claims to double wood pellet capacity, and the full payment is performance related. At the interims turnover was £4.5m so we should see turnover at at least £10m in the full year results. With CAFF doubling group turnover this should give a minimum of £20m turnover for 2008. With a profit margin of 20% this gives an operating profit of £4.0m. Reduce by £2.0m expenses, and we have a possilble pre tax profit of £2.0m before exceptionals. Assume full dilution with 250m shares in issue, and this gives an eps of 0.8p for 2008.

I know this a very rough approximation, but it puts us on a pe of 7 at the present price. I would expect this to put a floor under the price, as we now have a profitable business with some good growth potential. It should also be generating more cash to fund organic growth.

I havent bothered to include any value for Ethanol investments.

Any one care to comment or refine the above?

[dvsfm] 15/4/2008 11:45

nowhere near breakeven for me, going down on tiny volume, when the markets get a better footing I'm sure small caps will be looked at again and hopefully LNR will be one of them

[h4rsh2] 15/4/2008 11:41

9p...I wud jus break even..but i will take it.

[asparks] 15/4/2008 11:22

9p would suit me OK

[psolomons] 15/4/2008 09:32

Everyone noticed it but the share price has done jack sh*t !!
I am begining to think there is a serious problem here despite all the company statements to the contrary and promises of outstanding news from some of the posters here.
For the record I still hold a few of these but I know others who own far more and are losing heavilly. This is not all about market sentiment in my view. If the story was as encouraging as some people think then the city would have definitely re rated the shares. Hope im wrong.

[dvsfm] 15/4/2008 09:06

did you notice the update on the 3rd?

[h4rsh2] 15/4/2008 08:58

Is anyone buying this dog!!!for the past 6 months are we still waiting
for block busting 'news'...(my avg is 8.7p)someone please tell me why i
should not sell..