Re: Calgary Meeting

Posted by: Freedom30 on September 27, 2008 05:16PM

In response to: Calgary Meeting by Freedom30

Here are a few points I took note of at the LBE meeting in Calgary today (turnout didn't seem very good...how many were in Edm.? I'd guess a little over a dozen people showed here).

Most of it was covered by the Edmonton meeting description so I won't cover the obvious stuff that most investors know about LBE already...

-There are a few announcements to expect in Oct.:

1. The financing has been obtained to carry LBE until it becomes cash flow positive in Q1 2009...will be announced this upcoming week

2. Hart feasibility study expected in ~2-3 weeks

3. Cobalt drill results due later in Oct.

-Prd should be up to 1200t/d in Jan. -> 1600t/d by the spring

-should reach high grade McWatters ore in Nov.

-haven't sold but are still planning to sell the Redstone equipment for a couple million

-Gary Nash went through cash flow calculations on Redstone and McWatters (don't quote me exactly on these numbers..)...at 8.50 Ni LBE will be cf positive in Jan. and will reach over ~5 million per month in March...at 7 Ni we would be delayed until Feb. to become cf positive and would get up to ~2 million a month in March/April...we didn't even look at $10+ Ni, but it would be outstanding!

-now the total cf of the properties was ~144 million at $7 Ni and ~225 million at $8.50...this included everything (ie. exploration drilling) except G&A which would be about 10-12 million over the production period

Gary made a few interesting comments about Ni prices and the share price...

-Ray Goldie of Salman who predicted (and underestimated) the price spike of last year is predicting Ni in the teens next year...prices are subdued right now as we go through a period of saturation in the market

-as for share price we have likely dropped this low because there are apparently some nasty rumours spreading around brokers/funds that LBE is about to go bankrupt....they are telling people to sell LBEand have written them off. This is definitely NOT the case, this soon to be announced finacning was likely the last obstacle...this difficult development stage will be behind us and we will start bringing in the dough

Thats about it. I found it to be extremely positive and it looks to me that it is a no-brainer to pick up shares at this level...LBE looks to be very close to success! I was really pleased to see that this current Ni price is still enough to succeed...if Goldie is right and Ni heads back above $10 next year we will be laughing..and if I can buy enough shares at these levels I will be rich! LOL