Libra manufacture woodchip products for sale to retail and energy customers. They are based in Canada and USA. Libra are presently assessing investment opportunities in Russia and China. Libra's aim is to become the largest woodchip provider in the world within 2 years. Wood pellets are in high demand, especially from energy companies who mix the chips into their power plants to reduce their carbon footprint.

"We look forward confidently to the full year Results, which your Board believes will demonstrate an accelerating profits profile, as recent plant upgrades and sell price increases are reflected for the first time." - Peter Greensmith, CEO, Sept 2007

Asset Summary:

Westwood Fibre Products (British Columbia, Canada)
Woodchip production. The enhanced bagging equipment at Westbank has been in successful operation since September 2007 allowing further access to higher margin markets. Libra anticipated that the new equipment would "immediately enhance earnings for LNR".

Princeton Co-Generation Corporation (British Columbia, Canada)
Woodchip production. The production capacity expansion at Princeton Co-Generation Corporation and finished inventory storage are complete and the additional drying capacity will be commissioned in early Q1 2008.

Argonaut BioFuels, Louisa County (Virginia, USA)
Libra have reached agreement to develop, construct and operate a 75,000 tonnes per annum wood pellet manufacturing plant, alongside the recently acquired wood-chip facility, in Virginia, USA. Libra propose to finance this development through a series of staged, milestone-related payments, beginning with an initial, immediate, investment of approximately U$2million. This initial payment will cover the order and delivery of certain production equipment, to ensure that the wood pellet plant can commence operation in the middle of 2008. Once fully in operation, in combination with our existing wood-chip facility, this new plant is expected to generate in excess of U$16 million p.a. in additional revenue for Libra, and achieve EBITDA margins approaching 20 per cent.

West Kootenay Pellets Ltd (British Columbia, Canada)
Proposed 60,000 metric ton pellet plant in the West Kootenay region of British Colombia. It is expected that the West Kootenay facility will enter commercial service during Q1 of 2008.

Coal International (CLN)
Libra hold 1.1million shares, approx 1.3% of Coal International. CLN is traded on AIM. On 24 Jan 2008, a bid approach was received by Coal International.

Evergreen Securities (formerly Ethanol Investments)
Subject to approval by the Ethanol shareholders, Libra will own around 21% of Evergreen. It is likely this will be reduced over time. Evergreen have investments in a number of 'green' companies.

Cash
2.52m at 30 June 2007

Net Assets
21.48m at 30 June 2007


Useful Links:
Libra Natural Resources website
Sep 07 : RNS - Interim Results
Dec 07 : RNS - Trading Update
May 2006 - University assessment of China's wood pellet market
Mar 08 : RNS - Appointment Of Broker (Liberum Capital Limited)

Pipeline:
a) Exclusive MOU signed to develop additional pellet capacity in Canada
b) Acquisition of certain development rights over a large-scale pellet facility in the Eastern USA;
c) Entering into due diligence on the acquisition of a major North American wood pellet facility;
d) Signing of an exclusive MOU, covering the proposed development of a series of wood pellet plants in Russia;
e) Advanced joint-venture discussions relating to existing and proposed pelletising facilities in China.

According to the Pellet Fuels Institute of America, there are approximately 800,000 homes in the U.S. using wood pellets for heat, in freestanding stoves, fireplace inserts and even furnaces. Pellet fuel for heating can also be found in such large-scale environments as schools and prisons.

In light of Libra's planned expansion into the Chinese market, I have added a link in the header for a study into the Chinese wood pellet market, produced by the Changsha Research Institute of Bio-Energy.

EU announces energy plan of action: http://news.bbc.co.uk/1/hi/sci/tech/7203514.stm

Good news for renewables and 'green' fuel suppliers.

Biomass Co-Firing: "An Efficient Way Of Reducing Greenhouse Gas Emissions" - authored by European Bioenergy Networks.

Good information on the benefits of using wood pellets for co-firing power stations.

BBC report on how to meet the EU emissions targets: http://news.bbc.co.uk/1/hi/sci/tech/7206008.stm

"...wood burning could perhaps provide 5-10% of our heating needs by 2020, principally in commercial properties which already have some of the infrastructure they would need, and which can provide a reliable market for suppliers.

"The analysis we've done suggests that where there's demand, a supply will come in," he says.

"It's a combination of waste wood and new wood; managed forestry is an option, where you grow and harvest it cyclically, so it becomes a nice sustainable source."

Bid approach for CLN, in which Libra hold 1.1 million shares.

Lots of big buys today. Seems to be strengthening.

Libra are due to complete their analysis of investor relations at the end of this month.

Libra have appointed Liberum Capital Limited as their broker. RNS

Libra are rumoured to be preparing to announce developments in their investment strategy, including the Chinese and Russian woodchip plants.

Operational Update released today

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

Buy note from Liberium.

see you monday.

OK tuesday then.

Looks like I picked a shocker this time - doh!

Still, the company has now sold off non-woodchip assets, consolidated the shares and is now called Fibregen to reflect the woodchip focus. My understanding is that the woodchip plants are trading profitably, so things should start improving medium/long term from here.