Company Information for Libra Natural Resources plc

Company stock charts - 12 Month chart

AIM; LNR

Company Statement

Libra Natural Resources plc (AIM:LNR) is a UK company incorporated to establish, invest in, or acquire assets, businesses or companies involved in certain aspects of the natural resources and energy sectors, with assets based in the USA and Canada. The Company debuted on the AIM market on the London Stock Exchange in March 2005. As an international company that acquires and invests in the natural resources and energy sectors, LNR has targeted its initial investments in the waste to energy sectors.

In pursuing investments in this sector LNR assesses projects with respect to technical, commercial and investment return merits. LNR's initial investments are concentrated in 3 areas currently; waste coal, waste wood and waste gas.

Group Strategy

The initial strategy of the Company was contained in the admission document issued in March 2005. Since then, the Directors have reviewed various opportunities within the natural resources and related markets. As a result of that review, the Directors wish to confirm that the Company's strategy is to invest in a concentrated portfolio of businesses that convert waste to energy, primarily in North America and Europe. It is anticipated that the businesses will be cash generative or close to being cash generative.

Investments will normally be less than £10 million, and, may range from minority positions to full ownership. The Company's involvement in the management of its investees will vary from case to case, taking into account its level of ownership.

Company Diagram

Showing many of Libra's activities

Operations and Technology

Prometheus Energy Company

LNR reached initial agreement in September 2005, with Seattle, WA based Prometheus to invest US$2.5 million in the development of its liquefied natural gas (LNG) systems. Prometheus develops, designs, manufactures, and sells small-scale LNG systems for natural gas recovery from coal mines, landfills, and stranded well production in Europe and the United States and sells the resulting LNG production to wholesale and retail clients.

Subsequent to the Company's half-year end, LNR completed its investment in Prometheus, having increased its size to US$4 million (£2.1 million). Following the completion of this investment, the Company has continued to work closely with Prometheus to help define and implement its commercial and financial presence outside the United States.

On September 14th 2006, Prometheus announced that it had introduced its shares to the Alternative Investment Market in London. LNR now owns 11.55% of Prometheus, valued at approximately £5.6 million as of 27 September 2006.

Westwood Fibre Products Inc.

Following LNR's acquisition in February 2006 of a 55% stake in this leading Canadian waste wood fuel producer, the Board is pleased to report that Westwood continues to perform in line with expectations, and has produced a small net profit for the period under review. This profit was achieved despite Westwood experiencing temporary disruptions in production due to fibre supply constraints and a small fire in part of the factory's storage facility. That revenues and profitability remained buoyant during this period, is in no small way a testimony to the quality and commitment of Westwood's management, and merely reinforces the Board's belief that the company represents an outstanding long-term investment prospect for LNR.

In line with LNR's stated strategy to help develop Westwood into one of North America's largest wood pellet manufacturers, the Board is pleased to report further significant progress.

LNR has signed Letters of Understanding with certain other minority shareholders in Westwood to increase the Company's stake in the business from 55% to 75%. This transaction, which will be effected through an equity-for-surplus equipment swap, is expected to be completed in November 2006, subject to the signing of definitive contracts.

In addition, LNR has entered into a non-binding MOU, covering the potential acquisition of a further major waste-wood pellet operation in British Columbia. An acquisition of this profitable business, and its merging with the co-located Westwood operation, would more than double Westwood's current pellet production capacity and bring significant synergistic benefits. Subject to the successful completion of detailed due diligence, currently underway, we anticipate that this transaction will be completed towards the end of the next quarter.

LNR Kincaid

With regard to LNR's waste coal processing investment in Springfield, Illinois, construction and commissioning of the project has continued during the period, and, the Board is pleased to report, is now reaching conclusion.

Extensive testing and commissioning of the plant and equipment has been carried out in situ, and the site is scheduled to become operational in Q4 2006. It is expected that the facility will achieve full commercial production over the balance of the quarter.

As previously announced, it is the Board's belief that there exists considerable potential to significantly grow LNR's clean coal operations, particularly in the United States. The Board is actively pursuing other, additional sites which provide the right conditions for the successful economic deployment of LNR's reclamation technology and expertise, and would thus expect to see a significant scaling-up of the Company's operations in this area in the immediate future.

Geographical Spread

Canada

USA

Board of Directors and Key Management

Peter Greensmith	Chief Executive Officer

Glenn Smith	Chief Investment Officer

Michael Greenwood	Non-Executive Chairman

Mark Campanale	Non-Executive Director

Company Address

City TowerLevel 240 Basinghall Street
London, London, United Kingdom EC2V 5DE


Telephone:	T:+44 (0) 20 7877 5040
Facsimile:	F:+44 (0) 20 7877 5041
Email:	ak[at]lnrplc.com
Website:	http://www.lnrplc.com

Additional Address/Key Contact

Investor Relations Contact

Heather Salmond
Abchurch Communications
100 Cannon St
London EC4N 6EU
United Kingdom

Phone: +44 (0) 20 7398 7704
Fax: +44 (0) 20 7398 7799
E-mail: Heather.Salmond@abchurch-group.com

Annual General Meeting

15 August 2007

Nominated Brokers

Landsbanki Securities (UK) Limited

Ambrian Partners Limited

Nominated Advisors

Landsbanki Securities (UK) Limited

Major Shareholders

Major Shareholders Information

Major Shareholders	Amount	% Holding
Broughton Limited	45,000,000	22.07%
Peter Greensmith	10,910,499	5.35%
Maitland Invs Ltd	9,386,666	4.60%
Henderson Global Investors Limited	9,040,000	4.43%
RAB Special Situations (Master) Fund Ltd	8,800,000	4.32%

Director's Information

Name	Amount	% Holding
Michael Greenwood	1,000,000	0.490%
Glenn M Smith	170,000	0.083%
Mark Adrian Campanale	86,081	0.042%

Most Recent Statement

13/09/07 - Update and notice of results
14/08/07 - Blocklisting Interim Review
14/08/07 - Result of AGM
01/08/07 - Update-Wood Pellet Operations
28/06/07 - Annual Report and Accounts
27/06/07 - Director's Shareholdings

To top