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CNW - Cirrus Networks Holdings

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Re: LBY - Liberty Gold

Yep they are big numbers. Grades at +45% manganese is up there from my understanding. Remember grades quoted are from surrounding deposits, not the tenement that has been purchased. But at a mkt cap of $5m odd with cash on hand of $4.5m, it is not much of a punt IMO.

The big problem is the sell side depth - there ain't anything there which is not surprising given it's low share price at the moment. Oppies have expired too.

PS: my apologies for my atrocious spelling of manganese in the last post (not mananganese or manangenese!! ). It is a bit of a tongue twister when you are writing it in a hurry.
 
Re: LBY - Liberty Gold

They have acquired the project for a song - how they managed to pull that off is puzzling and the only worry that I would have. Does the seller know something they should know?

The only significant costs they face are finding the manganese and getting the mining permit. Capex and opex will be minimal. They could even do it the pick and shovel way as I have seen before at a small mine in Indonesia. Even if mechanised the scale is so small that it will be cheap, cheap, cheap... The tenements are coastal and building a jetty will cost very little. Plenty of barging contractors around so no outlay there. If they find 45% manganese they will mint money...

Good to see that they have left the local interest with a 30% stake. That should help things to move along. Now all they have to do is find the manganese...
 
Re: LBY - Liberty Resources - Coal Gasification

Have a look at the announcements on the coal gasification exploration tenements adjacent Linc Energy in the Surat Basin Qld. Possible huge upside, once the market settles, although still early days.
 
LBY - Liberty Resources

Formerly know as LBY- Liberty Gold, have moved into the UGC sector and have caught my eye with a couple of rather impressive announcements.

Firstly, an annoucement of a HOA agreement with Carbon Energy (CNX) to develop the 338 million tonne, inferred resource, in the Galilee basement. CNX will hold 80% of the JV and will be the operator. Coal resource is open in all directions and is expected to increase in size with further exploration.
http://www.asx.com.au/asxpdf/20090727/pdf/31jr4ztp13w29p.pdf

Secondly, LBY have massive land holdings across potential areas suitable for UGC, including holdings near or adjacent to CNX, LNC & Waratah Coal. Currently targeting an exploration potential of 280-350 billion tonnes of coal based on an independant study by Al Maynard & Assocs.
http://www.asx.com.au/asxpdf/20090729/pdf/31jsggssfvt5s0.pdf

These annoucements have seen price move from 7 cents to an intra-day high of 16.5 cents, closing at 15 cents at end of trade today. Exciting times, seems to have come from nowhere
 
Re: LBY - Liberty Resources

Having enjoyed the wild ride on LBY from 10c down to 3c (thank god I averaged down got a large holding at 5c avg) when it was a gold/iron ore and uranium company


Anyhoo have been taking profits from the 15c-17c level and sold my last parcel today

How I love when a company moves into UCG

Works wonders for the share price
 
Re: LBY - Liberty Resources

LBYO September 2009 7.5 cent oppies look worth exercising, the last SPP was tricky, half now half later, in the end could be paid off. If you look at the chart, Liberty has a lot going for it, now it's time to sit back and watch the business. The aquisition of the Qld Energy Project done it, the uptrend has held through thick and thin, Liberty has fared well. :bier:
 
Re: LBY - Liberty Resources


And up she goes on a red day lol

Its like rubbing salt into a wound

Still was a very good return but with hindsight should have hung onto some
 
Re: LBY - Liberty Resources

Am I correct in interpretting this morning's announcement as being a tenfold increase in inferred thermal coal resources?

Market hardly responded. Interested to hear others thoughts
 
On July 2nd, 2015, Liberty Resources Limited (LBY) changed its name and ASX code to Cirrus Networks Holdings Limited (CNW).
 
looks like finally cnw is getting a bit more attention, with a good spike in the share price lately. Whats worrying is it looks like its traders inspired, not on revenue and profit growth. Cnw is a company in transition, going from a low margin hardware and software operation, to higher margin managed services area. With nearly 3m of revenue (1m each for 3 years) signed up in the last 6 months in managed services, things are looking up. Getting status to tender for WA govt contracts is a real positive and hopefully in the next 6 months, cnw can jag a couple contracts. Cash burn is a little bit of a worry in the next couple quarters, but with 4m in the bank, there appears to be enough cash to use to expand the business significantly and get cashflow positive very quick.

Scaling up the business is key for cnw, so contact wins are important to spread the significant fixed costs the company currently has with its managed services start up
 
buying L7 from vocus for 500k is an absolute steal. This should really turn cnw from a cash burn position to a position of cash generation, as indicated by the announcement. Wow, win a couple more contracts in the next few months, retain the existing ones, and cnw is well on its way to becoming an IT leader in the WA market, and with that scale and expertise, it should be a lot easier to buy or setup a commentary company in the eastern states, or SA and NT. Bed down this acquisition and the share price should be multiples of what it now, making it easier to buy the next acquisition.
 

Very interesting this acquisition. The announcement noted that L7 was established by two of CNW's current board members, and sold to Amcom in 2011 for $15m. 4 years later they buy it back for $0.5m. Shades of Alan Bond and Channel 9, albeit at a much smaller scale.

Even though the margin is not great at L7 it provides a turnaround opportunity and adds scale to CNW. FY15 revenue for CNW was $14.9m, and in Sept they reported 41% growth YTD. L7 on the other hand has $28m in revenue. So all in all we are looking at a company with potentially $50m revenue for FY16. The market cap is only ~$25m. It would not need a heroic margin to justify a higher valuation.
 

Interestingly, one of the directors was the founder of L7, who sold it to Amcom. One would think, given the experience, it would be difficult for their margins not to improve.
Theoretically (theory is always nice), any fixed costs could be reduced given the two companies operate in similar areas.


On another note - given CNW are focussing on Cloud/IaaS, BPF is a great comparison. Similarly, Kloud (privately owned) are growing like a weed in Melbourne performing the same AWS/Azure work. They would be hard-pressed NOT to increase revenues in this space.

(P.S. Microsoft have just hired another 8 Cloud Architects for their east coast in Azure over 3 months, and are about to hire some more. And these are just the guys who play with virtual crayons.... someone has to implement as well.)
 
Reco there will be an update soon to show how things are progressing with the L7 acquisition and any additional contract wins?
 
Quarterly report out this afternoon has shown an improvement in cash receipts, posting $2.8m to give OCF at -$308k.
L7 acquisition only completed mid-December, so next quarter should should be much better again. Interesting one to watch.
 
Cirrus Networks Holdings up 57.14% to 2.2c this morning after releasing its Quarterly Activities Report.

The company remains cash flow positive and receipts are up. The Correct Communications acquisition has produced results with in excess of $2 million of new orders, including a number of Federal government agencies and public utilities. The acquisition of NGage has also contributed to the company's increase in revenue.

 
CNW announced yesterday they had finalised tranche 2 payment for Correct Communications, and added a footnote that Correct Communications was running 114.6% ahead of revenue in last years equivalent first two months. They also mentioned margins were significantly ahead as a result of increased service revenue. Should give us a good quarterly at the end of October.
 
Have now had four quarters with positive cashflows, with cumulative cash flow of $2.147 million. Revenue has been growing for a few years now, so if they can keep growing free cashflow and with a market cap of $14 million it is cheap. We will see with the quarterly coming up at the end of January.
 
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